http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Mon, 20 Nov 2017 19:09:52 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tango Mining’s Angola acquisition should be providing cashflow within months ]]> http://www.proactiveinvestors.co.uk/companies/news/183914/tango-minings-angola-acquisition-should-be-providing-cashflow-within-months-183914.html It’s now becoming clear what the modus operandi for Tango Mining Limited (CVE:TGV) will be for the foreseeable future.

The company has just signed an agreement to mine an alluvial diamond property in the Lunda Norte district of northern Angola, and according to chief executive Samer Khalaf, there could be more deals to come.

READ: Tango Mining takes control at Oena, and is now planning further expansion in Africa

“This is the first of the project deals that we hope to be closing,” he says. “It fits into our pattern of acquiring alluvial properties.”

As it stands, Tango’s diamond operations have hitherto been centred around the alluvial mining of the Oena project in South Africa, near the Orange River.

This project lies just south of the Namibian border, and it has allowed Tango to cut its teeth in alluvial diamond mining, to acquire expertise and know-how.

The jump north into Angola is ambitious, since Angola is known as one of the great diamond producing countries of the world.

“We like Angola,” says Khalaf. “We think Angola has a lot of potential. This asset is our entry point into Angola. And it’s certainly not the last transaction that we will do there. This will be our platform.”

Txapemba project

So, with such a clear statement of intent, what is it about the Txapemba project that allows for such confidence?

First, there’s the deal structure. Some juniors, and even historically mid-tiers like Petra, have come unstuck in Angola because they sought too much control.

But Angola’s history is complex, involving the layering of Portuguese, Cuban and Soviet cultures on top of those of the indigenous tribes, all of which was mixed up in a civil war that raged throughout the 1980s, and in which diamonds played no small part.

As such, it’s an operating environment that requires an understanding of what’s expected on the part of the investor.

READ: Tango Mining says 312 carats produced from Oena diamond mine in latest period

“We will be acting as the operator to the license and not actually acquiring the license,” explains Khalaf. In this way, both government and company can avoid both the danger and the perception of danger of sequestration and get on with the actual business in hand of making money.

“It’s one of the less risky transactions that we’ve been looking at,” says Khalaf. “We like the asset, we like the data, and we hope to start producing in three-to-six months.

That’s the beauty of alluvials, of course, you can just scoop them out of the sand or gravel and send them through a processing plant that can be as big or as small as you want it.

Location favourable

Exactly what the parameters of the operation at Txapemba will be isn’t yet clear. But the address is certainly favourable, and the presence of artisanal miners on the ground indicates that there’s certainly prospectivity.

Lunda Norte overall is known as Angola’s most prolific diamond producing province. The world’s fourth biggest diamond mine is located less than 200 miles southwest of Txapemba, and is operated by one of the world’s largest diamond companies, the Russian giant Alrosa.

De Beers, the great South Africa diamond company, also has a presence in the wider region, while the Luembe River basin, in which Txapemba is located, has a long history of alluvial production, and some kimberlites too.

More deals?

So all in all, Tango looks well set up.

Under the terms of the deal it has struck with the local co-operative it will receive 60% of the sale proceeds from stones produced at Txapemba, with all operating costs deductible.

“The area is known for its high quality diamonds and has produced a lot of diamonds in the past,” says Khalaf.

And the money to get Txapemba into production has been secured. On that score, says Khalaf, “we’re comfortable.”

So, what remains to Tango is to source the equipment, undertake the necessary geological work, design the mine and get its second diamond mine into production.

And after that, there could be many more.

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Wed, 13 Sep 2017 11:53:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183914/tango-minings-angola-acquisition-should-be-providing-cashflow-within-months-183914.html
<![CDATA[News - Tango Mining takes control at Oena, and is now planning further expansion in Africa ]]> http://www.proactiveinvestors.co.uk/companies/news/182728/tango-mining-takes-control-at-oena-and-is-now-planning-further-expansion-in-africa-182728.html A C$250,000 fundraising, to close later in August, will set Tango Mining Limited (CVE:TGV) up nicely for the next stage of its development, as it seeks to secure control over the Oena diamond mine in the Northern Cape Province of South Africa.

Tango also mines and processes coal on behalf of Exxaro (JSE:EXX) in Mpumulanga in the northwest of South Africa. Tango’s new chief executive Samer Khalaf describes that operation as largely “self-sufficient.”

He’d like to be able to say the same about Oena too, which is why the company has recently been making some changes at the operational level, and why the recent funding has been put in place.

Out goes the old contractor at Oena, and in comes Consulmet, one of the top names in diamond mine design and operations. Tango and its partners will own the processing equipment, for which it has secured financing through a newly established equipment company and will be operator.

But while those changes are taking place there will be a short production hiatus.

“There is enough equity in the last raise to get us through the period when Oena is not producing,” says Khalaf. “It’s going to take us eight weeks to get up and running.”

