TAM - Tanami Gold

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Mill Teething Pains Over

Tanami Gold returns to mining green light

Tanami Gold, which operates a gold mine in the Western Australian section of the Tanami Desert now reckons its milling plant problems are behind it and it can now return to full scale production.

Author: Ross Louthean
Source: www.mineweb.net
Posted: Tuesday , 03 Apr 2007

PERTH -

The amber light was officially turned off for Tanami Gold NL today when the Perth-based company announced it would be resuming mining on its Coyote mine in the Tanami Desert.

Tanami Gold first launched mining on Coyote in May last year - the first gold mine in the West Australian sector of the Tanami -- but called a halt in August when it had serious problems with its gold plant and with mining dilution.

There was serious angst between the company and mine plant operator Bemex Corporation at this remote site and Bemex's services were terminated in December. A detailed review using the operations team and several consultants resulted in a conventional CIP section being installed and this, the company said today, was now achieving +90% recovery.

In the meantime there were discussions between Michael Kiernan of Monarch Resources and Tanami Gold's executive chairman Denis Waddell on some form of marriage, but Waddell told Mineweb today that both parties eventually agreed there was no easy fit and the companies should proceed separately.

A factor holding up the resumption of mining was the abnormally heavy wet season in northern Australia, and Waddell said that with the drying out there were now mining equipment moving up through the Northern Territory sector of the Tanami Desert, some of it coming from Alice Springs.

Some of the fleet is expected in a few weeks and then open pit mining would resume in full. When mining ceased the zones with significant dilution had been removed and the main open pit sector ore was exposed.

The plant can ramp up to an annualised 350-400,000 tonnes per annum and by year end should be achieving an annualised production of about 50,000 ounces. However, the operation will later this year go into decline mining on Coyote's higher grade zones and, though the throughput may reduce to 120-150,000 tpa the deeper ore grade of +12 g/t should see production lift to between 70-75,000 oz pa.

Waddell said a diamond drill rig will be applied to testing extensions of Coyote, particularly to the east and west, the Muttley Lode at Coyote, the nearby Buggsy and Gonzales lodes and other discoveries in the area. Near-term targets for open cut mining include the company's Sandpiper and Kookaburra deposits.

Tanami has proven to be the "stayer" in the WA Tanami, having originally explored with a partner whom it bought out and then acquiring the Coyote deposit from AngloGold Ashanti which felt it was a target below its corporate parameters.

The company has an enormous package of properties in the WA and NT Tanami and elsewhere in the Territory, with some prospects perceived as big gold, gold-copper and gold-platinum targets.

The company will be hoping for a smooth restart and a fairly rapid move into higher grade underground ore now it is confident the huge teething pains at the mill are over. The company's share price slipped from around $A1 in mid October last year [This is a mistake; the high for 2006 was $A0.355] and has now elevated off a nadir to having market sales today around the A13.5 cents range (US10.96 ¢).

The Intierra group's Minmet research database today put Tanami Gold's market capitalisation at $A83.45 M ($US67.78 M).

TANAMI GOLD NL
Level 4, 50 Colin Street, West Perth, Western Australia, 6005 P.O. Box 1892, West Perth, Western Australia, 6872
Tel: +61 (8) 9212 5999 Fax: +61 (8) 9212 5900 Email: tanamigold@tanami.com.au Website: www.tanami.com.au. ABN: 51 000 617 176

3 April 2007

The Manager
Company Announcement Office
ASX Limited
Exchange Centre, Level 4, 20 Bridge Street
SYDNEY NSW 2000

Dear Sir

COYOTE GOLD PROJECT – RECOMMENCEMENT OF MINING

The Directors are pleased to provide the following update on the Coyote Gold Project.
Following a detailed review of the Project by the Tanami Gold NL operations team and various expert
consultants over recent months, good progress has been made in rectifying problems associated with the
design and construction of the treatment plant and a decision has been made to recommence open pit
mining operations.

