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Feature article December 2, 2016:

 

Gold producer Metanor reopening Barry pit mid-2017; PEA all-in costs of US$891/oz

Metanor Resources Inc.

(MTO.V) (MEAOF.PK) (M3R.F)

 

Trading with a market cap near-$26.3 million Gold producer Metanor is a bargain;

 

Assets-wise:

  • Steady cash on hand;

  • Positive working capital, book value at $52 million (>$0.12 cents per share), and infrastructure replacement value on all properties in excess of $100 million, including a 100%-owned mill;

  • MTO.V also offers a significant tax savings windfall value for a future acquirer with a loss-carry-forward on the books near-C$40 million, the impact could generate $11 million to $13 million in tax credits; and

  • ~1.6 million ounces gold global resource in all categories (on all properties, two of which are permitted mines (Bachelor and Barry).

 

 Liabilities & obligations-wise:

  • Metanor has completely repaid its loan to Investissement Québec (originally $7M), final payment was made this August 2015 (freeing up an extra $525K/mo cash flow (from at its peak);

  • Metanor’s remaining convertible debenture has been paid down to $9 million outstanding and the term extended to August 2017; and

  • Metanor has satisfied its cash flow guarantee to Sandstorm on Bachelor sourced gold, having cash flowed ~US$23.6 million to date (as of September-2016) -- this now affords Metanor flexibility on what ore it chooses to process through its 100%-owned mill as the Company is no longer obligated to cash flow for Sandstorms benefit.

Click to view advisory

Gold Producer Metanor Resources Issued Upside Market Valuation in Research Report:
 

Metanor is identified in a recently issued research report by Market Equities Research Group with several potential catalysts that exist in 2016 and 2017 with potential to result in $120 million market cap for MTO, translating to $0.28 per share.

 

- July 22, 2016

Click to view advisory

Metanor is identified in a recently issued analysts report by Secutor Capital Management with compelling insight:
 

The Analyst, Craig Stanley, M.Sc. has identified Metanor Resources Inc. as a significant opportunity for investors seeking exposure to precious metals; a quality junior gold producer ripe with near-term catalysts in a stable mining-friendly jurisdiction.

 

"Catalyst-Rich Gold Producer"

- Secutor Capital Management, June 30, 2016

Click to view advisory

Mining expert Jay Taylor of Hard Money Advisors Upgrades Metanor Resources to BUY with $0.20 Canadian price target:

 

"...if management can start to grow this company with internally generated cash funds and increase production from Barry, an upside considerably beyond US$0.10 is possible. However, given the company’s current assets, plus all it has going for it in terms of its exploration potential and the potential to combine its assets more efficiently under a well capitalized company, my view is that Metanor will become a takeover candidate by Osisko Gold Royalties or another major operating in Canada, and a sweetener for a suitor would be a tax loss of $15 million. If I’m right and gold is now starting out its next leg up in this secular bull market, a move upward into the US$0.06 to US$0.15 range could come sooner rather than later."

- J. Taylor Feb-2016

 

Gold Producer Metanor Resources Inc. Interview and Update with Mining Analyst Jay Taylor

  • Quality positive cash flow on tap.

  • Building serious new gold ounces at Moroy Property South Zones in walking distance from Metanor's Bachelor Mill.

  • Studying restart of mining at Barry Deposit as a second front.

  • Balance sheet / book value / asset value -- the share price/market cap is on sale relative to its inherent value; "The sum of the parts is greater than the whole" with 100%-owned mill and infrastructure, and gold ounces at two permitted mines.

"...look at the relative value; it looks like, especially if we've got wind at our backs on a new gold bull market starting, I think people are going to make a lot of money with Metanor if conditions remain as they are."

