THE BOURSE WHISPERER: TNG Limited (ASX: TNG) is about to embark on new drilling programs at the company’s Mount Hardy copper and Mount Peake vanadium-titanium-iron projects, both located in the Northern Territory.
The company anticipates it will have three rigs operating for much of November.
Drilling at the Mount Hardy copper project is scheduled to commence by the end of October, subject to rig mobilisation from previous work.
The program will test priority targets where TNG has recently reported rock chip sample results with peak rock chip grades of 35 per cent copper, 6.85 per cent zinc, 16.15 per cent lead and 7.93 grams per tonne gold.
The samples came from coincident EM targets identified from highly successful HELITEM® and ground EM surveys TNG conducted over the Mount Hardy project area earlier this year.
TNG said it considered the combination of excellent results from geophysics and fieldwork including mapping, soil sampling and rock chip samples had enhanced the prospectivity of the Mount Hardy project.
At the Mount Peake vanadium-titanium-iron project, TNG is to undertake additional drilling to extend and upgrade the current JORC compliant resource.
The company completed a Pre-Feasibility Study (PFS) at Mount Peake earlier this year based on an updated JORC Indicated and Inferred Resource it had released in October 2011 of 160 million tonnes at 0.3 per cent vanadium, 5 per cent titanium and 23 per cent iron (Indicated 110Mt at 0.29 per cent vanadium, 5.3 per cent titanium and 23 per cent iron; Inferred 48Mt at 0.24 per cent vanadium, 4.5 per cent titanium and 21 per cent iron).
In addition to this resource, TNG has published an Exploration Target of 500 to 700 million tonnes grading 0.2 to 0.4 per cent vanadium and 25-35 per cent iron.
The company said recent regional drilling has highlighted the potential to further increase the Company’s resource inventory in the region.
The forthcoming drilling program will comprise 7,000m of diamond and RC drilling and is designed to extend the resource to the east by converting some of the current Exploration Target to JORC resources, as well as to upgrade the existing resource to the JORC Measured category.
The company expects this will provide a foundation for the Definitive Feasibility Study (DFS).
TNG said it is scheduled to make a decision to proceed with the DFS during Q4 2012.
“The results we have achieved recently from Mount Hardy are exceptional for early-stage exploration, and have confirmed the prospectivity of this very exciting copper region,” TNG Limited managing director Paul Burton said in the company’s announcement to the Australian Securities Exchange.
“We are really looking forward to putting some of these priority targets to the ultimate test with drilling.
“Copper exploration within our portfolio will be a key ongoing focus for us for much of the rest of the year.
“In addition, we have decided to undertake additional drilling at Mount Peake to extend and upgrade the resource.
“This will further enhance and strengthen the project as we move towards a decision on a Definitive Feasibility Study later this Quarter.”