Tonogold Resources Inc (TNGL)

[joeblow110percent]

Tonogold hits a GRAND SLAM!!!

West Kirkland Mining (http://wkmining.com/) has announced that they have raised 31.1 million and acquired a 75% interest in the Hasbrouck project, which sits directly next to our Tonopah Divide project. West Kirkland Mining will use 20 million to purchase their 75% interest in Hasbrouck. The remaining money will be used to immediately start exploration and initiate a prefeasibility study on the Hasbrouck project. It looks like they intend to produce on Hasbrouck.

http://www.4-traders.com/WEST-KIRKLAND-MINING-INC-11538217/news/West-Kirkland-Mining--Commences-Exploration-and-Prefeasibility-Study-for-Hasbrouck-Project-Nevada-18537587/

Tonogold has its flagship project of 6,700 Acre, Tonopah Divide in Tonopah Nevada. This is right next door to the Hasbrouck 3,000 Acre mine with the same type of geological terrain.
The Hasbrouck mine was previously owned by Allied Nevada. The Allied Nevada web site includes a report on the Hasbrouck mine quoting “Inferred mineral resources of 1.2 million ounces of contained gold and 29.3 million ounces of contained silver…” The link: http://www.alliednevada.com/properties/hasbrouck/index.aspx

Based on the Thursday 6/19/14 NY gold spot at $1,317 (bid) and the silver NY spot at $20.77, the numbers come out like this: Gold, 1,200,000 ounces X $1,317 = $1,580,400,000. Silver, 29,300,000 ounces X $20.77 = $608,561,000. $1,580,400,000 + $608,561,000 = $2,188,961,000. That is putting the Hasbrouck resource value at 2 billion, 188 million, 961 thousand dollars.

Tonopah Divide has 223% more acres than Hasbrouck with the same geological terrain. Multiplying the Hasbrouck numbers by 223% would put Tonogold’s Resource value at 4 billion, 881 million, 383 thousand, 30 dollars. Tonogold currently has a market cap of 18.1 million (6/19/2014) and we could potentially have over 4 billion in assets, not counting any other projects.

If you divide $4,881,383,030 by the number of Tonogold shares pre-split and pre iron ore deal (190,100,000 shares) you get a price per share (PPS) of $25.67. The same math post 10/1 split and post iron ore deal, fully diluted (200,000,000 shares), and you get a PPS of $24.40. Accounting for the 10/1 reverse split, in today’s equivalent numbers that would put us at $2.44. As I write this the stock price is at .095 cents.

I am not using these numbers to predict the future TNGL share price but to emphasis the enormous potential value of our Tonopah Divide project. West Kirkland Mining paying 20 million and putting a total of 31.1 million into the Hasbrouck project adds enormous value to our Tonopah Divide project.

Let’s look at this another way. Kirkland paid 20 million for a 75% interest in Hasbrouck (http://wkmining.com/.) If you do the math on the size difference and account for the 75% interest, Kirkland paid 20 million for what is about 1/3 the size of our project at Tonapah Divide. Currently there are 190,100,000 TNGL shares outstanding and we have a market cap of near 18.1 million. It can be argued that the Hasbrouck deal roughly gives our Tonopah Divide project a value of near $60,000,000. With 190,100,000 shares currently issued, that would give us a pre-split, pre-iron ore deal, fully diluted, PPS of thirty one and a half cents. The same math after the 10/1 split (200,000,000 shares) and the iron ore deal issue of new shares, gives us a PPS of thirty cents. That price would be equal to .0315 cents in pre split, shares.

This is why we should have had an awareness and promotion budget months ago. If we had done that, our current stock price might be holding at 20 - 50 cents or higher. Right now the market is supporting near ten cents with virtually no awareness or promotion and without anyone fully understanding our fundamentals. A higher price would have allowed us to do a private placement (PPM) at a much higher entry price. We could raise the same amount of money by creating fewer new shares. We would be diluting ourselves a lot less.

HOW COULD TNGL MANAGEMENT HAVE MISSED THE TREMENDOUS OPPORTUNITY THAT HASBROUCK PRESENTED TO US, ESPECIALLY CONSIDERING THAT HASBOUCK SITS RIGHT NEXT TO OUR PROJECT? HOW COULD WEST KIRKLAND, A CANADIAN COMPANY, HAVE RAISED 31.1 MILLION AND COME IN ON THIS OPPORTUNITY RIGHT IN OUR OWN BACK YARD? OTHER THAN PAYING THEMSELVES EXTRAVOGANT SALARIES AND GIVING THEMSELVES FREE STOCK, WHAT HAS TNGL MANAGEMENT BEEN DOING FOR THE LAST TWO YEARS?

Legendary Commodities Guru, investor and analysis Rick Rule recently wrote an excellent article on how junior minors kill themselves with “self inflicted” destruction. Rule points out that in the junior mining sector “57-58% of capital raised went to general and administrative expenses over a 5 year period. While major mining typically allocate 12–15% of project expenditures to G&A.” (TNGL HAS SPENT OVER 100% OF OUR CAPITAL ON CEO, BOARD SALARIES AND STOCK GIVE A WAYS). Rule says “The delta between what the industry allows and what the capital markets allow is a full 40%, which goes a long way to explain the chronic underperformance of the junior mining industry.” The link: http://ceo.ca/2014/06/10/how-top-commodities-speculator-rick-rule-nails-ten-baggers/

IT GETS EVEN BETTER! Consider that TNGL got control of 72% of the Tonopah Divide project along with all of its improvements for free. Look at the TNGL press release on 19 October 2012. This announced that TNGL’s Tonopah Divide 72% partner, Centerra Inc. withdrew from the project. Centerra withdrew from all of their U.S. projects. Centerra had invested about 4.6 million in improvements which also went to TNGL for free. TNGL now controls 100% of this project along with all the improvements. http://www.tonogold.com/s/NewsReleases.asp?ReportID=553146&_Type=News-Releases&_Title=Tonogold-Resources-Inc.-Regains-100-Control-of-Tonopah-Divide

Even when basically given 72% of Tonopah Divide for free, TNGL management could not make this into something special for shareholder value. We could have been promoting our Tonopah Divide property, promoting CEO Mark Ashley past accomplishments, promoting Eddie Sugar and his involvement in TNGL, promoting the iron ore deal. We have a lot to tell the world about Tonogold. Other than running a covert, secret CIA/MI5 operation under a dome of silence, and paying themselves handsomely, what has TNGL management been doing the last two years?

There is a more detailed description of the Tonopah Divide project and its improvements on the home page of the TNGL web site: http://www.tonogold.com/s/Home.asp

Here is a May 2007 update on the Tonopah Divide project: http://www.24hgold.com/english/news-company-gold-silver-announces-initial-work-program-at-tonopah-divide-gold-project.aspx?articleid=143943

Here is a 2 Sept 2010 TNGL PR on the Tonopah Divide drilling program: http://www.tonogold.com/s/NewsReleases.asp?ReportID=417242&_Type=News-Releases&_Title=TONOGOLD-RESOURCES-INC-DRILLING-AT-TONOPAH-DIVIDE-RETURNS-30-FEET-OF-0.118-...

When the investment world finally figures out that we exist and how undervalued we truly are, we could see our stock price catapult much higher. In spite of our apparent lack of leadership, the possibilities are growing exponentially for Tonogold.