What The Analysts Say

WHAT THE ANALYSTS SAY: This week our experts take a close look at TNG Limited and Pilbara Minerals.


TNG Limited (ASX: TNG)

TNG is concentrating activities on financing and permitting for its flagship Mount Peake vanadium-titanium-iron (V-Ti-Fe) project, located north of Alice Springs in the Northern Territory.

The project has the potential to be a major global supplier of premium grade vanadium, as well as high purity iron and titanium products.

The TIVAN® hydrometallurgical process is being developed by TNG and partners to be a low cost method of leaching titano-magnetite concentrates to extract all valuable components, including vanadium, iron and titanium.

The company also holds a number of other base and precious metals projects in the Northern Territory, which it plans to spin out, via an IPO, into Todd River Resources.

TNG has now met key milestones on the commercialisation of its Mount Peake V-Ti-Fe project.

These include the completion of the Definitive Feasibility Study, which has incorporated results from the successful TIVAN® pilot scale testwork.

The testwork has returned very positive results, including enhanced product quality.

This includes the potential to produce a TiO2 concentrate suitable for upgrading on site to a higher value pigment grade product, significantly enhancing project economics.

More encouraging exploration results at the McArthur River project have boosted its potential, with this set to be a key element of the proposed spin out of non-core assets into Todd River Resources once market conditions allow.


Pilbara Minerals (ASX: PLS)

Pilbara Minerals published a feasibility study on Tabba Tabba in February 2014 and has since raised equity to bring it into production.

In May 2014, Pilbara Minerals announced the acquisition of 100 per cent of Pilgangoora, 55km from Tabba Tabba in the Pilbara region.

PLS is progressing a feasibility study for Pilgangoora and is awaiting a permit to begin production at Tabba Tabba.

Construction of Tabba Tabba underway

Pilbara Minerals is currently constructing the plant and mine at Tabba Tabba.

Of the $8 million project, $7 million has been spent and plant has been transported to site.

First product from Tabba Tabba during September

One further permit is required to allow product to be exported from the site.

The final permit is expected very soon.

Pilbara Minerals has a five year off‐take agreement with Global Advanced Metals (GAM) for the product from Tabba Tabba, which is tantalite from which tantalum is produced for which the dominant use is in the production of capacitors for electronics.

Pilgangoora: product sales lined up

Pilgangoora will produce both tantalite and spodumene, an ore of lithium.

Pilbara Minerals is able to sell the tantalite to GAM on the same terms as that from Tabba Tabba.

PLS has recently announced three MOUs that effectively cover the spodumene to be produced from Pilgangoora:

MOUs covering more than 70 per cent of the product have been signed with two Chinese lithium carbonate producers (ie. For batteries); and

An MOU for 25 per cent of the product has been signed with a leading Chinese processor and supplier of spodumene and other raw materials to the Chinese glass and ceramics industry.

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