Revised Mt Peake/TiVan Projections & Timeline

- TNG and SMS Group identify up to $50M per annum operating cost savings at Mount Peake
- Resulting savings are estimated to be a minimum of A$57/tonne of concentrate processed, compared to the DFS figures.
- On the basis of the DFS assumptions, this should result in an overall operating cost (OPEX) saving of more than A$50 million per annum for Phase 1 of the project (at a 3Mt per annum mining rate).

With SMS identifying significant capital and operational cost savings with optimisations with the leach phase of the TiVan process of vanadium extraction, I would assume they can do similar things with the titanium extraction. Let's not forgot the titanium is our real money maker!

1) Projections and value of the project will surely rise
2) Additional test work and optimisations are required to test titanium extraction process and this will take 3 months.

TNG expects these enhancements to have a further material effect on the economics of the Mount Peake Project. After all improvements have been locked into the process flowsheet, a revised Financial Model will be prepared by Snowden incorporating the revised OPEX and CAPEX and production figures and the results will be reported.

These cost savings are very exciting, but with the upcoming revisions, I would assume no commitments/binding to finance can be secured until Snowden completes the revised figures and reports. Therefore, even without any more unforeseen delays, we won't get solid finance news before next year. This was probably alluded to by others after the announcement, but I just thought I would put it out there so others, like me won't be disappointed to not get a binding finance consortium before 2016 ends.

In saying that, the buildup to finally getting it nailed down will be heightened with no doubt improved profits and NPV! GLTAH!