I am a new buyer for TAM. I have just come back from the Tanami after staying at Coyote for a week. TAM were extremely generous in assisting my company with logistics support for regional exploration as we have tenements adjacent to TAM. My observations from meeting TAM staff at Coyote and viewing the operations are that TAM;
1. have very strong competent operations and management. 2. run a very very lean and efficient low cost operation 3. have really nailed the metallurgy at the Coyote plant 4. are drilling like crazy at surface and underground 5. have very high grades at groundrush and coyote 6. are very tight lipped about their current drilling.
Management and staff's mood seemed extremely positive that with both Coyote and Groundrush they have two absolutely massive world class deposits that are still open despite extensive surface and underground drilling campaigns. Beyond Coyote and Groundrush there is further potential with satellite low cost open cut tonnages at pebbles and roadrunner and others that they could use to blend down the high grades at Coyote to keep the efficiency of the plants recovery. A lot of high grade gold is recovered in gravity circuits without CIP, with the spoil then mixed with other low grade for ball mill and CIP.
TAM's culture is to be a quiet achiever that does more with less - they seem to pride themselves on being tight, lean and low cost - there were no signs of waste or inefficiencies.
TAM may be able to produce 1M+ ounce per annum within 5 years based on the size and scale that is apparent at Coyote and Groundrush from exploration underway. Newmont "The Granites/DBS" mine is upscaling to this level presently. ABM resources are also fast tracking to production and have 4M+ ounces. My companies view is that within ten years the Tanami will rival the Yilgarn for Gold production in Australia. TAM could be a Newmont in that time frame.
I want to stress that TAM management and staff were appropriately coy when quizzed on the exploration programs. All of the above is my perceptions and is in no way based on anything more. I was obviously impressed by them so please form your own opinion.
TAM Price at posting:
71.0¢ Sentiment: Buy Disclosure: Not Held
