The tenements lie immediately west of TNG's flagship Mount Peake Strategic Metals Project in the Northern Territory, and are considered to be highly prospective for copper and nickel mineralisation based on previous exploration results.
Historical soil sampling and drilling returned highly anomalous nickel and copper results up to 3,581 parts per million nickel and 2,410 parts per million copper in shallow drilling over 20 to 50 metres.
Based on available data, six areas have been identified as highly prospective for immediate follow up.
Heads of Agreement
Under the heads of agreement, TNG must spend a total of A$500,000 on exploration activities within the first two years to earn a 51% interest in each of granted exploration licences.
TNG then has the right to increase its stake to 80% by spending a further $1.5 million over the next five years.
Toro can then elect to retain, assign or convert its remaining 20% interest to a 2% net smelter royalty.
The joint venture project will be known as the as the Walabanba Hills Project.
TNG is at a very interesting stage with the its Mount Peake project, which hosts a JORC Indicated and Inferred Resource of 160 million tonnes at 0.3% vanadium, 5% titanium and 23% iron.
The company has almost completed a Pre-Feasibility Study, which is the key to a hydrometallurgical process capable of separating the three minerals - iron, vanadium and titanium, all at high grades and high purities.
Earlier this month TNG achieved continuous pilot plant operations at Mount Peake.
Importantly, the successful completion of the solvent extraction pilot test run has confirmed the preferred process flow sheet option for the Mount Peake Project, providing confidence in the potential to fully commercialise the TIVAN™ process.
The process allows the separation of the three mineral streams - iron, vanadium and titanium - which gives TNG very strong robust economics for Mount Peake and allows the company to identify a whole range of different markets.
The pilot plant operation was able to achieve a continuous run of 67 hours, out of the planned 72-hour run time. During most of this time, the plant was operating under stable conditions.