- J. Taylor. Feb. 23, 2016 Interview

click here to listen to the full 17 min. interview

 

   

Valuation Commentary: Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is a successful commercial junior gold producer at its 100%-owned Bachelor Gold Mill in stable, mining-friendly, Quebec. Gold recovery rates at the mill are >96%, and in 2015 the Company produced >40,000 ounces of gold. With a current market capitalization near-$26.3 million Canadian (trading at only ~6 cents), MTO.V presents a significant opportunity for shareholders as its primary asset, the Bachelor Mill, has a replacement value of several times the Company's current market cap and is increasingly being viewed as a coveted strategic asset being the only mill within 200km in a gold-rich district. Metanor's total infrastructure is valued (estimated replacement value) at between CDN$150M to $200M. Of note, Eric Sprott recently increased his equity position in MTO.V, last purchasing shares on the open market 'above' the current trading price, and there is strong potential for MTO.V to excel near-term as the Company exhibits enhanced attractiveness as a potential take-over candidate in an area undergoing consolidation. The math on the inherent asset value seems to indicate Metanor is substantially undervalued and apt to trade higher, especially as the Company affirms the serious potential for production on a second front; possibly even totally supplanting Bachelor ore, beginning in Summer-2017 from a new 347,000 oz Au In-Pit resource (in all categories) at the Company's 100%-owned Barry deposit (located ~116 km by road from the Bachelor mill) under an improved higher-grade (2+ g/T) model.  Barry is a game-changer as it will allow Metanor to process ore at its Bachelor Mill that is NOT subject to a streaming agreement. The Company is rapidly advancing toward reopening mining its nearby Barry open-pit, having received a positive preliminary economic assessment study (PEA) this September-2017 with NPV of $53.5M, IRR of 198% before taxes, and all-in production cost of $1,114/oz (US $891/oz).

 

Metanor makes high-grade gold discovery adjacent Osisko Mining's Windfall Property line on trend with the Windfall Deposit

 

On October 31, 2016 Metanor announced that it intersected 70.9 g/t Au over 2.6 meters in the Moss Sector located in the north-east section of the Barry property adjacent the Windfall property belonging to Osisko Mining. This drill hole intersects two gold bearing zones associated with sulphide (15%) in proximity to a regional fault. As per the drill holes, this dominant geological structure has a minimal length of 6 km, toward the Windfall property belonging to Osisko Mining.A segment of 3 km of this structure extends on the Barry property belonging entirely to Metanor Resources:

 

Figure 1. (above) Location of new discovery adjacent Osisko

 

The geological context and the structure controlling the Windfall deposit extend to this discovery. This new high-grade discovery dramatically enhances the attractiveness of Metanor to prospective suitors in an area under consolidation, as Metanor has quality grades adjacent Osisko and the only mill around.

 

 

Fig. 2 (below) Primary asset: 100%-owned Bachelor Gold Mill

   

Urban/Barry mining camp undergoing consolidation, Metanor holds key assets:

On September 22, 2016 Metanor announced a positive PEA on Barry. Metanor's Barry project now appears destined to become the first to achieve a steady gold production scenario amongst a handful of players (include Osisko Mining Inc.'s prolific Windfall Property, Bonterra Resources' Gladiator Deposit, Beaufield Resources' Macho claims, and Urbana) whose gold system collectively is part of a new mining camp in the Barry-Urban township of Quebec.

 

Fig 3a. (above) Urban/Barry Mining Camp - The Barry deposit lies at the center of mineralized trend, with critical exploration targets. The main pit extensions over a 4 km potential strike. Exceptional targets are proximal Windfall Lake and on trend with the successful results of Beaufield / Urbana. To the ENE, in close proximity to the Bonterra claims and on trend with promising early stage results have been reported by Bonterra.

