Trio Resources today reported on their recent shipment of mineralized material to United Commodity AG’s (UC) state-of-the-art Yukon Refinery in Cobalt, Ontario.
The shipment is part of a recently inked five-year off-take agreement with UC (Apr 2) targeting some $30M of mineralized material in five years (roughly 20k tons) and serves as a strong indicator of both the quality of feed concentrate (334 tons minimum per month as per the agreement) and UC’s advanced recovery methods. In this game grade is king, but grade is nothing without the ability to harvest every ounce of valuable minerals from the material and that is where the expertise of UC comes in.
CEO of TRII, Duncan Reid, called it the start of a beautiful friendship and noted that the company now has in hand a lucrative closed loop production circuit, with the ability to “mine, mill, refine, and now produce bullion bars.” Reid underscored how today’s report signifies that this combined force is essentially able to compete alongside the senior mining companies now, emphasizing that the key thing which differentiates TRII from other juniors is their ability to produce their own continuous revenues from existing above-ground assets.
Right now the junior sector is a bloodbath ripe for M&A in many respects; much has been invested and immeasurable mineral wealth has been explored but a majority of juniors don’t have the funding to get to production. Even though we are on the verge of a potential discoveries boom in the sector due to all the exploration that has been done, juniors are going nuts trying to secure scarce funding and that is where TRII has them beat, with a nice fat stack of various material to process (estimated 1.3M tons of mineralized material), ranging from some 1.25M tons of tailings and muck pond to another 52k tons of crushed and trench material, 4k tons of which is straight concentrate.
This shipment is the first of many to UC’s facility, which has been praised for its exceptionally sustainable ecological profile and which is able to refine material, as well as pour ingots with its bullion furnace. This is part of UC’s strategy to target the small and medium mining company market in the region where operators lack the logistical capacity to provide their own refining infrastructure. This first shipment readily demonstrates the viability of the company’s funding vector and thus confidence is running high as we cut into the meat of the operating season.
For more information on Trio Resources, visit www.TrioResources.com
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