Tie that into the 10 days or so that still remain for the current contractor to clear out and that means production in Oena is likely to re-start in about ten weeks.

But when it does the improvements ought to be palpable.

“We’ll be looking to target a double in production,” says Khalaf. “Certainly to increase it by between 50% and 100%.” And margins are likely to increase fourfold since the equipment on site is wholly owned by Tango and its partners.

This increase will be affected quite simply. There will be more shifts, more tonnage will be mined, and the company will also be processing old tailings as well as fresh gravel.

Even with those production increases in place, Khalaf says that internal company estimates still put the mine life at Oena at over ten years, which isn’t bad considering it’s already been in production for more than a decade.

But there’s more to it than that. Creating what Khalaf calls a new “mine equipment company” to do the work at Oena allows Tango to have a vehicle in place that will also be able to take on other work in South Africa as and when it arises.

“We have formed our own equipment company in order to lease  to other assets that we might acquire,” says Khalaf. “We’re looking to acquire diamond assets in South Africa and beyond and we’ve been very active in our search  over the past few months.”

Longer-term followers of Tango might remember the company’s efforts to acquire the BK11 kimblerlite pipe in Botswana, and how that deal eventually stalled.

But Khalaf is quite candid about this.

“BK11 was a really challenging project,” he says. “It would have required US$25mln to US$30 mln in new money in what would have been a new country for us. We dropped the opportunity earlier this year. We’re now looking more at alluvial diamond mines and trying to replicate the Oena model.”

So, smaller mines of a more manageable disposition, for a company that’s now stabilised financially and supported by a South African mining team with long-standing in-country experience.

“We can leverage from the experience of our coal team,” says Khalaf. “We’re really assisted by them in a lot of the decisions we take at Oena. The team is very involved in our analysis of the operation at Oena and at new opportunities we are reviewing”

As it stands, the three coal operations should process around 6.2 mln tonnes this year, while Oena continues to throw up a significant percentage of high quality stones worth more than US$1,100 per carat.

But don’t expect Tango to stand still for too long. Once Oena is up and running under the new mining plan, expect further interesting developments. 

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Mon, 21 Aug 2017 11:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/182728/tango-mining-takes-control-at-oena-and-is-now-planning-further-expansion-in-africa-182728.html
<![CDATA[News - Tango Mining says 312 carats produced from Oena diamond mine in latest period ]]> http://www.proactiveinvestors.co.uk/companies/news/177072/tango-mining-says-312-carats-produced-from-oena-diamond-mine-in-latest-period-177072.html Tango Mining Ltd (CVE:TGV) said 312 carats from 199 diamonds were produced from the Oena mine in South Africa from March 21 to  April 17 this year.

Of this, 250 carats were placed on tender in Johannesburg and sold with an average price of US$1,155 per carat.

READ - Tango Mining closes Zard ASM stake deal READ - Tango Mining shares sparkle as it unveils latest Oena diamond sales

It is planned for the other 62 carats to be exported to Dubai to be sold by ATC Enterprises DMCC.

As a  comparison, in the month to March 20,  307.94 carats from 183 diamonds were produced and sold with an average price of US$875  per carat.

In the latest period, the top three highest value diamonds recovered include a 14.64-carat diamond which sold at US $5,019 per carat, a 6.35-carat diamond which sold at US$3,357 per carat and a 7.82-carat diamond which sold for US$3,377 per carat.

Diamond production from Oena since acquisition now totals 876 carats, of which 804 carats have been sold at an average price of US$1,290 per carat.

Oena covers a 4.8km wide strip along a 15km length of the Orange River in a well-established alluvial diamond-mining province known to produce high-quality and large-sized diamonds.

African Star Minerals , of which Tango has a stake, owns 100% of the property.

As well as the Oena interest, Tango, via South African subsidiaries, holds three thermal coal, metallurgical and processing plant, and engineering contracts that process 6.5 million tonnes of coal a year, with clientele that include Exxaro.

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Fri, 28 Apr 2017 15:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177072/tango-mining-says-312-carats-produced-from-oena-diamond-mine-in-latest-period-177072.html
<![CDATA[News - Tango Mining shares sparkle as it unveils latest Oena diamond sales ]]> http://www.proactiveinvestors.co.uk/companies/news/176039/tango-mining-shares-sparkle-as-it-unveils-latest-oena-diamond-sales-176039.html Shares in Tango Mining Ltd (CVE:TGV) added over 8% in Toronto as it updated on diamond sales from the Oena mine in South Africa.

In the month to March 20 this year 307.94 carats from 183 diamonds were produced and sold with an average price of US$875  per carat.

The top 53 diamonds in value, of the 183 recovered, totalled 174.46 carats, had an average size of 3.292 carats and were sold with an average price of US$1,358 per carat, it added.

Production from Oena, since it was bought, now totals 564.06 carats, which have been sold at an average price of US$1,330, said Tango.

Notably, as announced on February 28,  during test commissioning, a diamond of 36.34 carats was recovered and sold at US$6,054 per carat.

