TGF are a Perth-based mineral exploration and soon development company with 90% of the 2.6Moz Gold Mountain Project in the Xinjiang Province of North West China. The tenements held by TGF are located in the Tulasi Basin and number 13 granted tenements covering an area of 633km2. The company, listed on both the ASX and AIM markets, aims to develop the Gold Mountain Project into a large tonnage, low
grade, open pit, heap leach operation with gold production forecast to commence in 2010
Regional exploration programs will form an important part to the company s growth strategy, where 31 additional prospects have been defined by previous exploration and a review of geological data.

Taking a step toward production: http://www.tianshangoldfields.com.au/files/asx/TGF_ASX00000206.pdf



Latest Broker research: http://www.tianshangoldfields.com.au/default.asp?V_DOC_ID=1218

Very good article from Proactive investors:
http://www.proactiveinvestors.co.uk/articles/art.php?TGF

Steady As She Goes At Tianshan Goldfields


By Rob Davies , Minesite on 10.06.08



In an industry thats becoming more and more beset by problems and delays its good to hear from a company thats making steady progress towards its goals. It helps to have a seasoned professional in charge and in that regard shareholders in Tianshan Goldfields can take comfort from the guiding hand of Keith Liddell, non executive chairman and former managing director of Aquarius Platinum. He was able to take time to update Minews on progress at its Gold Mountain project in the Tian Shan goldbelt in north-western China. And it all seems to be going very well.
The principle focus at the moment is on completing the pre-feasibility study. That is due some time in the third quarter and Mr Liddell declined to be drawn on a more specific date. Nonetheless all the indications are that once it is completed work will simply roll on to the feasibility study which is due in the first quarter of 2009. With a fair wind everything will then roll on towards production in 2010. With A$17m of cash in the bank funding these two studies is not a problem.

No conclusions have been reached yet as to how the mine might be financed. Given that its going to be an open cut heap leach operation its not going to be a major burden. The resource is 95 million tonnes of 0.9 grammes per tonne gold, giving a total contained amount of 2.6 million ounces. Whats encouraging is that recent drilling has encountered some high grade pods - 50 metres of 4 grammes per tonne for example - that would make excellent starter zones to get the mine off to a good start in cash flow terms.

The project in fact consists of three separate bodies: Yelmand, Mayituobi and Lion. At this stage, Yelmand accounts for the bulk of the resource. But further exploration work has just kicked off in the shape of a 20,000 metre drill programme which will work over hundreds of square kilometres of ground. Field work last year identified several dozen of the targets to be drilled this summer. Exploration is done on a Chinese scale with hundreds, yes hundreds, of geologists doing field mapping and taking rock chip samples on a regional scale. It would be a brave man who would bet against finding more economic deposits in the area.

A lot of the manpower for this programme comes from the companys partner, the local Xinjiang Geology and Mineral Resources Bureau, which has a deferred carry of 10 per cent in the project. Mr Liddell says the pre-feasibility study has yet to conclude on whether mining will be done in-house or by contractors, but he does know it will be done using locally made equipment. Either way, he says, will make little difference to costs. He declined to give an estimate of production costs, but the output is expected to be of the order of between 80,000 and 100,000 ounces a year. Preliminary work on leaching tests indicates good recovery with low reagent consumption, so Minews guesses output will be towards the higher end of the quoted range. This project is clearly going too well for the adrenalin junkies. But in a few weeks time some assays from the drill programme should start to come through, Chinese labs are apparently very quick, and that should add some spice to an otherwise reassuringly low key operation.

Anyone holding AIM shares, and have plans to keep invested over the period when the shares are cancelled/converted to ASX listing?

TGF are featured in a new article HERE