Company Overview
TTM Resources Inc. ( TSX.V-TTQ ) ( Frankfurt: T2U ) is a strongly-managed Canadian mining junior that is fast-developing one of the premier molybdenum (Mo) discoveries in Canada in recent memory.

This is particularly significant as surging global demand for this lustrous industrial metal has seen its price skyrocket as much as 2,000% within the past few years. (More on this later).

Accordingly, TTM’s stock has been an especially strong performer since SmallCapMedia initiated coverage in 2006 with a sharp focus on the wholly-owned Chu Property near the town of Vanderhoof in central British Columbia.

Since then the Company (www.ttmresources.ca) has made tremendous strides towards the development of this major discovery, which appears to be well on its way to becoming a large tonnage, high-grade molybdenum deposit.

Based on exploration results to date, including extensive drilling, TTM is targeting a world-class 800-million-tonne resource. With this goal in mind, an independent National Instrument 43-101 compliant preliminary resource estimate has been commissioned by TTM. The results of this much-anticipated resource estimate are expected to be announced within the next few weeks.

The Increasingly Lustrous Chu Deposit: A World-Class Mine in the Making?

To date, TTM’s two aggressive drill programs, spanning at least 11,000 metres, have intersected numerous thick molybdenum zones within a prolifically-sized stockwork (veinlets) mineralized structure.

This drilling has revealed consistent ore-grade molybdenum values running to a depth of greater than 650 metres and over a strike length measuring at least 1.7 kilometres in length and at least 300 metres in width.

Highlights to date include Hole CH-06-06, which returned a spectacular interval of 198.96 metres of 0.132% Mo between 78.33 and 277.29 metres. Included are three intervals of grades exceeding 0.150% Mo over individual down-hole intercepts greater than 14 metres.

Similarly, Hole Chu W-001 clearly demonstrated the presence of high-grade molybdenum at significant depths. Key intersections include 123 metres of 0.105% Mo from 471 metres to 594 metres. This includes one particularly exceptional intercept of 0.148% over 57.4 metres.

The presence of meaningful open-pittable near-surface mineralization (running to great depths) was also verified by way of Hole Chu E-001 which carried significant molybdenum mineralization over its entire length, averaging 0.077% Mo from 6.70-641.8 meters (635.2 meters). This includes intervals of 0.102% Mo over 44.8 metres, 0.111% Mo over 57.9 metres and 0.106% Mo over 192 metres. Notably, this hole was integral to extending the western boundary of the deposit by 150 metres.

Other highlights from recent step-out drilling (expanding the deposit along a lateral plane) have produced equally impressive high-grade results. They include the extension of the East Zone by a further 70 metres, where Hole Chu E-004 included a 45.72-metre intercept of 0.101% Mo. Other related highlights include 36.57 metres of 0.094% Mo from Hole Chu E-003 and 25.8 metres of 0.113% Mo from Hole Chu W-003.

Excellent Infrastructure and Government Support Make for Increasingly Robust Project Economics

The 2,746-hectare (8,100-acre) Chu Project is situated close to power, a paved highway and a railway line. In fact, the proximal railway line makes for easy, cost-effective access to Alberta’s nearby molybdenum-hungry oil and gas industry. (The Chu Deposit is a mere 200 kilometres due west of the Alberta border).

Moreover, the property is also only 75 kilometres to the southeast of the operating Endako Molybdenum Mine – one of the world’s largest primary molybdenum producers. If a mine at Chu proves viable, this scenario may preclude the need for a separate multi-million dollar mill.

The property also benefits from a topographically mild setting with a relatively low elevation of around 1,400 metres. Additionally, no major permitting or environmental obstacles are envisioned to restrict an ongoing mining operation in this area.

In fact, the provincial government is assuring significant financial incentives to mineral exploration companies in regions such as this which are associated with the “pine beetle kill” devastation of the BC forestry industry.

Surging “Moly” Prices: A Cinderella Success Story that Continues to Outshine Other Metals

Ironically, this historically unglamorous, little-known industrial base metal was barely trading above a paltry $2/lb during much of 2002. Prior to that, it had similarly under-performed in such a modest price range for many years.

However, this lustrous silvery metal has undergone a remarkable Cinderella-like transformation within the last six years. So much so that it has become the unlikely star performer among the metals sector.

Likewise, it has become a darling of Canada’s natural resources-oriented investment community. Commonly known by its more user-friendly abbreviation, “moly”, this key component in high-strength steel alloys is now synonymous with the booming energy sector that depends on it. Indeed, molybdenum’s meteoric rise to a peak of around the $45/lb mark in mid 2005 proved as dramatic as the global economic boom that fuelled this remarkable ascendancy.

In particular, a resurgent oil and gas industry and strong demand from China proved to be the main catalysts behind molybdenum’s reversal of fortunes. Since then, burgeoning demand for molybdenum has continued to outstrip supplies. So much so that as of the end of 2007 prices still remain remarkably buoyant in the $30/lb-$35/lb range.