Oena covers a 4.8km wide strip along a 15km length of the Orange River in a well-established alluvial diamond-mining province known to produce high-quality and large-sized diamonds.

African Star Minerals , of which Tango has a stake, owns 100% of the property.

Tango shares gained 8.33% to stand at $0.065.

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Wed, 05 Apr 2017 14:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/176039/tango-mining-shares-sparkle-as-it-unveils-latest-oena-diamond-sales-176039.html
<![CDATA[News - Tango Mining on hunt for growth as it does not complete Botswana deal ]]> http://www.proactiveinvestors.co.uk/companies/news/165744/tango-mining-on-hunt-for-growth-as-it-does-not-complete-botswana-deal-165744.html Tango Mining Ltd (CVE:TGV) will continue to look for growth opportunities in Africa, specifically in Botswana and Angola, and in diamond trading opportunities,  it told investors, as it did not complete the acquisition of Bk11 mine in Botswana from Firestone Diamonds (LON:FDI).

Firestone had agreed to extend the revised drop dead date by when all conditions for the acquisition of the mine must have been satisfied, Tango did not meet the timeframe.

Included in that, Tango did not close the US$30mln loan commitment with Vanderbilt Commercial Lending Inc, as announced on March 24 this year on or before the revised drop dead date (Sep 9).

Firestone’s Botswana operations, including its interest in the low-grade high-value BK11 mine, are currently under care and maintenance.

Tango said its core operating business remained its four thermal coal processing plant contracts, with clients that include Exxaro and Glencore (LON:GLEN).

Tango can place up to 60 million units at five cents each, consisting of one share and one share purchase warrant to purchase one additional common share at 10 cents per share, exercisable for two years

This placing is subject to approval by the TSX Venture Exchange, it noted.

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Mon, 12 Sep 2016 11:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/165744/tango-mining-on-hunt-for-growth-as-it-does-not-complete-botswana-deal-165744.html
<![CDATA[News - Tango Mining acquires additional 23% interest in Kwena Group ]]> http://www.proactiveinvestors.co.uk/companies/news/128240/tango-mining-acquires-additional-23-interest-in-kwena-group-128240.html Tango Mining Limited (CVE:TGV) has acquired an additional 23% interest in South Africa-based Kwena Group.

The mining firm entered into a deal to acquire the additional shares, bringing its total interest to 74%.

Tango has agreed to issue 14,200,000 shares at a deemed price of US$0.05.

The shares will be distributed to four individuals, one of which is Tango director and significant shareholder Kevin Gallagher.

He will receive 1,300,000 shares of the 14,200,000 common shares, and as a result his total shareholding increases to 15,210,000 common shares, representing 9.72% of the company.

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Fri, 15 Jul 2016 10:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128240/tango-mining-acquires-additional-23-interest-in-kwena-group-128240.html
<![CDATA[News - Tango Mining says Springlake contract has been extended ]]> http://www.proactiveinvestors.co.uk/companies/news/126842/tango-mining-says-springlake-contract-has-been-extended-126842.html Tango Mining Ltd (CVE:TGV) said the service supply agreement for the Springlake colliery operation in  South Africa has been renewed for a year.

Tango has four thermal coal, metallurgical and processing plant and engineering contracts that process 6.5Mtpa, with clients including Total and Glencore (LON:GLEN).

Kwena Springlake Projects Pty is one of the three Kwena Group companies Tango acquired a majority interest of in October, 2014 as part of Tangos acquisition of African Star Minerals' operations in South Africa.

Springlake colliery, in the Kliprivier coal field, KwaZulu-Natal province, has been in operation for over 30 years and is South Africa's largest producer of anthracite.

The operations consist of 65 permanent employees with a target of 600,000 tonnes to be processed over the next 12 months.

Tango said the Kwena Group has a continued development plan in place to grow the business using the successful past 18-year business model, an established market presence and its proven successful operational reputation in the coal, base and precious metal and precious stone Southern African mining sector.

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Tue, 07 Jun 2016 09:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126842/tango-mining-says-springlake-contract-has-been-extended-126842.html
<![CDATA[News - Tango Mining Ltd's busy 2015 includes PEA for BK11 diamond project ]]> http://www.proactiveinvestors.co.uk/companies/news/124431/tango-mining-ltd-s-busy-2015-includes-pea-for-bk11-diamond-project-124431.html Toronto listed Tango Mining Limited (CVE:TGV) revealed its 2015 year to end August saw it produce a preliminary economic assessment (PEA) for its BK11 diamond project in Botswana.

It entered a deal last summer with Firestone Diamonds Ltd over buying the operations.

Production from seven years of open-pit mining is forecast to yield around 569,610 carats with  gross revenues put at $188mln and an expected post - tax discounted net present value of $40mln and an internal rate of return of 43% (8% discount rate).

The cost per tonne of processsing ore and waste is $10.20 per tonne.

