West Perth-based minerals explorer Tanami Gold NL's 100 per cent-owned Coyote Gold Mine, located in the Tanami-Arunta Province of Central Australia, has been officially opened today.
West Perth-based minerals explorer Tanami Gold NL's 100 per cent-owned Coyote Gold Mine, located in the Tanami-Arunta Province of Central Australia, has been officially opened today.
Open pit mining commenced at Coyote earlier this month, with construction of the gold processing facility, accommodation village and associated infrastructure now well advanced and leading to a first gold pour towards the end of June 2006.
Stage 1 production will ramp up to 60,000 ounces per annum, with ore sourced from an open pit during the first 10 months of mining and then from an underground operation. Tanami plans to expand the operation significantly during Stage 2, increasing production levels to over 100,000 ounces per annum.
At 1015 WST, shares in Tanami were up 1.5 cents to 29.5 cents.
Below is the announcement:
Tanami Gold NL (ASX: TAM - "Tanami") is set to join the ranks of Australian gold producers following the official opening today (Wednesday, 24 May 2006) of its 100%-owned Coyote Gold Mine located in the Tanami-Arunta Province of Central Australia.
The Coyote Gold Mine was officially opened by the Governor-General of Australia, His Excellency Major General Michael Jeffery, and representatives of the Tjurabalan People at a function on site attended by Mr Tony McRae MLA, the Parliamentary Secretary to the WA Minister for Resources, Administrator of the Northern Territory, His Honour Mr Ted Egan, the Executive Director of the Kimberley Land Council, Mr Wayne Bergmann, members of the Tjurabalan community, Tanami Gold employees and guests.
Their excellencies, the Governor-General and Mrs Jeffery, are touring the region with the Administrator of the Northern Territory as part of the Australian Year of the Outback 2006, which showcases a range of events and activities in inland Australia as a symbol of the nation's past and holding the key to its future.
The official launch of the Coyote Gold Project represents an important event for regional Australia and is also one of the few new gold mine developments in Australia in the past decade.
For Tanami, it signals the most important turning point in its 12 years as a junior exploration company, marking its transition to producer status. Since its establishment in 1994, Tanami has assembled one of the largest exploration portfolios in Central Australia, invested in excess of $75 million in exploration and development in the region and secured the support and participation of the region's indigenous communities.
Open pit mining commenced at Coyote earlier this month, with construction of the gold processing facility, accommodation village and associated infrastructure now well advanced and leading to a first gold pour towards the end of June 2006.
Stage 1 production will ramp up to 60,000 ounces per annum, with ore sourced from an open pit during the first 10 months of mining and then from an underground operation. Tanami plans to expand the operation significantly during Stage 2, increasing production levels to over 100,000 ounces per annum.
The Coyote Gold Mine will provide long-term employment for in excess of 100 people, approximately 40% of whom are employed by CDE Capital, which holds the contract for mining and civil works. Approximately 60% of CDE Capital's workforce is Aboriginal.
Commenting at the official opening, Tanami's Executive Chairman, Mr Denis Waddell, said: "This important event marks the culmination of 12 years of effort to overcome the challenges confronting junior exploration companies operating in a remote and challenging environment. The commencement of mining at Coyote and the first gold pour will elevate Tanami Gold into the ranks of Australian gold producers, realising our vision and representing a significant milestone for the Company."
"This represents a significant achievement for regional Australia, and I would like to pay tribute to the traditional owners of the lands on which the Coyote Gold Project is located, the Tjurabalan People, whose patience, support and close involvement with this Project have been instrumental in reaching this point," he continued.
Tanami Gold signed a landmark Mining agreement with the Tjurabalan people, with the support of the Kimberley Land Council, in April 2005 covering mining and exploration in the almost 26,000 square kilometres of Tjurabalan lands lying to the south and east of Halls Creek in WA's Kimberley region.
This historic agreement, which the KLC described as one of the best in Australia, is based on a long-term commitment to the region by both parties and includes a strong commitment to employment, training and business development opportunities for the Tjurabalan People. The agreement is based on a framework which encourages positive participation and cooperation by both parties. If both parties work towards the project being successful - both operationally and through exploration - both parties participate in the success.
"There has been a genuine commitment from both parties in establishing a fair and equitable agreement that is mutually beneficial," Mr Waddell commented. "We believe it makes a lot of commercial sense to employ local people, and the Tjurabalan People welcome the income and employment opportunities the project offers, which will contribute to their long-term social and financial objectives and goals."
The commencement of gold production at Coyote represents just part of Tanami's growth and development strategy in the region, which includes a strong ongoing commitment to exploration as a key driver of the Company's future growth.
"The Coyote Gold Mine represents just a small part of the total 51,000km2 tenement position we currently hold in the Tanami-Arunta Province, which has taken over 10 years to establish," he said. "We will continue to undertake intensive exploration to further expand our resource and reserve base, through drill testing near-mine targets and large regional targets aimed at discovering multi-million ounce orebodies such as Newmont's Callie and Granites operations, located in the same region."
"With the much needed support of State, Territory and Federal Governments, particularly in the key area of infrastructure development in this remote area of Australia, we see Tanami Gold operating in this region for decades to come," he concluded.
