Trigon Exploration Canada Ltd. (TEL.V)
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Trigon Exploration Canada Ltd.
Stock symbol: TEL.V………………………………………………..Float: 25mm (est)

Stock price 9/22/06: $.23……….………….Common shares (fully diluted: 44.7mm)

52-week price range: $.17 - $.51…….……Equity market capitalization: $10.3mm

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BUSINESS
  • Trigon Exploration is an aggressive Uranium exploration and development company. The company focuses on advanced exploration properties and development properties. This provides for faster time lines to production compared to grass roots exploration.
  • The properties are located in jurisdictions which are mining friendly, politically stable, and have predictable legal systems.
  • TEL’s first major Uranium development property is the Marysvale property which is located in one of the historic Uranium mining districts of the state of Utah in the US South West.

    • RECENT DEVELOPMENTS
  • Commencement of exploration and development work on the Marysvale Property in Utah.
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  • Significant new acquisition is anticipated.

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    Address: Suite #203, 1889 Spall Road, Kelowna, B.C., Canada V1Y 4R2

    Telephone: (250) 763-5533, Fax: (250) 763-5255

    CEO: Sidney Himmel

    Web Site: http://www.trigonexploration.com/

    State or other jurisdiction of incorporation or organization: Canada

    Transfer Agent: Computershare

    CUSIP Number: 89618Y102

    Investor contact: Sidney Himmel, President and CEO, Tel: (250) 317-3624, Email: sidney.himmel@trigonexploration.com; Jeanny So, Broker Relations Specialist, CHF Investor Relations, Tel: (416) 868-1079 x 225, Email: jeanny@chfir.com

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    MORE ON RECENT DEVELOPMENT
    Trigon Exploration begins Marysvale fieldwork, August 24, 2006
  • Trigon Exploration Canada Ltd. has commenced fieldwork at its Marysvale uranium project in central Utah. The exploration program is based on recommendations from the technical report "Marysvale Uranium Project, Sevier and Piute Counties, Utah, USA" (the 43-101 report), which has been electronically filed on SEDAR and is also posted on the Trigon website.
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  • The Marysvale uranium project is located in the historic Marysvale mining district of south-central Utah. Between 1977 and 1981, extensive drilling by Minex Uranium and Phillips Uranium resulted in the delineation of an estimated 1.8 million pounds of uranium mineralization within the central one-third of the Marysvale property. Trigon's initial two-phase exploration program is intended to at least triple this historical resource.

    • Phase 1A of Trigon's Marysvale program will include:
  • A targeted radiometric survey, to identify surface anomalies which are associated with podiform uranium mineralization at depth
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  • Targeted magnetic and resistivity surveys, with resulting geophysical data correlated with data from known areas of uranium mineralization; and
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  • Geological mapping and a geophysical survey over all other areas of the property.

    • This will be closely followed by phase 1B, which will include:
  • Approximately 6,000 feet of vertical and inclined reverse circulation drilling to confirm uranium mineralization and zone geometry; and
    		•
  • Approximately 2,000 feet of inclined, stratigraphic core drilling to characterize the known mineralized zones, to search for vertically inclined vein mineralization, and to provide samples for leach testing.

    • It is anticipated that phase 1 exploration at Marysvale will be closely followed by a phase 2 program featuring over 100,000 feet of reverse-circulation and core drilling, likely to commence in early 2007.

    The Marysvale uranium project is managed by Ian Thompson, PEng, technical adviser to Trigon, and a qualified person, in accordance with National Instrument 43-101. The 43-101 report was prepared for Trigon by Stuart Havenstrite, CPG, and Lisa S. Hardy, Lic.Geol.

    Trigon Exploration Reports NI 43-101 Results From Marysvale Uranium Project, Utah

    http://www.trigonexploration.com/news/index.php?&content_id=17

    Trigon Exploration Plans To Realize Value Of Diamond Portfolio
  • Trigon intends for its wholly-owned subsidiary, Trigon Diamond Corporation Ltd. ("Trigon Diamond"), to be operated as an independent company, with a continued focus on Canadian diamond exploration.
  • Trigon intends to convey its diamond assets to Trigon Diamond in due course and is studying various alternatives by which the value of Trigon Diamond can best be realized by Trigon shareholders.