And significantly last month it said it would borrow $30mln from Vanderbilt Commercial Lending to finalise the acquisition and restart operations at the mine in a five-year facility.

The year saw the group acquire or strike deals to acquire four coal, metallurgical and processing contracts in  South Africa, from which it gets most of its revenues.

Revenues for 2015 were $13.8mln, while the net loss was $3.2mln - up from a loss of $1.35mln in 2014.

Also last month, and post 2015 results period,  Tango revealed it had received a binding offer from Bothma Diamonte to acquire African Star Minerals Pty - a group it bought 51% of in June last year. African Star fully owns the Oena mine located in Northern Cape, South Africa, of which Diamond miner Tango has a 51% interest in, for $3mln and is payable in tranches.

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Tue, 05 Apr 2016 05:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124431/tango-mining-ltd-s-busy-2015-includes-pea-for-bk11-diamond-project-124431.html
<![CDATA[News - Tango Mining’s Terry Tucker hits the funding trail after study gives thumbs up to BK11 ]]> http://www.proactiveinvestors.co.uk/companies/news/116472/tango-minings-terry-tucker-hits-the-funding-trail-after-study-gives-thumbs-up-to-bk11-116472.html “The mine is 12 months to production upon completion of financing,” says Terry Tucker of Tango Mining Limited (CVE:TGV).

The mine he’s talking about is the BK11 kimberlite diamond mine in Botswana, currently the subject of an ongoing US$8.8mln deal between former owner Firestone Diamonds (LON:FDI) and Tango.

With Firestone pushing ahead with construction at its US$185mln Liqhobong diamond project in Lesotho, BK11 has become less of a priority.

But for a company like Tango Mining it has the potential to be a company maker, as a recently released preliminary economic assessment shows.

For an up-front development cost of just US$15mln, Tango’s study shows that BK11 is capable of delivering gross mine revenues over the seven year mine life of US$188mln.

The post-tax discounted net present value of the project is US$40mln, excluding acquisition costs, while the internal rate of return rings in at a highly attractive 43%.

Small? Yes, but it has the potential to be beautiful too.

“The results were better than I’d hoped for,” says Tucker. 

But the reasons aren’t hard to find.

In large part it’s because of the input of newly appointed chief operating officer, Devin McKay.

He went back and reviewed the original processing plan and came up with some significant improvements, as Tucker explains.

“I didn’t really contemplate autogenous milling,” he says. Autogenous milling allows rocks in a rotating drum to crash down upon other rocks also inside the drum, thus allowing the ore effectively to grind itself.

“I was going to use the old mill,” says Tucker. “But Devin said this isn’t going to work, but if we buy a US$4mln mill I can solve all these problems.”

That raised some interesting challenges, and possibilities.

“We had to go back and rethink the entire project,” says Tucker. “The project was completely re-engineered and revisited.”

The result was the latest economic study, done to a “pre-feasibility level of accuracy” according to Tucker, restricted only because it is based only on an inferred resource.

With that one proviso: the market now has a very clear idea of just what exactly BK11 could do for Tango.

There’s that 43% IRR for starters, and the projected US$188mln revenue number.

Those are based on overall production of nearly 570,000 carats of diamonds, producing an average of 90,000 carats for the first six years, with the projected selling price per carat set at between US$260 and US$285.

At US$10.20 per tonne, operating costs compare well to projected revenues of US$20.80 per tonne.

There’s margin on offer here, that’s for sure, and just to add a little icing onto the cake, US$45mln of tax losses too, related to the old operation.

Two things now remain for Tango to do before this project can really get underway in earnest, and both involve money.

The balance of the purchase cost has yet to be paid to Firestone as seller, and one deadline has already passed.

But this hasn’t led to friction.

On the contrary, says Tucker, Firestone’s Stuart Brown has been “very supportive”.

Firestone has understood all along that Tango needs to be able publicly to demonstrate the economic potential of BK11, given its need to raise both the purchase and the construction cost of the project in the international capital markets.

A down payment has been made, but still needs to come up with US$7.65mln to complete, as well as an additional sum to cover the costs of ongoing care and maintenance.

Then there’s the capital requirement of US$15mln. The total is likely to be US$23mln or more, which isn’t completely out of reach in this market, but it is going to take a lot of hard work.

Tucker’s a financier based in Switzerland and he knows his way around the capital markets.

In his favour is the evident goodwill of Firestone, the Botswana government and other interested parties.

Separately he’s also got, inside Tango, a small South African operating contracting business that is now also running Firestone’s old alluvial mine at Oena and four metallurgical coal processing contracts with Exarro and Glencore.

The resulting cash flow means that although the pressure’s on to finance BK11, it isn’t completely make or break for the company, and that’s a crucial dynamic for Tucker to deploy when he sits across the table from other financiers.

It also means he has in-house expertise when it comes to getting the work done on BK11 itself.

It’s an intriguing setup and within the next few months we’ll know whether the pieces are likely to fall into place.

