Australian gold producer Tanami Gold has announced a new mineral resource estimate of 1.04 million ounces for its Groundrush deposit, the centrepiece of the company's Central Tanami project in the Northern Territory.
The upgrade includes a 60 per cent increase in the measured and indicated mineral resource to 460,000 ounces.
Tanami also said a significant increase in grade, from 4.5 grams per tonne to 4.8 grams per tonne, had the potential to add to the project's financial viability.
The measured and indicated mineral resource grade has increased to an average 4.8 grams per tonne, up from an average of 4.3 grams per tonne.
Tanami's acting chief executive Peter Cordin said the new information would be incorporated into the definitive feasibility study for the Central Tanami project.
"The Groundrush deposit remains open in multiple directions with the company's geologists confident of further Resource growth," he said.
"The results of a number of holes drilled outside this mineral resource boundary, prior to the suspension of drilling with the oncoming wet season are awaited and are expected to return favourable results."
The Central Tanami project is about 90km east of the company's operating Coyote gold mine.
Tanami acquired the asset from Newmont in March 2012.Tanami shares were up 5.5 cents, or 9.91 per cent, to 61 cents at 9.20am.
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