Triton Gold A Spec Buy

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This story features TRITON MINERALS LIMITED, and other companies.
For more info SHARE ANALYSIS: TON

By Chris Shaw

Triton Gold ((TON)) listed on the Australian Stock Exchange in 2009 as a gold explorer with a focus on the Albany-Fraser belt and the Windarra Regional Project in Western Australia as well as a potential project in the Alaskan gold belt.

As DJ Carmichael notes, since listing Triton has developed its operations in the Windarra region to the point the Windarra Tailings Project now has a JORC resource of 113,000 ounces at 0.78 gram per tonne gold. Further exploration of the project is expected, with Triton currently considering how it will proceed.

A joint venture partnership or trade sale are possible options, DJ Carmichael noting the project has the potential to generate cash flow for Triton that can be used to fund additional exploration in the Albany-Fraser Belt.

The Windarra Regional Project continues to offer potential for gold discoveries as DJ Carmichael notes the ground has previously only been explored for nickel deposits. A sampling and drilling campaign is planned for 2011 to assess a number of higher priority targets.

At Salmon Gums in the Albany-Fraser Belt, where Triton currently has 100% control of the tenements, DJ Carmichael notes drilling to date has confirmed a local bedrock source for gold. These results will be used to define the next stage of exploration for the prospect.

The success at Salmon Gums comes on the back of initial drilling at the Tushtena project in Alaska that identified two gold prospects. Development at this project will be aided by a farm-in with Panoramic Resources ((PAN)), which will see Panoramic fund US$2.6 million in work on the project in return for potentially a 51% stake, leaving Triton with a 29% interest.

For the longer-term DJ Carmichael notes Triton is also looking at possible opportunities to enter the African market, these most likely to come via acquisition. The broker suggests any move into this market is likely to add value for shareholders given the market's current interest in exploration opportunities in West Africa in particular.

With a solid drilling program in the year ahead DJ Carmichael rates Triton as a Speculative Buy, particularly for investors with at least as 12-month investment horizon. Such a time frame gives Triton the time for what is regarded as a very good technical team to work through data and to best execute the 2011 drilling program.

Triton has a current market capitalisation of around $13 million, so it receives little coverage on the Australian market. As evidence of this, none of the brokers in the FNArena database currently research the company.

Over the past year Triton shares have traded in a range of $0.085 to $0.25 and today the stock as at 1.00pm was down 1c at $0.155.

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