Watch this space.

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Wed, 21 Oct 2015 12:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/116472/tango-minings-terry-tucker-hits-the-funding-trail-after-study-gives-thumbs-up-to-bk11-116472.html
<![CDATA[News - Tango Mining gets extension for Botswana diamonds acquisition ]]> http://www.proactiveinvestors.co.uk/companies/news/116165/tango-mining-gets-extension-for-botswana-diamonds-acquisition-116165.html Firestone Diamonds (LON:FDI) has agreed to extend the closing date of its disposal of its Botswana diamond operations to give purchaser Tango Mining (CVE:TGV) more time to raise the money.

On 2 October, Tango told Firestone it had not been able to pay US$0.3mln into escrow as a deposit for the deal.

The new deadline is 8 April subject to Tango raising the US$7.65mln balance and paying the cumulative cost of the BK11 deposit’s care and maintenance programme.

If the conditions of the new agreement are not satisfied or waived by 8 April, the disposal will not complete.

The firm also revealed the bulk sampling programme at the Oena project in South Africa had restarted.

The firm's first diamond tender sale results from Oena sold diamonds at an average of US$2,480 per carat and the highest price received was US$6,016 per carat and the average stone size was 3.28 carats.

Theodore Boshoff will manage and oversee the bulk-sampling programme.

He has over 11 years of diamond mining and processing experience of which five years were with De Beers Consolidated Mines at the Cullinan, Koffie Fontein and Venetia mines.

Oena is a 8,800 hectare mining right along the Orange River in a well-established alluvial diamond-mining province known to produce high quality and large sized diamonds. 

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Wed, 14 Oct 2015 13:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/116165/tango-mining-gets-extension-for-botswana-diamonds-acquisition-116165.html
<![CDATA[News - Tango’s economic studies for BK11 show potential for robust diamond mine ]]> http://www.proactiveinvestors.co.uk/companies/news/116188/tangos-economic-studies-for-bk11-show-potential-for-robust-diamond-mine-116188.html It’s been swift work, but Tango Mining (CVE:TGV) has managed to turn around a preliminary economic study for the BK11 kimberlite pipe in Botswana just a few short months after agreeing terms for its acquisition from former owner Firestone Diamonds (LON:FDI).

Those terms have now been amended somewhat, and the date for full settlement put back till next year, but while that’s been going on the meantime the economics of the project have been confirmed.

Tango’s PEA shows the BK11 pipe to have a net present value of US$40mln at an 8% discount rate and excluding the overall US$8.8mln acquisition costs.

The cost to build the project is likely to be a modest US$15mln.

With production likely to run at an average of 90,000 carats of diamonds per year in the early years of a planned seven year life, the internal rate of return works out at a highly attractive 43%, including acquisition costs.

With those numbers in the bag, Tango can now turn towards the serious business of raising the capital necessary to complete the deal, specifically US$7.65mln still outstanding, plus the maintenance charges for the property, estimated at around US$40,000 per month.

The company also needs the relevant approvals from the government of Botswana and the Toronto stock exchange, although at this stage these should be relatively straightforward.

It all adds up to a project that presents a compelling case for development.

Diamond valuation experts have placed a conservative value on the stones likely to come from BK11 at around US$260 per carat, with an upside case that reaches up to US$285.

The diamonds are good quality white stones that should be fairly easy to sell.

In all, Tango expects at this stage that BK11 will generate revenues of around US$188mln, with each tonne of rock costing US$10.80 to mine and generating revenue of over US$20.00.

So the margins are clearly there, helped along by the high quality of the local infrastructure and the general, and widely accepted attractiveness of Botswana as a mining jurisdiction.

What’s more, the operations at BK11 come with US$45mln in tax losses, so in the early years the company will be able to retain a greater share of profits.

Tango also has the requisite expertise in place to bring BK11 into production, and given that the project is what is known in the jargon as a “brownfields” site, environmental and other permitting shouldn’t be too onerous a process.

After all, this is a country that was built on diamond production, that knows diamonds, and is highly influential in the diamond industry.

They do things properly in Botswana, but they will certainly not want to discourage a new mine from getting into production.

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Tue, 13 Oct 2015 21:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/116188/tangos-economic-studies-for-bk11-show-potential-for-robust-diamond-mine-116188.html
<![CDATA[News - Tango Mining to recommence bulk sampling at Oena ]]> http://www.proactiveinvestors.co.uk/companies/news/117443/tango-mining-to-recommence-bulk-sampling-at-oena-117443.html Tango Mining’s (CVE:TGV) bulk sampling program at its Oena alluvial diamond project in South Africa is to recommence.

The company recently suspended its bulk sampling program to allow it to assess progress and draw up a new operational plan; that assessment has now been completed and the bulk-sampling program will recommence within two weeks.

Oena consists of an 8,800-hectare mining right along the Orange River in the well-established alluvial diamond-mining province, which is known to produce high-quality and large-sized diamonds. 