  
Significant cash flow without high development costs at Barry open pit:

With open-pit production pegged to begin in Summer-2017 and ramp-up expected to attain 37,573 ounces/annum for year two, Metanor will become a cash flow machine at Barry with all-in production cost projected at only $1,114/oz (US $891/oz) -- the estimate was made with all manner of assumptions conservatively (as proper PEA's ought to be) considered, including dilution and using a gold price of only C$1,560/oz -- the financial analysis using higher gold prices of C$1,710/oz would generate a NPV at $78.07 million with an IRR of 246% before taxes. Under the base PEA we are looking possibly C$15M+ in positive cash flow per annum from Barry, under current gold prices we are looking closer to C$23M+ per annum in positive cash flow. Important to note is that Metanor will pay no taxes for at least the first 2 - 3 years with its loss carry forward on the books, plus there is no streaming agreement on the Barry project.
 

The next step for Metanor is to drill and complete a complete a feasibility study. Metanor has a 10,000 meter drill campaign on its Barry property underway. The objective is to increase the mineral resources around the pits at Barry (see related November 15, 2016 release 'Metanor Intersects 4.25 g/t Au Over 16.7 Meters at Barry') and to increase their quality by converting mineral resources from the inferred category to the indicated category. To date geologists have identified a total in-pit resources of 347,350 ounces at 2.07 g/t in 5.24 million tonnes. The last compilation on the pit area showed that the resources are open in many areas. There is in excess of 1 million ounces identified in the published NI43-101 in all categories. The initial operation presented in the PEA is a small operation, however there is no shortage of gold at Barry and the operation is scalable for ounces.

 

Fig 3b. (above) Metanor's Barry Pit section view looking north-west, filtered to show high-grade intercepts. The outline of the old pit is seen in green, it was mined to only ~28 m at its deepest point and is essentially ready to go back into service. The present gold corridor is nearly 1 km long with a width of approximately 140m.

 

MTO.V geologists are working under an updated interpretation of the orientation of the high-grade shoots at the Barry Mine. The old interpretation had two shoots dipping down, they are now viewed as three stacked shoots more horizontal than they are vertical. The old off-orientation interpretation resulted in the mixing of high-grade with low grade, lowering the high-grade and smearing the gold into lower grade, resulting in a lower average grade when estimating and block modeling. Now Metanor's geologists have collected and affirmed data under the new model that constrains the envelopes which contain the high-grade. On June 22, 2016 the Company announced a new Resource Estimate (see 'Metanor Increases Total Ounces in New Gold Resource Estimate at Barry Pit') totaling 1,351,000 oz gold in all categories* (see breakdown further below). From an immediate mining scenario point of view, the geologists identified a total in-pit resources of 347,350 ounces at 2.07 g/t in 5.24 million tonnes calculated using parameters for direct shipping of mineralized material to Bachelor Lake mill where 45% is in the measured and indicated category and 55% is in the inferred category.

 

Metanor originally mined ore from Barry when it first took the refurbished Bachelor Gold Mill online several years ago, while it was still prepping to access the high-grade underground ore at Bachelor mine, it poured a total of ~45,000 oz gold from Barry sourced ore during that initial interim period. Metanor is now eager to return to Barry; the mill is proven and the recoveries are higher, loan and streaming obligations that consumed cash flow are satisfied, the crews are experienced, and the price of gold is higher. 

  

Highlights of PEA Barry (*) all in CAD dollars, include:

  • Net present value (NPV) before taxes (at 6%) of $53.5 million;

  • Internal rate of return (IRR) before taxes of 198%;

  • NPV after taxes (at 6%) of $25.9 million;

  • IRR after taxes of 94%;

  • Capital startup of $8.5 million;

  • Payback of 0.71 years with a gold price of $1,560 / oz;

  • All-in production cost of $1,114 / oz (US $891 / oz);

  • For the life of the mine, a production of 193,457 ounces of gold over 9 years;

  • An average of 21,495 ounces of gold production with up to 37,573 ounces in year 2;

  • Milling of 1,200 tonnes per day at the Bachelor plant, with an average grade of 1.75 g/t diluted for the life of the mine including the first 3 years at 2.61 g/t with a metallurgical recovery of 95%;

  • Strip ratio mineralization of 2.17 to 1.