• Mining
The open pit mining fleet is currently being mobilised to site with mining to recommence as soon as
possible. Although it was planned to commence mining during March 2007, transportation of the mining
fleet to site has been delayed due to closure of the Tanami road following heavy rains over recent weeks
resulting from cyclone Kara. With the weather now fine, it is expected the fleet should arrive on site
within the next two weeks.

• Treatment Plant
Performance of the treatment plant has improved markedly over the last month since it has been
reconfigured to a conventional carbon-in-pulp circuit and process design modifications have been
implemented.
Based upon the recent recoveries achieved, the plant is expected to maintain +90% gold recovery from
the treatment of open pit ore when mining recommences during April 2007.

• Diamond Drill Program
A diamond core drill rig is planned to commence drilling at Coyote by mid April 2007. As advised in an
update released to ASX Limited on 6 March 2007, the Company plans to drill a number of diamond core
drill holes into the Muttley lode at Coyote to achieve a higher level of confidence in the tonnes and grade
of that lode and to test for extensions of the lode which is open along strike.
In addition, a number of deep drilling exploration targets at Coyote will be drill tested following the
Muttley drill program.

Yours faithfully
Tanami Gold NL
Denis Waddell
Executive Chairman

[This week TAM gained +16.66%]

TAM might be turning a corner here finally. Chart looking a bit happier after the big slippery slide from May06. Lets see if it can hold where it is and maybe push on up again. Lots of action with new diamond rig, recommencement of open pit mining and reconfigured treatment plant all back on track in the next few weeks.

Hey Guys,

yes this one sure does look like a goer everything is stacking up nicely for TAM, this is at the top of my list at present.

Nathan_b said:

Hey Guys,

yes this one sure does look like a goer everything is stacking up nicely for TAM, this is at the top of my list at present.

Click to expand...

Nathan, I note that you were looking to invest your $5K somewhere and now you say this is at the top of your list?? Why is that? Just want to discuss it.

I am not in this one yet but watching it closely. They have had quite a major rebuild/restructure of their operations over the past 12mths but look to be at the end of it now and back to business as usual. Turning a $6m profit for 05 into a $43m loss for 06 and a long gradual slide for the sp was the result of all the drama. However, they stayed debt free and were able to continue their exploration programs in NT & WA (NT in particular has shown good mineralisation from the first pass). The "2006 Consolidated Interim Financial Report" released on 16 March makes good reading for anyone interested in this company.

$100m mkt cap (695m shares @ 14.5c). SP looks to be stabilising a little now but lets wait and see.

Hey Guys,

Yes I put 1000 into this yesterday. I think it has potential because of the recommencement of mining, and its low sp at present.

Nathan_b said:

Hey Guys, yes I put 1000 into this yesterday. I think it has potential because of the recommencement of mining, and its low sp at present.

Click to expand...

It's market cap that you should look at Nathan, as opposed to sp. Some stocks have a low sp but millions of shares on issue. This has about 600m shares on issue @ 14.5 cents = $87m. Then compare to resources and market peers perhaps to see how it rates. All the best.

I've been tracking TAM all week and the very clear resistance point at 15c appears to be unbreachable.

It's been nudging up to 15c each day but probably won't break through unless some new event occurs, such as a positive announcement or a spike in the gold price or a good discovery in an adjacent holding.

Vol has been ok, so there is some interest in this stock, but not enough for it to catch fire at the moment.

Holding some TAM myself, at least no-one will be able to accuse me of ramping. Of course, I'm hoping to be proven wrong.

Having said that, there is some short-term money to be made for anyone who can buy in at 14c and sell out at 15c. A speculator could have done that several times this week already and made around 7% (minus brokerage) on each trade.

