What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: TNG Limited (ASX: TNG)
TNG has made considerable progress towards finalisation of the BFS and commercialisation of its Mount Peake vanadium-titanium-iron project in the Northern Territory of Australia.
Key recent advancements include the signing of a number of agreements with potential off-take, strategic and financing partners, as well as progressing logistics solutions.
The final technical elements of the BFS are underway, with completion expected mid-2015.
The key will be the pilot TIVAN® leach testwork, expected to commence by the end of Q1, CY2015.
Encouraging exploration results at McArthur River have boosted the potential of this project, with this set to be a key element of the proposed spin out of non-core assets.
The Mount Peake 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 IPO, into Todd River Resources.
The 100 per cent-owned Mount Peake project is located 235 kilometres north of Alice Springs and has resources of 160 million tonnes grading 0.28 per cent vanadium, 5.3 per cent titanium and 23 per cent iron (with significant upside), and the potential to become a major, low-cost global vanadium producer.
Website: www.breakawayresearch.com
Company: Sumatra Copper and Gold (ASX: SUM)
Sumatra has recommenced development of its 100 per cent-held Tembang gold project on the island of Sumatra in Indonesia.
This follows a 12 month hiatus, when due to volatile gold prices the company decided to suspend development and update the Definitive Feasibility Study (DFS).
With funding now in place, it is expected that construction will be completed by the end of 2015, with first production in late 2015/early 2016, from both underground and open cuts.
The Tembang project has significant upside potential; the current LOM plan will be expanded by increasing known resources and new discoveries.
The exploration strategy is supported by a robust geological, geochemical and geophysical database including more than 180km of drill data with numerous intercepts currently excluded from the JORC-compliant Resources Inventory.
Sumatra is an ASX-listed, UK registered company concentrating efforts on epithermal gold and silver mineralisation in the highly prospective Sumatra Island Arc of Indonesia.
Tembang has been mined by previous operators from 1997 to 2000, until production was halted due to low gold prices.
The company’s strategy has been to initially fund and develop a relatively small scale, short mine life start-up operation, with plans to then increase resources and mine life through funding drilling and other exploration activities from operational cash flow.
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