TRAFFORD RESOURCES LIMITED Audio Webcast

LYNAS CORPORATION LIMITED (LYC) ASX Small to Mid Caps Conference. *ASX takes no responsibility for the information included in this presentation. Participation in this event should not be taken as an endorsement by ASX of the company.	Lynas Corporation Limited: Matthew James. ASX Small to Mid Caps Conference New York, March 2010 Tue, 16 Mar 2010 12:15pm
MARENICA ENERGY LTD (MEY)	Marenica Energy Uranium Project in Namibia Investor Presentation - Mr John Young, CEO Wed, 17 Mar 2010 10:45am
FLINDERS MINES LIMITED (FMS)	Flinders Mines Company Update - Kevin Wills, Managing Director Fri, 19 Mar 2010 10:45am

TRAFFORD RESOURCES LIMITED (TRF)

Please refer to the relevant stock exchange if any of the above information is incorrect

TRAFFORD RESOURCES LIMITED (TRF) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/Sydney
TRAFFORD RESOURCES LIMITED (TRF)	Thu, 1 Oct 2009 9:00am	Trafford Proposes Share Placement to Singaporean Listed Company - Mr Ian Finch, Managing Director
TRAFFORD RESOURCES LIMITED (TRF)	Tue, 16 Sep 2008 9:30am	TRF - Excellence in Mining and Exploration Presentation - Mr Ian Finch, Managing Director
TRAFFORD RESOURCES LIMITED (TRF)	Wed, 25 Jun 2008 3:30pm	TRF - The Gold Coast Resources Showcase Presentation - Mr Ian Finch, Managing Director
TRAFFORD RESOURCES LIMITED (TRF)	Wed, 27 Sep 2006 3:00pm	TRF - Exceptional Results at Gawlor Craton - Mr Ian Finch, MD
TRAFFORD RESOURCES LIMITED (TRF)	Wed, 25 Nov 2009 11:00am	Annual General Meeting The Hotel Ibis Perth, 334 Murray St, Perth WA
TRAFFORD RESOURCES LIMITED (TRF)	Sun, 15 Mar 2009 11:00pm	Interim Results
TRAFFORD RESOURCES LIMITED (TRF)	Fri, 28 Nov 2008 10:50am 08:50am Australia/Perth	Annual General Meeting Celtic Club, 48 Ord St, West Perth, WA
TRAFFORD RESOURCES LIMITED (TRF)	Wed, 1 Oct 2008	Full Year Results
TRAFFORD RESOURCES LIMITED (TRF)	Tue, 27 Nov 2007 9:45am	Annual General Meeting Novotel Langley Hotel Perth WA
TRAFFORD RESOURCES LIMITED (TRF)	Thu, 15 Mar 2007 11:00pm	Interim Results
TRAFFORD RESOURCES LIMITED (TRF)	Fri, 17 Nov 2006 11:00am	Annual General Meeting The Celtic Club, 48 Ord Street West Perth WA
		Display 10 results per page 20 results per page 50 results per page 100 results per page

TRAFFORD RESOURCES LIMITED (TRF)

Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.

PRESENTATION BY IAN FINCH, MANAGING DIRECTOR OF TRAFFORD RESOURCES LIMITED (TRF)

“Excellence in Mining and Exploration Presentation”

http://www.brr.com.au/event/51305

 

TUESDAY, SEPTEMBER 16, 2008, 09:30 AM.

 

            TRF     Exploration – we’re an exploration company and exploration is -- it’s all about the future. Every tonne of every metal mined has got to be replaced and

10                    we’re an exploration company and we’re in that process of finding that replacement. So we’re not that concerned about the present and a lot of people here are and quietly rightly so, but as an exploration company we have to focus in the future. Because we are going to focus in the future, I’m going to say a few things forward looking, you’d have to have a look at the

15                    disclaimer there which tells you if you’re not sure of what I’m saying, you should get in touch with your analyst or your financial adviser and he will ring me in Perth and he’ll ask me what I’ve told you and then he’ll ring you back and tell you what I’ve told him, and then you’ll know.

