-- Posted Monday, 8 August 2005 | Digg This Article
I’d like to introduce Trio Gold to you by first offering a broad overview of the company, the management, and their projects. After the introduction and at a later date, we’ll explore several of their more promising projects such as the Empire Mine in Custer County, Idaho, USA. I believe you’ll be favorably impressed by the breath and depth of this junior mining company. Their newly designed web site is www.triogold.com and offers a tremendous amount of information in a very attractive user-friendly interface. By all means, take the time to visit because it is a very positive representation for the new direction the company has chosen to take.
This direction includes the sequential development of superior properties while simultaneously undertaking an aggressive program to increase investor awareness. The project in Idaho, called the Empire Mine, actually has a long history and is copper and gold oriented. Chile has the potential to be a substantial Iron Oxide Copper Gold (IOCG) discovery. While we currently realize that the Chilean property is indeed an IOCG deposit, we do not know how large it will eventually turn out to be. That determination will be a function of further exploration. The third property is located on the world famous Carlin Gold Trend in Nevada. It adjoins Barrick’s Rossi-Storm deposit, which is now in the final stages of production feasibility. These are three properties with enormous potential.
The name Trio Gold incidentally, stems from the idea that the company emphasizes value, direction, and integrity. The fact that there are three properties in their portfolio is simply an added and timely benefit to the name.
Like so many junior mining companies competing in an environment and in a period of time that is less than spectacular, Trio Gold is on a limited budget and always has to be vigilant in order to acquire additional funding. In a more expansive and positive resource market, that funding should be forthcoming given the quality of the projects and the experience of the management. Trio Gold’s management team believes they hold the keys to success with their properties; properties that many other juniors would be only too happy to have in their portfolios. Trio’s management also has their own money, talent, and endless energy invested in the company which should give investors some confidence that a positive future awaits them. I personally believe it is a strong positive when management invests vigorously in their projects. It is only common sense that they’ll be doing their best to advance their properties at every opportunity.
Again, I would suggest that you visit Trio’s web site and review the three projects under the menu heading of Projects. There is no substitute for adequate and even extensive “due diligence”.
For the record, I am working with Trio Gold, have participated in private placements and own shares in the company. I would hasten to add that I examine companies closely and only become involved with them after I have a substantial comfort level that they possess integrity, talent and have the properties to go along with those qualities.
A Quote from the Web Site
“Trio Gold is an established Calgary-based junior mining company committed to the exploration, analysis, and evaluation of precious mineral properties on an international scale. With interests including gold, silver, and copper, Trio searches for world-class reserves and deposits with significant mining and market value.
Trio Gold became a public corporation in 1987, now trading on the TSX Venture Exchange under the symbol TGK. With redefined focus and vision, Trio continues the pursuit of high potential properties while continuously pushing the boundaries of growth and opportunity.”
These concepts along with the constructive realities of their situation are what make Trio Gold an exciting possibility.
Currently I am putting together a “user friendly” form that the average investor can use in assisting them to evaluate junior mining companies. It is very simple in its scope but it can be expanded to meet the aims of the user. At the top of the form, I’d like you to list Management, Projects, Funding, Promotion and Planning. If we are able to fill in the blanks under each of these categories then we should have pretty good idea as to the quality of the company and its potential for success. Of course there are always sub headings and additional categories but these primary categories will get us moving in the right direction. Let’s give the concept a run-through right now.
Management:
Trio Gold has a strong diversified management team headed by Harry Ruskowsky who is President and CEO. Phillip Van Angeren, who is their chief geologist, and Ian Berzins who is their mine engineer are experienced in all facets of mining exploration. All top management personnel are complemented by a Board of Directors and an Advisory Panel that includes mining engineers, geologists, businessmen, and financial advisors.
This entire management group is experienced and has excellent credentials. After extensively conversing with them, I have chosen to work with Trio Gold because I believe that the Group has integrity, talent, and a commitment to successfully develop their excellent properties. Harry has personally emphasized to me that it is important to stress the technological expertise of his Group because the Empire Property is certainly within the near-term realm of being developed into a viable and profitable mine.
