chat with md

I had the opportunity today to have a chat with Steve Norregaard. A month of the 1st quarter has gone so wanted to see if key matters were progressing OK.

The conversation opened up talking about the "market correction" which has occurred over recent days. Although TTRs share price has taken a hit losing all recent gains I see no logical reason for this apart from loss of confidence in the market bringing on some "panic selling" by a few. TTR is not the only junior or other miner taking a hit. Fundamentals have not changed so the correction is seen as a healthy shakeout which sorts out overvalued stock coming up to reporting season.

Naturally the first issue raised with Steve was his Boardroom Radio broadcast which led me to ask him about the "Burnakura Divestment Process". I sugested that his "as we speak" comment suggested to me that there was some positive activity behind the scenes. I reported the rumor that Mincor were interested in Burnakura but Steve suggested that this would be very unlikely given the priorities they have with their recent aquisition. However, he did say that the Burnakura sale was progressing and involved more than one party and the situation had become "competitive" which is exactly what we want to see!

With regard to Phillips River, Steve indicated the next stage (initial flotation testwork) on bulk samples from Trilogy had been completed and continues to give positive indications of being able to produce a saleable concentrate. I am led to believe TTR aims to be able to locate a concentrator at Trilogy and produce a 13% zinc equivalent concentrate. Steve said if you do your calculations (which he has already done) Trilogy alone could produce at current metal prices a net income of $200 million after paying off capital costs.

Steve indicated that the serious mining investment community is showing a lot of interest in Trilogy with him having to answer many enquiries.

Despite base metals being the flavour of the day and Trilogy being the simplest of the Phillips River project from a mining viewpoint there is no doubt in Steve's mind that Kundip and adjacent areas are just as important from a exploration and development viewpoint. He pointed out the recently reported geological sampling and excellent copper finds as highly encouraging.

In terms of timing for progressing Phillips River - More work is being done around Trilogy at the moment while Kundip infill drilling (to firm up the resource) and other exploration around Kundip will not start for 4 to 6 weeks. Weather/Environmental/Permit issues are restricting them from working in the area at the moment. No issues at Trilogy because it is open farm land (which is held freehold by TTR).

Everyone of TTRs reduced staff numbers are working very productively at the moment. Staff at RAV8 (2-3 underground at most) are more than paying their way but one cant expect mining to continue for more than a few more weeks (lower nickel price doesnt help I guess but even at current prices it is still quite profitable because of very low o/heads).

I am confident the share price will rebound - there are no fundamental reasons for the weakness in price - the fundamental value of the primary Kundip and Trilogy Deposits (which ignore the deeper potential of both and further exploration in the area) has not changed and TTR is still a bargain.

If we have an announcement on the Burnakura sale soon and also reporting of success on the Trilogy metallurgy front then expect the share price to rise strongly. Steve believes the main issue with key educated mining investors at the moment is the need to "unlock" the value of the Trilogy polymetalic deposits. The key may be very close to being found.

This current correction is primarly directed at the overvalued higher end of the market yet junior miners are naturally caught up in it. So any one with some belief in the base and precious metals market segments
continuing strength could do worse than do some buying at the present time. Of course TTR is not the only value buy at the moment but hard to find anything better. Current capital value only $20 million - but has no debt - approx $5 million cash plus other asset (last NTA of 12 cents) - and sitting on the Phillips River Project with a current inground value estimated to be worth up to $2billion plus exploration potential.