Trio Resources announced formation today of a wholly-owned subsidiary that will go out beyond the company's asset base of above-ground mineralized materials with known quantities and do exploration, development, joint ventures, and property acquisitions aimed at expanding TRIO's already impressive footprint of precious and base metal reserves.
This new subsidiary, Trio Resources Exploration and Development Inc., is a key step for the company on the road to maximizing the value of its assets and will aid in differentiating the company's two primary areas of operation. CEO of TRIO, Duncan Reid, was quite pleased with the announcement and emphasized how this move will not only simplify accounting into two main vectors, above-ground and below-ground resources, but it will also make things much easier for the shareholders to keep an eye on.
The company's current acreage in Ontario is a promising leaping-off point for expansion, and TRIO is now in final negotiations on their first transaction with a sector major as the company moves to increase their land position. TRIO already has a wealth of assayed, various bodies of above-ground mineralized material, including 4k tons of silver-cobalt concentrates (40 opt Ag or some 160k ounces). They also have some choice crushed and trenched material ready for milling, with two 16k ton piles of silver-cobalt, the first grading 38 opt Ag (or some 608k ounces) and the second grading 25 opt Ag (400k ounces), as well as a 16k ton pile of material scooped out during trenching that holds roughly 25 opt Ag (another 400k ounces right there).
TRIO also has a tailings pond and muck pile to process, with nearly 348k tons of material grading 1.4 opt Ag (almost 494k ounces of silver) in the pond and another 910k tons in the muck pile(s) grading 10 opt Ag, or a whopping 9.1M ounces of silver. Naturally the company is looking to expand beyond this stable resource base and add some E&D operations to their portfolio which already contains the 94-acre Duncan-Kerr Property (comprised of two contiguous mining patents) just outside Cobalt, Ontario, in Coleman Township.
TRIO is the best of both worlds now that they have created an E&D subsidiary. On the one hand you have assayed material ready to process for generating steady cash flow at the company's state-of-the-art milling facility on the Duncan-Kerr Property; on the other hand you have a subsidiary pushing the exploration and development side of the business. Keep in mind that the extant logistics are solid as well and TRIO looks like a real hot property in the space. Duncan-Kerr is in a strategic, keystone location for former mining facilities in the area and has an existing hydro-electrical connection, as well as close access to water sources and well developed roads near the railway lines.
To learn more about Trio Resources, visit TrioResources.com
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