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)
The company’s flagship project is the 100 per cent-owned Mount Peake vanadium-titanium-iron project, located 235 kilometres north of Alice Springs in the Northern Territory, which 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.
TNG has continued to make good progress on the Definitive Feasibility Study (DFS) and commercialisation of its Mount Peake project.
Key recent advancements include the signing of binding offtake and technology transfer term sheets with WOOJIN, a major player in the global vanadium field, and a potential financing and development partner.
The final technical elements of the DFS are also underway, with completion expected mid-2015.
The key will be the TIVAN® Pilot Plant testwork, to be overseen by SMS Siemag, a leading global metallurgical engineering group.
More 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 into Todd River Resources.
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 IPO, into Todd River Resources.
Website: www.beerandco.com.au
Company: Energia Metals (ASX: EMX)
Energia Metals purchased the Gorno zinc project in Italy in 2014.
Gorno has an Exploration Target of six to 10 million tonnes at 7 to 10 per cent zinc plus lead.
It has been mined previously, and the mine is fully developed for a quick re‐start, subject to the processing plant being constructed.
EMX is continuing refurbishment of 1,400 metres of pre-existing tunnels at Gorno, which will give access to the un-mined and partly developed Colonna Zorzone deposit.
EMX expects to begin resource definition drilling in July with Resource estimation by end 2015, and production in 2017.
Zinc price is firm, as exchange inventories continue to fall
LME zinc stocks have fallen consistently, from 1.22 million tonnes at the start of 2013, to 933,000 tonnes by the end of 2013, to 692,000 tonnes at the start of 2015 and 487,000 tonnes now, at about 8.5 days of consumption.
At the present rate, LME stocks will be exhausted about year end.
Century mine in Queensland, which is currently producing at a rate of about 425,000 tonnes per year, is set to close in September.
The 160,000 tonnes per year Lisheen mine, in Ireland, will also close during 2015.
Zinc price set to lift; Very little zinc exposure on ASX (or other markets)
We expect the zinc price to rise significantly, but that the price will fall back.
Many companies will use the price spike to raise equity to bring a mine into production, but there are few that will be producing zinc within two years, AND will have zinc account for the bulk of their revenue.
EMX is the lowest cost of this small number.
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.