Tonogold Resources Inc (TNGL)

[joeblow110percent]

A Good Question?

First off, I want to thank you for your question. Your comments have given me many opportunities to point out some of the really great fundamentals at Tonogold. Thank you.

The question: “We are PRODUCING our overburden at a profit” Got any proof of that?

Well let’s look at what we know. We know that Tonogold hired Ashley as CEO to change their business model from an exploration company to a producing mining company. We know that Ashley 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. 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 at forty cents would have turned into $68,750. That is a 6,875% ROI. http://www.cnbc.com/id/18813361
http://www.24hgold.com/english/infocompany.aspx?id=4801014D5010&market=LIM.TO Here are a few of the endorsements from some of the mining pros on this board who are shareholders: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95244679
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97340505

With the mission of taking TNGL from Exploration to a Producing Mining Company, Ashley pursued the NevMex mine in Mexico. NevMex has already produced; mil processed, sold and shipped three shipments of iron ore to customers in China. If a picture is worth a thousand words, take a look at the three minute video here:

NevMex also has an impressive inventory of equipment, which can be seen in the recent financials (page 7): http://www.otcmarkets.com/financialReportViewer?symbol=TNGL&id=129250 This is not a scam operation where they move equipment around just for the photo opportunities, to rip off investors. We also know that TNGL has its own mil facility, which is clearly shown in the above linked video taken by John Perez of Comstock Royalty fame. We can also see that the NevMex mine has its own lab facilities.

We know from the 1/8/2015 Strategy Update: http://www.tonogold.com/s/NewsReleases.asp?ReportID=690478&_Type=News-Releases&_Title=Tonogold-Strategy-Update “Site Activities. Site activities have recently re-commenced whereby we are mining approximately 250,000 cubic meters of overburden (waste), over an expected 9-month period, crushing the material and selling the product as road base under contract with a local road contractor. The net proceeds from the sale of the road base will more than cover all site costs over this period, resulting in a zero-cost waste removal program and, at the same time, expose more of the ore body in advance of a subsequent production decision.”

The words “MORE THAN COVER all site costs over this period,….” Mean to me that we are producing at a profit.

So we now know that Tonogold IS NOW A PRODUCING MINING COMPANY by processing their overburden. This overburden is being removed and sold as road material for a profit. This will uncover the underlying asset (iron ore). By uncovering the iron ore we are making it easier and less expensive to mine the iron ore at a later time.

We also know that TNGL is having success in bringing the grade of iron ore up from a previous 57% Fe to an impressively high grade of 68% Fe. This exceeds the TNGL previously stated goal of achieving a 61% Fe iron ore. We also know that they are working with removing the sulfur from the IO.

Ashley, who has 29 years of mining and accounting experience and is considered an expert in these areas, has estimated that TNGL will be able to produce IO at $55t. With 68% Fe currently selling for $90t, this gives us a potential $35t profit margin. This is a phenomenal achievement considering the current record low IO prices and most of the mining industry operating at a loss.

We also know from the last TNGL power point (page 19) http://www.tonogold.com/i/pdf/AGM-June-23-2014.pdf that TNGL has goals of incrementally producing 1mt, 2mt and finally 15mt of iron ore per year. At a $35t profit that would give TNGL a annual profit from production of $35,000,000, $70,000,000 and $525,000,000 respectively. Nothing ever works out exactly according to plan but those numbers give us a lot of room for error and still be in significant profits.

And we know that the demand for this high grade IO is actually up:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109748893

We know that the Full Reporting process was started over a year ago. The first press release on this issued was issued on 10/18/2013. The November 6, 2013 press release stated in part “Tonogold also wishes to advise investors that it has appointed Hamilton & Associates Law Group P.A. (Corporate Attorney) to assist the Company in its application to become Reporting Issuer under the Securities Exchange Act of 1934, as amended. Tonogold's objective is to become fully reporting and quoted on the OTC Bulletin Board as soon as possible.”

Being at full reporting status requires that a company be audited by independent auditors every quarter and annually. As of September 30, 2014 TNGL had spent in the first nine months of 2014, $528,602. This included $372,945 for salaries. Adding what would likely be a six figure cost for the full reporting requirements to this without having sufficient income to pay for it would not be wise.

It would be smart for TNGL to start producing iron ore at 68% Fe, to bring in income before they complete the full reporting process. That is when the Tonogold fundamentals will be the most attractive to investors. This would also be the best time to promote the fundamentals. I would bet that this is the plan. This would set us up for a perfect storm of events that could cause explosive moves higher in the TNGL stock price.

We know that some of the biggest names in the world of business, investing, mining and banking are now involved or on the board at Tonogold; People who would never sully their reputations by being involved in a scam company or pump and dump. These people have more to lose than money. Their professional careers are at stake. They know what they doing and do their due diligence before they invest. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106946490

We know that Tongold is looking at acquiring other mining assets in Sonora, Mexico. We have not heard the details on this yet however based on the Production goals of TNGL, I believe these will also be near term producing capable assets.

Doing all of this takes time. Rome was not built in a day. I expected things to have moved along faster. But remember that the deal for the NevMex mine started out with TNGL only looking to own 34% of the mine. This was later changed to a 51% ownership and then to what has now been completed as a 100% debt free ownership of NevMex. So although the deal has taken longer than I personally expected, the deal is much better for TNJGL shareholders.

There are those out there who may have correctly estimated the time for TNGL to have accomplished its goals more correctly than me. “…a filing, funding, drilling program, equipment upgrade and infrastructure- contracts with Chinese or whomever...is a process. IMO- we could be looking at 2015-2016 for any real movement here- lots of work left to do- just being realistic.”
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104373853

I can say that so far Tonogold has not only done everything that they said they were going to do, but they have actually greatly exceeded everyone’s expectations. TNGL went from a partial ownership of NevMex to 100%, with no debt. TNGL went from exploration to production. TNGL is now producing its waist and setting itself up for less expensive and more efficient iron ore production in the future. TNGL is also working on producing a 68% Fe iron ore with no sulfur. TNGL intends to produce in stages starting at 1 million tons a year and going up to 15 million tons a year. TNGL is also in the process of going to full reporting status. TNGL has put some very highly respected investment professionals on its board of directors. TNGL has hired Eddie Sugar, who is one of the worlds most successful and respected resource sector fund raisers. TNGL has started the process to go to full reporting status and move off of the pink sheets. Everything Tonogold has said that it is going to do, it has either done, done better than expected or is in the process of doing. This is proof enough for my money. When the bashers and doubters get the confirmation they claim they need the stock price train will have left the station. All Aboard!!!!!!!!!!!!!!!!!!!...........................

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

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.

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