Golden Hind is a Coyote style deposit. ABM investors need to be careful with these results as a well aimed drill hole can intersect "long and thin" gold that may average down to substantially lower grades in any reasonable mine plan.
Previously, I made the point that TAM should be looking at maximising the tonnes and ounces associated with Bald Hill (and all the birds). How many other Coyote / Old Pirate style deposits are on TAM's ground and then most importantly, what is the source for Coyote - is there a Buccaneer style source?
Up untill 2011 TAM promoted the "fact" that geological structures and mineralisation in the Tamani stop at the border. Plutonics hosted the gold in the Northern Territory (Callie,Ground Rush) whereas the proterzoic metamorphics (Coyote, Bald Hill) hosted the gold in Western Australia. ABM proved that this was NOT the case with Old Pirate. They also proved that the Plutonics (Buccaneer) are the source for the proterzoic metamorphics (Old Pirate, Golden Hind).
TAM should be drilling for ounces at Ground Rush but they should also be drilling deep in the Western Tanami for the proterozoic source rocks - probably granites or dolerites. TAM were caught napping by ABM and now with only $20M difference in the market capitalisations, TAM should more than ever be following ABM's lead. Not only do they need ounces at Ground Rush etc., they need to prove that they can explore for and find new gold to inspire investors. ABM have done this in innovative and cost effective modern exploration techniques (ground based XRF soil survey after clearing cover).
Kavanagh is a start, but it is mine planning drilling. We need more of this but ideally lets have the source for Coyote and Bald Hill and some big tonnes and ounces. That means doing real exploration. TAM are confusing "mining drilling" with "exploration". ABM have shown that it is the sizzle and not just the sausage that the market wants. TAM can do the same - but it needs a cultural change to think like an explorer again.
TAM Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
