I had a strong feeling that the TRF were working closely with IGO Independence Mining for a development for the Twin Peaks project which has outstanding grades of Iron Ore around 60%+. The deal has just been announced of around for $5 to be spent over 3 years. So how is this going to be done?
1) Either the cash will be slowly be raised drip fed when the Wilcherry Hill project starts at the end of the year. Or 2) They may farm out their interest eg 50% down to 30% giving another financier, miner or institution a direct equity interest in the project of which Trafford may be free carried.
Zinc and Lead prices having been strengthening in recent weeks.And there is a forecast to be large deficit in supply in 2015, as 5 major mines have shut down in recent months. And I still believe there will be a big farm out deal done in the next few months with the Telephone Dam Project. Zinifex were to be a partner many years before the Commodities crash of 2008. Large grades of Lead and Zinc have been evident with 2%+ found at very low levels of around 100m, with low exploration costs. Perfect for a shallow open pit. I still think this may be possibly Independence Mining (IGO) as they are on a aggressive Base Metals exploration path at the moment which is evident with their recent announcement drilling campaign with Enterprise Metals (ENT) as a Joint Venture partner (JV). ENT will be free carried for their Doolgunna project. The ability of signing a JV deal with Independence will bring a benefit of much required Capital, explorations costs to be fully paid for, and expertise for any future projects, whilst providing much needed cash flow to be directed towards others projects. Afterall, Trafford has a very large portfolio of mining assets to be developed. I hope there can be also a farm out deal with the Weednana Gold Project and tenement next to Kingsgate Mining with the recent surge in Gold Price from $1180 to $1264. Further rises in the Spot Gold Price will make these tenements more attractive to major miners, who have the required Capital Expenditure to start these projects.
Lastly the outlook for Iron Ore will remain strong, as China is about to adopt a new Pollution Control Policy in 2015, putting more emphasis on less Coal Burning industries. This will benefit miners who have high quality Direct Shipping Ore (around Iron 64%+). High quality iron ore requires less energy (coal & electricity) to be used. Grange Resources are a market leader with their high quality Pellets at the moment in Tasmania.
Im sure there will be much interest back in the mining sector as the Aussie Dollar lowers and as commodity prices strengthen with China over the coming months. Chinese GDP is to remain strong for years to come around 7.7%. If there are doubters check Sam Walsh's ( Rio Tinto) recent comments with Iron Ore and China.We may see some new institutions on board after Iron Clad & Trafford secures financing for their Wilcherry Hill project.
Here is a list of financial institutions, fund managers who look at small cap mining stocks who maybe coming on the IFE-TRF register as passive investors in the future.
BT Sentient Group Nero Resources Fund Pitt Street Absolute Return Fund Eye Investment Fund Locantro Asset Management Geological Resource Partners Resource Capital Funds M&G Investments Washington Soul Pattinson Carnethy Investments CQS Asset Management Altus Resource Capital Macquarie Bank Westoria Capital
Im off to Asia soon, and I maybe buying a tonne more TRF when I get back.
All or nothing! Arlberg1
TRF Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
