TNG Limited (ASX: TNG) has moved to a new stage at the Mount Peake Iron-Vanadium-Titanium Project and in another key step will commence pilot plant testwork.
The new work is to test the proprietary TIVAN™ solvent extraction process, which is a chemical phase which will run continuously during this testwork at the ALS-AMMTEC laboratory in Perth using modified solvent extraction equipment.
The focus of the work is to complete a definative test of the commercial potential of the TIVAN™ process to produce a high-purity aqueous vanadium solution, which could then be the forerunner to commercial grade production of vanadium pentoxide.
TNG has already completed exhaustive bench scale and optimisation testwork, which focused on the final stage of the process, which involves the production of the final marketable products from the Mount Peake deposit of iron, vanadium and titanium.
Moving forward, TNG will conduct additional pilot plant testwork early in the June 2012 quarter to confirm the iron and titanium grade.
Mount Peake hosts a JORC Indicated and Inferred Resource of 160 million tonnes at 0.3% V2O5, 5% TiO2 and 23% iron. The Indicated component is 110 million tonnes at 0.29% V2O5, 5.3% TiO2 and 23% iron.
TNG has broker attention and buy recommendation
The potential of TNG has not been lost on UK broker Old Park Lane Capital, which earlier in the week reiterated a target price on the company of $0.45, which is five times the current valuation.