Northern Star Resources has restructured its joint venture (JV) with Tanami Gold at the Central Tanami project in the Northern Territory.
The 50/50 JV was finalised after Tanami transferred 10 per cent of the JV interest to Northern Star for $15 million. In May, the JV restructured to commence mining as soon as possible.
Tanami and Northern Star have registered a JV management company to allow both companies to jointly fund exploration and development of the Central Tanami project.
The JV will explore 2221 square kilometres of tenement area which includes highly prospective underexplored geological sequence located in an area that hosts gold mineralisation.
According to Tanami, the JV’s main goal is to develop and mine the Groundrush gold deposit, which is part of Central Tanami, and the Jims gold deposit.
It will also focus on any ore reserves and resources found in the other tenements. The development will use existing mining infrastructure at Groundrush.
A total of 12,000 metres will be drilled at Groundrush to target oxide ore and a shallow extension.
Drilling will also infill the current Groundrush mineral resource model and test other areas of mineralisation.
“Drilling has also been designed to target the down-plunge resource extension of mineralisation at Jims, testing areas of spares drilling, down plunge and along strike of the known mineralisation west of Jims,” Tanami stated.
“Drilling to the northwest of the existing open pit has also been planned to target areas of shallow supergene mineralisation.”
The Central Tanami project has been on care and maintenance since late 2005 when Newmont commenced rehabilitation of the site.
Tanami acquired the project in 2010 in an effort to restart mining, with Northern Star coming on board in 2015 with an initial 25 per cent interest.