gold jorc vs mineable oz vs market cap

TMX has a gold JORC of 320koz at its main gold project at Bundarra as well as another 30koz at Coogee.

They have done mining studies throughout the year (in the AGM presentation this week they outlined an additional one for Great Western).

This has resulted in the following potentially mineable ounces (these have been calculated at a gold price of $AUD 1200 I believe - possibly less - certainly not more).

At Bundarra (Their primary gold project near Leonora)
* Celtic - 16koz (Open Pit)
* Wonder North - 55koz (Open Pit)
* Great Western - 55koz (Open Pit 10koz followed by U/G 45koz).

At the Coogee project (near Kambalda/Aztec Dome)
* Coogee - 12koz (Open Pit)

In summary:
Total JORC - 350koz.
Total potentially mineable - 138koz


They have identified these deposits as theoretically profitable and generating considerable free cashflow at a $1200 gold price. Add $100 to the gold price (i.e. todays AUD gold price of $1300) and it adds an additional $14 million in theory to that free cashflow.

The Bundarra project also has one new discovery made by TMX pre-GFC called Bluebush that is yet to be fully drilled out but is already of reasonable size (circa 40koz) and so once drilled potentially able to be added to mining studies. (drilling stopped when the GFC/Opes Prime selldown caned the TMX share price and market in general). There are also numerous other undrilled anomolies at Bundarra - some quite large (e.g. the one near Craig is 1000m long).

Drilling programs are planned at Bundarra early in the new year.

Also there is some significant upside potential at the moment as they are also currently drilling on their Aztec dome project near Kambalda, which is considered to be a potential Kambalda dome repeat. 5 anomolies with potential for gold and/or nickel being drilled before Xmas (3000m of drillling).

The company is currently well funded for their current work programs via recent placement to cornerstone investor. The stock is tightly held with over 70% of the register in the top 20 shareholders.

At under $14 million market cap (based on 9c share price and including dilution for recent placement) seems worth keeping an eye on Terrain in the current gold price environment.

A discovery at Aztec of any kind would just add to the story but even without Aztec, the Bundarra project has potential to expand significantly.

They can also generate reasonable immediate cash from the sale of the Coogee gold deposit, which could be used to fund ongoing programs at Bundarra and Aztec.