    • STRATEGIC GROWTH PLAN

    Advanced Exploration and Development
  • Trigon’s corporate strategy is to focus on uranium advanced exploration and uranium property development.
  • By focusing on advanced exploration and development TEL.V’s believes it can substantially increase the likelihood of success compared to grass roots exploration.
  • While the probabilities of establishing mineral reserves in respect of grass roots exploration are very low, the probabilities of establishing mineral reserves in respect of advanced exploration and development properties are high.
  • TEL.V intends on further enhancing the success rate by implementing well thought out strategies of growth and property portfolio diversification and growth.

    • Business Approach:
  • TEL.V is in the business of uranium development and does not undertake individual risky ventures
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  • Trigon views itself as operating a portfolio of valuable assets, can applies careful financial analysis using risk analysis and option valuation in its operating and financial decisions

    • Value Added
  • TEL.V carries out its operating and financial corporate activities in such a way that management can add value on a continuous basis thereby increasing expected stock returns for investors and decreasing share price volatility
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  • The company aims to know, not guess. Before making decisions management collects and analyzes all the relevant knowledge in order to be aware of the range of possible outcomes (including likelihood of occurring) which can result from operating and financial management decisions.

    • Due Diligence
  • TEL.V has implemented a carefully controlled strategy to define the specific due diligence procedures undertaken prior to acquiring properties
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  • The data resulting from due diligence involving the geological, geochemical, and geophysical study of historical work done on properties being examined are used to develop decision trees as input into the determination of the valuation of properties under examination
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  • Warren Buffet uses same methods when he looks at possible acquisitions. After TEL.V values the properties, TEL.V only acquires them if they are available at a reasonable cost, which is a percentage of what their value would be in TEL.V’s market capitalization.

    • Exploration and Development Planning
  • After TEL.V acquires properties, management carefully considers the range of exploration and development outcomes which may result from further work on the properties
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  • This analysis is used to optimize the exploration and development programs, and to then establish expected milestones and reasonable budgets
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  • Management calls this approach the "MBO" approach to exploration and development planning and budgeting. MBO stands for "Management By Objective" which is a business model which aims to increase organizational performance by aligning goals and objectives throughout our organization
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  • Senior management and employees are involved and are encouraged to have input in the identification of objectives, time lines to completion and approach.

    • Quality of Management

    TEL.V works with teams of geologists and engineers who are highly experienced in uranium exploration and development and who have spent years working in the locales where we operate.

    MARYSVALE PROJECT

    Marysvale Summary
  • The Marysvale project, Trigon’s first uranium development asset, is located in the historic Uranium Marysvale Mining District in south-central Utah, approximately 300 kilometres south of Salt Lake City. Utah has been, and will again be a prolific producer of Uranium. The state is very mining friendly and the mining cost structure is very low thereby allowing for profitable uranium mining.
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  • From 1952 to 1966, 275,000 tons of ore from the Marysvale Mining District, were mined and milled to produce 1,100,000 pounds of Uranium of U3O8. The average grade of the uranium ore was 0.22% U3O8 (4.4 lbs/ton). The producing mines were located in the district’s "Central Mining Area" and included the Bullion, Monarch, and Prospector mines. Trigon has secured a large land position, approximately 30 times the size of the Central Mining Area, immediately to the east of the old producing mines.
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  • Exploration by Minex Uranium Company ("Minex") and Phillips Uranium Company ("Phillips") prior to 1982 on the Marysvale property reported an estimated 1.8 Million lbs uranium mineralization within the central 1/3 of the property. Trigon has gained access to large amounts of Minex and Phillips exploration data and our uranium team is currently carrying out a two-phase work program with the aim to at least triple the reported historical resource.

    • Marysvale Location
  • The Marysvale Uranium Project is located in the Piute and Sevier Counties in South-central Utah, approximately 300 km south of Salt Lake City.
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  • The property is located approximately 6 km northeast of the town of Marysvale. Marysvale, which sits on U.S. Highway 89, is a former mining town which previously served the numerous uranium mines, one mile west of the property, which operated in the 50’s and 60’s as well as base metal, gold and silver mines before that time.
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  • The property is accessible from Marysvale by a graded road, which is maintained by Piute County. A graded road also provides access from the town of Monroe 12 km to the northeast of the property. The property can be operated as a developing and producing property 12 months per year; surface exploration can be conducted during all months except December, January, and February.
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  • Elevation on the property ranges from a low of approximately 1,860 metres to a high of approximately 2,200 metres. Topography ranges from gentle slopes to short steep cliffs. The high desert vegetation consists of native grasses; several varieties of sage brush; pinon pine and juniper with sparse aspen and cottonwood trees in the vicinity of springs.

