COYOTE ACQUISITION
The Directors of Tanami Gold NL (Tanami Gold) are pleased to announce that the Company is the successful bidder of AngloGold Australia Limited’s (AngloGold) Western Tanami Project which hosts the high quality Coyote gold deposit taking the Company’s total resources in the Western Tanami to 572,000 ounces of gold. In addition to the Coyote gold deposit, the Project comprises a number of exploration licences and applications together with an established exploration camp and associated equipment.
Tanami Gold is strongly of the view that there is significant potential to add to the Coyote
resource given the presence of high grade intersections, particularly at depth. In addition,
numerous ore grade intersections returned at prospects outside the resource provide immediate drill targets which could lead to additional ounces.
Importantly, strong synergy is achieved through combining the Western Tanami Project resources and tenements with Tanami Gold’s existing resources at Larranganni and its large tenement holdings in the Tanami-Arunta Province. The combined Coyote and Larranganni resources provide a strong base for Tanami Gold to commence gold production in the Tanami.
Cash flow from operations will also enable Tanami Gold to further explore depth extensions to identified resources, continue regional exploration and contribute to its joint ventures with
Barrick Gold Corporation and Newmont Mining Corporation.
AngloGold has demonstrated strong support for Tanami Gold’s acquisition of the Western Tanami Project through electing to take part of the consideration for the sale in Tanami Gold shares rather than cash. AngloGold will voluntarily escrow its Tanami Gold shares for a minimum twelve month period following settlement in January 2004. AngloGold will become Tanami Gold’s largest shareholder with 11.6% of the Company’s issued ordinary
shares following settlement.
Based on the Indicated Resource classification of the Coyote and Larranganni resources as
estimated by Tanami Gold (refer Schedule 2), the Company will immediately commence a
bankable feasibility study leading to the development of the Coyote Project.
The terms of the Western Tanami Project acquisition are set out in the attached Schedule 1.
Yours faithfully
Tanami Gold NL
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