What the Brokers Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
TNG Limited (ASX: TNG)
TNG Limited (ASX: TNG) has made considerable progress over its portfolio of development and exploration projects, and has developed a two-pronged strategy, with the focus on its ferrous and strategic metals projects, with value adding options being explored for the non-core assets.
A review of the 2012 Mount Peake PFS and comminution optimisation results has generated improvements to the already robust project economics, and exploration results point to the potential for additional resources.
The addition of the Roper River licences has strengthened the ferrous metals side of the portfolio.
TNG continues to work towards development of its Mount Peake Vanadium-titanium-iron project, and commercialisation of the TIVAN® hydrometallurgical process.
It is expected that the DFS will be completed by late 2014 – timing will be dependent upon results of the pilot scale TIVAN® testwork and obtaining funding.
The company is now exploring DFS and development funding options, with the preferred option being introduction of a project equity or offtake partner.
Exploration work has also continued over the Mount Hardy and McArthur base metals projects, with very encouraging results from these high quality assets.
Achieving funding, further exploration success and positive TIVAN® pilot plant results should be key price drivers over the short to medium term.
The 100 per cent-owned Mount Peake Vanadium-titanium-iron project is located 235 kilometres north of Alice Springs in the Northern Territory.
The project has resources of 160 million tonnes grading 0.28 per cent vanadium, 5.3 per cent titanium and 23 per cent iron.
Recent exploration success at Mount Peake has enhanced the possibility of significant resource expansions.
Website: www.breakawayresearch.com
White Rock Minerals (ASX: WRM)
White Rock has a 100 per cent interest in the highly prospective Mt Carrington project area, located in northern NSW.
A recent resource category upgrade provides further confidence that Mt Carrington can host a medium scale gold-silver operation, buoyed by existing infrastructure which supports a low CAPEX development model.
White Rock Minerals (ASX: WRM) continues to make steady progress at the Mt Carrington gold-silver project.
The Mt Carrington project incorporates eight nearby deposits which combine to form a global resource base of 700,000 ounces at 1.4 grams per tonne gold equivalent (AuEq).
Following an infill drill program at the flagship White Rock deposit (4.4 million tonnes (Mt) at 58g/t silver for 8.2 million ounces (Moz) of silver), the company announced a resource category upgrade, shifting 1.7Mt at 77g/t silver for 4.2Moz silver into the higher ‘Indicated’ category.
The upgrade in the resource now completes the major geological component of its assessment plans and puts the company firmly on the path to development.
White Rock also recently announced that the ‘Conceptual Project Development Plan’ for the Mt Carrington project had been submitted to the NSW Department of Trade and Investment and was approved, and referred to the Department of Planning and Infrastructure.
Encouragingly, the White Rock deposit is already located within a ‘Mining Lease’ and is well supported by historical infrastructure (such as a tailings dam), providing confidence development consent can be gained in a timely manner.
Pre-feasibility studies are well advanced, centred on permitting, metallurgical test work and baseline studies.
In July 2012, White Rock completed a Scoping Study on the Mt Carrington gold-silver project.
The Study outlined the parameters for a medium-scale operation targeting production of approx. 40,000 ounces AuEq per annum.
Although the current global resource contains eight separate deposits, the Scoping Study only assessed mining five of the deposits (based on open pit shells).
The key outcomes of the Scoping Study are:
800,000 tonnes per annum, six year operation, producing 107,000 ounces of gold, 6.9Moz silver;
40,000 ounces per annum AuEq production;
Capital cost of $24 million;
Cash operating costs of $46/tonne milled ($869/oz AuEq);
NPV10 of $40 million, IRR of 62 per cent post tax; and
Gold price of $1,500/oz, silver price of $30/oz.
White Rock envisage an 800,000 tonnes per annum processing plant with a CIL circuit (to recover gold) and a floatation circuit (to recover the silver).
Significant infrastructure is still in place from the historical ‘Mount Carrington Mines’ mining operations, contributing to a low CAPEX estimate of $24 million.
These items include:
1.5Mt tailings dam (with room for expansion);
750 million litres freshwater dam;
Administration and exploration offices;
Water treatment plant;
Connection to the power grid; and
Sealed highway access.
Following the positive outcomes of the 2012 Scoping Study, White Rock commenced with infill drill programs, metallurgical studies and permitting.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.
