d02bb816-4ae2-4a07-92a5-001f623fceba.pdf
ASX ANNOUNCEMENT
30 June 2016
TNG SECURES NEW HIGHLY PROSPECTIVE NT ZINC PROJECT FOR INCLUSION IN ITS PLANNED EXPLORATION SPIN-OFF
New exploration licence in Warumpi Province contains high-grade base and precious metal targets
Key Points
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50km2 EL 30131 in the Warumpi Province, NT purchased from a private vendor.
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High grade Stokes Yard base and precious metal (Zn-Cu-Pb-Ag) target outlined.
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Historical rock chip sample results include 27.5% Zn, 12.2% Pb and 7.5% Cu.
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Minimal modern exploration work conducted - underexplored tenement.
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Proposed geochemical and geophysical program outlined to define drill targets.
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Project to be included in the planned spin-off of TNG's exploration assets (Todd River Resources).
Australian strategic metals company TNG Limited (ASX: TNG) is pleased to advise it has secured a zinc and precious metals exploration project in the highly prospective Warumpi Province to the west of Alice Springs. The acquisition is consistent with the continued broader development of TNG's resource portfolio, with the new project to be included in the proposed spin-off of the Company's exploration assets via its subsidiary Todd River Resources.
As part of its ongoing tenement management and portfolio development, TNG has acquired a 100% interest in Exploration Licence 30131 from the tenement-holder, Imperial Granite and Minerals Pty Ltd, for $20,000 consideration before costs.
The tenement, which was originally granted on 11 August 2014 for six years, covers 16 graticular blocks for an area of 50.45 square kilometres. It falls on Glen Helen station (NT Portion 719 Perpetual Pastoral Lease 1128), and is accessed from Alice Springs via the sealed Larapinta Drive and from there along the formed gravel Haasts Bluff/Papunya Road (Figure 1).
The tenement area falls within the central-eastern portion of Warumpi Province in the Arunta Region of central Australia. Rocks underlying the tenement are medium to high grade metamorphics, of both metavolcanic and metasedimentary origin, including calcsilicates and schists. They form part of the ca. 1600 Ma Iwapataka Metamorphic Complex and Ikuntji Metamorphics, according to the recent Northern Territory Geological Survey (NTGS) interpretation.
The project area is under-explored, with only minor exploration work being completed for uranium, gold and base metals since the early 1970's, and no drill testing conducted in the last 40 years.
The tenement includes the Stokes Yard Zinc-Copper-Lead-Zinc Prospect, which is located on the western part of the licence (Figure 2). Historical rock chip samples from this prospect have returned results of up to 26% Zn, 7.5% Cu, 7.5% Pb and 130ppm Ag.
Sampling by the NTGS in the early 2000's returned results including 12.2% Pb and 8.8% Zn, and the subsequent tenement holder (Northern Minerals) reported rock sample results including a 27.5% Zn analysis result.
ASX CODE: TNG
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REGISTERED OFFICE
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T +61 8 9327 0900
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W www.tngltd.com.au
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ABN 12 000 817 023
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Level 1, 282 Rokeby Road
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F +61 8 9327 0901
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E [email protected]
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Subiaco, Western Australia 6008
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The base metal mineralisation seen on the surface at the Stokes Yard prospect appears to be structurally focused, into the keel of a synformal fold in the metamorphics. It may be of a skarn (or carbonate replacement) mineralisation style, but the high metamorphic grade of the rocks and intense post-mineral deformation seen has masked most of the evidence that would indicate the original mineralising events.
The high-grade base metal mineralisation outlined to date at the Stokes Yard Prospect has many similarities with the mineralisation seen to the north at TNG's Mount Hardy Project. At Mount Hardy, TNG has delineated several targets of this type with previous drill intersections including assays of up to 12.1% Zn and 7.2% Pb, plus thick drill intercepts such as 21.0m @ 3.5% Zn, 1.91% Pb, 0.46% Cu and 36g/t Ag at EM Target #1 (see TNG's ASX Announcement - 20 May 2013).
