Tonogold Resources Inc (TNGL)

[joeblow110percent]

Santa Clause is Coming, To Town!

Merry Christmas!

Quarterly Disclosure Statement for Period Ending September 30, 2014.
http://www.otcmarkets.com/financialReportViewer?symbol=TNGL&id=129250


Page 6, the last sentence of the second paragraph:
“A CLOSING AGREEMENT BETWEEN MILLER AND TONOGOLD WAS EXECUTED ON SEPTEMBER 26, 2014.”


Page 6, the third paragraph:
“Tonogold has retained EAS Advisors (Eddie Sugar) acting through Merriman Capital to raise capital through the sale of equity at $.50 per share to provide appropriate funding to RESTART THE NEVMEX MINE, ACQUIRE NEARBY PROPERTIES, and CONDUCT AN EXPLORATORY DRILL PROGRAM.”


Page 6, second paragraph from the bottom:
“Our integration of Mil-Ler will be the primary focus of the company in the coming quarters. The primary product of Mil-Ler’s Nevmex mine is iron ore HAVING THE CAPACITY TO PRODUCE APPROXIMATELY 30,000 METRIC TONES (TONNES) PER MONTH…..


On page 15 of the TNGL power point “Annual Shareholders Meeting June 23rd 2014”. http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf it states in part: “POTENTIAL TO INCREASE PRODUCTION TO 1mtpa IN MEDIUM TERM (12-18 MONTHS)”


Page 7, the fifth paragraph:
“ Mil-Ler owns its own mining fleet and process facility, which was originally funded from shareholder equity. Toward the end of 2013, Mil-Ler acquired additional mining equipment, funded from cash generated from its operations, THAT WILL ENABLE PRODUCTION TO DOUBLE TO 360,000 TPA OF FINAL IRON ORE PRODUCT IN EARLY 2014.”

Was this a typo that should have read 2015? I Don’t know? But I am speculating that they are going to start production in the first quarter of 2015. I think they have the money already from the private placement capital raising. That is my humble opinion and speculation.


Page 8, the fourth bullet point from the top of the page:
“Mil-Ler made three shipments to China during 2013, totally 80,000WMT of Iron Ore at an average grade of 57% Fe, and received approx. $100 per tonne (gross). COST OF AROUND $61/t INCLUDING MINING, ROAD TRANSPORT TO THE PORT OF GUAYMAS, PORT FEES AND COST OF SHIPPING TO CHINA.”


Page 17 of the Power point “Iron Ore Presentation” on the front page of the Tonogold web site:
http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf
Lists the POTENTIAL COSTS PER TONNE OF $51.70. This would occur after some cost saving improvements like shipping the ore to port via rail instead of by truck. The rail lines are (at no cost to TNGL) already in place and literally only 20 meters from the front gate of the Nevmex mine. A picture is worth a thousand words! I encourage you to look at the pictures on page 16 of the Power point “Iron Ore Presentation” on the front page of the Tonogold web site: http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf The rail line being so close is a beautiful thing for Tonogold shareholders.


On page 16 of the TNGL power point “Annual Shareholders Meeting June 23rd 2014”. http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf Mark Ashley states:
• Simple beneficiation process (crush/dry mag separation)
• Producing a 58% Fe product which is high in Sulfer (~0.7%)
• 18% penalty on spot price
• Current Spot price for 58% Fe is ~$75/t ($61/t after
penalty)
• Cost $60/t (incl. shipping)
• Expect to increase production, improve quality of product
and reduce impurities.
• Targeting a 61% Fe (spot price around $81/t)
• reduce penalties to ~12% (revenue of $71/t).

Improving the quality and of production by reducing the impurities in the iron ore would be done by adding a wet magnetic separation process. Adding the wet magnetic separation is easily accomplished. Check out these two short U Tube video’s that show this process in action and how it works:

Page 8 Tonopah Divide section first paragraph:
“Our next most important property, the Tonopah Divide gold property, is located six miles south of the town of Tonopah in Esmeralda County, southwest Nevada. The property is accessible by a maintained dirt road directly off of Highway 95 and IS CLOSE TO THE HASBROUCK GOLD/SILVER PROJECT PREVIOUSLY OWNED BY ALLIED NEVADA FOR WHICH WEST KIRKLAND RECENTLY ACQUIRED 75% FOR 75% FOR $20 MILLION.”

