Central Tanami

The 100% owned Central Tanami Project (formerly known as the Groundrush Gold Project) is located approximately 90 kilometres east of the Western Tanami Operations in the Northern Territory. The project was acquired in March 2010 from Newmont Mining Corporation.

The Central Tanami Project acquisition is regarded by the Tanami Gold NL Board to be a company transforming deal which complements the Company's existing production base at the Western Tanami Operations. The Central Tanami Project has the potential to lift the Company into the ranks of leading mid-tier Australian gold producers within a relatively short timeframe.

Between 1987 and 2005 approximately 2.0 million ounces were mined from 43 open pits. When combined with the +10 million ounce endowment of Newmont's Callie-Granites production centre - which occurs within a geologically similar host sequence - the region is one of the most productive gold mining centres in Australia.

The Central Tanami Project comprises:

  • a Mineral Resource of 20.915 million tonnes grading 2.6g/t Au for 1.747 million ounces of gold (see Resource table);
  • a Mineral Reserve of 3.744 tonnes grading 2.2g/t Au for 269,300 ounces of gold (see Reserve table);
  • a centrally located 1.2 million tonnes per annum treatment plant;
  • extensive infrastructure including an office, workshops, airstrip, 140-person accommodation village, bore field and communication facilities; and
  • an extensive package of highly prospective Mineral Leases and Exploration Licences extending over a total area of 2,000 square kilometres.

The bulk of the current 1.747 million ounce Central Tanami Resource is contained within a highly prospective 63 kilometre north-south zone which the Company has reassessed and divided into four zones for the purposes of ongoing resource drilling and feasibility work.

The four zones include:

  • ML22934 (historic production of 611,000 ounces from the Groundrush pit);
  • MLS153 (historic production of 725,000 ounces from several pits including Hurricane-Repulse and Southern-Miracle);
  • MLS 167 (historic production of 541,000 ounces from several pits including Carbine, Dogbolter, Legs and Redback SW); and
  • MLS 168 (historic production of 122,000 ounces from pits including Jims Main).

Resource and Reserve definition drilling at the Central Tanami Project is well underway with mineralisation extending below each of the deposits tested to date (Tombola-Miracle, Legs, Lynx, Dogbolter, Southern and Carbine).

A scoping study has been completed on the Central Tanami plant to identify the costs and time involved in the recommissioning of the name plate 1.2 million tpa processing plant. A definitive Central Tanami Feasibility Study is underway to further refine both the cost and timing and a final commencement date.