Wednesday, 21st December 2005 (3161 views)

Australian company Tanami Gold has approved its Coyote Gold Project, which will be worth $9 million in investment.

The project was previously put on hold with the prospect of deferment, but has now been given the green light.

Upon re-examination Tanami found it could minimise costs though new mining methods for high-grade mining together with a more efficient process plant, which helped win the project approval.

The company expects to start mine production in early 2006 with an output target of around 50,000 ounces per year for the next four years.

Tanami expects costs to be A$350 (£147) per ounce of gold, which takes into account the A$7.5 million of development costs and A$1.5 million for ancillary costs and performance bonds.

The news follows Tanami's announcement that it will be getting a modular gold processing plant in Coyote, which will allow for the production of around 450,000 ounces of gold.

Shares for Tunami rose by three per cent to 16.5 cents following the announcement.

 

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