However, there was an important critical clue in the brief...

However, there was an important critical clue in the brief update.

When doing project scheduling, the easiest way is often to do everything sequentially, but this also results in the longest timeframes. Sometimes you can do multiple tasks in parallel and by doing that you reduce the total length of the project. TG6 could very easily have decided to wait for the drill results
before starting on permitting to remove the ore piles from site. They are however progressing with the approvals needed to move those stockpiles offsite.

As long as they think about this phase every day, shareholders should do well:
"And its all designed around getting into production sooner rather than later so that we can take advantage of these current high gold prices."

So the timeline for the ore deposits now looks to be:

• Confirm the volume of the ore piles - done. With the ore piles now with a flat regular shape, its pretty basic geometry maths to do the calculations around the volume. It would have been simple when doing this to fill a known space object with ore and gain the density.
• drill the ore piles to know the grade - Completed for the main Tasman ore pile, probably near complete for the secondary ore pile. Complete within days
• Send material to the lab for grade tests - underway and results expected back mid July
• Send material for met testing re recoveries - underway. Unsure if that's the July timeline
• Obtain permits to remove the ore from site - underway
• Initial discussions with toll processing companies - underway
• Final toll processing agreements - discussions anticipated to commence Mid July
• Arrange a contractor to shift the material - TBC
• Know the time when the material needs to be delivered to the toll processor - TBC
• Truck the material from site - TBC
• Have the material toll processed - TBC
• Get additional dollars back into the bank account - TBC

Wildcard - Does TG6 do a bulk test around August/September taking perhaps 1,000t to test the logistics of loading multiple trucks and confirm the gold recoveries from processing 1,000t of ore (or the volume of material that is a natural batch sample at the mill). If 1,000t is 1g/t with 92% recovery rates then it contains 29.6oz and the bulk sample may bring in ~$154,000 in revenue. If that can occur in the September quarter that would be fantastic.

From the JORC there is 234,000t of laterite with contained gold of 6,940 oz already drilled to indicated. The grade is 0.9g/t (well actually 0.92g/t) so it would be close to the economics of the bulk sample above. Assuming 92% recovery rates as per the JORC this laterite indicated material is $33.2m of revenue at A$5,200/t with possible upside if the laterite has a >100% recovery rate as shown in the last met test work on laterite (with a fine grind size and 24hr leach). Perhaps TG6 can release a basic feasibility study on toll contract processing this indicated resource. It would only shift approximately 6,400oz into probable ore reserves but that's a start and a lot of larger name gold projects don't have probable ore reserves.

Speculation as I'm not an expert on these tests. What may have happened is the gold that was reported by the assay was leached in the 2 hour period with this leach result not really changing over the 4hr, 8hr and 12hr period. If this was 1.49g/t recovery from 1.71g/t material then the recovery was 87%. The laterite however contained gold that didn't appear in the assay test result. This was liberated over the 12 to 24hr period.

This bottle roll leach test on laterite notes the recovery rate as 97% but its really recovering 2.64g/t over 24 hrs from material that was assayed at 1.71g/t for a recovery rate of 154% of the assay value. If the Indicated Laterite JORC resource were to behave in the same way as this laterite met test sample, the 234kt of laterite indicated ore could potentially have a recovery of 10,700oz (if the uplift was a percentage of the head grade).

If the uplift is 0.99g/t of material that is not being recognised by assay's (2.70g/t calculated head grade less 1.71g/t assayed head grade) then the possible gold recovery increases to 234,000 * (0.92 + 0.99) * 97%/31.1035 = 13,900 oz or $77.3m at A$5,200/t.

I suspect that if TG6 were to have probable ore reserves of 6,400oz, 10,700oz or if fortunate 13,900oz at surface the share price would not remain at 12.5c and would be many times that.

The planned sequence of met test work on the laterite heap leach pile and what I suspect is a Tasman laterite may provide clues on recovery rates from Laterite. To narrow down whether this >100% recovery rate repeats and if it does, whether its a percentage uplift or absolute uplift requires more met test samples need to be done of various grade laterite from different areas of the Van Uden deposit.




It needs the fine crush size to release this extra gold (if it is there in multiple samples). With a 11.5mm crush size the extra gold didn't appear and the recovery was 70% (or perhaps only 42% if the true grade was ~2.7g/t as established as the calculated head grade on the fine crush size laterite test).