As TAM's directors continue to remain silent on the company's...

As TAM's directors continue to remain silent on the company's outlook, I have set out below why I think the coming 12 months exploration program could prove to be exceptional for TAM.

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• Cave Hill drilling is about to commence testing a 4km long magnetic anomaly situated between the CTP and Newmont's Callie 12m+ oz deposit. This is certainly a higher risk greenfield play but provides spectacular reward potential. It appears to be similar geology to Callie so would expect NST would be looking for at least a 1 million oz discovery.

• Further expansion drilling is likely to commence on the Jim's open pit resource after the wet season. Earlier drilling by NST has confirmed good depth extension to the pit, they also recently reported that they have identified a new unmined area immediately to West which could further significantly expand this resource. Jim's could have the potential to add between 250k-400k to CTP,s resource base.

• There is a reasonable chance for further drilling on the Hurricane open pit area. After announcing positive drilling results around the CTP plant in August 2018, I think its significant that NST lodged a MMP Variation only a few months later to transfer approval for 38 RC drilling holes from Groundrush to the Hurricane area. I have a hunch that NST may be looking at Hurricane's geology and its potential 2km strike length as being similar to Groundrush. Excellent potential to add significant reserves, perhaps 500k+ oz??

• There is also ongoing evaluation of promising drilling announced in January this year for both Ripcord and Crusade, each could add between say 250k-300k oz.

The CTP contains 43 historical open pits that have only been shallow drilled to an average depth of 100 metres. Given the $A gold price is now 4-5 times higher than the 1980's, there is excellent potential to very significantly expand the resource base within the remaining 40 pits (excluding Groundrush, Jims and Hurricane). NST have identified a further 7 of these pits for evaluation (refer above post), development and mining could be achieved quite quickly through targeted drilling.

I think the market has failed to pick up that there are significant benefits to TAM of a merger between NST and SAR. Saracen has exceptional open pit design and mining skills, as recently shown by it's clever re-configuration of the entire Kalgoorlie Super Pit. l believe this expertise can be very profitably utilised by maximising efficiency and output from many/most/all of these 43 shallow historical open pits. Of course NST's undoubted underground skills are also there for deeper mining.

Upcoming drilling is providing TAM shareholders with exceptional upside at zero cost. It would require only moderate success from NST's open pit strategy for CTP resources to reach 5+ million oz fairly quickly. Ongoing success from this OP strategy will focus much more attention on the Tanami area and especially towards TAM as a unique 'pure play'. IMO its not hard to justify TAM's SP being 25 cents within two years.

DYOR