Mr Ghislain Morin, President and CEO of Metanor Resources Inc., declared, on behalf of the board of directors: "This positive preliminary economic study is an important milestone for Metanor. We point out that the deposit is located on a Mining Lease previously granted, the deposit is ready to be exploited and it has the potential for expansion. Moreover, there are no streaming agreements covering the Barry project. We will be moving quickly with startup planned for the summer of 2017, following a feasibility study which will include current drilling results."

 

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Pouring gold at Bachelor

  

Operationally - Pouring Gold:  The Bachelor Lake mill has a capacity of 1,200 tpd but is currently running at a rate of ~800 tpd, with an effective rate of ~700 tpd with periodic routine downtime for maintenance. When Barry open pit ore comes back online as a second front (or possibly totally supplanting Bachelor/Hewfran ore), we expect Metanor to maintain a high ounce output, and any reduction in output (if any) would be offset 'net-positive to the bottom line' with savings from operations at Bachelor (reduced development costs; open pit Barry is significantly cheaper on labor), and not having to pay Sandstorm on Barry ore. Additionally, Barry ore is softer and the mill can be ran at near-1,200TPD (50% higher) without upgrades when processing Barry ore. Metanor is positioned to increase the TPD with a nominal capital outlay when the time is right now that a new Hydro Quebec substation has been completed.

  

Metanor also benefits from foreign exchange, receiving a ~$415/oz price differential (as of November 16, 2016) for gold in Canadian dollars over US dollars.

  

Metanor currently has two permitted mines:
1) Bachelor Mine: Bachelor is a rich underground mine with grades upwards of 26 g/t gold with an average grade of 7.38 g/t gold (fully diluted using long hole). Recent drilling results continue to demonstrate, in-part, Metanor's ability to readily extend the mineable life of Bachelor, similar to how other successful area miners have operated (and several continue to this date) -- typically lining up a couple years of initial quality mineralized material but remaining operational for many decades, adding as they go. MTO is able to sell 80% of its Bachelor Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement (Note: this arrangement is only on Bachelor-area sourced material, Metanor's mill is a separate asset that is 100%-owned by the Company and the mill may be used to process material sourced from outside Bachelor without restriction (for Metanor's sole-benefit) as long as it meets minimum covenants to Sandstorm -- covenants Metanor has been more than able to satisfy to date, the most onerous covenant was a minimum cash flow guarantee and that has since been 100% retired). The Company is building serious new ounces at Bachelor (e.g. see latest November 16, 2016 news release entitled "Metanor Intersects 13.1 g/t Au Over 3.8 m at Bachelor Mine" and October 6, 2016 "Metanor Intersects 12.0 g/t Au Over 3.9 M in a New Sector of the Bachelor Mine") and in a new gold system adjacent the mill (called Moroy).

 
2) Barry Gold Project, Quebec (located ~65 km from Bachelor): The 100% owned Barry property is neighbor to Oban Mining's Windfall Lake Deposit (formerly owned by Eagle Hill). The resource estimate at Barry now (as of June 22, 2016) sits at 305,000 oz Gold of Measured & Indicated Resources (8,420,000 t at 1.13 g/t Au) and 1,046,000 oz gold of Inferred Resources (31,919,500 t at 1.02 g/t Au) and is wide open for large resource growth expansion. The current 1km strike at Barry is potentially 13km, there are in excess of 150 anomalies outside the pit area. The Barry deposit is a potential multimillion ounce target; the independent international professional geological firm SGS Geostat has identified Metanor’s Barry deposit as comparable in potential to rival other multi-million ounce deposits such as Canadian Malartic gold deposit (formerly owned by Osisko, now owned by Yamana and Agnico-Eagle) & Detour Gold's Detour deposit.

 

Click here for full copy of the September 22, 2016 PEA news release (already detailed above) on Barry.
 