    • Marysvale History
  • Uranium was first discovered in the Marysvale area in 1949. From 1949 through 1966 the district recorded 1.4 million lbs. of U3O8 production, nearly all of which is from an area termed the Central Mining Area, situated within one mile west of the Marysvale Uranium Property. The average grade of the uranium ore was 0.22% U3O8 (4.4 lbs/ton).
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  • In the early 1950’s three claims were staked by a prospector immediately east of the mines in an area which is currently part of Trigon’s property. Several adits were driven on near-surface uranium mineralization on these claims in the 1950’s and early 1960’s, but production records are unavailable. There are also remnants of a number of other pits, trenches and shallow shafts on the property from which production of reportedly high-grade pockets of surface secondary ore was obtained. The property was first drilled in 1977 by Minerals Exploration Company ("Minex"), a subsidiary of Union Oil Company. At least 24 holes were drilled some being core holes. Phillips Uranium Company acquired the property from Minex later in 1977.
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  • From 1978 through 1981, Phillips drilled 169 holes totaling 114,983 feet. Most of the Phillips holes were vertical rotary or hammer drilled holes, with 5,141 feet of core included in the total footage. Gamma logs from the drilling were prepared by Century Geophysical and Trigon has gained access to the logs for 161 of the 169 holes. Nearly all of these drill holes intersected uranium mineralization.
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  • Phillips terminated their drilling program in April 1981 and abandoned the project in 1982 due to the severe decline in uranium prices. Overall, Phillips spent approximately $1.5 million on the Marysvale project.
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  • A report by Paul Dean Proctor, PhD., a professor of geology at Brigham Young University, in Provo, Utah, and an independent consultant, was prepared based on the Phillips and Minex drilling.
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  • In his report Proctor states, "Blanket type supergene uranium ore reserves totaling at least 1.8 million lbs. U3O8 (.75 million tons of .075% U3O8 and 3.0 million tons of .03% U3O8) occur at the Marysvale project within 300-500 feet of the surface. Additional potential U3O8 ore exists on the Marysvale property which could double or triple the reserves of the district."
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  • Proctor characterizes the uranium mineralization as being derived from remobilization of primary deposits that formed where hydrothermal fluids rose along near-vertical faults. Recommendations were made for follow up drilling, but were never carried out.
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  • In 2005, activity in the district resumed with the resurgence of uranium prices. Garfield Resources I LLC staked 100 mining claims in the area over the 3 historic prospector claims in March 2006 and acquired a mining lease on Utah State Section 2, T27S R3W. The Trigon property now consists of these claims plus an additional 113 claims staked by Trigon, effectively consolidating the eastern part of the district.

