Encouraging quarterly Report with solid progress made towards...

Encouraging quarterly Report with solid progress made towards beefing up the Trilogy Resource to measured/indicated categories and metallurgy studies showing the deposits are very payable in all probability. This quarter they are moving forward with scoping studies leading to completion of the BFS later this year.

With virtually all debts for the exploration and definition drilling settled TTR had $769,000 in cash plus remaining investments from the settlement of the Meekathara mines. We will have to wait for the Half Yearly Report to find out the exact holdings but my estimate for the Investment holdings value is as follows.

From settlements they held 2.5m shares in ATW Gold Corp and 2.5m warrants. Share price for ATW was 63cents last night.

They also held 3.33m shares in Silverlake Resources SLR (30 cents issue price)

At 30th June 08 Valuation of these investments was $3.1m.
During the quarter they sold investments worth $271,000 (probably SLR because TTR have dropped out of Top 20 holders)so you could say TTR may have about $2.7m in investments in ATV and SLR left. However, at 30/12/08 value would be probably only about $2m due to share price falls. However, both SLR and particularly ATV sharprices have recovered in January 09. Currently ATV is 63 cents and SLR 24 cents. Value is probably around $2.5m now. TTR have indicated they will be looking to sell some of these investments to raise working capital this quarter. With Gold doing well is is probably not a bad time to sell some of them.

The bottom line is that TTR have in total over $3m in liquid assets to go forward. Expenditure this quarter will drop significantly to around $0.5m as operations will be centered around in house evaluation rather than exploration.

So the financial position is sound and good progress is being made leading towards the more critical times ahead with the BFS and the search for project funds.