 

20                    The Board, in an exploration company there are number of things which are very important, and the Board here is small, therefore we can move quickly, and we’ve got somewhere in the region of 100 years experience within the industry in that Board. Now, I get a lot of exposure standing up here but poor old Neil McKay there who is really the workhorse of the company. He doesn’t

25                    get much so I thought I’d throw a photograph of Neil in. He’s a little bit older than me. But down to the serious matter, what we’d like to do at Trafford is keep the corporate profiles very simple. We’ve got 41.6 million shares out there and in October there’s an 8.4 million listed options which are going to be exercised because I will owe them the money. What that leads to is a very

30                    interesting slide given that we’re formed 2 years and 3 months ago in June 2006, we have cash in the bank at the moment A$2.8 million. We’ve got those exercise listed options coming in at around about A$2 million. We’ll have about A$4.9 million in the bank which is about a million dollars more than we started with two and quarter years ago, and we have not been back

35                    to or met any placement or been back to the shareholders in that time. That’s important for your investors to know that. So if you’ve invested $5,000 back when we’re listed, you’ll be showing somewhere between 300% and 400% capital growth right now in an explorer. Just to, sort of, highlight that point that’s where we were against the backdrop of a range of companies that

40                    we’re either listed at that time or we’re in existence at that time, and that’s where we are today. In fact, some of those companies on the first slide have actually dropped off to left hand side of it, up there.

 

                        It’s important, as we go quickly, I’ve got to move quickly because there’s a lot

45                    to say, so I’ve got to really explain the company to you first before we say where we’re going. This is the important slide because it shows you the relationship that Trafford has with IronClad. Now, IronClad is a company we spun off last July in order to develop our iron ore. So Trafford has a very large investment in iron ore. We own 50% of IronClad who is in 80% of the iron at Wilcherry Hill in South Australia. I’ll come to that South Australian property in a minute. But importantly, I’ll draw your attention to this later on, Trafford retains a 20% free carried interest in that iron project. Over on the right-hand side, there you’ll see the South Australian and Western Australian projects. I

5                      won’t be talking much about West Australia even though we’re now back on the map as a resource state, but most of our activities at the moment are in South Australia and that’s the Wilcherry Hill Project, which has turned out for us to be what we termed an Aladdin’s Cave.

 

10                    This Aladdin’s Cave – we had at the start really just a backdrop of the very, very nice – thanks to the South Australian government -- a very detailed magnetic map and about 1,000 sq km of ground. We had one semi-notable deposit of Menninnie Dam which was being explored by Zinifex and Terramin Resources, and then we put together all of the data from that area and we put

15                    into an electronic file. We’re amazed what came out of that data set. Firstly, we found that we were actually sitting upon Hiltaba granite and anybody who knows anything about South Australia will know that Hiltaba granites really are the heat engines and the mineralising system or create the mineralising systems largely of South Australia such as at Olympic Dam and probably

20                    Prominent Hill as well, and we are sitting right over the top of one. So not surprising, we found there are lot of gold prospects in the old data there. We find also that 530 other holes had actually drilled through a very unusual crystalline magnetite, and more about that later.

 

25                    We also find something like nine prospects in lead-zinc since about 1981 that companies like (inaudible) (00:05:12) had worked up and there are all of different levels of maturity. We found copper. We found manganese, and of course, with the Hiltaba granites there’s almost always some uranium. So it really is -- we really had a plethora of riches, but it was the iron because of

30                    China and because of the situation with the markets that first drove us, and our consultants and this is a very key issue here, for those people who think they understand magnetite, which is what the iron is, this is not your standard magnetite, of those of you heard me speak before, well have heard it many, many times. It’s a message we’ve tried to get out broadly, this is a different

35                    geological setting. It’s a scan-type magnetic origin style of coarse crystalline magnetite, and ProMeta, our consultants, tell us that this is the best thing since slice bread, and I won’t go into the details as to why because IronClad has a booth outside. Andy Bennett who came to us from Olympic Dam as a chief geologist is here to explain the details of it as is (inaudible) (00:06:27)

40                    the chief geologist at IronClad, so please visit the booth and ask them the details. What we do have, we had enough in the original holes to have 44 million tonnes of the material. We’ve been drilling some 35,000 holes. There’s an imminent update on that tonnage and in recent times, the excellent work by Andy and this team have discovered, I think called Hercules, which is

45                    about 10 km long and looks like being a massive future for the company.

 

                        So in summary, on the iron, we’ve got the highest quality magnetite. Certainly, we’ve got an upside in the most standard magnetites and hematites. We’ve got an existing 45 million-tonne resources which are going to be upgraded very shortly, a huge potential. IronClad is there to develop it -- is in feasibility mode at the moment, and has had A$20 million raised when it listed. We’ve completed the 35,000 m of drilling and we’re talking to the end users.