    • Marysvale Geology
  • The uranium mineralization in the Marysvale Project area formed approximately 19 Million years ago when rhyolite magma began intruding the uranium-enriched rocks underlying the area. The pressure from the magma caused above rocks to fracture and the heat from the magma fuelled a hydrothermal system with fluids enriched in uranium and molybdenum. These fluids filled fractures creating the uranium and molybdenum bearing veins, such as the ones mined in the Central Mining Area in the 50’s and 60’s. Since the time of their formation, the uranium bearing veins have been subject to leaching processes caused by ground and meteoric water. These processes have transported part of the uranium from the veins and deposited it in horizontal pods at groundwater level. The exploration targets at Marysvale thus include both primary uranium ore (in the veins) and secondary uranium ore (in horizontal pods).
  • The Marysvale property occurs within the Marysvale volcanic field, one of the largest Tertiary volcanic fields in the western USA. There are two main intervals of volcanic activity in the Marysvale field separated by an erosional unconformity; the intervals are distinguished by a shift in composition related to the changing nature of the North American plate margin to the west.
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  • The volcanic rocks were erupted through and onto an older sequence of Mesozoic to Lower Cenozoic sediments which outcrop to the west, but are not exposed in the vicinity of the property. These sedimentary rocks are represented by a 1,800 m section of quartzites, shales and limestones exposed on Deer Trail Mountain about 9 km southwest of the property.
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  • The older and more voluminous volcanic interval in the Marysvale field is represented by the Bullion Canyon Volcanic Series, which erupted from multiple vents over the period 35 to 22 Ma. The series is characterized by intermediate calc-alkaline rocks, dominated by dacitic and rhyodacitic lava flows and ash-flow tuffs, estimated to aggregate a total of 600 to 900 m in thickness.
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  • The Monroe Peak caldera is the largest caldera in the Marysvale field, measuring about 18 km from north to south, and 26 km from east to west. The caldera formed with the eruption of an estimated 208 cubic kilometres of rhyodacitic ash-flow tuff about 23 Ma, and the intracaldera rocks were then intruded about 21-22 Ma by masses of quartz monzonite and granite that represent shallow cupolas derived from a deep source batholith. These intrusives drove hydrothermal systems that have pervasively altered the intracaldera rocks. The 22 Ma "Central intrusive" quartz monzonite is one of these intrusives. It is the host rock for the majority of uranium production recorded from the Marysvale area. Several replacement alunite deposits have a genetic association with the Central intrusive.
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  • An erosional surface developed on the Bullion Canyon volcanics prior to eruption of the Mount Belknap Volcanic Series, beginning about 21 Ma. At this time, the North American plate margin to the west shifted from a subduction margin to a transform regime. The Mount Belknap rocks are alkali rhyolite flows and tuffs with the largest individual units reaching 450 m in thickness. They were erupted from two sources, an eastern, and a western source area. The eastern source area erupted within the Monroe Peak caldera, and migrated across the caldera rim to the southwest over time.
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  • Steven et al. (1981) demonstrate that large volumes of Mount Belknap rocks have been leached of 20 to 25 % of their original uranium content by devitrification of volcanic glass, and conclude that the Mount Belknap and younger rhyolites are the source of all significant uranium mineralization in the Marysvale area.
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  • Siltstone, sandstone and conglomerate of the Miocene Sevier River Formation were deposited in area basins and grabens, and alluvial fan and flood-plain deposits of Quaternary age are found on present-day valley floors.
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  • Two styles of faults occur in the Marysvale area: steep faults of variable orientations associated with intrusion and collapse of magma chambers, and north-northeast- and north-northwest-trending faults related to basin and range extension.
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  • Most of the 1.4 million pounds of U3O8 production recorded from the Henry Mining District has come from the Central Mining Area, within one mile west of and adjacent to the Property. The production came from steep magmatic-hydrothermal veins that cut the "Central intrusive" quartz monzonite, and younger fine-grained granite. These veins continue upwards into horizontal veins contained within an overlying rhyolite flow unit of the Mount Belknap Series. Production was also derived from the flat veins.
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  • In general, veins are genetically associated with an unexposed rhyolitic stock of the Mount Belknap Series, dated at about 18 Ma, which intruded the Central intrusive below the lower limit of underground workings and drilling. Emplacement and subsequent collapse of the stock fractured the overlying roof rocks, allowing hydrothermal fluids to precipitate uranium-bearing quartz-fluorite veins in the resultant open-space fractures.
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  • The uranium veins show a close spatial relationship to distinctive, glassy rhyolitic dikes that contain anomalous molybdenum and uranium. Dike material forms the matrix of a vertical pipe of breccia that manifests the abrupt pressure release that allowed the roof blocks to settle. The relative competence of the Central intrusive quartz monzonite allowed it to hold open fractures and localize the uranium mineralization. USGS geologists have postulated that the uranium-bearing veins are the near-surface expression of a Climax-type molybdenum porphyry deposit at depth.
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  • The property sits at the intersection of the eastern source area for Mount Belknap volcanics, and the Monroe Peak caldera. Surface exposures on the property are dominated by rhyodacitic lava flows of the Monroe Peak intracaldera sequence, with subordinate volumes of tuffaceous sandstone and airfall tuff. The volcanic units are horizontal or inclined at low angles to the east. Rhyolite domes and plugs of the Mount Belknap Series intrude the flows. Hydrothermal alteration is widespread, and resistant knobs of siliceous sinter occur at the sites of former hot springs. In places, silicic and advanced argillic alteration has obliterated primary textures.
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  • The Central intrusion, a 22 Ma intracaldera quartz monzonite, outcrops along the western side of the property. Several hydrothermal deposits of replacement alunite on the property are genetically associated with the Central intrusive. These include the Mary's Lamb and the Al-Kee-Mee deposits.
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  • The property is cut by northeast- and northwest-trending faults that are related to basin and range extension. Late hydrothermal alteration may have been localized along some of these faults.
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  • Uranium occurs as supergene mineralization in strongly clay-altered rhyolitic volcanics. Secondary uranium minerals are found at several locations on the surface.

