Tunkillia

The Tunkillia gold project on the Gawler Craton in South Australia, 600 kilometres north west of Adelaide, is a joint venture operation involving Mungana Goldmines Limited (70 percent) and Helix Resources Limited (30 percent). The Helix shareholding has been diluting as Mungana is increasing its capital input. The Tunkillia mining tenements remain under the ownership of Helix Resources Limited as well as the uranium rights.

Tunkillia Gold Project Covers an Area of 20 Square Kilometres
The Tunkillia gold deposit was discovered in the mid 1990's by Helix Resources Limited and officially announced in the latter half of 1996. The project area covers 20 square kilometres of land and is regarded as being the largest robust gold-in-calcrete anomaly in the area. The first such discovery on the Gawler Craton. The resource inventory of the Tunkillia gold project indicates it contains 879,000 ounces of gold and 2,500,000 ounces of silver.

Mungana Gold Mines Acquired Tunkillia Project in 2012
Mungala Gold Mines became involved in the Tunkillia gold project in early 2012 when it acquired the joint management company MinVen Pty Ltd along with its equity interests the Tunkillia joint venture, from Minotaur Exploration. Because the Tunkillia gold and silver bearing orebody is open at depth it still presents prospects for future under-cover discovery. Considerable mineralisation has been discovered to exist in parallel shear zones to the east of the known resource and this currently remains under evaluation.

Tunkillia Project at an Advanced Stage
The Tunkillia Project is presently at an advanced stage with mine design being assessed as an open pit development operation that would be able to yield 9.66 million tonnes of mill throughput that would be expected to grade at 1.24 grams of gold a tonne realising 386,000 ounces of contained gold. Mine operator Mungana Gold Mines plans to integrate ore mined from its nearby Tarcoola operation with that from the larger Tunkillia pit. The high grade Tarcoola ore is intended to be trucked to the proposed Tunkillia gold treatment plant for processing.

Tunkillia and Tarcoola to Produce 80,000 Ounces of Gold Annually
Mungana Gold Mines was first listed on the ASX (Australian Securities Exchange) in mid 2010 as a high potential Australian gold exploration and development company. Its main South Australian focus in on the Tunkillia and Tarcoola gold projects, both located on the Gawler Craton. It is targeting a production rate of 80,000 ounces of gold annually from the two open pit project sites. To further this aim it has put together an in-house team of capable professionals, as well as consultants and expert contractors in their specific fields, in readiness to transition from the project to the construction and development stage.

Mungana Gold Mines Have Mining Interests in Three States
Mungana Gold Mines has entered into a farm-in arrangement with AngloGold Ashanti Australia Limited concerning its Nyngan Gold Project in New South Wales. It also holds significant exploration rights in the Charters Towers and Palmer River districts in Queensland. It is in the process of divesting its interests in its Mungana Gold Project in northern Queensland that involves a Heads of Agreement with the financially crippled Kagara Limited. Kagara Limited currently has administrators appointed. When this arrangement is finalised Kagara Limited's shareholding in Mungana will be cancelled.
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