Stokes Yard also displays similarities with the base metal Mineral Resources outlined further to the east at the Jervois deposit, owned by KGL Resources (ASX: KGL). The recently announced Pre-Feasibility Study results from Jervois (see KGL's ASX Announcement 16 October 2015) have shown that the stratabound mineralisation extends for over 12km of strike. The current Mineral Resource inventory stands at 26.7Mt grading 1.12% Cu (for 300,000 tonnes of contained copper) and a separate 3.8Mt grading 3.7% Pb and 1.2% Zn.
The Warumpi Province has also had some recent exploration success with ABM Resources (ASX: ABU) and Independence Group (ASX: IGO) discovering significant multi-element precious and base metal mineralisation (see ABU ASX Announcement 6 October 2015).
The Bumblebee Prospect, located 55km northeast of Kintore, returned first-pass drill results including 7m @ 3.3g/t Au, 37.7g/t Ag, 3.2% Cu, 1.3% Zn and 5m @ 2.4g/t Au and 1.4% Cu. Initial geological assessment of the prospect by ABM/IGO suggests a Cloncurry iron oxide copper gold (IOCG) style of mineralisation, similar to Ernest Henry in the Mount Isa Block, QLD (see ABU ASX Announcement 6 October 2015).
TNG intends to rapidly assess the project through a combination of geochemical and geophysical target delineation, followed by drill testing. As with other TNG base metal assets in the Northern Territory, the Stokes Yard Project is planned to be included in the proposed Todd River Resources spin-off when market conditions allow.
TNG's Managing Director, Mr Paul Burton, said the new project was located in the heart of a highly prospective and rapidly emerging exploration province, where recent discoveries were generating a significant amount of market interest.
"Given the recent exploration successes in the Warumpi province, this tenement offers one of the few opportunities to gain rapid access for exploration in the region given that it is not located on Aboriginal Land. This is an important strategic addition to our rich exploration portfolio in the district, and should provide a number of walk-up exploration targets," he said.
"We are looking forward to progressing these projects as part of our proposed Todd River Resources spin-off, which we envisage should begin to move forward in the second half of this year as market conditions in the junior resource sector continue to improve."
Paul E Burton
Managing Director 30 June 2016 Inquiries:
Paul E Burton
Managing Director + 61 (0) 8 9327 0900
Nicholas Read
Read Corporate + 61 (0) 8 9388 1474
Competent Person Statement
The information in this report that relates to Exploration Results for TNG's Stokes yard and Mount Hardy projects is based on, and fairly represents, information and supporting documentation compiled by Exploration Manager Mr Kim Grey B.Sc. and
M. Econ. Geol. Mr Grey is a member of the Australian Institute of Geoscientists, and a full time employee of TNG Limited. Mr Grey has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Grey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
About TNG
TNG is building a world-scale strategic metals business based on its flagship 100%-owned Mount Peake Vanadium-Titanium- Iron Project in the Northern Territory. Located 235km north of Alice Springs, Mount Peake will be a 20-year plus project producing a suite of high-quality, high-purity strategic metals products for global markets including vanadium pentoxide, iron oxide and titanium dioxide. The project, which will be a top-10 global producer, has received Major Project Facilitation status from the NT Government.
Forward-Looking Statements
This announcement has been prepared by TNG Ltd. This announcement is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained.
This is for information purposes only. Neither this nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of TNG Ltd shares in any jurisdiction.
This does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
To the fullest extent permitted by law, TNG Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this arising out of negligence or otherwise is accepted.
This may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of TNG Ltd. Actual values, results or events may be materially different to those expressed or implied.
Figure 1. Location of the Stokes Yard Project EL 30131 relative to Alice Springs.
Figure 2. Stokes Yard Project EL 30131 on published 1:250,000 scale geological map, showing the location of the Stokes Yard Prospect.