In May of 2012, Trio purchased property in the Cobalt Mining Camp located in Northern Ontario, Canada, including two patented claims covering the property. The Property is located approximately 3 km southeast of the town of Cobalt, Ontario in Coleman Township. A well maintained municipal road and power line service the Property. The Property is bounded by UTM NAD83 Z17T coordinates 365720E to 381170E and 5081510N to 5095375N. The Property consists of 2 contiguous mining patents totalling 38 ha (94 acres) in area. Trio holds both the surface and mineral rights to both of these claims.
This location is surrounded by existing infrastructure (i.e., railway spurs, hydro lines, roadways, close access to water, etc.) which will help to address some of the challenges that are common to new exploration, milling and small processing companies. The property where the Duncan Kerr Project is located, has previously produced positive drill results, including 240 oz of silver per ton at a depth of 124 feet, over a 150 meter drilled target.
2012-13 Drilling Program
In the summer of 2012, Trio completed a limited exploration initiative of its main property, which consisted of a small drilling program of five (5) AQ size drill holes. The deepest drill hole was 187 feet and the shallowest was 122 feet. The targeted area was determined based on historic magnetic resonance data acquired from the previous owner of the property. We believe that magnetic resonance data is a useful tool for these sampling and estimation purposes. The various cores assayed yielded up to a best result of 240 oz of silver per ton at a depth of 124 feet, based on an assay performed by Activation Laboratories Ltd. on September 5, 2012. Management is reviewing the results to determine its next steps. (Please note: There are currently no known reserves on the Company’s Property.)
At the present time the Company does not have the financial resources to begin an exploration program. Subject to financing, a work program is scheduled to commence in May, 2013. Trio intends to complete a digital GIS compilation of the Duncan Kerr Property. This will help to identify targets that will be further evaluated by a work program consisting of a combination of geological mapping, prospecting, mechanized trenching, and approximately 3,500 meters of diamond drilling.
The results of the assays were positive, and management will continue the drilling program in the spring and summer of 2013. Trio has planned a 3,500 meter drill campaign on the most prospective zones as indicated by preliminary geological and magnetic resonance data acquired from the previous owner(s). The intent is to gather sufficient drilling results that will allow for the creation of a “final” or “bankable” feasibility study (as defined under the SEC’s Industry Guide 7 (“Guide 7”)) or a technical report under Canada’s National Instrument 43-101(“NI 43-101”) that would identify the reserves on the property. In addition to the above, in the summer of 2012 Trio initiated a bulk sample project in a target zone based on historic geological and magnetic resonance data, which has resulted in approximately 16,000 tons of Trench Material with an average content of 25 oz per ton of silver. The volume of material and the estimate of silver content were provided by the third party engineering company that performed the drilling and blasting operation.
Click the image below to download the NI 43-101 Technical Report on the Duncan Kerr Property: