Tanami Gold NL reports significant drilling progress and an 18% increase in resource tonnes at its Central Tanami Project, reinforcing its growth potential ahead of a key joint venture acquisition.
- Final drilling at Jims Gold Mine confirms mineralisation over 900m strike length
- Groundrush Gold Deposit yields multiple high-grade gold intercepts
- Updated Mineral Resource Estimate rises to 2.8 million ounces, up 9%
- MGX Resources secures FIRB approval to acquire Northern Star’s 50% CTPJV stake
- Company holds $14.4 million cash, excluding joint venture funds
Drilling Delivers Encouraging Results
Tanami Gold NL (ASX, TAM) has wrapped up its 2025 drilling campaign at the Central Tanami Project with promising assay results that underscore the project's potential. The final 1,198 metres drilled at the historic Jims Gold Mine revealed continuous gold mineralisation extending over a 900-metre strike and down to 500 metres depth, with high-grade intercepts including 4 metres at 29.12 grams per tonne (g/t) gold.
Complementing this, the Groundrush Gold Deposit drilling program returned multiple high-grade intercepts, such as 2 metres at 20.02 g/t gold and 0.9 metres at 29.3 g/t gold, bolstering confidence in the deposit's resource base. Meanwhile, the Western Dolerite Prospect and Defa Prospect drilling also yielded encouraging results, further expanding the exploration footprint within the joint venture tenure.
Resource Upgrade Reflects Exploration Success
Reflecting the cumulative impact of ongoing exploration, the updated Mineral Resource Estimate (MRE) for the Central Tanami Project now stands at 31 million tonnes grading 2.8 g/t gold for a total of 2.8 million ounces. This represents an 18% increase in tonnage and a 9% rise in contained ounces compared to the previous estimate from mid-2023, albeit with a slight 8% dip in grade. The revision incorporates improved geological modelling, higher gold price assumptions, and enhanced metallurgical recoveries, positioning the project strongly for future development.
Joint Venture and Corporate Developments
On the corporate front, MGX Resources Limited has received Foreign Investment Review Board approval to acquire Northern Star Resources’ 50% interest in the Central Tanami Project Joint Venture (CTPJV), with completion anticipated before the March 2026 deadline. Tanami Gold retains its 50% stake and continues to fund exploration and development activities alongside MGX.
Financially, Tanami Gold reported a solid cash position of $14.439 million at quarter-end, excluding its share of joint venture cash reserves. Operationally, the joint venture maintained a strong safety record with no lost time injuries during the quarter, underscoring disciplined site management amid active exploration.
Looking Ahead
With drilling campaigns completed ahead of the Northern Australia wet season and a refreshed resource base, Tanami Gold is well placed to advance the Central Tanami Project’s development pathway. The company’s focus will likely remain on extending mineralisation at key deposits and integrating new data into upcoming resource and feasibility studies, while the pending joint venture ownership change adds a new dynamic to project governance and funding.
Bottom Line?
Tanami Gold’s December quarter results set the stage for accelerated resource growth and strategic shifts as the joint venture ownership evolves.
Questions in the middle?
- How will MGX Resources’ acquisition of Northern Star’s stake impact project development timelines?
- What are the next steps for converting the updated Mineral Resource into Ore Reserves and production plans?
- Can further drilling extend mineralisation beyond current open limits at Jims and Groundrush?