Topic: How To Invest

Pat: Your opinion on Trelawney Mining please. Thanks.

Article Excerpt

Trelawney Mining and Exploration, $1.02, symbol TRR on Toronto (Shares outstanding: 84.1 million; Market cap: $85.8 million), owns three properties that are located halfway between the northern Ontario cities of Timmins and Sudbury. The properties centre on the Chester mine, which was nearly completed in the 1980s, but never went into production. Trelawney’s shares jumped in early March from $0.60 to as high as $1.35. That’s when the company reported results from its latest drilling at Chester, which it conducted to see how much gold is beyond the known deposits. The drilling results included 107.11 metres of a high 8.20 grams per tonne of gold, including 313.55 grams per tonne over 2.56 metres. Trelawney took advantage of the price rise to issue 14.2 million shares at $1.05 each. That raised $14.9 million, which the company will use to continue its exploration program at Chester. To make the Chester mine attractive, Trelawney needs gold prices to remain high. But the existing…