Source: www.miningnews.net
Intercepts good for Coyote: Tanami
Friday, 11 May 2007
TANAMI Gold has reported visible gold intersections from the latest round of infill drilling at its troubled Coyote project.
Assays from the first hole from the latest drilling program at the Muttley Lode have returned an intersection of 0.7m at 33.5 grams per tonne gold from 244m, which included a hit of 0.43m at 53gpt gold.
Tanami said this core high-grade section of the intercept is the primary target for underground ore reserves.
Surrounding gold grades from the same hole included 0.5m at 4.5gpt gold from 241.5m and 0.44m at 2.76gpt gold from 242.22m.
In-fill drilling at Muttley continues, Tanami said, with assays due for the next three holes, with visible gold intersected in each in the targeted lode position.
"The position of the mineralised intercepts in the four drillholes completed to date vindicates the company's confidence in its understanding of the geometry and continuity of the high-grade mineralisation within the planned Coyote underground mine," the company said.
Coyote was forecast to produce around 70,000oz of gold per annum but production issues ? including suspension of output for three months, resuming in late April, after delays in the construction and commissioning of a treatment plant ? have marred the mine's first year of life.
Shares in Tanami rose 0.5c to 16c in morning trading today.
End.
Cheers, Pie
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