Other than a 1% royalty (NSR), an additional 2% NSR is payable on metals derived from 13 claims, representing 10% of the property. There are no other obligations arising from production from the Barry open pit.

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Below is expanded insight on some of Metanor's key assets.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

  

Region and Infrastructure

 

Metanor's Bachelor Gold Mill is the only mill within 200km in a gold-rich district.

 

The Bachelor Gold Mill complex is the only one within a 100 km radius from Desmaraisville and the possibility exists to either custom mill ore from numerous surrounding gold deposits or acquire additional gold deposits. To the right is a sampling of known smaller gold deposits that warrant attention:

 

Mining-friendly province: Quebec is unanimously agreed in the mining community to be a stable, mining friendly region and is ranked as a top-tier jurisdiction by the Fraser Institute. Metanor benefits from low hydro-electric costs, is not affected by oil prices, and it has a stable workforce.

 

Recent news releases regarding Company accomplishments and exploration developments:

  

• November 16, 2016 "Metanor Intersects 13.1 g/t Au Over 3.8 m at Bachelor Mine"

 

• November 15, 2016 "Metanor Intersects 4.25 g/t Au Over 16.7 Meters at Barry"

 

• November 3, 2016 "Metanor files PEA on the Barry project"

 

• October 31, 2016 "Metanor Intersects 70.9 g/t Au Over 2.6 m on the Barry Property Adjacent to Osisko Mining's Windfall Property"

 

• October 21, 2016 "Metanor Reports Its Financial Results for the Quarter and Year Ended June 30th 2016"

 

• October 6, 2016 "Metanor Intersects 12.0 g/t Au Over 3.9 M in a New Sector of the Bachelor Mine"

 

• September 21, 2016 "Metanor Announces Positive PEA on its Barry Gold Project: NPV of $53.5 M and IRR of 198% Before Taxes"

 

• September 21, 2016 "Metanor Clarifies Its Disclosure of the Resources of June 22 2016 Press Release and Files an Amended Technical Report"

 

• September 8, 2016 "Metanor Commences Drilling Program at Barry"

 

• September 6, 2016 "Metanor Discovers New Gold Structures on its Moroy Property"

 

• August 18, 2016 "Metanor Intersects 14.5 g/t Au Over 7.2 M at Bachelor Mine"

 

• August 9, 2016 "Metanor SEDAR Files a NI 43-101 Technical Report Updating the Mineral Resources of the Barry Pit"

 

 

Click Here for more recent news

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1) Bachelor Mine & Mill, Quebec, Canada

100% Owned Targeting steady-state 4,000+ oz per month run rate at 800 Tonnes Per Day (TPD)

 

Figure 4. Images captured at Metanor's refurbished Bachelor Gold Mill and Mine (clockwise; the mill, drill result sample assays, two happy visiting shareholders holding two gold bars, ball room, & drilling high-grade ore (centre image)); Metanor originally acquired 100% interest in the Bachelor mine and mill property in 2006 with a plan to refurbish the mill and infrastructure to restart mining (initially MTO used interim mill feed from a remote deposit, pouring ~45,000 oz gold in the process). Bachelor Gold Mine is a past producer from the 1980s having produced 130,341 oz gold in the few years before closing in 1989. The 1989 closing was due to low commodity prices and a less than stellar mining plan that did not follow the mineralized zones closely enough. Now refurbished, redeveloped, and reopened under expert geological supervision, Metanor is processing high-grade underground ore sourced from the ground below the mill again. Metanor's total infrastructure is valued (estimated replacement value) at between CDN$150M to $200M, several times greater than its current market cap.

