Coyote Gold Project Overview

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The Coyote Gold Project was officially opening on 24 May 2006 by the Governor-General of Australia, His Excellency Major General Michael Jeffery and representatives of the Tjurabalan People.

Mining of the open pit commenced in May 2006 and by the end of September 2006 more than 97,000 tonnes of ore were stockpiled and ready for processing through the treatment plant.

Construction of the Coyote treatment plant was completed late September 2006 however commissioning continued to encounter problems. A review of the treatment plant and the process design by Tanami Gold's operations management team and independent consultants resulted in the decision to convert the treatment plant to a conventional carbon-in-pulp (CIP) configuration.

The treatment plant improved markedly since its reconfiguration to a conventional CIP circuit and process design modifications.  Installation of the new leach tanks was completed during January 2008.  The additional leach tanks will ensure the plant has adequate leach residence time to achieve high recoveries (+97%) from the high grade (+13g/t Au) underground ore.

Infill diamond core drilling into the high grade Muttley Lode at Coyote commenced in April 2007 to achieve a higher level of confidence in the tonnes and grade of that lode and to test extensions of the lode which is open along strike. 

Visible gold was intersected in six of the eight holes drilled. The position and grade of mineralised intercepts in the drill holes vindicates the Company's confidence in its understanding of the geometry and continuity of the high grade mineralisation within the planned Coyote Underground Mine.

The portal of the Coyote Underground Mine was developed during January 2008 and 162 metres of decline and 11.8 metres of level drives were developed during the March 2008 Quarter.