perspective required

I think if you have an interest in TNG, or you would like to get involved in TNG then you need to put this stock into perspective ... on three fronts.

Firstly, it has pulled back from a high of $1.14 - and closed today at $0.76. Why? Because it had some modest SP improvements with the commencement of drilling in MAy, and then a solid shove with a few good media pieces - especially the Bulletin naming TNG as their speculative share pick.

So what happened? Speculative buyers bought in, and speculative buyers sold out - taking some nice profits. I am sure if you plotted the volumes of share purchases that took place in TNG's last rise, against the volumes sold to bring it back down to $0.76 - you would be able to ascertain who your sellers are.

Secondly, this is an MVT. It was confirmed by TNG's geologist at the Zinc forum in Sydney recently. What does this mean for the % of mineralisation? It means that they are located in REPEATING pods in lower grades, that are significantly easier, and cheaper to mine. Put the % mineralisation into perspective, you have the scale (volume) also to consider, as well as the capex, which lean heavily in favour of mining an MVT.

They have not only proven that Sandy Creek has a great resource in that pod, but they have proven that it extends exponentially (refer to drilling announcements).

They have just started to drill NEIP, and they have confirmed mineralisation there - not large quantities, but then again, they have barely drilled it, and you have to start somewhere ... this isn't the Beverley Hill's Hillbillys just tapping a massive resource on the first strike. Thes are calculated, well placed exploratory holes, that will start to return similar results to those found at Sandy Creek.

A few weeks have passed since they first started drilling NEIP, and I would not be surprised to see some substantial drilling feedback coming out in the next announcement.

Thirdly, the managment team told us that they planned to drill four other pods (other than Sandy Creek and including NEIP) this drilling season (till November), out of a possible 8 (other than Sandy Creek if my memory serves me right), which means there is a lot of drilling to come, and a few months that this is going to unfold over.

I know that if I had just raised $8m to perform an extensive drilling program over a 7 month period (WE ARE IN MONTH 3), and I had to choose from 8 different potential resource bearing pods, that I would choose to drill the ones that I felt would most likely deliver good news.

So with such a glaringly positive post you can assume I am a holder of TNG shares. To clarify, not to gloat, I hold several hundred K of TNG stocks (real money) which I bought in November last year at $0.50, I bought again last week at $0.91, and I am going to get in and buy some more in the coming days. Why? Because I think come October or November this year, TNG's resource base will look significantly different to what it looks like and has been traded on to-date. I think November is only just arond the corner and Zinc and Lead prices will continue to look positive within that time frame, and I believe that $1.14 is only the start of where the SP will end up by year's end.

$0.70's and $0.80's is cheap for this stock, if you can find it, buy it, because I think the Christmas turkey will be that much bigger this year.