Central Tanami Exploration

MLS153

A major Resource extension drilling campaign commenced at the Central Tanami Project in May 2010 shortly after the acquisition was completed and Traditional Owner and Government approvals were received. Drilling was focussed on defining down dip and lateral extensions to mineralisation at Tombola, Miracle and Southern deposits within MLS122 and MLS153 and at the Legs, Lynx, Dogbolter and Bulldog deposits within MLS167. Drilling is continuing on the Dogbolter and Bulldog deposits where substantial RC and DC programs were previously initiated.

All deposits drilled to date have yielded strongly mineralised intervals at depth below the historic open pits, with lateral strike extensions identified at Miracle, Lynx and Legs, providing positive indications for the future expansion of the existing open pits. Significant intersections returned include:   

  • Southern - 3 metres @ 63.7g/t Au and 19 metres @ 7.8g/t Au
  • Miracle-Tombola - 3.5 metres @ 32.2g/t Au and 10 metres @ 5.6g/t Au
  • Lynx - 4 metres @ 19.0g/t Au and 9 metres @ 6.3g/t Au
  • Legs - 7.6 metres @ 6.4g/t Au and 4 metres @ 11.1g/t Au

MLS167

On two of the five granted Mineral Leases (MLS153 and MLS167), over 35 kilometres of highly prospective structures have been identified for further drill testing. Many of the deposits include a combination of three principal structural orientations - 080o, 060o and 020o - which may be incorporated within a single large open pit. Historical mining often yielded substantial increases in ore widths and grade where structures merged. Current exploration drilling is targeting the multiple lode systems and similar structure intersections both at depth and near surface.

Diamond drilling is continuing at the Central Tanami Project with three rigs currently focused on completing a major Resource extension program at the Groundrush deposit. The latest drilling at Groundrush has intersected a new zone of mineralisation with gold intersections from all zones including:

  • GRDD8 - 6.8m @ 53.2g/t Au from 239.0m, 5.0m @ 7.1g/t Au from 273.0m
  • GRDD4 - 47.9m @ 3.2g/t Au from 243.1m
  • GRDD6 - 20.9m @ 3.5g/t Au from 188.5m including 6.4m @ 5.4g/t Au from 196.6m
  • GRDD7 - 20.4m @ 3.1g/t Au from 275.3m and 12.0m @ 4.2g/t Au  from 307.0m
  • GRDD11 - 11.2m @ 3.7g/t Au from 311.0m including 4.0m @ 6.6g/t Au from 311.0m
  • GRDD16 - 12.7m @ 15.1g/t Au from 192.2m including 2.3m @ 46.1g/t Au
  • GRDD16 - 3.2m @ 41.4g/t Au from 208.6m
  • GRDD17 - 4.7m @ 3.2g/t Au from 244m

Diamond drilling has continued at the Carbine deposit, located at the north end of MLS 167. Carbine was identified as a key deposit in the Company's plans to recommence gold production from the Central Tanami Project, due to the robust widths and grades of previous intersections. Infill and extensional drilling of the deeper Resource area being targeted for future underground mining has returned a number of significant intersections including:  

  • CADD11 - 2.9m @ 5.1g/t Au from 144.2 m
  • CADD16 - 7.6m @ 3.0g/t Au from 174.1m
  • CADD20 - 6.0m @ 5.1g/t Au from 376.0m
  • CADD21 - 9.6m @ 2.3g/t Au from 643.7m

Carbine was previously mined by open pit methods to a maximum depth of 103 metres, yielding over 90,000 ounces of gold at an average mined grade of 2.7g/t. DC and RC drilling by Otter Gold Mines Limited identified a strongly mineralised system extending over 1,200 metres down plunge with the mineralisation open in most directions.

The current drilling campaign will focus on extending the lodes at depth, along strike and at testing the shallower mineralisation beneath the northern end of the pit and north east strike extensions below a veneer of younger sedimentary rocks. Results from the deep drilling program wil be incorporated into an updated mine design and Feasibility Study.