Tanami Gold NL reported significant drilling progress at its Central Tanami Project with promising gold intercepts at Jims Gold Mine, while Mount Gibson Iron moves to acquire a 50% stake in the joint venture.
- 15,486.9 metres drilled across multiple prospects including Jims and Groundrush
- Notable gold intercepts up to 12.17 metres at 6.94 g/t at Jims Gold Mine
- Mount Gibson Iron to acquire 50% of Central Tanami Project JV from Northern Star for $50 million
- Cash position strong at $18.872 million as of June 30, 2025
- Ongoing mineral resource updates to comply with 2012 JORC Code
Exploration Momentum at Central Tanami
Tanami Gold NL (ASX – TAM) has maintained a robust exploration campaign during the June 2025 quarter at its Central Tanami Project (CTP), delivering over 15,000 metres of drilling across key prospects including the historic Jims Gold Mine, Galifrey, Western Dolerite, and Groundrush. The drilling program at Jims, in particular, has yielded several encouraging gold intercepts, with assays revealing significant down-dip and northern extensions of mineralisation.
Highlights from the Jims drilling include intercepts such as 12.17 metres at 6.94 grams per tonne (g/t) gold and 13 metres at 5.14 g/t gold, underscoring the potential for expanding the known resource. These results provide valuable insights into the geometry and extent of mineralisation, supporting ongoing efforts to refine geological models and resource estimates.
Joint Venture Dynamics and Strategic Transaction
The Central Tanami Project is operated as a 50 – 50 joint venture between Tanami Gold and Northern Star Resources Limited. Both parties have been jointly funding exploration and development activities, with the shared objective of advancing the Groundrush deposit and other prospects within the tenements.
In a significant development subsequent to the quarter, Mount Gibson Iron Limited announced an agreement to acquire Northern Star's 50% interest in the CTP joint venture, along with adjacent exploration tenements, for a cash consideration of $50 million. This transaction marks a notable shift in the ownership structure and could influence the strategic direction and operational management of the project moving forward.
Financial Position and Operational Outlook
Tanami Gold reported a solid cash balance of $18.872 million at the end of June, providing a healthy buffer to support ongoing exploration and development activities. The company’s cash flow statement reflects continued investment in drilling and evaluation, balanced by prudent cost management.
Importantly, the joint venture itself held $6.45 million in cash at quarter-end, ensuring that exploration programs can continue without immediate funding constraints. The company also reported no lost time injuries during the quarter, highlighting a strong safety culture on site.
Resource Updates and Compliance
Efforts to update the mineral resource estimates across the Central Tanami Project are underway, with MoJoe Mining Pty Ltd engaged to compile revised models that align with the 2012 Australasian JORC Code. These updates are critical for ensuring that resource reporting meets current industry standards and provides a reliable basis for future development decisions.
Meanwhile, drilling continues at Western Dolerite and Groundrush, with results pending, suggesting that further news on resource expansion and confidence upgrades may be forthcoming in the near term.
Bottom Line?
With strong drilling results and a major JV stake sale underway, Tanami Gold’s next moves will be closely watched by investors.
Questions in the middle?
- How will Mount Gibson Iron’s acquisition impact the operational strategy of the Central Tanami Project?
- What are the expected timelines for the remaining assay results and updated resource estimates?
- Could the recent drilling intercepts translate into a meaningful increase in mineable resources?