introduction to tri origin minerals ltd

TRO - TRI ORIGIN MINERALS LTD: http://www.trioriginminerals.com.au/

1. WOODLAWN UNDERGROUND PROJECT RESOURCE ESTIMATE – SML 20
26 Oct 2006: "Tri Origin Minerals Ltd (“Tri Origin”) is pleased to announce its first JORC(1) compliant Measured, Indicated and Inferred resource estimate for the redevelopment of the Woodlawn Underground Project:

10.1Mt @ 1.8% Cu, 4.0% Pb, 10.2% Zn, 0.55 g/t Au, 85g/t Ag

http://sa.iguana2.com/cache/e9bdf9b39e022a0ca9c6fb9b4c734a18/ASX-TRO-431564.pdf

"A significant proportion of the resource is adjacent to underground workings developed from 1987-1998. The presence and impact of these workings on the conversion of resources to reserves will be considered during the mining study component of the prefeasibility. The Company is confident a positive outcome will result from this study. Detail is provided below.

BACKGROUND The project was considered a key asset of the Company during its ASX listing in 2004. The Woodlawn Project operated from 1978-1998 producing approximately 13.3Mt of high grade ore from an open pit and then underground mine. The underground mine closed due to prevailing low metal prices and corporate reasons".

INSITU VALUATION OF RESOURCES:
There are 76.5 mill shares (76 cents) and 0.5 mill unlisted Nov 2006 options, a total of 77 mill shares. (Excluded are some 5.84 mill unlisted 2009-2011 options).

Latest US $/lb: CU: 3.35; Pb: 0.74; Zinc: 1.93; Silver: $12/ounce. Omit Gold.

Value/tonne US$: Cu: 132.6; Pb: 65.1, Zinc 433.0; Ag 32.7 Total: AUS$ 862/ tonne (A$=0.77 US$), a high value to deliver a solid IRR, IMHO.

Value of the 10.1 mill tonnes insitu resources: AUS$ 8.706 Bill. or per share: AUS$113.0, a very high number, not counting items 2 and 3:

2. LEWIS PONDS
6 Oct 2005: Economic Evaluation of High Grade Resources at Lewis Ponds

http://sa.iguana2.com/cache/ac5b406c34bfc463ddd5174b95639141/ASX-TRO-385131.pdf

The study will consider high grade blocks calculated at a 10% zinc equivalent cutoff grade that may be amenable to extraction by underground mining techniques. These blocks are estimated to contain 1.3 Mt @ 155 g/t Ag, 3.0 g/t Au, 0.2% Cu, 3.4% Pb and 5.0% Zn.

At current metal prices this higher grade kriged resource on an insitu metal equivalent basis equates to approximately 540,000 ozs of gold (ie 12.9 g/t Au), 34 million ounces of silver (ie 825 g/t Ag) or 178,000 tonnes of zinc (ie 13.7% Zn) metal.

The Lewis Ponds deposit is open at depth and, in part, along strike. Previously evaluated lower grade portions of the deposit extend to surface but are not being considered in the current study. Depending upon cut-off grades, resources additional to the deeper higher grade material would also be available for mining.

The Company is also very confident that additional high grade resources would be discovered should a mine be developed and exploration could continue from underground in a more cost effective manner. A positive outcome for the study would provide a pathway to cashflow for shareholders and lead to an underground mining opportunity potentially producing plus 250,000 tonnes per annum of ore.

2.1 Insitu valuation of Woodlawn and Lewis Ponds.
The Insitu value of Lewis Ponds is AUS$0.98 bill. Add that to the AUS$8.7 bill for Woodlawn- and the total is AUS$9.68 bill.

The Chairman mentioned AUS$10 bill for all projects and he could be close by the time the Tailings are included (Item 3 of my previous post).

However, consider just the mentioned AUS$9.68 bill; based on 77 mill shares - See my previous post- that will be AUS$125/share, a very solid profitable backing.

3. WOODLAWN TAILINGS
10 Jan 2006: Retreatment: http://sa.iguana2.com/cache/15d2ed2dfc921db6c99942743e5eaa7c/ASX-TRO-396701.pdf

There ought to be some good profits here-prices are from Jan. 2006.

4. SUMMARY
Drilling to increase measured resources is continuing. At present there are 3 potential sources of income and all are promising. The coming feasibility study of the Woodlawn underground project ought to be a success, IMHO. Share price is low IMHO.

Subject to audit.

Gerry
Holds TRO
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.