Monday, 3rd October 2005 (2484 views)

Australian company Tanami Gold has suggested that it may have been overly conservative in estimating one of its resources.

The company claimed this weekend that it had nearly completed its mining studies for the Coyote Gold Project, according to Creamer Media's Mining Weekly.

However, it also claimed that it felt the study had underestimated the grade and the overall mass of the deposit, as it had failed to take into account its high-grade nuggety nature.

Although it is naturally difficult to prove whether or not this is the case, a recent re-assaying exercise suggests that the standard fire assay technique could have led to the grade of the deposit being underrated.

New resource estimation work based on the latest 2005 drilling results is now underway, with the aim of producing a mining reserve for phase one of the project mine-development.

Tanami expects to finalise this stage of the project by the end of the year.

 

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