TNG Limited (ASX: TNG) ticked the box for several major milestones as it progressed its flagship Mount Peake vanadium-titanium-iron project during the June quarter – closing the period with $11.4 million in cash.
The project’s advanced stage comes at a time the outlook remains “very strong” for the proposed products of vanadium pentoxide, titanium dioxide pigment and iron ore fines.
During the three months ending June 2021, SMS Group progressed the front-end engineering and design (FEED) study for Mount Peake – resulting in its completion earlier this week.
SMS also delivered the font-end loading-3 (FEL-3) report on the proposed Darwin-based TIVAN processing facility and associated plants in the Northern Territory.
The report indicates a beneficiation plant at the Mount Peake mine site would process up to 2.1 million tonnes per annum of ore to produce 700,000tpa of vanadium and titanium-bearing magnetite, which would then be trucked and refined further at the Darwin TIVAN processing facility.
An initial capital cost estimate for the beneficiation plant has been revealed of $146 million.
TNG and SMS are continuing to collaborate on finalising the optimal delivery for Mount Peake culminating in SMS submitting a final commercial development proposal.
Environmental Impact Statement advances
Also during the period, TNG received a request from the NT Environmental Protection Authority to supply additional information to support is Environment Impact Statement regarding the processing facility.
This additional information is part of the new EP Act 2019 that took effect mid-last year.
TNG expects to submit the requested data within the next 12 months.
Green energy strategy
As part of TNG’s green energy strategy, it inked a heads of agreement in June with Malaysia-based AGV Energy & Technology.
Under the HoA, the companies will look at collaborating on integrating vanadium redox flow batteries (VRFB) with AGV’s green hydrogen production technology known as HySustain.
The duo then plans to explore opportunities to commercialise HySustain in Australia.
Earlier in the quarter, TNG inked a HoA with Singapore company V-Flow Tech.
This agreement paves the way for V-Flow and TNG to commercialise VRFB systems in regional Australia.
Mount Peake mine
TNG’s Mount Peake project is 235km northwest of Alice Springs.
It hosts a shallow and flat-lying ore body with a JORC resource totalling 160 million tonnes at 0.28% vanadium, 5.3% titanium dioxide and 23% iron.
TNG considers Mount Peak one of the world’s largest undeveloped vanadium-titanium-iron projects.
Mount Peake has secured major project status from both the federal and territory governments.