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TAM - Tanami Gold

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26 April 2007

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

Dear Sir

COYOTE GOLD PROJECT - VISIBLE GOLD IN MUTTLEY DIAMOND DRILL HOLE

As announced on 18 April 2007 a diamond drill hole program commenced at Coyote on 17 April 2007.
The Directors are pleased to announce that the first infill diamond drill hole at Muttley has intersected the lode as predicted at 245 metres down hole with visible gold encountered in several veins occurring over approximately 3 metres down hole. This intersection is consistent with the anticipated true lode width of approximately 2 metres.
The diamond core has been cut with assay results pending.
The visible gold encountered in the first hole provides further encouragement that the current drill program being undertaken at Muttley will provide a high level of confidence in the tonnes and grade (+20g/t Au) of the Muttley lode.

Yours faithfully

Tanami Gold NL
Denis Waddell
Executive Chairman
 
TAM drilling has intersected the 200-day moving average, this morning

The last time that happened was during August/September 2005, at the start of another major move up
 
Great news guys...

hope to see a bit more blue sky on these over the next couple of days.

lets watch the gold rush.

hehehehe
 
I note a large volume traded today .Over 10,000,000. Have an interest in these myself.
drillinto,you seem to be very enthusiastic about TAM.

Care to hazard a guess as to what's going on?

The assay report looks like good news to me,but the SP hasn't moved much

Any thoughts from those interested?

Cheers Ya'll :)
 
Boyou said:
I note a large volume traded today .Over 10,000,000. Have an interest in these myself.
drillinto,you seem to be very enthusiastic about TAM.

Care to hazard a guess as to what's going on?

The assay report looks like good news to me,but the SP hasn't moved much

Any thoughts from those interested?

Cheers Ya'll :)
Click to expand...

Thank you, Boyou

Yes, it was a nice pop to 10,000,000+ shares traded today
The jump in the volume started immediately after the TAM's announcement

The Company regards its Tanami Project landholding as having the potential to deliver a world class gold deposit (Annual Report 2006)

Facts (recent Company announcements) are proving that Tanami is smoothly becoming a gold producer of note
 
I am wondering why these fellas are at 14c still. Would have thought that they would have risen seeing they found gold pockets last week. Thinking weather I should buy some more shares at 14c, dunno if they will slide lower.
 
Hi Nathan B,

TAM has rallied back up to 15.5c today (Thu 17MAY07) on a "repeat" announcement of more gold specks in the Muttley site drill samples

They seem to have trouble breaking through the 17c barrier recently.

(I've been holding TAM for a long time and it'll need to climb a lot more for me to get my money back. I'll give it until Jun 30 and then declare a tax loss when I sell. How did I get into this position? Went on holiday without automatic stops in place - a lesson to everyone.)

Jimmy
 
I was just wondering if people believe that the recent announcement will effect the trading volume on this share.
new here trying to gain any insight to how the market, changes based on announcements like this.
 
Does anyone have thoughts about how the consideration of the issue of The new shares will have an effect on the company.
 
One to watch over the next couple of days.
If price of gold favourable then this stock appears to be ready to advance
However needs large volume as it needs to move past .175
otherwise its going nowhere. but have watching its action lately and just see if buyers come.
 
I am holding a small parcel of these.
Keenly watching the POG too.

Good to see that someone thinks they might have potential.Could you elaborate on why you think they might be worthy.I see that you are into Fundementals ,bean.Would appreciate your help

The last anouncements regarding the Muttley Lode seemed promising to me ,but I am very much a learner...

Cheers Ya'll :)
 
I keep a watch on various gold/reports releases when not in the market on stocks I follow. This stock is a play for me (not long term at this stage though things can change)

Well, this stock appears to have bottom earlier this year.
Its longer term charts seemed to show a lot of support /resistance levels @.145 and .175 They are now resistance
It appears to be forming higher lows/base at current levels. It also seems to be increasing in volume as it tries to rise and has decreasing on pullbacks.
And the last few weeks action as thought its being acuumulated

Its last report was O/K ... Not a fundamental expert.

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
Click to expand...

...Tanami Gold remains unhedged and debt free...

That is what I look for as one of the most important things



What does it need…maybe the price of gold just to get a bit of a spark for a week or more. Its very much the same with a lot of gold stocks they are at levels where a few could make reasonable advances…depending on the price of gold over the next few weeks

Do I think this is one…I will know this week…And it does need volume
And of course the POG which I hope/think maybe O/K short term
 
Thanks bean,
Athough you say you are NOT a fundamentalist..... In regard to Gold,I sense you are.You have also posted favorably about Silver .My reading tells me the two metals are(in a sense).. symbiotic.
Tanami has good/expereinced management and great tenements!
Although I am a recent starter in shares I have noted that unhedged companies have better prospects in the startup

Quote:-
Tanami Gold remains unhedged and debt free...

