Australian gold producer Tanami Gold (ASX: TAM) has reported that underground mine development has accessed the upper extent of the high grade Bommie Lodes at the company's Coyote Gold Mine located within its Western Tanami Operations in Western Australia.
Visible gold has been observed in the development drives and underground drilling is to start on high�]grade targets. Level development has commenced on Bommie Lode 1 with visible gold evident in all strike drive cuts to date.
The initial vein assays of the Bommie 144 West Ore Drive were 2520g/t, 2208g/t and 658g/t, resulting in an average vein grade of 1795g/t (57 ounces per tonne) for the 8cm wide vein and producing an overall face grade of 27.0 g/t Au over a width of 2.5 metres.
The Bommie lodes were a principal target zone for exploration undertaken at the mine during 2009 and early 2010.
Diamond core drilling has defined the west plunging Bommie mineralisation over a strike of 250 metres and 150 metres vertically with the mineralisation being hosted within three main gold�]bearing quartz veins.
Graeme Sloan, managing director/CEO, said mining of the Bommie lodes will provide additional high�]grade mill feed to the Western Tanami Operations for at least the next two years given the lodes are open down plunge.
An updated Resource estimate for Coyote including the Bommie lodes is in the final stages of preparation.
Level development will initially focus on two of the three known Bommie lodes (Bommie Lode 1 and Lode 2) with further drilling planned to test the extent of the third lode.
The development of the Bommie lodes has also provided the company with the necessary underground drill sites to test other high priority targets within the Coyote system.
The company said limited drilling has been conducted to follow up historical high grade drill intersections on adjacent Bommie style mineralisation, possible plunge extensions to the high grade South Zone and to test for additional ore bodies at depth and within the Coyote anticline.
Underground diamond drilling at Coyote is scheduled to recommence during the current quarter.
The Coyote mine, once seen as a "narrow vein gold deposit", is proving to be anything but that with mining revealing mineralised zones up to 5 metres wide and in deeper diamond drill holes, widths to 10 metres.
http://www.proactiveinvestors.com.au/companies/news/9119/tanami-gold-kicks-off-drilling-on-high-grade-bommie-lodes-at-coyote-mine-9119.html
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