Properties:
The properties are extraordinary in that they all demonstrate great promise or that they are in areas where significant discoveries have been made. One is in Custer County Idaho, one on the Carlin Trend in Nevada, and one in Chile. The Empire Project in Idaho has had a Scoping Study completed and is now in the final stages of having a pre-feasibility report completed by James Golden, PE. The San Ramon Property in Chile is as exciting as they come and has the potential to become a substantial Iron Oxide, Copper, Gold (IOCG) deposit. Recent press releases have demonstrated a very favorable copper content on that property. And finally, the property on the Carlin Trend in Nevada is located within one of the most successful gold areas on the planet. Even though there has been significant news on the property in Chile, the focus remains on the Empire Mine in Idaho because there is where much of the energy has been focused over the past several years. Additionally, that property could be relatively close to production given adequate funding.
Funding
Funding has been available in the past but quite honestly, it is as it is in most junior mining companies which is a “catch 22”. “We’ll give you the money when you discover a big deposit but first you need to discover the big deposit.” It’s the chicken and the egg scenario. I think it would be fair to say that since the quality of the projects are so exceptional, sooner than later; some entity will step up to the plate with adequate financing. A joint venture partner is very possible. The Empire Mine in particular is “peanuts away” from being put into production given the scale of what is available in terms of resources. Let me put it this way. They need about 1.5 million for a bankable feasibility study and another 13.5 million to put the property into production with a pay off on the entire investment of 15 million in less than a year. Those are attractive numbers in a very attractive scenario. They become even more attractive in a gold positive environment.
Promotion
Promotion has not been high on Trio’s scale of priorities but that is changing for the better. Many individuals who head up these junior mining companies are engineers, geologists, and technically oriented people. They believe the market will come to them when the “big hole comes in”. Unfortunately between now and when that big hole comes in, there is a need for financing. Therein lays the rub. Many companies are faced with this exact same dilemma. There needs to be a balance between all of the elements that I’ve mentioned. Promotion or “profile awareness” (the politically correct term), is part and parcel of that balance. As I mentioned earlier, Trio is now actively engaged in an aggressive company awareness program. Their new and beautifully designed web site, along with this article is a testament to that fact.
Planning
Planning comes in all shapes and sizes and it is one of the most important elements any company needs to address. Short term planning, business plans, funding plans, exploration plans, and everything in between really should be explored, examined and then implemented. Trio has done and continues to do an excellent job in planning out their future.
The fact that they have excellent projects in three different parts of the globe is further testament to the fact. They have their experienced Board of Directors and Advisory Panel to assist them with their business plan. There are many companies that literally go week to week, if not day to day in terms of how they proceed. Trio does not run their operation this way. Management has a very well mapped course that will lead to the successful and rapid growth of the company. The focus is currently on securing funding for the company in the most conservative and practical manner possible. Once that is accomplished it is again, “full speed ahead”.
Conclusion:
Trio Gold Corp has all of the perquisites needed to achieve success. They certainly have the properties and the resources. They have experienced and well qualified management and directors. They have professionals interested in exploring the funding of the company and they are currently working on an investor awareness campaign.
My personal feeling is that given the quality of the projects in their portfolio, the company’s share price is quite undervalued. How does a company with such quality assets find itself at $.10 a share with 53 million shares outstanding? The market cap simply doesn’t make sense. But then, you have to realize that so much of the success of junior mining companies has to do with market and investor awareness. It also has to do with the market environment and how the continuity of the news flows from the company. This is all contingent upon funding and the ability to put all of the pieces of the puzzle together. My belief is that Trio is doing exactly that—systematically and methodically putting the pieces of the puzzle together.
The funding to date has been invested in acquiring and then subsequently advancing their projects. They are now at the stage of their development where investor awareness is high on their list of priorities. My suggestion is that Trio’s share price is where it is because of a lack of investor awareness. A more promising and widely accepted resource market combined with an increased awareness of the quality of the aforementioned projects and Trio should begin to take on a new perspective with investors.
We’ve all seen companies selling at ten times their value because of aggressive promotion and this is the inverse of that scenario. This is a case of a company selling at ten times less its value because of a lack of market awareness. When there is a limited amount of capital with which to complete so many tasks, often times the money is put “into the ground”. Trio is now moving towards the fourth point on the resource company compass: Promotion and Investor Awareness.
It is my belief that given the quality of the management and their projects, Trio Gold is a company that deserves your own due diligence. I’ve opened the door for you, now its time for you to go in and take a look around. Keep them on your radar screen and watch for an improving gold market. You just might be surprised at what the future holds.
I am always mandated to present to you that these are my personal ideas and this information is presented solely for informational purposes.
Until the next time,
D. Stewart Armstrong
Consultant to the Junior Mining Sector
-- Posted Monday, 8 August 2005 | Digg This Article
