Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Tango Mining unveils new resource estimate at BK11

Tango Mining unveils new resource estimate at BK11
More than US$45mln was previously spent at BK11 on pit development, a processing plant and infrastructure

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.

View full TGV profile View Profile

Tango Mining Timeline

Related Articles

man standing in front of piles of bauxite ore
September 05 2018
Metro is targeting around two million tonnes of production this calendar year.
A vanadium ore stockpile at Nelly
August 31 2018
The country’s favourable regulatory system enables faster turnaround of legacy mining rights.
worker on a hill
April 19 2018
The turnaround plan at the Drakelands mine is beginning to take effect

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use