Coyote Gold Project Development
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Coyote Gold Project Development
Open Pit
The mining contractor CDE Capital Pty Ltd recommenced mining in April 2007. Stage 1 of the Project now includes shallower open pits with an emphasis on developing the decline as soon as possible to access the high grade (+12g/t Au) underground ore.
As the pit deepens, it is expected more continuous higher grade ore blocks will be mined compared to the ore blocks mined to date from heavily weathered top benches of the open pit.
Underground Mine
The underground mining operation at Coyote is the primary driver for the Project. The high grade of the main Gonzales lode (23 g/t Au) dictates that the optimal cash flow will be derived by mining this ore as cleanly as possible while keeping footwall development to an absolute minimum. To this end, the underground primary decline will be developed on ore providing early feed to the processing plant from underground. Smaller, mechanised equipment will be used, to keep dilution to a minimum.
Processing Plant
The performance of the carbon-in-pulp (CIP) plant has improved markedly since it was reconfigured and the vat leach circuit removed. The installation of the new 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.
Native Title Agreement
The Company announced on 20 April 2005 that it had signed the Tjurabalan Native Title Coyote Gold Project Agreement.
The Agreement reached with the Tjurabalan Traditional Aboriginal owners enabled the Coyote Gold Project Mining Leases to be granted, which represents a major step in enabling Tanami to move towards development of the Project.
The Company and the Tjurabalan People, with the support of the Kimberley Land Council, progressed negotiations with significant and genuine commitment from all parties. The outcome of the negotiations is that a fair and equitable agreement which is mutually beneficial to all parties has been reached. Importantly, the Tjurabalan Aboriginal Peoples' interests and benefits are aligned with the Company's success.
Given Tanami Gold's long term commitment to the Tanami-Arunta Province, the Company sees the Agreement as a very important and integral step in developing its operations in the region.
Central to the agreement is a commitment to employment, training and business development opportunities for the Tjurabalan People. These opportunities will be enhanced by Tanami Gold and the Tjurabalan People working together to maximise the success of the Coyote Gold Project.
Environmental
Environmental management systems have been implemented ensuring a minimum negative impact on the environment due to mining and exploration operations.
The project has been developed well within the approval limits imposed by the various Government agencies. Rehabilitation of disused tracks has commenced with regrowth already appearing over these areas.