Tanami Gold has reported a further substantial increase in gold resources at its properties in Australia’s Northern Territory, with measured, indicated and inferred mineral resources now totaling 21.3 million mt grading 3 g/mt and containing 2 million oz of gold. The company’s resource growth includes a 40% increase at its Central Tanami project and provides support for its plans to restart production at that location.

The Groundrush open-pit at Central Tanami was last mined in 2005. A 1.2 million mt/y processing plant and extensive infrastructure remain in place at the site. Planned exploration during 2011 includes additional drilling of known mineralization beneath the Groundrush pit, where the company has reported a number of wide, high-grade intersections that have not yet been included in its resource estimates. The company will also focus on completion of a feasibility study for a possible re-start of production. (www.tanami.com.au)

Northgate Minerals released an updated NI 43-101 compliant resource estimate for its Kemess Underground project, located 5 km north of its Kemess South mine and mill in north-central British Columbia. The indicated resource now stands at 136.5 million mt, containing 2.6 million oz of gold and 860.6 million lb of copper. Within this resource is a high-grade sector of 10.3 million mt that grades 1.35 g/mt gold and 0.52% copper and contains 450,000 oz of gold and 119 million lb of copper. Northgate has engaged AMC Mining Consultants to complete technical studies that will be incorporated into a NI 43-101 compliant preliminary assessment of the deposit.

The updated resource estimate for Kemess Underground follows completion of a 30-hole infill diamond drill program during 2010 designed to increase confidence in the grade distribution, location and geotechnical characteristics of a target area that had been identified as potentially mineable using low-cost bulk underground mining methods.

The target area is situated in the eastern portion of the Kemess North deposit approximately 300 m to 600 m below surface. Initial estimates for underground bulk mining costs, combined with milling and general and administrative costs consistent with the size of operation envisioned by Northgate, indicate that a mine could be economically viable with a net smelter return cut-off in the range of $13 to $15/mt of ore.