rat rant newsletter this evening
TBA - Tombola Gold LimitedTombola Gold is a new Australian gold producer, with mining underway and expansion in progress as they fast track to first cash flow in 2022.I own stock in them myself, I know the boss Byron Miles who we will call Byron Bay to keep him annoymous & as usual thought would share some thoughts with you after catching up with him not long after he got hitched to the beautiful Dr Jess. Anyway enough of that........love you Jess, thanks for saving my life (true story) & well done !!! TBA is currently trading at 3.8c to hand them a market cap of around $37m, Back in May TBA raised $10.5m @ 6c so they are cashed up and are much cheaper than what the so called sophisticated like me paid. TBA's Mt Freda Complex is located in the Cloncurry district of Western QLD and consists of several gold mines including the Mt Freda Gold project and Golden Mile project, which are in close proximity to core infrastructure in the area including roads, power and on-site facilities.Tombola is now fully financed into initial gold production from its flagship Mt Freda Gold Mine in Q3 CY22.The balance of the proceeds will be used to progress copper, cobalt and gold exploration activities in Cloncurry and to commence a modern drilling campaign at its highly prospective South Australian copper projects which I will speak about below.Scoping study results indicate potential for a profitable operation at Golden Mile and Mt Freda projects, with the study incorporating financial and operational studies including up-to-date mining and production costs from preferred providers.Mining at both of the projects will be completed by conventional open pit methods - drill and blast followed by load and haul.Mt Freda is expected to produce ~64koz of gold over initial 30-month LOM from a throughput of +300ktpa & Golden Mile is expected to produce ~15koz of gold over initial 20-month LOM. With current gold prices the company would make $100m profit over first 3 years of profit if everything went to plan.Golden Mile also hosts another 5 historical gold mines which are not included in the resource within a 2-km-wide zone of mineralisation, so there is potential for further upside.Tombola plans to resource drill at these 5 mines to extend the LOM once gold production has been established.TBA has already advanced construction of its own gold processing plant on site, and has a well-defined expansion strategy of utilising near-term gold cash flows to drive resource expansion with LOM extensions and exploration focus. Tombola recently announced the acquisition of the Lorena CIL plant 30km away from there operation. This plant has a replacement value of $40m and they bought it for $5m ($4m is vendor financed so they will be able to pay for the plant out of production) and $3m of script at a price of 6c or that's the plan anyway for Byron Bay and his team. This acquisition may potentially allow Tombola to increase production substantially past the predicted production ounces projected in 2023. Last Thursday, TBA announced assay results from its Little Duke prospect within the highly prospective Golden Mile Complex. High-grade gold/copper intercepts were drilled in four zones with highlights of 27m (104-131m) @ 1.44 g/t Au and 0.60 % Cu, including 15m (116-131m) @ 2.25 g/t Au and 0.71 % Cu. These drilling results follow up on 2 previous holes which returned 68m @ 1.44g/tAu; 0.53% Cu, and 40m at 2.21g/t Au; 0.40% Cu. The zone of mineralization now extends for 100m along strike and geological interpretations indicate an iron-sulphide rich copper/gold system. Further drilling is underway to test and evaluate the size and extent of the higher grade Little Duke mineralised zones & IP surveys will commence at the end of July. Tombola also holds the Burra project located in South Australia, a gold and REE target with a strategic tenement holding in a world-class domain.Burra is in a geologically prospective area with ~6,500 km2 including the G2 Structural Corridor, host to Olympic Dam, Carrapeteena, Prominent Hill, with multiple historic high-grade copper and gold workings.TBA has already secured a $300,000 grant from South Australian Governments Accelerated Discovery Initiative.A recent report by Professor Ken Collerson has improved TBA's understanding of the geochemical, geophysical and geodynamic controls on Cu-Ni-Co-REE±Au mineralisation in the vicinity of Burra and has provided substantiation for its original thinking for the ADI Grant.* did an interesting interview with Chairman & MD Byron Miles which you can find on the link below:https://bit.ly/3Nwb4k1 Oracle Capital also recently wrote an interesting note on TBA which you can find on the link underneath: https://bit.ly/3zZ9ZhG
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