TMX - intereesting little company. Was proving up some nice gold...

TMX - intereesting little company. Was proving up some nice gold resources at Bunderra which is not far from Laverton (around the area where SBM, NAV, PRE are all doing their gold hunting/mining etc.) when the GFC hit.

They've also got a very interesting nickel prospect near the kambalda dome (where some of the richest nickel mines in the world are) which they interpret to be a potential repeat of the Kambalda dome.

The company has done very little in the way of any field work this year with basically a 'batten the hatches' approach during the GFC. One good thing they have done though is open pit mining studies on their various gold deposits.

Potential for $10 to $15 million free cashflow via contract mining and toll milling their open pits at Bunderra - the mining studies are nearly complete as well as permitting and approvals etc. well underway with the company today announcing that the decision to mine will be made by the end of the year.

They've also identified an open pit deposit at Coogee near their aztec dome nickel prospect and have done pit optimisations - this is a small but quite high grade pit and they plan to sell it which will generate a little bit of cash for them.

They've also got a good cornerstone investor on board thats shown his commitment by funding their current drill program planned at the Aztec dome nickel prospect. This drill program they state they expect to complete by the end of 2009 and will drill several potential shallow Nickel/Gold anomolys (the first one Anomoly A has already had wide but low grade nickel shows in one historic drill hole.)

They have 320koz JORC gold resource at Bunderra plus the small cat Coogee. There is plenty of scope for finding more at Bunderra as they were having good success here pre-GFC. Economic open pits have been identified at Bunderra with decision to mine (via contractors and toll milling) to be made by years end. Also at Aztec dome near Kambalda, an exciting nickel prospect being drilled by years end (conditional on obtaining approvals).

So they've been asleep for a year or so but about to get busy with quite a bit of news likely to come out over the next 6 months or so and with strong investment support from a couple of key investors - one who has joined the board - so relatively tightly held.

Might be worth keeping an eye on given the low market cap and the fact that they are starting to get active on their interesting prospects.

Todays quarterly report is well written and sets out a lot of the detail on whats described above.