5

                        Lead zinc, as I mentioned, there are nine lead zinc prospects. We have a joint venture with Oz Minerals at the moment, originally is in effect, and they’re spending in the region of $8.5 million to earn 75% and that’s a good deal for them, believe me, even though we’re spending the first $4.5 million of it.

10                    We’re managing that first $4.5.

 

                        Telephone Dam, I really don’t have time to go through all of the details of Telephone Dam and I’m sure you’re probably grateful for that, but there is an enormous amount of drilling data that we’ve correlated over time and when

15                    we got it all together, amazingly, the geometry looked tabular and shallowly dipping, and we’ve recently, in fact, we’re right in the middle of testing the simplicity of this model and, by job, it’s standing up to it immaculately. That hole in the middle there, that one there, has just being completed and more or less hit those two bands smack on at around, and the bottom one was about

20                    25 m wide. We don’t know what the values are at the moment there at the laboratory. But that zone is going to be, is open down deep as you can see there, and it’s open about north and south. So it’s open in all directions and there’s a lot more drilling to come there.

 

25                    Gold, well, we went to -- we’ve known it for gold originally. Again, it’s a long story but the gold, we’ve dropped off, I’ll tell you why. We started drilling, we had amazing success with the gold. Problem came when we found out where the gold was. It’s in association with the iron, there it is, and so what will happen, the gold will go to Trafford as the iron is mined by IronClad. So

30                    there’s no a lot of point to spend a lot of dollars in exploration for the gold which is associated with this iron. So we put a pause on that at the moment.

 

                        We’re also in the same game as Derek because we’re in the same part of the world and we believe it’s got a lot of potential for IOCG and I usually put the U

35                    on the end because there’s usually a bit of uranium sitting around, which we find here. Again, I’ll be happy to go into the details of these things as we -- at the booth if you’d like to come and visit us there. There’s a lot of detail in these things and I don’t to really use long words here, so I won’t, but this is really a type of Prominent Hill look alike in terms of the gravity. We’ve done

40                    as Derek as suggested we should do. We’ve put the detailed gravity down and overland and over the magnetics, and we also had some geochemistry which gives a lot of extra reason for drilling. At the moment, we’re drilling four very deep holes into this, about 400 m deep, and they’re in progress at the moment, so these results are coming there shortly. We like the area so much

45                    that indeed we’ve done a joint venture with Minotaur on ground that surrounds the Southern Angola ranges, and at the Southern Gawler ranges. The Southern Gawler (inaudible) (00:10:41), the Southern Gawler Range Volcanics, that’s where we think a lot of the mineralisation is to be found and we’ve also taken out additional ground in our own right. So we’ve got somewhere in the region of 4,000 sq km in that area.

 

                        Recently, we made announcement that we had taken a placement in Robust

5                      Resources, this is another venture, this is more a corporate venture now for Trafford, and that will be taking place subject to shareholder approval, subject to the Robust shareholders’ approval which happens in early October. The reason we’re taking that position is to help Robust and accelerate the development of Romang Island prospect. Romang Island is just up there,

10                    anyone from Finders here will know exactly where it is because it’s off their east coast, of Wetar Island, about 800 km from Darwin and has deep water port and a lot closer to the Asian Markets than we are in Australia.

 

                        Why do we like it?  This is a very busy slide and a very quick summary on

15                    this, because we got still more to get through, but this was drilled -- this is the southern portion -- the Lakuwahi part of it which was drilled by Billiton before they were taken over by BHP, and something in the order of 80% of the holes that they’ve drilled there got high grade or grade intersections. In fact, two of the holes, bottomed in gold having intersected gold all the way through. So,

20                    it’s a multi-commodity target, but of massive proportions.

 

                        In the north, you’ll see the area, the Kiahar there which is circled in red, but the general area is really, really underdone. There are number of epithermal vein systems of varying sizes, huge stockworks, high lead grades, lots of

25                    systems that have yet to be explored. There’s only one scout drilling program and that produced 30% lead and lots of silver as well for those of you interested in silver, and that’s what it looks like, you could almost eat that quickly, it’s like something out of McDonald’s. It’s 115 silver in that one, 11.5 g of gold in it, to mention, but two about the base commodity there is 42% of

30                    lead and a little bit of copper, as you can see in that little sort of bluish staining there in the middle. That’s not so pretty, but it pays more. It’s 1.6 g of gold and about 658 g of silver and that silver has around about 10 g of gold, if you do the conversion at today’s rate, and 54%.

