TNG Limited (ASX: TNG)
Mount Peake: Initial Scoping Study Indicates
Project Viability
Australian
resources company TNG Limited (ASX: TNG) is pleased to report the conclusions
of the initial Scoping Study completed on the Company?s 100%-owned Mount Peake Vanadium Project in the
Northern Territory.
TNG
commissioned Snowden Mining Industry Consultants (Snowden) to undertake the
optimisation work for the Study to assess project viability and assist in
planning ongoing exploration activities at Mount Peake.
The
initial study considered the viability of an open pit mining operation study
using a marginal cut-off of 0.22 % vanadium pentoxide
(V2O5), conservative V2O5 price of
US$8/lb, and processing of 5mt per year, with an estimated capital cost of
between $400 ? 500m.
Despite
the high capital cost the results demonstrated viable project economics given
the parameters and assumptions of this initial study.
Metallurgical
cost and recovery estimates for the Study were supplied by Mineral Engineering
Technical Services (METS), who are carrying out metallurgical testwork to optimise recovery and grade on the Mount Peake
ore.
The
capital cost has been estimated based on information supplied by METS who are
undertaking the metallurgical test work. This work is ongoing and the final
processing route not yet been established.
TNG is
encouraged by the results of the initial Scoping Study, particularly as this
optimisation has been based on TNG?s maiden Inferred
Mineral Resource of 107 million tonnes at a grade of 0.32% V2O5,
5.9% TiO2, 29% Fe, estimated from its first round of drilling on the
project. A significant portion of the Mount Peake magnetic anomaly remains
untested and offers the potential to increase the initial resource and further
enhance the project?s economics.
The Board
of TNG is pleased with the results and will now consider the optimum route to
progress the Mount Peake Project to the next phase, including the possibility
of introducing a joint venture partner to fund ongoing resource drilling and
project feasibility work.
Yours
faithfully
TNG
LIMITED
Paul
Burton
Exploration
Director
July 29th
2009
The
information in this report that relates to Exploration Results and Mineral
Resources is based on information compiled by Paul Burton who is a Member of
The Australasian Institute of Mining and Metallurgy and a Director of TNG
Limited. Paul Burton 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 2004
Edition of the ?Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves?. Paul Burton consents
to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
Enquiries:
Paul
E Burton
Exploration
Director +
61 (0) 8 9327 0918
Nicholas Read
Read
Corporate
+ 61 (0) 419 929 046
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