You're probably right. I expect most will be waiting to see if the changes made over the past fews months have worked and/or any announcements from the exploration projects come out. There is a $2m claim from Bemex still to be settled (& counter claim for losses from TAM) but I don't expect that will have much negative overall impact now as the market is aware of it. My gut feel is that 14-15c is cheap but I too want to see some forward momentum before I hop on the train... wanna make sure we're heading north not south, east or west! Next couple of months will be interesting IMO.

I've had TAM for some time and have been watching the activity this week. I suppose some activity is better than none ....

I think we need some positive news for it to head up solidly. The Bemex thing should not have a major impact, I would think. Messy but should fade soon.

Monster Truck Madness !

The Kenworth C510 Twin Steer takes punishment and comes back... for more gold-bearing ore at Tanami Gold

http://www.kenworth.com.au/kenworth/kenworth_newsview.asp?id=48

Have held this for a while so its nice to see it break away from the downward trend having leveled of at the start of the year. I'm expecting better things in the next few months.

Robbo1970 said:

Have held this for a while so its nice to see it break away from the downward trend having leveled of at the start of the year. I'm expecting better things in the next few months.

Click to expand...

I agree that it looks to have turned on the chart as I have discussed, but why better things in the next few months? The restart of mining? Monster trucks? POG appreciation?

Sorry this is late for me. I probably meant to say hoping for better things in the next few months! It was the leveling off and recent uptrend that has got me interested. I dont have any further research to back it up and I'm not sure that monster trucks will help them attractive beasts that they are!

18 April 2007

The Manager
Company Announcement Office
ASX Limited
Exchange Centre, Level 4, 20 Bridge Street
SYDNEY NSW 2000

Dear Sir

COYOTE GOLD PROJECT – DIAMOND DRILL PROGRAM HAS COMMENCED

As advised in a release to ASX on 3 April 2007, the Company had scheduled to commence drilling at Coyote by mid April 2007. The drill program which commenced yesterday, includes a number of diamond core drill holes into the Muttley lode at Coyote to achieve a higher level of confidence in the tonnes and grade of that lode and to test for extensions of the lode which is open along strike.
In addition, a number of deep drilling exploration targets at Coyote will be drill tested following the Muttley drill program.

Yours faithfully
Tanami Gold NL

Denis Waddell
Executive Chairman

24 April 2007

The Manager
Company Announcement Office
ASX Limited
Exchange Centre, Level 4, 20 Bridge Street
SYDNEY NSW 2000

Dear Sir

COYOTE GOLD PROJECT – RECOMMENCEMENT OF MINING

The Directors are pleased to announce that open pit mining has recommenced at the Coyote Gold Project.

As previously announced, a full review of the Project has been undertaken over recent months which has resulted in modifications to the process design and treatment plant being undertaken which has resulted in high recoveries being achieved through the carbon-in-pulp (CIP) plant. In addition, based upon the review, 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.

The recommencement of mining will enable a full reconciliation of grade and tonnes against the ore reserves now that the treatment plant has been modified to a conventional CIP configuration and the vat leach circuit has been eliminated from the treatment process.

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 the heavily weathered top benches of the open pit.

With the recommencement of mining, the treatment plant performing well and the diamond drill program underway, development of the Coyote Gold Project is now progressing well.

Tanami Gold remains unhedged and debt free.

Yours faithfully

Tanami Gold NL
Denis Waddell
Executive Chairman

Following today's announcement, the price closed at 16c.
TAM hasn't done that since Dec.
Maybe not yet a break out, but an indicator that things may be heading up.

I had a chart to post but couldn't figure out how to insert it.

JimmySwell said:

Following today's announcement, the price closed at 16c.
TAM hasn't done that since Dec.
Maybe not yet a break out, but an indicator that things may be heading up.

I had a chart to post but couldn't figure out how to insert it.

Click to expand...

Here you go Jimmy

Starting to look okay, it may of already broken out though as the first breakout (circled) may have been the original breakout from the downward trend with vol confirmation. Yesterday it broke through heavy resistance at 15c and now has some resistance at 16c but should have enough momentum to carry it through, could run a bit now.