   

Figure 5. Drifting at Bachelor -- following the higher-grade zones at Bachelor Mine; Bachelor has grades upwards of 26 g/t gold with an average grade of 7.38 g/t gold (fully diluted using long hole)

 

The resource at Bachelor

The last resource estimate at Bachelor was from 2005, with ~300,000 oz Au in all categories. Metanor has since been mining from this resource, in-part, and we estimate it has ~half the established resource still to be mined, and more importantly it has conducted drilling to also mine from new material and replace/grow the mine-life -- there is no shortage of gold to keep on producing at Bachelor. Metanor has not performed a 43-101 incorporating significant drilling since opening and therefore can not show a revised resource yet -- the completion of a resource calculation is a possibility near-term. It is not uncommon for mines in the Abitibi region to simply keep drilling as they follow the vein, and progressively add life (e.g. Richmont's Beaufor has operated for 25 years with often only ~1 year mine-life, and is still operational). MTO.V has already identified zones at Bachelor that we believe will eventually contribute to extending mine life above 10 years.

 

The original 2005 Underground Mineral Resource

 

 

Bachelor

Hewfran

Total

Measured

Tonnes

177,898

14,696

192,594

Grade (g/t)

8.83

8.50

8.80

Oz  of gold

50,487

4,018

54,504

Indicated

Tonnes

465,928

183,069

648,997

Grade (g/t)

7.63

7.14

7.49

Oz  of gold

114,329

42,024

156,352

Total Measured + Indicated

Tonnes

643,826

197,765

841,591

Grade (g/t)

7.96

7.24

7.79

Oz  of gold

164,815

46,042

210,857

Inferred

Tonnes

207,517

218,630

426,148

Grade (g/t)

6.76

6.30

6.52

Oz  of gold

45,083

44,283

89,366

 

The original 2005 Underground Mineral Reserves

 

 

Bachelor

Hewfran

Total

Proven

Tonnes

178,359

14,734

193,093

Grade (g/t)

8.36

8.05

8.33

Oz  of gold

47,930

3,814

51,743

Probable

Tonnes

467,135

183,543

650,679

Grade (g/t)

7.23

6.76

7.10

Oz  of gold

108,538

39,895

148,433

Total Proven-Probable

Tonnes

645,494

198,278

843,772

Grade (g/t)

7.54

6.86

7.38

Oz  of gold

156,467

43,710

200,177

  

Potential to Add Gold Ounces at Bachelor is Strong

 

Metanor has had recent news of continued quality high-grade intercepts at Bachelor and the adjacent Hewfran section (see below for listing of recent headlines). These results (and others) demonstrate, in-part, Metanor's ability to readily extend the mineable life of Bachelor, similar to how other successful area miners have operated (and several continue to this date) -- typically lining up a couple years of initial quality mineralized material but remaining operational for many decades, adding as they go.

 

 

Figure 6. (above) Bachelor Gold Property Mine Claim blocks (Bachelor & Hewfran) -- both claim blocks belong 100% to Metnaor, however historically they had different ownership and were not explored to their potential. Metanor’s Bachelor mine was built alongside a pluton discovered on its property. The shaft at the Bachelor Gold Mine has been sunk to 2,400 feet so as to access known resources at that level, however it is believed the gold runs much deeper and Metanor is in a position to identify 1.5+ million ounces going forward. The two main veins at the Bachelor Lake Gold Mine run parallel and are 75 feet apart at an 80 degree angle. Greenstone belts run deep, there are mines at 8,000 – 10,000+ feet such as area miners Aur Resources (now Teck Cominco), Agnico-Eagle and Sigma. The gold grade at the Bachelor property increases at depth and the strike is open in all directions at the 2,400 foot mark. All of Metanor's recent drill results have been near existing infrastructure at Bachelor, making the high-grade material easily accessible. Metanor is wide open at depth for big exploration potential at Bachelor; the company has deep hole intercepts at ~3,500 ft.