 

35                    Now, these things that lying around on the floor, on the jungle floor on the island and it really is quite spectacular to see. So the usual thing is, I’m not going to, like Derek, I’m not going to go into the woes of the current pricing of our stock because we’re not too concerned about it now because as I’ve said before, we’re forward looking, but by any valuation, you are to evaluate, if you

40                    like, the canvass on which we paint our exploration picture, it’s value alone is in the range of 72 cents, and yes of course, we are currently running about 58 cents to 60 cents. But that’s not the upside, the upside is not there. The upside is the future.

 

45                    So recently, we acquired a fuel vehicle – quite unusual fuel vehicle -- it takes us into the future. It’s a bit heavy on the petrol, but it actually took us forward to 2010 to have a look of what was happening. What we found that Rudd lost the unlosable election and Greens in Silly Party won in a landslide, and Bob Brown has been elected prime minister and he’s appointed as his running mate a rather nice Tasmanian Oak tree, but also in 2010, and much more important than that, IronClad’s first shipment is going out to China, in November ahead of schedule, and there goes the Cape-sized vessel in its way to China.

5

                        Back in the fuel vehicle and we go to 2011, and Manchester United won the European Cup at 4th year running. Now I know nobody here really cares about that, but I do so that’s great, and Jamaica win the Rugby World Cup entirely unchallenged, and NASA finds alien organisms on Mars, but far more

10                    important than that, a million tonnes of direct reduction iron ore is shipped to China by IronClad and that reduced their expectation down to $50 a tonne margin now on that commodity and 2 million tonnes of blast furnace iron ore have been shipped to India and they’ve downgraded their expectations on the margin there. So by December, Trafford receives its first $25-million check

15                    from that production only. But that’s an ongoing thing, so we’re looking for more later on.

 

                        Also in 2011, OZ Minerals completes its buy-in of 75% at Wilcherry Hill. Telephone Dam now is nearing end of its feasibility stage, and there are

20                    major precious and base metal deposits being delineated on Romang Island by Robust Resources under the guidance of Trafford.

 

                        Back in the spaceship again and off we go at walk four -- head to 2012, and China, UK, and Australia share the bulk of the medals at London Olympics,

25                    and the end of world predictions don’t come true again, that the feasibility commences on Lihir look alike at Romang Island, and Trafford is the first exploration company to issue dividends to its shareholders.

 

                        Back in the spaceship again and off we go to 2014, hopefully –

30                    Commonwealth games are disturbed by bagpiper uprising and that was big news and President Schwarzenegger presides over the first official alien landing, but the lead/zinc mine at Wilcherry Hill is up and running and we’re getting our first revenue of 25% of that from OZ Minerals, and the first gold pour from the iron ore tailings, remember I told you about that underlying the

35                    gold in iron ore, well we’re getting that now in 2014, that’s coming through us, that’s a good winner for us.

 

                        Back in the spaceship again and forward we go to 2020, not hindsight but forward sight, the first invisibility suit goes on sale and they find the first BMW

40                    that really does run on the smell of an oily rag. But Trafford now isn’t likely 25%, it actually takes over OZ Minerals and as a major mineral find in base both in South Africa and South America, and the first production from the world class gold mine at Romang takes place, that was just really forward thinking, isn’t it?  We love it.

45

                        2040, the Arctic Ice caps have completely gone and beach front property up for grabs in the pole and a new cancer vaccine is discovered. BHP finally takes over Rio, and Trafford Resources is given a major naming rights. You think that’s the end of it, of course not, we go to 2050. Off we go to 2050 and Trafford out there again, the first scout drilling carried out in neighbouring galaxy. You think we’re not forward looking. We’ve got vision. Trafford is a serious explorer, well most of the time anyway, and we’ve serious experience, and we’ve got serious vision for the company. Come and talk to

5                      us, we’ll tell you what the vision is.

 

                        Thank you.

 

PRESENTATION CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

DISCLAIMER: Transcripts made available by Boardroomradio.com is a free service whereby the transcripts are created by one or more third party contractors without any involvement or oversight by Boardroomradio.com or the respective company, firm, partnership or individual that is being transcribed.  Boardroomradio.com and its contractors, client companies, firms, partnerships and guest speakers (paid or otherwise) do not invite reliance upon, nor accept responsibility for, the information they provide. Boardroomradio.com makes every effort to provide a high quality service. However, neither Boardroomradio.com, its transcript providers, nor the providers of any other written or oral data made available on the Boardoomradio.com site (and its partner sites) give any guarantees, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of the information provided. Users should confirm information from another source if it is of sufficient importance for them to do so. Boardroomradio.com, its directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this site, or for any negligent misstatements, errors or omissions.