TVN - Tivan Limited

[Halba]

Re: TNG - Tennant Creek Gold

Hullo

selling this baby short term may prove to be a disaster in the long term

Mkt cap of the co is about 50M undiluted

Resource is likely to be 20mT, as MVT's tend to be around this range. Add possible extensions, this could bump it up to 30mT, and possible repetitions and it could be more(up 50mT-100mT range). Lets just assume 20mT at this stage however, and a Zn Equivalent average grade of 4%

20mT * 4% Zn Eq = 800,000t of metal.

50,000,000/800,000t = $62.5/TONNE AUD of actual in ground metal. So anyone selling at the current price for short term "no drills" better think again. The current zinc price AUD is $4600 AUD/TONNE of metal. So what do you need to do to gain on TNG? Simply wait till its drilled out the 20mT resource. Since its open cut mine with no political risk with high lead credits, this should be around $500-600AUD/T value atleast.

800,000*600AUD = 500m odd. Add possible resource extensions this could be a lot more. When its producing could be over a billion dollars. No mine life issues as 50km of untested strike.

 

[cuttlefish]

Re: TNG - Tennant Creek Gold

agree about the potential for 30mt or more - but think the first jorc estimate is more likely to be around the 15mt mark. Re no political risk - it was a sensitive area and although TNG managed to get the exploration rights, getting permission to open cut mine in that area is not necessarily a given. High lead component in the Zn equivalents as well though lead prices are going well anyway.

 

[Halba]

Re: TNG - Tennant Creek Gold

me thinks the aboriginal issues have been solved, but of course if the resource is there other things will certainly take care of themselves when $ is concerned.

me thinks the 20mT will be reached/exceeded after this years of drilling, then we should be cool.

 

[powerkoala]

Re: TNG - Tennant Creek Gold

Announcement out
Resource estimate 10M
hmmm.. nice

 

[exgeo]

Re: TNG - Tennant Creek Gold

grade's a bit skinny though

The initial resource, covering the central Sandy Creek Zone of mineralisation only, is 10.5 million tonnes at 2.9% zinc, 0.7% lead, 5.5g/t silver – or 3.3% zinc equivalent by applying a zinc:lead ratio of 3:1. Approximately 50% of the resource (5.4 million tonnes at 3.9% zinc, 0.6% lead, 5.1g/t silver or 4.2% zinc equivalent) is contained in a higher grade, near–surface sub-vertical pipe.

They're also gonna need more cash in the next qtr (744k in the bank; estimated spend 600k for next qtr). Market cap is $46m (109m shares @ 43c).

PDZ has 1Mt @ 8.3% zinc, 1.7% lead and 22g/t silver (but still finding more) for comparison.

 

[Halba]

Re: TNG - Tennant Creek Gold

TNG has wayy more zinc that PDZ

the 10mT is just from a few months drilling

imagine a wider program with diamond drills

cash burn - is that really relevant, as these can do a private placement or fund it from the options conversions

 

[exgeo]

Re: TNG - Tennant Creek Gold

There's a geologists' saying; "grade is king". A placement is relevant if you're an existing shareholder and get diluted.

 

[Halba]

Re: TNG - Tennant Creek Gold

hi exgeo. refer to company's latest presentation

i guess this is headed for the long term bin. not too many like it

you can't win em all

re: "grade is king" no point as say you have 200,000t @ 30% zn thats not much resource but grade is sweet. so how much zinc contained metal is important for sure!!

 

[powerkoala]

Re: TNG - Tennant Creek Gold

Got hammered again
even though nice presentation and company start marketing
zinc price rebound as well
so what gives ?

 

[exgeo]

Re: TNG - Tennant Creek Gold

3.3% Zn equivalent grade just isn't that exciting, even if there are a lot of tonnes of ore.

 

[Halba]

Re: TNG - Tennant Creek Gold

exgeo do u realise this grade can be bumped up by more deeper diamond drills/deeper drilling?

this is a very preliminary resource- u are judging on a coupla months work

note it is open pit

you are also defying the fact that MVT's have been responsible for a large part of production last 100yrs....so they weren't good enuff?

 

[exgeo]

Re: TNG - Tennant Creek Gold

I'm not saying it's impossible to make money from this grade of resource, or that they won't find higher grade resources with more drilling. But nobody knows this yet for sure including the company, and you. I was merely offering an answer (my opinion) to the question "why are the shares going down after the announcment of the resource statement"? If you don't agree with my assessment, no problem; mortgage your house and fill yer boots with TNG - if you're right you'll be able to buy a bigger one later.

 

[Halba]

Re: TNG - Tennant Creek Gold

i have some indication that the resource will be higher- refer to the recent ann's that the RC drills finished in high grade zinc mineralisation- up to 6-7% zinc mineral. This means if that same hole is extended through diamond drills, there will possibly be an extension of that grade, bumping up the average grade of the resource.

Also that only included the central zone, the east area has about 10%+ lead intercepts of good meterage hits

 

[sup3rK0ala]

Re: TNG - Tennant Creek Gold

CBH is eyeing on TNG.I hope this will be a good outcome for TNG.

 

[Robroy]

TNG - Tenant Creek Gold

The Speculator column in today's Bulletin magazine has picked Tenant Creek Gold (TNG) as its buy of the week.

The Speculator promised to discuss the stock fully by the end of the month (that will cause a further price spurt going on past performances), but in the meantime he mentioned that...

"drilling is renewed to extend its Manbarrum zinc project where an initial JORC-compliant resource has been defined of 10.5 million tonnes of 3% zinc, .75% lead and 5.5g/t silver. Later this month the company will fly a team of analysts and media in to look at the place, when I hope to tell you more."

In the light of the forthcoming publicity, I agree with previous posters that this stock is going to $1 pretty shortly.

 

[stu82]

Re: TNG - Tennant Creek Gold

anyone still holding TNG i would be interested to hear anyones thoughts on them

I have been watching this stock closely over the past fortnight or so and can see massive potential in it.

 

[Robroy]

TNG - going up as the market goes down

Seems there is plenty of life in this one yet.

Up like a rocket off the open this morning to a high so far of 1.14 (currently fallen back to 1.10), with a high number of bidders; they are still piling in.

There is also some big press coverage coming this week, in The Bulletin. The Bulletin is a very influential publication re stocks - and this week it is due to discuss TNG. (The Speculator column.)

Note also that TNG directors and other miners such as CBH have been buying in in the last few days.

I think the probabilities say that there won't be a breather for TNG till next week, going on all of the above, which is still unfolding at the moment.

 

[Robroy]

Re: TNG - The Speculator's stock of the week

Here is the link to today's article:

http://bulletin.ninemsn.com.au/david-haselhurst/

The article closes:

"Geologist and managing director Neil Biddle predicted: "I expect we will find dozens of Sandy Creeks along this trend. Sandy Creek's 10 million tonne resource contains 350,000 tonnes of metal worth $1.5 billion in ground." "

Sic.!

 

[dubiousinfo]

Re: TNG - Tennant Creek Gold

CBH has the Sorby Hills lead/zinc silver deposits with a reported Inferred Resource of 10 million tonnes at 6.4% lead, 0.9% zinc and 66g/t silver, about 30 km to the west of the TNG's Manburrum which is a zinc/ lead/silver resource with Indicated and Inferred Resource of 10.5 million tonnes at 2.9% zinc, 0.7% lead and 5.5g/t silver.
CBH originally bought around 5% back in May this year at 39c. CBH stated it was interested in working with TNG to develop joint processing facilities etc. to enhance the feasability of both projects.

CBH has now moved to 9% and it would make more sense for CBH to just take over TNG. Given the problems it had with the long drawn out battle for Triako, it may look to make an all cash offer. Looking at their current cash position and forecast profits, it could certainly afford to make an all cash offer for TNG.

I think its a matter of when not if for an offer to be made. Thoughts?

I hold TNG

 

[doogie_goes_off]

Re: TNG - Tennant Creek Gold

TNG is now in trading halt - does anyone want to speculte on take-overs? Anyone expecting other news based on previous announcements??