ton receives buy rec from dj's, page-3

Wednesday, December 09, 2009

DJ Carmichael see a ton of value in Triton Gold
by Proactive Investors

In a current report Australian stockbroker DJ Carmichael said: "Triton Gold (ASX: TON) has amassed a highly prospective grass roots and mid-stage project portfolio in Western Australia and Alaska, employing cutting edge project definition IP developed within Placer Dome Inc.

Grouped into three regions, the projects offer near-term development potential from the Laverton District, WA, mid-stage projects in Alaska and WA and grass roots exploration from the Albany-Fraser Belt, WA. With the focus on the development scenario at Laverton and a potentially company-making project in the Albany-Fraser, TON has an exciting 12 months ahead.

TON has amassed a series of very interesting projects throughout WA and Alaska that provide a project pipeline with the potential to deliver significant outcomes on several fronts.

The board and management team, and their advisors and consultants, are one of the best technical teams assembled for a junior company of equivalent size in the opinion of DJ Carmichael.

This essentially means that TON should be able to recognise potentially company making projects at a very early stage, thereby making best use of their capital.

The Windarra Tails Dam project provides the company with a near-term development opportunity. A JORC resource is expected in December 2009. Metallurgical studies have commenced to ascertain the optimal processing route.

Owner-operator and existing operations in the area provide potential treatments options.

TON's flagship grass roots exploration play is the Salmon Gums Project in the Albany-Fraser Belt of WA. This belt, located at the southern and eastern margins of the Yilgarn block, has been the focus of intense interest, since the discovery of the +5Moz Tropicana deposit (AngloGold / Independence) with active companies making very encouraging discoveries of mineralisation styles similar to those at Tropicana.

TON has an active exploration program over the coming 6 months and are fully funded to conduct the drilling and scoping studies to provide the market with a firm sense of direction for the coming 2 years.

TON has a market capitalisation of $10.1m and cash of approximately $5.3m, resulting in an Enterprise Value (EV) of just $4.90m on an undiluted basis.

DJ Carmichael said the valuation when compared against peers is modest and they believe that exploration success and a positive resource result and scoping study at Windarra will be the catalysts for a price re-rating.

DJ Carmichael recommends TON as a Speculative Buy for risk tolerant investors seeking a low entry point into a gold company run by a highly respected team of mining executives."