TNG (ASX:TNG) has reported a substantial upgrade in the Inferred Resource at Mount Peak Vanadium Project to 139 million tonnes grading 0.29% vanadium, in the Northern Territory

This was based on additional exploration drilling undertaken at the end of 2009.

The updated Inferred Resource of 139 million tonnes (Mt) grading 0.29% vanadium (V2O5), titanium (TiO2), 23.7% iron (Fe), 32.5% silica (SiO2) and 8.2% alumina (Al2O3), represents a 30% increase from the previous resource estimate of 107Mt and improved concentrate grades.

Snowden has incorporated the results of recent metallurgical testwork into the estimate for the first time to provide an estimate of concentrate recovery and grade.

The Mount Peake resource remains open along strike to the north and south and Snowden is confident that the resource will be further increased as TNG undertakes more drilling over the aeromagnetic anomaly which is coincident with the resource.

TNG has an Exploration Target of 500 – 700Mt with a grade range of 0.2% – 0.4% V205 at Mount Peake.

This has improved on the previous results that were incorporated in the initial Scoping Study carried out by Snowden which resulted in a positive assessment of the potential economics of the Mount Peake Project.

Metallurgical testwork is continuing to optimise the processing options and this will determine TNG's approach to the continued development of the Mount Peake Project.

Drilling in the northern magnetic lobe of Mount Peake has confirmed this is also a gabbro host with a vanadium-rich magnetite zone.

Assay results and metallurgical testwork is underway to assess this zone prior to resource calculation. Geophysical modelling of the other magnetic data surrounding the Mount Peake resource indicates support for other potential magnetite-rich zones based on the Mount Peake magnetic signature of the current resource and samples of outcropping gabbro.