In its recent financial report NST had a graphic highlighting its 'Simplified Asset Portfolio' highlighting its 5 assets ie. the 4 large production resources plus the 'Tanami Development Project'. IMO NST continue to recognise the CTP as a long term core holding and would be unlikely to withdraw until they had fully tested it's underground potential.
I think NSTs wording covered in TAM's recent Quarterly where they talk about assessment of exploration targets gives us a hint as to their intentions..."This process included the quasi optimisation of near surface mineralisation in open pit scenarios." It goes on to say the "core focus was around Jim's, Groundrush and Hurricane-Repulse domains". To me this gives us a real indication that they are favouring a more conservative but faster to implementation of the 150k oz pa plant refurbishment through initial extension and deepening the existing 3 main open pit resources. The more expensive but potentially lucrative underground development would probably be delayed.
This strategy would explain why NST have done so little depth drilling on these large open pit structures (with the exception of Groundrush which has confirmed the resource down to 680m). To my knowledge NST have only drilled one deep hole on Hurricane-Repulse and 4 under Jim's OP with at least 3 of these 5 holes providing positive results.
From NST's perspective, this faster strategy would quickly resolve any contractual stresses that probably exist at the moment and would bring forward TAM's requirement to contribute their 25% share of future extension drilling and operational costs.
I get the feeling that NST are finally taking their foot off the brake.
DYOR
TAM Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
