Todd River Resources Limited (ASX: TRT)

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Northern Territory focussed explorer Todd River Resources (ASX: TRT, “Todd River” or “the
Company”) has enjoyed significant exploration success in the two years since their early 2017
listing on the ASX and our initiation note. The Company, which is a spin-out from TNG Limited
(ASX: TNG, “TNG”), has concentrated activities on the Mount Hardy Project (“Mount Hardy”),
some 300km NW of Alice Springs, with this resulting in the discovery of high grade polymetallic
structurally controlled mineralisation.
Drilling activities have concentrated on the EM1 target, and have returned excellent results,
including an intersection of 35.54 m @ 14.7% Zn, 2.92% Pb, 0.91% Cu and 59 g/t Au from
431.54 m in MHDD0043, with mineralisation defined from surface to a depth of 500 m (and still
open). Initial metallurgical testwork has also returned excellent results, indicating that separate
high quality Cu, Pb and Zn concentrates can be produced through sequential flotation.
Limited drilling at three other targets (EM2, Mount Hardy and Browns) has returned encouraging
results, as have electromagnetic (“EM”) and induced polarisation (“IP”) geophysical surveys,
which have identified a number of targets that are yet to be drill tested. The Company has a
comprehensive exploration programme planned for the 2019 field season, which will include
significant drilling (which has now commenced) and further geophysical surveys.
Drilling is also planned for geophysical targets identified at the Rover Project (“Rover”),
located ~70 km SW of the historical Tennant Creek Mineral Field (“TCMF”), which was a
producer from very high grade gold and copper deposits, notably by Geopeko. Exploration by
other parties in the Rover area (which is under-explored, partly due to cover and also historic
land access issues) has identified mineralisation similar to that at the TCMF - these systems
include Westgold Resources (ASX.WGX, “Westgold”) Rover 1 Project, which has returned drill
intersections of up to 20.87 m @ 14.5 g/t Au and 6.0% Cu.
With A$4.7 million in the bank as of December 31, 2018, the Company is well cashed up to
fund these planned exploration programmes, as well as work on other projects in the quality
exploration portfolio - results from planned activities should lead to a steady news flow.
Exploration success at Mount Hardy: Results of drilling and geophysical surveying at Mount
Hardy highlight the potential for this project to host significant and material resources of polymetallic
mineralisation - it is still early days at this quality project.
Positive metallurgy: The results of initial metallurgical testwork at Mount Hardy are very
encouraging, in that separate Cu, Pb and Zn concentrates were produced that are potentially
saleable - this is very positive in that the metallurgy of poly-metallic mineralisation can
commonly be very tricky, and potentially a fatal flaw, or else significantly decrease returns from
any future project through having to produce bulk concentrates.
Exploration potential at other projects: We see the potential for positive exploration results
from other projects, particularly Rover.
Cashed up: Having raised ~A$7 million before costs in late 2018, and with A$4.7 in the bank
as of December 31, 2018, Todd River is well cashed up to pursue an aggressive exploration
programme, with activities set to commence immediately on Mount Hardy, and soon thereafter
on Rover. Having significant cash in the bank has the added benefit that management can
concentrate on their core business of exploration (and not on walking the major cities rattling
the can) - this also means that exploration can be planned around what is right for the project,
and not around what is in the bank.
Key cornerstone: A fair chunk of the money raised in the December quarter came from a
placement to S2R Resources (ASX.S2R, “S2R”), which now holds 19.99% of Todd River - this
is a vote of confidence in the company, projects and their quality directors and management.
Leveraged to exploration success: With an EV of just over A$7 million, the Company is well
leveraged to exploration success - examples of companies with similar styles of mineralisation
include KGL Resources (ASX.KGL, “KGL”, market capitalisation of A$78 million) and Peel
Exploration (ASX.PEX, “Peel”, market capitalisation of A$107 million).
Todd River Resources

Todd River Resources explores for and evaluates mineral resource properties in the Northern Territory of Australia. Co. holds interests in 13 exploration projects, including the Manbarrum Zinc project, the Mount Hardy Copper-Zinc project, the Stokes Yard Zinc project, and the McArthur Copper-Zinc project, as well as other exploration projects covering base metals and other commodities, such as gold, lithium, tantalum, tin, and bauxite. Co. is based in Subiaco, Australia.

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