    • Marysvale Exploration
  • Trigon’s uranium team, led by Ian S. Thompson, has designed a two-stage work program which aims to at least triple the historical 1.8 Million lbs of U3O8 reported by Dr. Proctor based on the historic drilling on the property.
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  • Phase 1A will consist of ground magnetic, resistivity and radiometric surveys, geologic mapping and geochemical surveys to identify argillic alteration zones, fossil hot-spring centers, fault zones and radiometric anomalies.
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  • This will be followed by Phase 1B, a preliminary program of 6000 feet of vertical and inclined RC drilling to confirm uranium mineralization and zone geometry. The RC drilling will be augmented by 2000 feet of inclined, stratigraphic core drilling to characterize the known mineralized zones, to search for vertically-inclined vein mineralization and to provide samples for batch and pad leachability tests. The Phase 1 work is scheduled to commence in mid- to late August 2006 and is expected to last until the end of the year.
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  • The preliminary plans for Phase 2 include approximately 100,000 feet of rotary drilling and 8000 feet of core drilling to outline uranium mineral inventory/resources. Preliminary base-line environmental surveys and in-situ leach (ISL) tests should be initiated at this stage. The results of Phase 1 will be integrated into the final plans for Phase 2, which is scheduled to start in Q1 2007.

    • Marysvale Technical Exploration report

    http://www.trigonexploration.com/_resources/technicalreport.pdf

    DIAMOND DIVISION – click for more

    MANAGEMENT

    Sidney Himmel B.Sc. B.A. C.A.
  • Sidney Himmel C.A, is the President and Chief Executive Officer of the Company. He is also the Chief Financial Officer and a director. He has over 17 years experience in Canadian capital markets, having worked for Toronto Dominion Securities as Vice President and Director, and Merrill Lynch Canada Ltd. as a Corporate Finance specialist in mining finance.
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  • During this period he participated in the successful funding of numerous growth and large capitalization companies raising capital in both the public and private financial markets.
  • He has been a Chartered Accountant since 1981. He is a member of the American Chemical Society and the Institute of Chartered Accountants of Ontario.
  • As President and Chief Executive Officer of the Company Mr. Himmel is directly responsible for corporate strategy, business development, investor relations and finance. He also holds overall responsibility for the operations.

    • Magnus Haglund M.Sc.
  • Magnus Haglund is the Chief Operating Officer of the Company and a director.
  • Mr. Haglund has extensive global exploration experience including work in Africa, Northern Europe and Canada.
  • Mr. Haglund was a principal of Trigon Exploration Finland from October 2001 to June 2004, and Managing Director of Oy Alwima Ltd., a subsidiary of Dia Met Minerals Ltd. from 1998 to October 2001.
  • He was Project Geologist for Oy SES Finland Ltd. from January 1997 and April 1998. Mr. Haglund holds a M.Sc. degree from Abo Akademi University in Turku, Finland.

    • As Chief Operating Officer for the Company, Mr. Haglund is responsible for the operations of the uranium exploration and development properties and the evaluation of project opportunities.

    Ian S. Thompson B.Sc. P. Eng.
  • Ian Thompson is Technical Advisor to the Company and a director.He is a consulting geologist and president of Derry, Michener, Booth & Wahl Consultants Ltd., an independent, world-wide consulting practice specializing in exploration, reserve calculation, engineering, and project valuation.
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  • He is a Fellow of the Geological Association of Canada, the Society of Economic Geologists, and the Association of Exploration Geochemists.He is a recent recipient of the Elvers Medal in Mineral Valuation from the Canadian Institute of Mining and Metallurgy.
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  • He is a graduate of the University of Toronto in Honours Geological Sciences and a professional engineer, with over 40 years of national and international experience in mineral exploration and development, including the discovery of base metal, gold, anduranium deposits.

    • Raymond Ashley B.Sc. P.Geoph.
  • Raymond Ashley is a Senior Vice President, Exploration of the Company and a director.
  • Mr. Ashley was Vice-President, Exploration of Dia Met Minerals Ltd. from November 1996 and February 2002. Prior to joining Dia Met, Mr. Ashley was Diamond Project Manager for BHP Billiton.
  • Mr. Ashley is an internationally recognized geophysicist, and is known for his pioneering techniques in kimberlite exploration in Canada. He was instrumental in the discovery of the first fifty kimberlite pipes found in the North West of Canada. He holds a B.Sc. degree from McGill University and is a Professional Geophysicist with The Association of Professional Engineers, Geologists and Geophysicists of Alberta.

    • Mr. Ashley’s primarily responsibility is as the President and Chief Executive Officer of Trigon Diamond Corporation Ltd. Trigon Diamond Corporation Ltd. is a private company wholly owned by Trigon Exploration Canada Ltd. This private company carries out diamond exploration activities in Canada.
     

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    DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up to eighty five hundred dollars from Novak Capital for preparation and posting of this report, radio interview, and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.