TNG shores up water supplies for proposed Mount Peake vanadium-titanium-iron operation
TNG’s balance sheet was strengthened further this week after it received a $5.14 million R&D tax rebate.
TNG (ASX: TNG) expects to have all its water requirements in place for its Mount Peake operation following a successful aquifer extension water bore drilling program.
The water bore drilling and evaluation program was carried out to shore up a sustainable water supply for the Mount Peake vanadium, titanium and iron mining, processing and downstream refining operation in the Northern Territory.
Additional water resource information was also gathered for hydrological consultant AQ2 Pty Ltd to complete groundwater modelling.
TNG has submitted an application for a water extraction licence with the Northern Territory Government’s Water Resources Division as well as its Department of Environment, Parks and Water Security.
The company’s proposed bore field for Mount Peake is along the Hanson River and about 30km from the project.
This round of aquifer drilling tested the area outside of what is currently under application, with TNG saying it expects it will prove a sufficient and sustainable source of water within 75km of the project.
Once AQ2 has completed its groundwater modelling, TNG will submit a second water extraction licence application for the extended area.
Information from the water bore drilling program will also feed into TNG’s environmental impact assessment report.
Mount Peake operation
Mount Peake is 235km north of Alice Springs and has a forecast 40-year operational life.
Using its proprietary TIVAN process, TNG plans to produce high-purity strategic products of vanadium pentoxide, titanium dioxide pigment and iron ore fines for global markets.
Mount Peake already has major project status from both the Australian and NT governments
Once in operation, Mount Peake is predicted to be a top-10 global producer of these strategic products.
The project has a shallow, flat-lying orebody with a resource of 160Mt at 0.28% vanadium, 5.3% titanium, and 23% iron.
TNG noted the outlook and pricing for its key products “continues to be strong” – propelled by fears of global supply shortages.
The Australian Government has also designated vanadium and titanium as critical minerals in the global transition to decarbonisation.