Plenty in the pipeline for TNG

cardz posted this in another thread. Thanks cardz. I thought it needed its own post!!!! Read it and dream TNG holders. WOW!

Ten Bagger, Friday 12th June



Plenty in the pipeline for TNG, says MD, as it closes in on Mt Peake Feasibility, off-take and financing


The next couple of months are shaping up as a defining period for emerging vanadium producer TNG Limited (ASX: TNG), with the Perth-based company poised to deliver a welter of eagerly anticipated news about its flagship Mt Peake vanadium project in the Northern Territory in the coming weeks.

In an upbeat BRR interview recorded from overseas this week, TNG Chief Paul Burton says the company is now getting to the “pointy end” of its Feasibility Study on the vast Mt Peake Project – with all eyes firmly focused on the results, and the potential share price re-rating that is likely to come with it.

TNG has scored its first-ever presentation berth at the premier Diggers & Dealers Mining Forum in Kalgoorlie in early August, and it’s highly likely that the Feasibility Study results will be front and centre of Burton’s talk.

The company completed a Pre-Feasibility Study on Mt Peake some years ago which forecast that the project could generate life-of-mine revenues of $13.6 billion with a Net Present Value of $2.7 billion from a $711 million development producing three valuable products – vanadium pentoxide, iron oxide and titanium dioxide.

Since then, TNG has done a lot more work on refining and advancing the project – including lining up an impressive suite of potential strategic partners, financiers and off-takers, including several top Korean industrial and steel conglomerates.

TNG’s share price has been steadily creeping higher in anticipation of the study being completed, with last night’s close of 20c valuing the company at around $130 million.

“I know many people are awaiting the first results from the current TIVAN testwork,” Burton told BRR, referring to the current pilot testwork program being undertaken at the CSIRO in Perth on TNG’s revolutionary hydrometallurgical process.

This breakthrough technology is central to the TNG investment proposition, as it will help the company to dramatically slash capital and operating costs at Mt Peake compared with the use of conventional vanadium processing technologies.

“The TIVAN work is progressing very well, on schedule, and we expect to have results in the next week or so,” he said. “I should say these results will feed into the Feasibility Study….and the Feasibility Study results will be announced following review, probably I would expect sometime in July.”

Burton says there is a vast array of work going on behind the scenes including engineering, environmental studies, transport, infrastructure, metallurgical work, mining studies, and work on products and pricing.

“There’s an enormous amount of work now being collated,” he said. “We are very happy with the way it is progressing. Everything is proceeding according to plan.”

He adds: “As you know I’m overseas at the moment and very pleased to add that we have had recent meetings with our off-take partners at WOOJIN and binding agreements for off-take and technology exchange are proceeding, and I’m hoping to be able to make an announcement on that in due course.”
Meanwhile, TNG is also moving ahead with the proposed spin-off of its new base metals offshoot, Todd River Resources, which will hold all of its non-core zinc, copper and base metal exploration projects in the Northern Territory.

This includes the McArthur River Project, for which the Company unveiled some impressive early-stage copper exploration results this week.

Burton says little or no market value is attributed for these assets, with the “logical course” being to demerge them into a new company which will be suitably resourced to progress them. Shareholders approved the demerger process last month.

“The strategy now is that we are in discussions with various entities with a view to securing a cornerstone shareholder,” he said. “Once secured, we will finalise a company structure and announce a timetable for listing.”

TNG shareholders will receive an in specie distribution of shares in Todd River Resources, with the company also retaining a cornerstone position in the new entity – giving it exposure to future upside.