Perth-based company TNG Limited has reinforced the credentials of its Manbarrum Lead-Zinc-Silver Project in the Northern Territory after unveiling a major increase in the total JORC resource inventory.

The emerging Mississippi Valley Type (MVT) base metal district now has a combined polymetallic resource base of 35.9 million tonnes of lead, zinc and silver resources.

The upgraded inventory comprises a substantial increase in the mineral resource for its flagship Sandy Creek deposit to 15.97 million tonnes grading 2.3% zinc+lead and 5.4 grams/tonne silver and a maiden resource estimate of 19.9 million tonnes at 16.4 grams/tonne silver for the newly discovered Djibitgun Prospect.

As a result of the resource upgrade and the success of its 2006 and 2007 drilling programs, TNG has upgraded the exploration target for its 2008 exploration program at Manbarrum to build a multi-million tonne resource base.

The upgraded estimate for the near-surface stratabound zone at Sandy Creek deposit increased by more than 200% from the previous 2007 JORC reported mineral resource of 5 million tonnes grading 2.95% zinc+lead and 5.8 grams/tonne silver.

This new stratabound resource figure includes a higher grade JORC Indicated Mineral Resource of 6 million tonnes at 3% zinc+lead plus 6.8 grams/tonne silver and a high-grade, near-surface lead zone of 1.9 million tonnes at 5% lead+zinc plus 14.1 grams/tonne silver.

This increased tonnage excludes the deeper high-grade pipe zone which in the 2007 estimate contained 5.4 million tonnes grading 3.9% zinc, 0.6% lead and 5.1 grams/tonne silver. These zones require more work prior to inclusion.

The maiden Djibitgun resource includes a zinc resource of 6.7 million tonnes at 2.4% zinc+lead plus 14.0 grams/tonne silver and a higher grade zone of 3.8 million tonnes grading 3% zinc+lead and 15 grams/tonne silver has been estimated for.

TNG’s managing director Neil Biddle says the upgraded resource inventory is a significant outcome and a major step forward for TNG and the Manbarrum Project. “This repositions the company as a significant emerging base metal company.

“With its higher grades we are confident that the pipe zone will also contribute significant additional tonnage and will be mined as part of any future mining operation.”

The mineral resource modeling has confirmed that the Djibitgun deposit remains open in all directions, with excellent potential to define substantial additional tonnage with further drilling. Mineralogical and Metallurgical test work has started to evaluate the leaching characteristics of the zinc and silver mineralization.

“The substantial resources already defined at Sandy Creek and Djibitgun, together with CBH Resources’ nearby Sorby Hills deposit, clearly demonstrates that the area is rapidly emerging as a global MVT district,” Neil Biddle says.

“The three deposits alone, the only prospects in the field to have been tested so far by systematic drilling, account for total polymetallic resources of almost 50 million tonnes.

“We have numerous targets on our tenements which we plan to test, including the priority Browns and Landandi prospects, where we are confident that the potential to delineate additional high-grade lead,zinc and silver resources is high.”

www.tngltd.com.au