Owing to the Intersuisse current morning report being updated daily and consequently the TNG recommendation being no longer accessible, then I post the full text version below.
TNG LIMITED TNG Thursday, 5 July 2007 Extensive exploration program targeting zinc resource increase Recommendation Speculative Buy Overview TNG has commenced a six month $8 million exploration program at its 100% owned Manbarrum Mississippi Valley Type (MVT) zinc-lead-silver project in the Northern Territory, located about 80 km northeast of the Western Australian town of Kununurra. The exploration program consists of an extensive drilling campaign and detailed IP and gravity surveys. The drilling program is expected to comprise a total of 159 RC drill holes for 20,000 metres and approximately 45 diamond drill holes for 10,000 metres to in-fill and extend the current resource at Sandy Creek and to test four priority regional exploration targets generated from IP and gravity surveys completed last year. TNG announced an initial resource estimate for the Sandy Creek deposit in February 2007 following a successful drilling program that commenced in September the previous year. The estimate is 10.5 million tonnes averaging 2.9% zinc, 0.7% lead and 5.5 g/t silver. Approximately 50% of the resource, 5.4 million tonnes averaging 3.9% zinc, 0.6% lead and 5.1 g/t silver, is contained in a higher grade, near surface sub-vertical pipe. The initial diamond drilling is targeting a central high grade pipe zone aimed at verifying mineralisation that was intersected in previous RC drilling and to provide core for metallurgical and geotechnical purposes. To date seven diamond drill holes have been completed and the eighth has commenced. Geological logging of each of the completed holes, with the exception of MDD04, has intersected significant continuous intervals of visual sulphide mineralisation from approximately 45 metres below surface to depths of up to 200 metres. Hole MDD04 was drilled to the east of the pipe zone and was deeply oxidized. The drilling to date has confirmed the presence of high grade mineralisation over at least a 150 metre strike length. Initial assay results are expected in early July, following delays caused by unseasonal heavy rains. RC drilling has confirmed significant extensions to the Sandy Creek deposit 200 metres along strike to the south. Five fences of holes have been completed, comprising 24 holes for a total of 4,566 metres of drilling. The southernmost traverse, which includes only one hole, suggests a tapering off of the zinc mineralisation. The mineralisation remains open down dip to the west. Initial assay results are awaited. Drilling of a significant IP anomaly, the North East IP Anomaly (NEIP), has commenced and two RC holes have been completed. Both holes intersected broad zones of pyrite mineralisation from approximately 50 metres down hole and weak to moderate sphalerite and galena mineralisation over an interval of around 20 metres. The drilling program is at an early reconnaissance stage and several traverses of drilling will need to be completed to identify trends and styles of mineralisation. The anomaly is located approximately 400 metres along strike to the north east of the Sandy Creek deposit. Drilling success at the NEIP will represent a significant validation of TNG’s exploration model for the project as an emerging MVT province comprising multiple pods of mineralisation. TNG’s granted project tenements cover an area of about 1,100 square kilometres and include more than 50 kilometres of strike length of ground prospective for carbonate hosted zinc-lead-silver mineralisation. The project located 180 km from the Port of Wyndham which has concentrate loading facilities and 10 km from the Weaber Gas Field. Impact TNG is set to expand on its success in its initial evaluation of the Manbarrum MVT zinclead- silver project. With an exploration budget of $8 million for the next six months and a drilling program that is being conducted around the clock, results and resource additions are expected to flow progressively. The company believes that it has modelled the mineralisation successfully and that it can apply its concepts to delineate further pods of ore within what it considers to be an emerging MVT province. Currently defined anomalies and exploration targets extend over a strike length of 34 kilometres, providing the potential for significant tonnages of ore to underpin a successful mining operation. Snapshot Last Price $0.99 Market Cap (m) $180.3 52 Week High $1.12 52 Week Low $0.2137 Sector Metals & Mining Investment Fundamentals Cash reserves $10.0 million Shares on issue 182.1 million Options on issue 19.1 million unquoted Directors John Barr (Chairman) Neil Biddle (MD) Michael Bowen (non exec) Edward Fry (non exec) Terry Smith (non exec) Major shareholders Directors 16.7%
TNG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
