Increased gold production at Coyote

Tanami Gold has announced further increase in gold production at the Coyote....

  Tanami Gold has announced further increase in gold production at the Coyote Gold Project.Production for the month of December 2007 totalled 4,787 ounces of gold which was 1,499 ounces (45%) above budget. In addition, the first weekly pour in 2008 was a record 1,271 ounces of gold. In December 2007, 22,715 tonnes of gold ore were treated at an average grade of 7.1 grams per tonne recovering 4,787 ounces at an average recovery of 92.2%. The ore treated for the month was mainly from Pit 2 with the overall recovered grade from Pit 2 to date exceeding orebody model and budget expectations.Development of the underground mine is underway with the underground crew, initial underground equipment including the jumbo drill and loaders, and stores on site. Mining of the open pit has now exposed the portal position and geotechnical conditions are as expected. Development of the portal is underway.Construction of the new camp and the second tails dam is well advanced. All of the accommodation units are on site and connection of power and plumbing is well advanced. The location and quality of the new camp will significantly improve on-site facilities for employees and will provide further on-site efficiencies.Construction of the new leach tanks is nearing completion and they are expected to be fully operational within two weeks. The new leach tanks will provide a significant increase in leach residence time which is aimed at increasing gold recoveries to a minimum 97%.The company remains debt and gold hedge free.