TNG prepares Mount Peake numbers for resource upgrade

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TNG Limited (ASX: TNG) has received results of recent resource drilling undertaken at the company’s Mount Peake vanadium-titanium-iron project in the Northern Territory.

The drilling encountered consistent mineralised intercepts both within and around the existing resource area.

TNG completed a program of Reverse Circulation (RC) drilling during the December 2012 Quarter, which was designed to infill and step out around the edges of the existing resource at Mount Peake.

The drilling was aimed at upgrading the current Inferred and Indicated resource for the Mount Peake project of 160 million tonnes at 0.3 per cent vanadium, 5 per cent titanium and 23 per cent iron to Indicated and Measured status.

TNG indicated it expects to commence work on a revised JORC estimation later this Quarter when all results are available.

The best intercept was in hole 12MPRC096, which encountered high-grade mineralisation from the base of the thin transported cover sand unit at surface to the end of the hole, providing a total intersection of:

–    147 metres at 0.48 per cent vanadium, 8.8 per cent titanium and 31.9 per cent iron.

TNG said other holes drilled during the program demonstrated continuity of grade and thickness within the resource area.

These holes returned mineralised intervals of up to 141 metres width, with consistent grades of up to 0.37 per cent vanadium, 6.88 per cent titanium and 28.0 per cent iron.

In addition to the RC program, TNG also completed a diamond drilling program during the December 2012 Quarter designed to provide metallurgical samples for pilot plant testwork.

 

Locations of diamond and RC drill holes completed during the
December Quarter 2012. Step out holes and areas with significant
mineralisation are also shown. Source: Company announcement

 

Results have now been received for approximately one-third of this program, with the remaining results expected to be available before the end of February.

“Mineralised diamond drill core is being composited to form the material used in process plant testwork now underway as part of the Mount Peake Definitive Feasibility Study and samples are also being used to obtain engineering and specific gravity information over the deposit,” TNG Limited explained in its ASX announcement.

“All holes fall within the existing resource outline to provide a representative sampling over the whole deposit.

“Once all assays from the diamond drilling have been received, an updated JORC estimate for the Mount Peake resource will be carried out by Snowdon Mining Consultants, expected to be completed during March.

“It is expected that the revised resource model will upgrade a significant portion of the resource from Indicated to Measured status, strengthening and de-risking the project as it proceeds into Feasibility Study.”