Exploration Delays Loom as Tanami Gold Halts Drilling for Wet Season
Tanami Gold NL reported robust exploration progress in its December 2024 quarterly update, highlighting promising drilling results at multiple prospects within the Central Tanami Project and maintaining a solid cash position of $21.3 million.
- Cash reserves stand at $21.325 million as of December 31, 2024
- Promising gold intercepts from Western Dolerite and Hurricane-Repulse drilling programs
- 3,783 metres drilled across 58 holes targeting multiple prospects in the quarter
- Drilling paused for wet season, set to resume in May 2025
- Ongoing mineral resource updates aligned with 2012 JORC Code standards
Financial Position and Corporate Overview
Tanami Gold NL closed the December 2024 quarter with a healthy cash balance of $21.325 million, underpinning its ongoing exploration and development activities. The company also holds 500,000 shares in Northern Star Resources Limited, its joint venture partner in the Central Tanami Project (CTPJV), where it maintains a 50% interest. The CTPJV itself had $7.46 million in available cash at quarter-end, reflecting steady funding for exploration.
Exploration Highlights and Drilling Progress
The quarter saw significant drilling activity with 3,783.40 metres completed across 58 holes targeting key prospects including Jims, Western Dolerite, Black Hills East, and Defa. While results from the latest drilling are pending, assays from previous programs at Western Dolerite and Hurricane-Repulse delivered encouraging gold intercepts, such as 20 metres at 2.33 g/t and 3 metres at 9.74 g/t respectively. These findings continue to expand the known mineralisation and support the potential for resource growth.
Western Dolerite drilling confirmed extensions of dolerite-hosted mineralisation with multiple intercepts exceeding 1 g/t gold, reinforcing the prospect’s geological similarity to the nearby Groundrush deposit. Meanwhile, Hurricane-Repulse drilling revealed high-grade zones including a standout 1 metre intercept at 28.6 g/t gold, highlighting the prospect’s potential for further resource definition.
Project Development and Operational Outlook
Tanami Gold’s primary objective remains the development and mining of the Groundrush Gold Deposit, alongside identifying new deposits within the CTPJV tenements. The company adheres to best mining practices and leverages existing infrastructure to optimise project economics. Drilling was suspended mid-November due to the onset of the northern Australia wet season, with operations planned to recommence in May 2025, signaling a seasonal pause rather than a slowdown in exploration momentum.
Resource Updates and Technical Compliance
Efforts to update mineral resource estimates across the Tanami Mine Corridor continued, with MoJoe Mining Pty Ltd engaged to refine geological models and ensure compliance with the 2012 JORC Code. These updates are critical for accurate resource reporting and underpin future mine planning and development decisions.
Environmental and Heritage Considerations
The company is progressing environmental and heritage clearances, including an extension of the Consent to Negotiate period for key exploration licences and awaiting Sacred Site Clearance Certificates. These steps are essential for maintaining social licence and ensuring responsible exploration practices.
Bottom Line?
With strong drilling results and a solid cash position, Tanami Gold is well poised to advance its Central Tanami assets as exploration resumes post-wet season.
Questions in the middle?
- What will the pending assay results from the December quarter drilling reveal about resource potential?
- How will updated mineral resource models impact the valuation and development timeline of the Central Tanami Project?
- What are the implications of seasonal drilling pauses on project schedules and capital deployment?