Oena is located 50 kilometres upstream of Namdeb's Auchas and Daberas alluvial diamond mines, which are on the Namibian bank of the river, and the Trans Hex's Baken alluvial diamond mine 60 km downstream of Oena on the South African bank of the river.  

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Wed, 07 Oct 2015 06:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/117443/tango-mining-to-recommence-bulk-sampling-at-oena-117443.html
<![CDATA[News - Tango Mining coal throughput exceeds budget ]]> http://www.proactiveinvestors.co.uk/companies/news/114343/tango-mining-coal-throughput-exceeds-budget-114343.html Tango Mining’s (CVE:TGV) four thermal coal operations in South Africa saw a throughput of 7.29mln tonnes in the year to end August against a budget of 6.5mln tonnes.

There were also no lost time injuries or fatalities recorded during the year.

Elsewhere, Tango last week asked for more time to raise US$7.65mln to buy Firestone’s BK11 Botswana operations.

Talks are underway to agree revised terms and timelines or to terminate the deal.

Tango added it had also recently suspended its bulk sampling programme at its Oena alluvial diamond project to allow it to assess progress and draw up a new operational plan.

Since 6 August, 18,455 tonnes have been processed recovering a total of 37.68 carats.

In Nicaragua, Tango has received notification from the Ministry of Energy and Mines that the mining concession called El Santo will be revoked as the property was inactive for four years.

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Mon, 05 Oct 2015 10:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/114343/tango-mining-coal-throughput-exceeds-budget-114343.html
<![CDATA[News - Tango Mining reveals project updates ]]> http://www.proactiveinvestors.co.uk/companies/news/117441/tango-mining-reveals-project-updates-117441.html Tango Mining (CVE:TGV) has given investors a run-down of its operations in the past year in South Africa where, among other things, it beat expectations for processing coal.

In period between September 2014 and August 31 2015, the group’s 51% owned South African subsidiaries, which process coal under contracts with companies such as Glencore and Total processed some 7.28mln tonnes of coal, compared to an annual budget of 6.5mln tonnes.

It was achieved without lost time injuries or fatalities.

Meanwhile, at the Oena diamond project, 51% owned by Tango, a new operational plan has been defined which will see bulk sampling resume after a brief pause.

Some 18,455 tonnes has been processed at Oena since the last operational report, on August 6, Tango said.

The company also updated investors on its proposed acquisition of the BK11 diamond property in Botswana, which it agreed to buy from Firestone Diamonds in the summer, and it has requested an extension in order to complete fundraising activities.

Tango had agree to pay US$7.65mln to acquire the Diamond mine, though it has now told Firestone that it will not pay a US$0.3mln deposit.

In a statement, the company said: “Tango is currently in discussions with Firestone to consider its request and will update the market when the parties have reached agreement on the revised terms and timelines or if discussions with Firestone are terminated.”

Separately, Tango also confirmed that a mining concession in Nicaragua, where the company has not made any investment in the period since November 2008, has now been revoked by the country’s Ministry of Energy and Mines.

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Fri, 02 Oct 2015 14:06:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/117441/tango-mining-reveals-project-updates-117441.html
<![CDATA[News - Tango Mining buoyed by completion of resource estimate at BK11 ]]> http://www.proactiveinvestors.co.uk/companies/news/110262/tango-mining-buoyed-by-completion-of-resource-estimate-at-bk11-110262.html The recently completed mining resource estimate for the BK11 kimberlite diamond mine in Botswana is in line with Tango Mining’s (CVE:TGV) expectations, the company revealed.

The estimate is based on the evaluation of 6,392 metres of core drilling and 1,473 metres of large diameter drilling and is considered a conservative one by the qualified persons that completed the analysis.

The company revealed the inferred resource is 17.4mln tonnes (Mt), containing 780,820 carats, of which around 9.0 Mt averages 6.8 carats per hundred tonnes (cpht) for a total of 608,000 carats. Higher grade areas of 9.8 cpht have also been identified.

BK11 contains good quality white diamonds in the top 10% of global gem diamond production in terms of value per carat (ct), Tango said.

The recovery of a 1.5 ct high quality Type IIa D colour diamond is significant as it indicates the presence of top quality stones within the BK11 kimberlite, with the potential for large 100+ ct stones, the company added.

Based on the 2015 market, diamond valuation experts advise a minimum average price of US$236/ct, a modelled price of US$260/ct and an upside price of US$285/ct.

Geophysics and geological remodelling have identified a possible low-grade basalt raft near the centre of the resource, estimated to be 0.6 Mt in size. Historically, this would have diluted the feed grade to the plant considering that about 1 Mt of the deposit was treated up to February 2012 out of a total of 2.7 Mt mined. This raft is now almost completely mined away with the pit exposed and developed down to 60 metres, Tango advised.

