Significant New Magnetite-Titanium-Vanadium Prospect Identified at Mount Peake, Northern Territory
1 July 2008 HIGHLIGHTS • Significant widths of magnetite bearing vanadium and titanium mineralisation identified from assaying drill core at the Mt Peake Project, Northern Territory. • Abundant Magnetite over 100m in Gabbro core with assay results up to 34.5% Fe. • High vanadium (up to 0.59% V2O5) and titanium (up to 9.81% TiO2) grades. • Potential for significant volume of near-surface magnetite mineralisation to be tested by further drilling. • Mt Peake Project located close to existing road and power infrastructure. Diversified explorer TNG Limited (ASX: TNG – “TNG”) is pleased to announce a new discovery of vanadium- and titanium-rich magnetite mineralisation at its 100%- owned Mt Peake Project, located 200km north-east of Alice Springs in the Northern Territory. The magnetite mineralisation occurs over a considerable thickness and has the potential to develop as a significant new exploration target for the Company. The Mt Peake Project is strategically located close to existing infrastructure including the Stuart Highway, 60km to the east, and the new gas pipeline just 20km to the east of the Mt Peake licence area (Figure 1). The project area comprises two Exploration Licences, EL 23074 and 23271, which are held through TNG’s 100%-owned subsidiary, Enigma Mining Ltd. The tenements were previously subject to a joint venture with ASX-listed exploration company, Discovery Nickel, which completed diamond drill hole ARD02 at the Project in 2006 to test a strong magnetic and electro-magnetic (EM) anomaly, lying within a broad curvilinear magnetic zone (Figure 2). The electro-magnetic target was modelled to be at 200 metres depth. However, Discovery Nickel stopped the hole at 150 metres and concluded that the magnetic anomaly was due to a magnetite-rich gabbro intersected along the entire length of the hole. The core was not cut or assayed and Discovery Nickel subsequently relinquished the Joint Venture. The drill core was recently inspected as part of TNG’s re-assessment of the area with the ongoing evaluation of its Northern Territory exploration portfolio. Logging confirmed the ubiquitous and homogeneous nature of the magnetite-rich gabbro over at least 100 metres. The core was noted to end in olivine-rich ultramafic. A portion of the core at 34 metres depth was sampled and surface drill spoil also collected for assay. These returned values of: MPARDO2 - 9.81% TiO2, 0.59% V2O5, 34.5% Fe (drill core from 34m depth) MP0001 - 8.90% TiO2, 0.55% V2O5, 31.2% Fe (surface drill spoil ARD02) Magnetite in drill spoil at ARD02 Drill Core – ARD02 The results received are very encouraging, particularly when compared to results reported from other magnetite-vanadium-titanium deposits, such as the world-class Windimurra Vanadium Mine in Western Australia’s Mid West region. The remainder of the core has now been cut, sampled and submitted for assay and Davis Tube Recovery (DTR) test work, in order to determine the recovery of iron (Fe), vanadium pentoxide (V205), and titanium oxide (TiO2) from magnetic concentrates. Results are awaited. Of particular importance is the size potential of the prospect. The magnetic feature has a strike length of between 2 and 5km and a width of 700 metres. CRA drilled an RC hole, DD82MC1, 1.5 km north of ARD02 in 1982 to test a strong magnetic feature (Figure 2). This hole had a diamond core tail which has not been recovered. However, CRA’s logging noted magnetite-rich gabbro and this was later recorded as the “Murray Creek Fe Mineral Location.” RC drill chips from this drill hole were located by TNG and inspected, confirming that this also intersected a magnetite-rich gabbro from 30 metres depth. A low hill 200 metres north of DD82MC1 was also confirmed as weathered magnetite gabbro. These all give positive indications that the magnetite-rich gabbro is extensive. Subject to positive results from the assay results and DTR test work, TNG intends to further evaluate the potential of this area to host both magnetite-vanadium-titanium and hematite mineralisation. Further information on this encouraging new prospect will be released as it becomes available.
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