Tonogold Resources Inc (TNGL)

[joeblow110percent]

The Next Big Thing!

If you want to know what is going on I suggest you go to the Tonogold web site http://www.tonogold.com/s/Home.asp and read everything. Read the filings at http://www.otcmarkets.com/news/otc-news I typically download and print out all of that stuff, read them, hi lite, and re read them multiple times. Read what is posted on the boards. If you have a brain you will be able to figure out good information verse ranting on the boards.

Here is a summary of what I think are important issues and what I speculate as to what is going on.

Look at the document from the annual share holders meeting 10/18/13. It lists the owners of TNGL stock as of October 2013, with 26% being Australian. Then look at my update on Eddie Sugar that is posted on this board titled “The big money is already in”. I do not have any inside information. Just come to your own conclusions. I think that some of the world’s biggest iron ore producers are already involved in TNGL. Once we own 100% of the Mil-ler mine, I suspect that involvement will increase. IMHO, I am just speculating here. DO THIS RESEARCH!

I think all the money TNGL needs to close the iron ore deal is already in and is only waiting for a vote from the share holders at the June 14 meeting. IMHO the hedge fund money is already inked into this deal. I think that vote will basically put us at full reporting status, authorize the reverse 10:1 split and will close the purchase of the iron ore mine. I think we are only waiting for the Shareholders meeting on June 14 to vote on this stuff and then, IF THEY ACTUALLY PROMOTE or at least MAKE THE BIG INVESTORS AWARE OF TNGL, we will be off to the races. Nothing ever happens overnight but that is where I think we are going. This is all my speculation.

After that TNGL will be a producing/profitable mining company, we will continue to look for other asset opportunities to buy and will grow into a major mining operation. That is if we are not first bought out at a profit to the early share holders. TNGL will increase production on the iron ore mine, increase the iron ores purity and reduce production expenses, all are already in process. TNGL will also be finishing the geological survey of assets in the ground, known as a 43101 in specific areas on the 135 square mile mine site. See the latest press release for details on that. That information will prove assets in the ground and give us a bankable valuation document.

Read the Feb 19, 2014 TNGL press release: “Three strong and significant magnetic anomalies (shown as the darker areas in the diagram) have recently been identified on tenements held by Mil-ler. At least one of these anomalies is coincidental with major iron ore outcropping. Each anomaly is over 5 kms (3.1 miles) long and up to 2 km (1.2 miles) – EACH HAVING THE POTENTIAL TO TRANSFORM THIS PROJECT INTO A WORLD-CLASS IRON ORE PRODUCER.” (Emphasis added by me)
http://www.tonogold.com/s/NewsReleases.asp?ReportID=626285&_Type=News-Releases&_Title=Tonogold-Resources-Secures-Option-to-Acquire-51-of-Mil-Ler-Resources-and-En...

Look at my board update titled “I just goggled the world’s largest iron ore mines”. The world’s largest open pit iron ore mine is called "Grand Canyon of the North". It is 3 miles long by 2 miles wide and 540 feet deep. More or less the same size as just one of the three "anomalies" found on the TNGL iron ore mine in Mexico. Consider that the Grand Canyon of the North mine provided America with 25% of its iron ore in the 1940’s. When you look at the maps of the Mil-ler Mine and see the three magnetic anomalies; what you may not understand is that these are MOUNTAINS of black magnetic rock (iron ore). Plus the Mi-ler mine has black magnetic rocks of iron ore all over the place with a large out cropping of black magnetic rock (iron ore).

Some early estimates are putting the amount of iron ore at the Mil-ler mine at between 1 and 5 billion tones. Those are unconfirmed rumors that I have heard. After making some improvements to production we should be making near $40 profit on every ton produced. DO THE MATH! I come up with between $40,000,000,000 - $200,000,000,000. That’s between forty and two hundred billion in profits to the company who mines that. Please check my math. That’s in today’s dollars, which as you know, prices are always changing, but that should give you an idea of the magnitude of this project’s potential.

Some other details from the iron ore PDF to note: There is a rail line, power and water connected or next to the mine site. There is also a major Mexican city with a substantial work force very close to the mine site. This city contains a port facility that is already loading iron ore shipments to China. Now compare that with the mine presentation here: http://sydneyminingclub.org/presentations/2009/november/fortescue/index.htm
And combine that with the fact that the Mil-ler mine is in Mexico where the labor cost are a lot less expensive than many other places in the world and you have tens of millions if not hundreds of millions in cost savings. Look at the PDF of the iron ore mine. This mine operates at a cost that is less than 60% of all other iron ore mines in the world. And the kicker is that they are already producing iron ore with a very favorable contract.

I would also read my board update titled “largest iron ore mine in N. America and Mexico combined!” I reposted that one today (Sat 5/24/14). Hopefully that will answer your question or at least give you some places to start doing more research.
Also consider, TNGL CEO Mark Ashely took LiorOre Mining International (1994 – 2006) from a 20 million market cap to 6.26 billion; transforming LionOre from a dormant company into the 8th largest nickel producer in the world and attracting a lucrative buyout from Russian based Norilsk. The stock started at $0.40 cents and went to $27.50. When the company was sold it was valued at 6.26 billion. One thousand dollars invested would have turned into $68,750. http://www.cnbc.com/id/18813361
http://www.24hgold.com/english/infocompany.aspx?id=4801014D5010&market=LIM.TO

The current problem with TNGL is that there is a lack of sustainable volume. But consider that a few weeks ago the TNGL price went from 9 cents to 19 cents on a volume of 1,000 shares being traded. That is a one day 100% gain in stock price. Look on your broker site for how many shares on any day, are available at the ask price. It is usually a small number, maybe near 10,000 shares. At 9 cents we are talking near $900 worth of stock. Once we are producing and profitable, imagine what will happen when the big investors start buying shares. The big investors and hedge funds are not going to buy 10,000 shares at $900. They will want large blocks of shares. IMHO the share price will go crazy and we will see a repeat of what happened at LionOre.

Americans love to buy high. Hardly any of my friends wanted to buy TNGL when it was three cents, or five cents, not even when it hit 9 cents. But when it hit 19 cents my phone rang from people asking if it was “too late” for them to get in. Then price pulled back and they lost interest. Once price starts moving higher in a sustainable fashion we will see more volume, both buyers and sellers. That’s when things will get exciting.
Nothing like reducing the supply of stock by doing the 10:1 split while at the same time increasing demand!

The keys: We have to have producing/profitability and we have to PROMOTE that producing/profitability asset along with our managements past achievements. Once we do that the TNGL world will change. INHO if you want to know what is going to happen at TNGL just look at LionOre.

INHO any TNGL price near ten cents is almost free.