Thus, the sustained 1,500-2,000% spike in molybdenum prices since 2002 has also proved to be a major shot in the arm for companies that are aggressively developing highly prospective discoveries. Ones with muti-billion dollar potential. TTM is one of those select few companies.

Therefore, the advent of a new generation of richly mineralized molybdenum mines coming on-stream will no doubt help ensure that Canada continues to be a world leader in production with annual output at around 20 million pounds and climbing.

“Moly” Supply/Demand Fundamentals Bode Well for TTM

Pipelines are essentially the arteries of all the world’s established and emerging industrialized societies – all of which are dependent on oil and gas. In other words, molybdenum-reinforced pipelines are indispensable to satisfying the planet’s increasing energy needs.

This is especially the case since the world’s population has more than doubled from 2.5 billion people to 6.6 billion within the last 50 years. And no less than 75 million people a year are added to this burgeoning number, which is expected to further expand to 9 billion by 2050, according to the United Nations.

Molybdenum helps to make the world’s vast networks of millions of miles of pipelines and other metallic industrial structures stronger and more durable. Most importantly, it also helps to make them more corrosion-resistant. This reality takes on a heightened significance when considering that over half of North America’s pipeline networks need to be replaced sooner rather than later.

This is because most of the continent’s three-million-plus miles of oil and gas pipelines were built in the 1950s and 1960s without the benefit of molybdenum reinforcing. And they are now fast deteriorating due to corrosion, which is already causing supply disruptions and production inefficiencies due ruptures and widespread leakages.

With Canada, the U.S. and China leading the way, the world is now finally experiencing a major long-term refurbishment of its millions of miles of pipelines. This is being spurred on by the resurgent oil and gas industry, which is increasingly, having to go deeper and further a-field to bring meaningful new oil and gas reserves on-stream.

This includes Canada’s Oil Sands –- a situation which is expected to precipitate the largest deployment of pipelines in North America since the booming 1960’s. Likewise for China, which is hard-pressed to energize the exponential ramp-up its burgeoning industrial sectors.

Even the U.S. will need at least 47% more oil and 57% more natural gas by 2025, according to the U.S. Energy Infrastructure Association. Hence, the transportation and distribution lines needed to sustain this growth equates to a 30% increase, resulting in roughly 600,000 miles of new pipelines.

That means in the U.S. alone, the replacement pipelines will require more than 300 million and up to a possible one billion pounds of molybdenum. Similarly, Russia and Europe will also need comparable amounts of molybdenum to deal with their own ageing pipelines.

Terrace Property: On-Trend with an Emerging High-Grade “Moly” Discovery

In the fall of 2006, TTM also acquired an outright interest in the 8,410-acre Terrace Property (named after the nearby city of Terrace which is situated a mere 20 kilometres away). These claims adjoin an in-development, high-grade molybdenum discovery known as the Shan Project.

Owned and operated by BCM Resources Corp., the Shan discovery includes drilling highlights of 59.65 metres of 0.118% Mo and 112.7 metres of 0.107% Mo. Importantly, these well-mineralized claims are on-trend with TTM’s Terrace Property, which is situated directly to the east.

An airborne geophysical survey has been completed on the Terrace Property to identify prospective molybdenum-rich areas. An extensive follow-up ground sampling program and geological mapping have also been undertaken by TTM as recently as the fall of 2007. Results from all of this early-stage exploration work are still pending to pinpoint targets for a 2008 drill program.

Strong Management is Always the Key to Success

SmallCapMedia is particularly impressed with the pedigree and depth of experience of the Company’s accomplished management. In particular, TTM’s geological team is technically strong and well-rounded. Collectively, the Company’s hands-on management and directors also benefit from many decades of multi-disciplinary experience in the mining business, as well as the investment industry.

This potent mix of mining acumen and savoir faire in the arena of venture capital should continue to ensure access to a deep vein of investment capital. As evidence of this fortuity, TTM raised $8.68 million in a November, 2007 equity financing.

The next obvious round of financing will likely involve the commissioning of a pre-feasibility study (a preliminary blueprint for a mine) for the Chu Deposit.

Investment Summary

On a technical note, TTM has approximately 46.22 million shares outstanding (about 53.33 million shares fully diluted). For most comparable situations, such a relatively tight share structure, matched with upbeat news flow, typically act as potent catalysts to much higher share price valuations.

Accordingly, the advent plenty more upbeat news flow during 2008 should continue to power TTM’s share price trajectory significantly higher. In turn, this should set the stage for a much-anticipated pre-feasibility study at the Chu Deposit. One that would surely make the Company an obvious take-over target.

SmallCapMedia is therefore confident that TTM Resources will be a strong performer in 2008. And in terms of the big picture, the emergence of a potentially world-class, bulk-tonnage, high-grade molybdenum porphyry deposit offers patient investors exceptional “home run” potential.

from: