Re: TNG Limited
The following is compiled from numerous sources and is all imho.
TNG is an Australian mining and exploration company with a portfolio of quality projects in Western and Northern Australia. In recent times several of the assets have been rationalised to enable the company to focus on the Manbarrum Zinc-Lead-Silver Project.
TNG is listed on the Australian Stock Exchange (code: TNG) and also on several European Bourse including Frankfurt.
TNG's core focus is exploration of Manbarrum located 70km north-east of Kununurra. The Manbarrum tenements cover a 23km strike length of identified lead-zinc-silver mineralisation of the Mississipi Valley Type (MVT). The project has the potential to host large tonnage, high-grade open pittable lead-zinc-silver deposits within the Main Zone. It also has regional potential for multiple MVT deposits within a 13km long structural corridor trending to the northeast of the Main Zone.
TNG's board of directors and management team have extensive experience in the mining and exploration industries - in Australia and internationally. They are committed to increasing shareholder value by carrying out exploration and maximising the Company’s leverage to discoveries.
Northern Territory Exploration
TNG's Northern Territory portfolio includes a broad range of exploration projects ranging from advanced projects with existing resources, to greenfields exploration. It’s tenements include exposure to a wide range of commodities including gold, bauxite, lead-zinc, nickel and copper. Some of the other assets (besides Manbarrum and Cawse) are:
Rover - gold, zinc, copper
Peterman - gold, copper, uranium
Mt.Peak - nickel
Goddard - copper
and also Croker Island -bauxit- which was formerly described as a potential world-class-deposit.
The Company has a policy of endeavouring to achieve the highest standards in relationships to native title legislation, environmental requirements and exploration policies and procedures.
Cawse Extended Nickel Project
Norilsk and TNG jointly own the Cawse Extended Project, which is located adjacent to the Cawse Nickel-Cobalt Operation. TNG's interest in the Cawse Extended Project is 20% free-carried to production, convertible at TNG's election to a 2% net smelter return.
The Company has entered into a separate Agreement with OMG for mining at the Unicorn Pit, located within the Cawse Extended tenements. The Agreement is for a wet tonne royalty payment, which replaces the current agreement only for the Unicorn Pit. The Cawse asset and the Mt Peake nickel project will be spun off 1st Quarter ‘08 into Enigma Mining Ltd, and then list Enigma (IPO...Initial Public offering) on the ASX. Perhaps in that listing process, there may be other projects included, and monies will be raised to support Enigma as its own entity. Significantly though, TNG shareholders will receive shares in Enigma for free, much as they received shares recently in WDR (which as a matter of interest had a nice run up) for free. Cawse is a very valuable asset, which the market does not understand, but the IPO process I think will bring attention to it, and the surrounding publicity and re-release of the story surrounding Norilsk and Cawse should push the IPO into some very successful territory.!! The cobalt (low tonnage) at Cawse is worth about 10% of nickel- a report conducted by Hardman estimates that it should increase to $ 70 m.
TNG will not need to spend any money on Cawse. TNG has a 20% full free carry to production or 2% Net Smelter Return. Norilsk has indicated its intention to open two new pits on the Cawse Extended tenements before the end of 2008 (refer to the Hardman report). Recent media suggest Norislk is getting very serious about its recently acquired WA nickel interests.
At current nickel and cobalt prices, TNG's 20% interest in the JORC compliant 97mt resource is worth $4.1b (in ground value). It has been rumoured that TNG's interest in this project could be worth the entire current market cap of TNG. That is, Cawse is worth say $100m to TNG, or 2.5% of in ground value. (Hardman's assessment of the Cawse project, seems to be a valuation of $64m for TNG without any value for the cobalt)
Investments
TNG had a considerable investment portfolio including investments in Australian and AIM listed companies. In accordance with the desire to maximize shareholder value in July 2007 a majority of those securities were transferred to TNG shareholders.
Key forthcoming milestones will include:
• the receipt and announcement of pending diamond drilling results from Sandy
Creek;
• the receipt of RC and diamond drilling results from Djibitgun;
• the announcement of an updated resource estimate for Sandy Creek;
• the commencement of resource estimation work for Djibitgun; and
• the results of the gravity surveys and reinterpretation of the broader exploration
model for Manbarrum following receipt of all results of the 2007 field season.
Their website is:
www.tennantcreekgold.com.au. Please refer to it for further information.