Tango said it has run feasibility studies in parallel with the resource work and is preparing a NI 43-101 preliminary economic assessment (PEA) report. As part of this work, recently completed rock hardness measurements have enabled autogenous mill sizing to be conducted. The deposit is considered as soft in the greater diamond industry and an autogenous mill retrofit to the existing plant is being assessed.

Economic models will potentially be enhanced, Tango indicated.

“The resource tonnage and grade is consistent with our initial assessment of this acquisition opportunity and the improved diamond valuation could enhance the economics of this project,” disclosed Terry Tucker, executive chairman of Tango.

“The recently announced positive production results and recovery of exceptional stones from nearby neighbouring mining operations, that implemented similar autogenous milling technology bodes well for the future performance of BK11, and provides confidence in our development and investment decision. Our immediate goal is to focus on financing the acquisition and development cost and transition into project development and production," he added.

The BK11 mine is located on a mining licence held by Monak Ventures, a subsidiary of Firestone Diamonds.

Tango has entered into a sale of shares and claims agreement with Firestone Diamonds (LON:FDI) whereby the company has agreed to acquire all of Firestone's right in the BK11 Mine processing facility, and interest and title in the mineral rights.

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Tue, 25 Aug 2015 12:58:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110262/tango-mining-buoyed-by-completion-of-resource-estimate-at-bk11-110262.html
<![CDATA[News - Tango Mining unveils new resource estimate at BK11 ]]> http://www.proactiveinvestors.co.uk/companies/news/117440/tango-mining-unveils-new-resource-estimate-at-bk11-117440.html The latest resource estimate for the BK11 kimberlite diamond mine in Botswana is in line with Tango Mining’s (CVE:TGV) expectations.

The inferred resource is 17.4mln tonnes (Mt), containing 780,820 carats, of which around 9.0 Mt averages 6.8 carats per hundred tonnes (cpht) for a total of 608,000 carats. Higher grade areas of 9.8 cpht have also been identified.

Notably, BK11 also contains good quality white diamonds in the top 10% of global gem diamond production in terms of value per carat (ct), Tango said.

The recovery of a 1.5 ct high quality Type IIa D colour diamond is significant as it indicates the presence of top quality stones within the BK11 kimberlite, with the potential for large 100 plus carat stones, it added.

Based on the 2015 market, diamond valuation experts advise a minimum average price of US$236/ct, a modelled price of US$260/ct and an upside price of US$285/ct.

Terry Tucker, executive chairman, told investors: “The resource tonnage and grade is consistent with our initial assessment of this acquisition opportunity and the improved diamond valuation could enhance the economics of this project.

"The recently announced positive production results and recovery of exceptional stones from nearby neighbouring mining operations, that implemented similar autogenous milling technology bodes well for the future performance of BK11, and provides confidence in our development and investment decision. Our immediate goal is to focus on financing the acquisition and development cost and transition into project development and production."

Tango has run feasibility studies alongside the resource work and is preparing a  preliminary economic assessment (PEA) report. 

The BK11 mine lies on a mining licence held by Monak Ventures, a subsidiary of Firestone Diamonds (LON:FDI).

Tango has entered into a sale of shares and claims agreement with Firestone, whereby the company has agreed to acquire all of Firestone's right in the BK11 Mine processing facility, and interest and title in the mineral rights.

Before being put on care and maintenance in February 2012, more than US$45mln was spent at BK11 on pit development, a processing plant and infrastructure.

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Tue, 25 Aug 2015 08:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/117440/tango-mining-unveils-new-resource-estimate-at-bk11-117440.html
<![CDATA[News - Tango Mining pleased with diamond bulk sampling at Oena ]]> http://www.proactiveinvestors.co.uk/companies/news/109733/tango-mining-pleased-with-diamond-bulk-sampling-at-oena-109733.html Tango Mining (CVE:TGV) says it's pleased with the higher than expected grade and average stone size recovered at the Oena project bulk sampling programme in South Africa.

So far, a total of 20,047 tonnes of 35,688 tonnes of diamond bearing gravels mined have been processed yielding 47.64 carats.

Based on what's been processed so far, the grade was 0.278 carats (ct) per hundred tonnes (cpht), while the NI43-101 estimate was for 0.12 cpht with an average stone size of 1.22 carats.

Meanwhile, the firm's first diamond sale closed on July 28 and the precious gems were sold at an average of US$2,480 per carat, while the highest price received was USD$6,016 per carat and the average stone size was 3.28 carats.

To give some idea of carat size and rarity, fewer than one in a million mined rough stones are large enough to produce a finished 1 carat diamond.

The Toronto-listed mining group said it was "pleased" with the higher than expected grade and average stone size recovered.

Risks to advancing the project, in addition to grades recovered and the chance of theft, is the ability to maintain the tonnage throughput target set of 122,000t per month but Tango said it could mitigate this by using another technology and additional earthmoving and mining equipment.

Oena is a 8,800 hectare mining right along the Orange River in a well-established alluvial diamond-mining province known to produce high quality and large sized diamonds.

