AUSTRALIAN resources company TNG Limited has increased its reserve estimate at the Mount Peake vanadium, titanium and iron project, following an earlier announcement of a successful JORC-compliant resource estimate.
The revised estimate is based on new drilling results, which concluded at the end of 2012 and added more than 100 million tonnes into the JORC measured category.
The drilling also collected material for metallurgical test work.
Of the 120mt of measured resource, 0.29 per cent is vanadium, 5.5 per cent is titanium and 24 per cent iron.
The resource upgrade is another boost for the project which is close to existing infrastructure, including the Alice Springs-Darwin Railway, the Stuart Highway and a new LNG
TNG managing director Paul Burton said the upgrade reduced risk and increased the development potential of the project.
“This is a major boost for the Mount Peake project development, moving 74 per cent of the total resource into the measured category and 86 per cent into measured and indicated,” he said.
“Based on this result, we can continue to move forward with the definitive feasibility study (DFS) with strong confidence in our Mount Peake resource model and our projected
“In addition, the metallurgical test work currently underway will provide a further key input for the Mount Peake DFS, which will commence later this year.
“Each of these developments helps to de-risk the project as we move it towards production.”