Tonogold Resources Inc (TNGL)

[joeblow110percent]

Press Release 1/8/14 REVIEW - # 3

http://finance.yahoo.com/news/tonogold-strategy-204000529.html

Tonogold has announced that by grinding the 58% Fe to ~150 microns and putting it through a wet magnetic separation, we get a 68% Fe. I have told you about wet magnetic separation in numerous of my other posts. The haters have tried to make this seem like a mission impossible task. This is simply not true. It is easily accomplished and in “independent testing” is confirmed to be surpassing all our expectations! Product at this quality level sells for ~$30t more than our previous 58% Fe IO with no penalty. And price/demand for this higher grade of IO is up! Check the links below in this post for confirmation. No pumping here just facts that are publically available.

This is really good news and puts us in a better profit to cost position than the vast majority of the other small minors and even some of the top four major producers. This is a better result than what we expected; and much better than the previously publically stated TNGL goal of producing a 61% Fe IO.

“We strongly believe that the current low iron ore price is not sustainable in the long run and that at a long-term sustainable price the NevMex project would generate positive net margins of at least $10/t, which EXCLUDE the benefit of any project optimization initiatives that we believe, can be achieved.”

As I have said in numerous posts, the iron ore prices, like most everything else goes up and down more or less in waves. Price will not stay this low forever. When price rebounds Tonogold will be in an excellent position to profit.

With our cost of production estimated at ~55t and a 68% Fe paying, at the current low prices paying ~$90t, we now (even with the low IO prices) have a profit margin of ~$35t. Using CEO Mark Ashley’s numbers we can add his estimate of a $10t current profit to the ~$30t additional profit we get for the higher grade IO, and we come up with a ~$40t net profit margin. Either way this is an extremely good situation, especially considering that most of the iron ore mining sector is operating at a loss.

High Grade Iron Ore Price/Demand is Up!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109748893

Here's How China's Tougher Environmental Policies Are Transforming Australia's Iron Ore Market. http://www.businessinsider.com.au/heres-how-chinas-tougher-environmental-policies-are-transforming-australias-iron-ore-market-2015-1

Tonogold Top Ten updated - January 2015!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109641464


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/