Tonopah Divide is approximately three times larger than Hasbrouck and is the same geological terrain as Hasbrouck. Tonopah Divide also has 2.7 million worth of drilling improvements which TNGL got for free! This is explained on page 8 and 9 of the quarterly financial and in more detail on the TNGL web site: http://www.tonogold.com/s/TonopahDivide.asp


Financial Statements For the Nine months ended September 30, 2014 and 2013.
http://www.otcmarkets.com/financialReportViewer?symbol=TNGL&id=129252


Page 12, seventh paragraph, near the bottom of the page:
“A CLOSING AGREEMENT WAS EXECUTED BY THE PARTIES ON SEPTEMBER 26TH 2014. CONSOLIDATED FINANCIAL STATEMENTS (TO INCLUDED MIL-LER) WILL BE COMPLETED AS AT DECEMBER 31st, 2014.”

I am speculating here but I think this is going to be a full reporting, outside audited Financial Statement. TNGL has been short of cash and I think (speculate) that is what has delayed the full reporting process. In My Humble Opinion and speculation TNGL now has the money. TNGL would not have done the 10/1 reverse split if the private placement where not a done deal. Another possibility to consider is the $31,667 spent on “Investor relations” (page 13 of the 9 month financial); was this actually paid to attorneys/accountants to further the full reporting process? As an investor, I would say that there has been virtually no “investor relations.”


Page 13 the last paragraph:
“…THE COMPANY IS WORKING WITH EAS ADVISORS, (EDDIE SUGAR) AND MERRIMAN CAPITAL, TO FUND THE DEVELOPMENT OF THE MIL-LER MINING PROPERTIES.”


Page 12 of the TNGL power point “Annual Shareholders Meeting June 23rd 2014”: http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf “At current Fe price 300 million tones of iron ore is being produced at a loss. Tonogold expects to be less than $60/t providing significant protection from short-term price weakness. OVER 50% OF GLOBAL PRODUCTION WILL BE UNDER-WATER BEFOR TONOGOLD.” Ashley provides a nice chart here, showing our production costs compared to the Worlds four major iron ore producers. I have read that when compared to all iron ore producers (not just the major 4) we are below 60% of them in costs to produce. As I type this many of these higher cost producers are going out of business. This situation will eventually affect the supply/demand and prices will recover. http://mobile.abc.net.au/news/2014-11-19/now-or-never-for-iron-ore-price-rebound-warns-ubs-analyst/5903800


Here is a video showing the last known recording of the iron ore being processed.

Notice the tons of iron ore being processed and STOCK PILED. This iron ore was not shipped. You can also see a lot of the new equipment in this video.

Remember that everything, the land, the tons of stock piled iron ore, all of the equipment, literally everything is owned outright by Tonogold. There is no debt on this mine asset! The stock piled iron ore is also not accounted for in the financials. This is an asset that could be worth millions? All of this and the fact that this mine can operate at costs near $61/t and with some improvements at about $51.70/t is only some of the reasons why Tonogold will make money in spite of the short term iron ore price pullback.

There are already drill rigs on the property and drilling has already been completed. See the photos of the drills in operation here: http://comstockroyalty.com/operations/mexico-iron-ore-producer/. These photos were taken 4/14/2012, months before this was a Tonogold project.

“The Company operates its own laboratory on-site” This quote along with photos of the lab where the drilling product can be evaluated is found on Page 7 of the Power point “Iron Ore Presentation” on the front page of the Tonogold web site:
http://www.tonogold.com/i/pdf/Presentation_Iron_Ore_2013_10.pdf

I am speculating, but I think TNGL is about to start production, drilling and complete the full reporting process. I think TNGL is going to begin production with an initial target of 360,000tpa. Once production starts I think TNGL is going to move toward their publically stated goal of within 12 – 18 months reaching a production rate of 1 mtpa. I would say that this process has taken longer than anyone expected and the communication has been horrible. But I think that TNGL is doing everything they said that they were going to do. I think that by the end of the first quarter of 2015 we are going to see TNGL as growing, profit generating, producing mining company.



My Tonogold Top Ten - October 2014 is being proven correct in real time. As a matter of fact we can now cross of numbers one and two on my Top Ten List. Tonogold is just moving down the list. See for yourself:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106675028

If you want details, check out my post “Everything U Need To Know on TNGL – October 2014:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107284171



This is my humble opinion and speculation. Please look at my past posts to understand where I am coming from. This is not a recommendation to buy or sell. Do your own DD.

http://investorshub.advfn.com/Tonogold-Resources-Inc-TNGL-4288/