TNG Limited's iron vanadium drill results at Mount Peak hint at upside to come

TNG Limited (ASX: TNG) has returned the highest grade and widest intersections yet from diamond drilling at Mount Peake in the Northern Territory, confirming a large continuous iron vanadium zone.

Assay results for eight recently completed drill holes confirm extensive commercial grade vanadium, iron and titanium mineralisation across the large magnetite zone.

Results of up to 0.6% vanadium (V205), 10% titanium (TiO2) and 36% iron (Fe) include the highest grades received to date.
The results follow an MOU signed with Chinese state owned enterprise Jiangsu Eastern China Non-Ferrous Metals Investment Holding Company in August for ECE to become a cornerstone investor in TNG via a placement for a 30 per cent stake at $0.11 per share - a premium to market price.

Continuous homogeneous mineralisation has been intersected over widths of up to 145 metres and results also confirmed the shallow nature of the overburden – in places to just 12 metres thickness – which has positive implications for any future mine plan.

The confirmation of definitive grades and mineralised intervals for the key commodities from diamond core across the deposit continues to show that the Mount Peake resource has the potential for a large scale development.

The diamond core is now being utilised for optimisation and pilot plant metallurgical test work.

The company is now eagerly awaiting reverse circulation resource drilling results and will be forwarded to Snowden to commence an updated JORC resource estimate, to be completed in September.

The Mount Peake Pre-Feasibility Study is progressing on schedule, with final metallurgical optimisation work, engineering, process design, hydrology, native title and environmental studies underway.

TNG has an exploration target for the area of between 500 – 700 million tonnes at 0.2-0.4% V205, 5-9% TiO2, 25-35% Fe.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18918/tng-limiteds-iron-vanadium-drill-results-at-mount-peak-hint-at-upside-to-come--18918.html