Recent survey discovers lower-cost water source to support TNG’s Mount Peake project
TNG’s balance sheet was strengthened further this week after it received a $5.14 million R&D tax rebate.
Australian resource company TNG Limited (ASX: TNG) has announced recently conducted field surveys have identified a potential undiscovered shallower water source which can be used to support its Mount Peake vanadium, titanium and iron project in the Northern Territory.
The field surveys were carried out by the Perth-based company’s appointed hydrological consultant AQ2, an independent water management consultancy based in Western Australia.
The surveys aimed to expand the currently identified borefield within the Hanson River system.
A field survey from AQ2 in July and August 2022 highlighted the potential of a shallow “perched” aquifer residing in the whereabouts of the Hanson River channel.
The hydrological consultant said local vegetation around the proposed borefield expansion area may compromise the water and soil moisture associated with this perched aquifer, but said TNG’s expansion design can be altered to utilise the shallower water source.
This would mitigate the length of the borefield and offer “significant cost savings” for the project.
Borefield expansion required to support TIVAN facility
An expansion of the borefield was required to support TNG’s plan to incorporate the TIVAN processing facility into a fully integrated mining and processing operation at its Mount Peake site.
TNG’s leans on its propriety TIVAN process in an effort to produce high-purity strategic products of vanadium pentoxide, titanium dioxide pigment and iron ore fines for markets across the globe.
In its expansion efforts, the company has studied water resources within the local environment, including a water drilling program for the installation of additional bores, a geophysical survey of the aquifer extent and an assessment of vegetation to define hydrotypes.
TNG works closely with AQ2
Working together with AQ2, TNG is carrying out extra field work to uncover the perched aquifer characteristics within the Hanson River channel and its relationship with soil profiles.
TNG aims to complete the additional work this November, contributing towards the borefield design as well as an environmental impact assessment (EIA).
Although the added work could delay the project’s EIA referral submission to the NT Environmental Protection Agency, TNG believes the resulting cost savings of its long-standing efforts are worthwhile.
TNG already submitted a water extraction licence application to the NT Government Water Resources division of the NT Department of Environment, Parks and Water Security to supply water to the Mount Peake mine site.
After aquifer drill testing completed earlier this year extended the aquifer outside of the WELA area, TNG now awaits subsequent groundwater modelling to confirm “sufficient, sustainable water resources” for its Mount Peake operations.