The good bits:David is keeping the market informed both via ASX...

The good bits:

• David is keeping the market informed both via ASX and 60 second clips. The 60 second clips are good for existing shareholders to maintain confidence, but the ASX releases are needed to help reach a wider audience.
• The drilling for this phase is complete. The equipment used looked inexpensive. The total drilling length was short. TG6 got the information it needed at a fairly low cost.
• The volumes combined with probable densities mean the ore piles fall within the previously stated range of 60-100kt.
• Discussions with toll treatment milling options in the region have commenced so TG6 should soon have a very good idea of approximate pricing and availability.
• Contractors are being engaged re haulage so TG6 should soon have a very good idea of transportation costs.
• When TG6 has got good estimates of transportation and toll processing costs, they will be in a position to create a grade-profit table. This would indicate the potential profit that would exist from sending a ton of different grades for toll processing. Different columns could be used for different gold prices. TG6 could potentially release this as part of a quick feasibility study. When the assay's come back then you look up the current gold price, you look up the ore grades and there's your expected profit from toll treatment of the ore. Hopefully this would show that for everything but a low grade and large fall in price there is a large profit from toll processing. Prior to that everyone guesses at the future assay grade and looks at the numbers and hopefully says, wow TG6 is cheap at these gold prices.
• If the assumption was 92% recovery rates and $80/t to transport and mill the 80kt of ore the table would look like this. Note an 80% scaling to costs and revenue has been applied to reflect TG6's ownership of the tenement. On the guess the ore is about 1g/t it would be $4.7m profit based on current gold prices. Note - no differential royalty rates have been applied in the table below. Royalities would change depending on grade and price.

The surprising bits:
The Diemen leach piles are much smaller than thought. Back in 1993 they did reconciliation work because the volumes for the leach trial weren't aligning.

As per the table below, 25,632bcm of laterite zone was removed and 11,574bcm of oxide material was removed from the Diemen pit creating a truck-count volumes of 9856bcm and 8048bcm of ore. The leach pit volume survey's were 9,586 and 8,521bcm. Allowing for the volume increase you get as crushed product, they estimated the uncrushed equivalent volumes to be 7,374bcm and 6,312bcm. The uncrushed equivalent volumes shouldn't have changed. The ore pile itself may have settled a little bit.

The in-situ volumes have been resurveyed by TG6 at 5,332bcm and 3,580bcm. These are approximately half the previous survey volume. While survey errors occur, they are not that large. It would appear someone has taken some of the heap leach ore and either processed it somewhere or moved it to a different bit of the site as part of remediation efforts. The 2006 google earth picture shows no significant young trees so material was probably removed some time within a few years of 2006. The 2006 google picture of immediately south of Diemen pit looks far fresher than it should if there was no mining there for 13 years, but so does the waste ore pile immediately south of Diemen.



If the In-situ Bulk Density values in Table 1 above are used on the stockpiles volumes noted in Table 1 below and "Tasman Minor" is assumed to be Laterite, the volume estimate is ~79,500t. Grades will require waiting for the Assay's.




And what another 13 years from 2006 to 2019 looks like.