That is what I look for as one of the most important things.
Unquote:-

Cheers Ya'll :)
 
July 17, 2007

Tanami Returns From Its 40 Weeks In The Wilderness

By Our Man In Oz
Source: www.minesite.com/aus.html
[The registration is free]

The last time Denis Waddell travelled to London it was “with cap in hand” looking for money to pay for the rectification of problems at the Coyote project of Australian listed Tanami Gold. The next time he makes the long haul from Australia he wants to travel “with dividend cheques”. If, as seems likely, Tanami has overcome its problems in processing Coyote ore that is a distinct possibility. News from site, which has been awful for the past 12-months, has taken a turn for the better. Changes to the plant are working. Exploration is throwing up more gold. There are encouraging indications that the orebody will be bigger than forecast, and costs are slowly being reined in. Rather than being seen as a sick man of Australian gold Tanami could soon win recognition as one of the rising stars.
Patient institutional investors are maintaining their faith in Tanami. Last month they chipped in an extra A$20 million through a placement priced at A13 cents a share. They remain modestly “in the money” but will be hoping for a much better price as the news from Coyote improves. Waddell is confident that there will be no more return visits seeking capital. Site work, which largely involves turning the Coyote plant into a conventional carbon-in-leach operations, is largely complete with gold recoveries heading for the design target of 95 per cent. Costs of A$500 an ounce remain relatively high at this early stage of the project, but will fall as the mine deepens and grade rises. Most importantly, the extra capital means Tanami is debt and hedge free.

Waddell’s plan for the future is simplicity itself, like the modified plant which replaced an inefficient gravity recovery circuit. “We’ve just moved to double shifts at the mine, and we’ve placed a contract for three new leach tanks,” he told Minesite from his Perth office. “The leach tanks are part of the conversion to conventional CIP processing, replacing the vat leach which was a bloody disaster.” The technical stuff remains too technical for the average follower of Tanami. It is enough to say that the company accepted the wrong advice, partly to save construction costs. It’s an admission that prompts Minesite to remind Waddell of a famous saying that every thoughtful mother tells her son: “never buy cheap shoes”.

With the rectification almost complete the trick for Tanami now is to deliver on its promises. Geology and metallurgy are not an issue. Waddell said the mine, in its early days, with grade relatively low and the strip ratio relatively high in the open pit, is producing gold at around A$500 an ounce, and perhaps a little higher, leaving a gross margin of around A$267/oz, based on the latest Aussie gold price of A$767/oz. “Once we get underground we’re targeting A$400-to-A$450/oz,” Waddell said.

The good news for Tanami shareholders, assuming the worst of the processing errors are indeed history, is that Coyote is poised to deliver sharply higher ore grades, better processing yields, and exciting exploration results. While the near-surface ore grades around 3.5 grams a tonne, the deeper ore grades around 12g/t. The challenge will be lifting gold production off what is essentially a fixed cost base which comes from operating in remote desert country.

If Coyote can do no better than 50,000oz a year it will be rated as a high-cost mine, but once output rises closer to the target of 70,000oz then the returns rise substantially. The higher output is not too big a challenge for Tanami because it has double the current capacity in its mill, and with the new leach tanks being installed throughput can be doubled with fixed costs remaining about the same. Mine production for the next six months will come from the open-pit phase of Coyote. A start is expected on the underground phase when the pit reaches the portal (underground mine opening) level in November.

The daily grind at Coyote is one part of the Tanami story. The more interesting aspect is the exploration blue sky because the nature of orebodies in the desert country of the Northern Territory is that once opened mines tend to get bigger. Newmont’s Granites mine started at 40,000oz a year and then rose sharply as grade and tonnage increased with depth. It was a similar story at another nearby mine, Callie. Tanami’s recent focus has been an in-fill drilling campaign at the Muttley lode where visible gold has been found in six of seven holes. Assays were in the 12g/t range with one narrow seam of a metre grading 250g/t.

As happens with many Australian goldmines Coyote is starting small, and with a short life expectancy. Based on the current known reserve the project has a life of three years. When resources are included life expectancy extends to five years. But, when the potential depth extension of the gold lodes is factored in, as has happened at Callie and Granites, then Tanami could be working Coyote and its surrounding for many years.

Waddell estimates that the problems of bad plant design has set Tanami back by about a year, and cost the company A$20 million. “The whole experience has cost us dearly, on a number of fronts,” he said. “It’s still tough. We’ve got a good team together and the exploration potential is fabulous. That’s why we’ve had the support we have. The shareholders understand the ground position we have, and once we start generating decent cash flow the exploration budget will increase. I’m certainly looking forward to being self-funding ad going back to shareholders with a dividend cheque instead of a bloody cap.”
 
Find the next multi-bagger
****************

Tanami Gold NL has been doing it tough at its Coyote gold project in WA. But there looks to be some light at the end of the tunnel, giving executive chairman Denis Waddell the chance to spread the good news.

In a day when all around it were shedding value, Tanami managed to hold steady at 12 ¢ a share after announcing the mine was finally on song, with rising ore grades and recoveries. The mine has had its best fortnight yet, and its charge to something more than 50,000 ounces a year now looks likely some time in the new year, when the ore grade is expected to be a forgiving 12 grams of gold a tonne.

[Source: Barry FitzGerald, The Age, August 7, 2007]
 
Denis Waddell[Executive Chairman, TAM] said the mine, in its early days, with grade relatively low and the strip ratio relatively high in the open pit, is producing gold at around A$500 an ounce, and perhaps a little higher, leaving a gross margin of around A$267/oz, based on the latest Aussie gold price of A$767/oz. “Once we get underground we’re targeting A$400-to-A$450/oz,” Waddell said to Minesite on July 17.

[Note: On September 7, the Aussie gold price was A$850/oz]
 

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