PERTH (miningweekly.com) – Australian junior Tanami Gold would move ahead with exploration activities at the Groundrush project in the Northern Territory in April, MD Graeme Sloan said on Wednesday.

This comes as US gold major Newmont Mining’s board approved the sale of the project, which is now known as Central Tanami, satisfying a key condition of the acquisition, which would be completed before the end of the month.

“Given what we are seeing from further investigation into the Central Tanami gold project data and the excellent work being undertaken by the Tanami team, I am confident we will see a significant increase in resources for both the Western Tanami and the Central Tanami areas in the near future,” Sloan said in a statement.

The acquisition is part of a broader transaction with Tanami Gold’s exploration alliance partner ABM Resources, encompassing an extensive exploration portfolio being divested by Newmont in the Tanami-Arunta region, known as the Tanami and Barrow Creek divestment packages.

The overall portfolio is being sold to Tanami Gold’s subsidiary, Tanami and ABM for a total consideration of A$32,7-million.

As part of the transaction, Tanami Gold will acquire a 100% interest in the Central Tanami gold project for A$22-million.

The Central Tanami gold project provides a significant diversification and growth opportunity for Tanami Gold, with the company now targeting an increase in production from its combined tenement holdings to over 200 000 oz/y within two years.

The Central Tanami gold project includes a Joint Ore Reserve Committee-compliant resource of 516 000 oz, as well as a 1,2-million ton a year Central Tanami treatment plant. It also boasts extensive support infrastructure, including an office, workshops, an airstrip, a 14-person accommodation village, borefield and communication facilities.

The project also includes a 2 000-km² exploration package comprising 16 exploration licences, and a 2,1-million ounce historic production endowment within the Central Tanami gold project mining lease area.

The treatment plant is currently nonoperational and will require partial refurbishment to return to full operational mode.

A scoping study to estimate the timing and cost of restarting the Central Tanami treatment plant is under way and a dedicated team has been established to reoptimise the entire 43 openpits and other unmined deposits.

The company also has high expectations for future discoveries within the prospective exploration licences included in the Central Tanami.