VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 9, 2015) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) is pleased to provide its quarterly operational and financial overview for Q1 2015 (September 2014 to November 2014).
Highlights
Operational overview and financial results for Q1 2015 (Unaudited for 3 months ending 30 November 2014)
- Following the successful closing of the acquisition of African Star Minerals Group's ("ASM") operations in South Africa, announced on 20 October 2014, the Company's common shares commenced trading under the name "Tango Mining Limited" on the TSXV Exchange at market open on 24 November 2014 under the same trading symbol, "TGV" and launched a new website at www.tangomining.com. This new name reflects the Company's diversified interests in precious and base metals, coal, diamonds and precious stone mining projects.
- ASM's metallurgical and mining projects generated revenue of CAD $3,378,366 in Q1 2015 (vs. Q1 2014: CAD $nil). Total throughput of 1,839,165 metric tonnes were recorded to complement the forecast budget of 6.5 million tonnes for the annum.
- Development decision approved at Oena Project, a past producing alluvial diamond mine located in the Northern Cape Province, South Africa, was announced on 01 December 2014 upon the completion of National Instrument (NI) 43-101 report (filed on SEDAR). The bulk-sampling program is on schedule and will commence in Q2 2015 (quarter ending February 2015).
- Consolidated net cash at end of Q1 2015 increased with CAD $210,566 (Q1 2014 net outflow: CAD $437,355) generated from operating activities and inclusion of newly acquired mining projects to a total of CAD $1,135,168. CAD $455,105 accrued to expedite operational readiness of the Oena Project and transaction costs were incurred in Q1 2015.
Mr. Marco Möller, President and Chief Executive Officer, commented:
"We are very pleased with the positive results presented in our first quarter results following our recent acquisition of ASM's South African mining operations, positioning us as a diversified junior mining company, with a portfolio of cash generating production assets, a near term low cost diamond mining asset and historic development properties to further the scalable growth strategy of the Company. We believe that it provides us with a competitive edge in the current market, considering that junior mining companies as a norm are reliant on the financial markets to sustain exploration and development intensive activities. We are confident that our newly acquired technical and operating capability will allow the successful transition from a purely exploration concern to one that of an operating concern with capabilities to successfully evaluate, expand and acquire new projects, while maintaining sound operating and commercially feasible projects in South Africa and globally.
"We are confident that we will see the same positive production results from our operations over the next quarter that will support the generation of a positive EBITDA from existing projects. The historical performance of our production assets have been outstanding in terms of the mine call factor per contract achieved, which in turn are complemented by the potential increased in diamond recovery efficiency on our diamond mining asset through the introduction of new generation concentrate handling and BVX technology to be commissioned during Q2 2015.
"We are hopeful to announce in the near future the possible acquisition of further near term producing precious and gem stone mining assets to grow and enhance the viability of our existing mining portfolio, while maintaining profitability during the current financial year."
Operational Forecast for Q2 2015 (3 months ending 28 February 2015)
Metallurgical and Mining Projects
- Metallurgical and mining projects revenue forecast for Q2 2015 of CAD $3,240,626 (Q1 2015: CAD $3,378,366).
- No material changes on throughput and mine call factor expected from Q1 2015 results.
Oena Project
- Issuance of NI43-101 instrument in Q1 2015 and positive development decision.
- The Company has entered into a contract to sustain a 1,500,000 tonne per annum extraction program and mobilization of earth moving equipment by the mining contractor has commenced to allow production start in Q2 2015.
- The Company has secured a Bourevestnik, Inc. manufactured high volume X-ray and recovery equipment ("BVX") BVX equipment that will be mobilized to site to complement the existing production capacity, increased recovery efficiency and allow for higher product assurance. The BVX equipment to be commissioned and installed in Q2 2015.
- Acknowledgement receipt from Department of Minerals for renewal of Oena mining rights for additional 30 years.
- Tango awaits governmental approval of the acquisition transaction of the mining asset.
- First diamond proceeds from operations to be expected end of Q2 2015.
Other Projects
- Jakkelsdraai exploration work program has been deferred.
- El Santo Project environmental permit was received late in Q1 2015 and this permit will now allow an exploration program to commence.
About Tango Mining Limited
Tango Mining Limited is a Canadian company that recently acquired African Star Minerals Group's ("ASM") operations in South Africa. Tango has four thermal coal, metallurgical and processing plant and engineering contracts that process 6.5 million tonnes per annum (19.5 million tonnes are contracted over next 3 years), with clientele that include Total (SA) and Glencore plc. The four projects are located within the Ogies and Highveld coalfields, Mpumalanga Province and Kliprivier coalfield, KwaZulu-Natal Province. The Company also holds a 100% interest in the Oena Project, a past producing alluvial diamond property, Northern Cape Province, South Africa and a 100% interest in the 2,088.8 ha El Santo Project, Nicaragua. El Santo is believed to host several east-west trending, low sulphidation, epithermal gold-quartz vein systems. The Company`s vision is to become a diversified junior mining company with interests in precious and base metals, coal, diamond and precious stone mining projects
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The presence of gold deposits mentioned nearby the Company's property is not indicative of the gold mineralization on the Company's property. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The technical disclosure in this news release have been approved by Terry L. Tucker, P.Geo., Executive Chairman of the Company and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.