Tanami Gold NL - Quarterly Activities Report and Cash Flow Update - 30 June 2024
TAM (TAM) Share Update July 2024 Monday 29th
Tanami Gold Reports Quarterly Activities and Cash Flow Update
Tanami Gold NL (ASX: TAM) has released its quarterly activities report for the period ending 30 June 2024, detailing significant exploration activities and financial updates.
Instant Summary:
- Tanami Gold NL holds $25.271 million in cash and cash equivalents.
- The company holds 500,000 shares in Northern Star Resources Limited.
- Exploration activities ramped up at the Central Tanami Project Joint Venture (CTPJV).
- 23 holes drilled for a total of 3,520 meters across Miracle West, Funnelweb, and Jims deposits.
- No Lost Time Injuries (LTIs) reported during the quarter.
- CTPJV had available cash of $7.27 million as of 30 June 2024.
Financial Position
As of 30 June 2024, Tanami Gold NL reported a strong cash position with $25.271 million in cash and cash equivalents. Additionally, the company holds 500,000 shares in Northern Star Resources Limited. This financial stability allows Tanami to continue its exploration and development activities without immediate financial constraints.
Exploration Activities
During the quarter, exploration activities at the Central Tanami Project Joint Venture (CTPJV), in which Tanami holds a 50% interest, significantly ramped up. The primary focus is on developing and mining the Groundrush Gold Deposit and other defined gold deposits within the CTPJV tenements.
Exploration efforts resumed in June with the reopening of the Tanami Road after the northern wet season. A Reverse Circulation (RC) drill rig was mobilized to the site, completing drilling at the Miracle West, Funnelweb, and Jims gold deposits. In total, 23 holes were drilled, advancing 3,520 meters.
Detailed Drilling Results
Miracle West: A 12-hole, 1,976-meter RC drilling campaign was completed, targeting encouraging intercepts from previous Air Core (AC) drilling. The RC holes aimed to test between these intercepts and evaluate potential down-dip mineralization.
Funnelweb: An 8-hole, 808-meter RC drilling campaign targeted the northern extensions of the Funnelweb open-pit. Drilling was conducted on a 40m by 80m grid to test continuity and extensions of mineralization.
Jims: Three of four RC pre-collars with Diamond Core (DD) tails were completed, totaling 736 meters. This campaign aimed to further define mineralization along strike and infill down-plunge areas.
Mineral Resources and Safety
Work on updating the CTPJV Mineral Resource estimates continued, focusing on deposits within the Tanami Mine Corridor. These updates aim to comply with the 2012 JORC Code. The CTPJV had no Lost Time Injuries (LTIs) reported during the quarter, maintaining a strong safety record.
Corporate Transactions
During the quarter, Tanami Gold NL reported payments to related parties amounting to $130k, including directors' fees and expenses. Additionally, $60k was paid to Dragon Mining Limited for services provided by the Chief Financial Officer, Senior Accountant, and Company Secretary.
The financial stability demonstrated by Tanami Gold NL, coupled with active exploration efforts, positions the company for potential growth. The ongoing drilling campaigns and resource updates could lead to increased mineral resource estimates, positively impacting the company's stock. However, the market will closely monitor the results of the drilling campaigns and subsequent resource updates.
Investor Reaction:
Analysts are likely to view Tanami Gold NL's financial stability and active exploration efforts positively. The lack of LTIs and the detailed drilling campaigns indicate a well-managed operation. Investors will be keen to see the analysis results from the RC drilling to assess the potential for increased resource estimates.
Conclusion:
Investors should keep an eye on Tanami Gold NL's upcoming announcements regarding drilling results and resource updates. The company's financial stability and active exploration efforts make it a stock to watch in the gold mining sector.