Shares are unchanged at C$0.02.

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Thu, 06 Aug 2015 11:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/109733/tango-mining-pleased-with-diamond-bulk-sampling-at-oena-109733.html
<![CDATA[News - Tango Mining’s Terry Tucker hails transformative deal ]]> http://www.proactiveinvestors.co.uk/companies/news/108849/tango-minings-terry-tucker-hails-transformative-deal-108849.html Terry Tucker, it seems, is not a man to take his time.

In the space of less than a year he’s managed to transform Tango Mining (CVE:TGV) from virtual cash shell into a diamond producer with solid, if small-scale, revenues from an alluvial project in South Africa.

Along the way he’s picked up a solid South African operations team and several contracts for the provision of coal to big name customers including Total and Glencor.

But it’s his latest deal which really looks set to transform the fortunes of the company.

Tango has just agreed to purchase the mothballed BK11 diamond project in Botswana for US$8 mln.

The seller, Firestone Diamonds (LON:FDI), has its hands full with the development of the Liqhobong mine in Lesotho, and hasn’t been able to give the BK11 operation its full attention for some time.

With Tango it will be different - BK11 will take front and centre stage inside Tango’s portfolio, complementing but outranking in size and scale the existing alluvial operation at Oena, on the Namibian border.

It’ll good for BK11 and it’ll be good for Tango.

“We are a diamond company now,” says Tucker. “BK11 is a really important step for this company.”

And certainly to go from mining alluvials to mining a fully fledged kimberlite pipe represents a real step change.

As Tucker says, there are really only a handful of companies in the world that mine kimberlites, and for Tango to be joining their number in such short order is really quite something, especially with markets so tough.

But the opportunity on offer at BK11, as the Firestone marketing materials made clear, is “rare” indeed.

That’s because the project has already had US$45 mln spent on it, has almost all the requisite infrastructure in place, including power, has an established resource and plenty of potential for upside.

What’s more, although investors with long memories will recall that BK11 didn’t exactly set the world on fire when it was producing, Tucker reckons that when the mine comes back on stream under Tango’s management things will be very different.

“The facility that was built originally had some challenges and only 20%-30% of the diamonds were being recovered,” he says.

Tango will rectify that with the installation of an autogenous mill on site, which is expected to lift recoveries close to the 100% mark.

The effect of that is likely to transform the economics of production, although fully comprehensive modelling work is still underway.

The company is now working on an updated resource and technical report which should make the economic case for a restart at BK11 that much more compelling.

With that in mind, it’s understandable that Tucker doesn’t want to get drawn into specifics.

But he does point out that Tango’s highly experienced board would hardly have given this deal the green light if the economics were open to question.

“A low IRR project is never going to fly in this market,” he says.

 

 

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Thu, 09 Jul 2015 15:06:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/108849/tango-minings-terry-tucker-hails-transformative-deal-108849.html
<![CDATA[News - Tango Mining quick steps it to Botswana with savvy diamond deal ]]> http://www.proactiveinvestors.co.uk/companies/news/108845/tango-mining-quick-steps-it-to-botswana-with-savvy-diamond-deal-108845.html TSX Venture-listed Tango Mining (CVE:TGV) is acquiring a project in an area in Botswana highly prospective for diamonds for the knock-down price of just US$8mln – some US$2.7mln less than its book value.

The ambitious junior, which bought African Star Minerals last October, has agreed a deal with UK-listed Firestone Diamonds (LON:FDI) to take control of the BK11 Mine.

A past producer, the project is located in the southern African country’s Orapa District, one of the largest diamond producing areas in the world and home to Debswana’s Letlhakane and Damtshaa operations and Karowe, operated by Lucara Diamond Corp.

BK11 is host to a 9.6 hectare kimberlite containing an estimated 29mln tonnes of ore at 44 carats a tonne, or 1.2mln carats in total.

Before being put on care and maintenance in February 2012, more than US$45mln was spent on pit development, a processing plant and infrastructure.

Tango is currently preparing a comprehensive development strategy to reactivate the past producing open pit.

BK11 expands significantly the company’s diamond portfolio, which currently consists of the Oena alluvial deposit in South Africa.

Chairman Terry Tucker told investors: "Our acquisition of the BK11 mine is another major milestone for Tango following its acquisition of the African Star Minerals Group in October of last year.

“The acquisition will build on our existing portfolio of mining properties and mining service contracts in South Africa.

“Together with our Oena Project, our producing alluvial diamond property located in South Africa, the BK11 mine acquisition will ensure Tango's presence as a diamond producer in a region renowned for its ability to maintain low cost and high yield diamond producing mines." 

The mining licence was awarded five years ago.

The deal relies on getting government consent and Tango raising the cash needed for the transaction.

The company also owns coal assets in South Africa and a gold deposit in Nicaragua. 

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Thu, 09 Jul 2015 11:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/108845/tango-mining-quick-steps-it-to-botswana-with-savvy-diamond-deal-108845.html