 

The following is a sampling of recent drill intercepts surrounding Bachelor Mine that will contribute toward extended mine life:

  • November 16, 2016 "Metanor Intersects 13.1 g/t Au Over 3.8 m at Bachelor Mine"

[Image below from November 16, 2016 release]

  • November 15, 2016 "Metanor Intersects 4.25 g/t Au Over 16.7 Meters at Barry"

  • October 6, 2016 "Metanor Intersects 12.0 g/t Au Over 3.9 M in a New Sector of the Bachelor Mine"

  • August 5, 2016 "Metanor Intersects 5.6 g/t Au Over 25.2 m at Bachelor Mine"

  • June 30, 2016 "Metanor Intersects 10.4 g/t Au Over 8.8 m at Bachelor Mine"

  • January 21, 2016 "Metanor Intersects 7.5 g/t Au Over 7.2 m at Bachelor Mine",

  • December 3, 2015 "Metanor Intersects 6.3 g/t Au Over 4.2 Meters at Bachelor Mine; Confirms Trend Below Level 8",

  • August 6, 2015 "Metanor Intersects 10.2 g/t Over 13.1 Meters at Bachelor Mine",

  • July 29, 2015 "Metanor Intersects 11.9 g/t Au Over 11.85 Meters at Bachelor Mine",

  • July 2, 2015 "Metanor Intersects 6.82 g/t Over 8.7 Meters at Bachelor Mine",

  • June 25, 2015 "Metanor Intersects 12.8 g/t Over 10.8 Meters At Bachelor Mine",

  • June 22, 2015 "Metanor Intersects 22.85 g/T Over 4.04 Meters at Bachelor Mine",

  • March 20, 2015 "Metanor Intersects 8.64 g/T Over 5.8 Meters at Bachelor Mine",

  • May 14, 2015 "Metanor Intersects 12.24 g/T Over 4 Meters in the Hewfran Sector of the Bachelor Mine"

 

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New South Zone/Moroy High-Grade Gold Deposit Adjacent Bachelor Mill

 

This September 22, 2015 Metanor announced it has intersected 10.1 g/T Gold over 26.2 meters near-surface (hole M0-15-14) in a new discovery zone not linked to anything previously known, only ~900 meters south of the headframe at Bachelor. This exceptionally stellar high-grade intercept begins at only 6.4 meters depth and has since been systematically followed-up to investigate how it is connected to an earlier drill hole intercept (MO-15-08) at 605 m depth that yielded 26.8 g/T Gold over 1 m -- the results to date have been stellar;

Results to date in the new zone confirm a huge multi vein system and the interpretation to date clearly shows at least one of the structures has an East-West orientation, and a dip near 70 degree to the North -- this explains why anything in the area was never found in old exploration efforts; the main Bachelor Mine veins dip to the South and all historic drilling in the South Zone was mistakenly drilled to the North (parallel, making an intersect impossible). Surface IP geophysics in the South Zone in 2014 told Metanor's exploration team to drill a near-surface anomaly assuming a direct correlation between the percentage of pyrite and the hole grade -- the correlation was a major hit when drilled in 2015, the theory was affirmed (26.8 g/T Gold), the drilling refined to reveal the discovery hole (10.1 g/T Gold over 26.2 meters near-surface), the understanding of orientation was developed, and an in-hole geophysics test was ordered on old holes (the results which were recently released and are extremely exciting)... 

 

New geophysics reveal the best is yet to come:

January 20, 2016 "Metanor Publishes the Results From the Geophysic Survey on the Moroy Property"; In short, anomaly 'C' was drilled and results correlated well, exactly as expected, attention now turns to the two largest anomalies 'A' and 'B' which have never been tested. The most intense anomaly 'A' is located under the tailings pond, Metanor plans to take advantage of the winter conditions to drill it first -- the voluminous size and intensity indicated the gold structure was highly prospective to continue, and that's exactly what was found See April 20, 2016 release entitled "Metanor Confirms the Extension of the Gold Structure at Depth on the Moroy Property": 

 

Figure 7a (above) - Gold Producer Metanor Resources South Zone IP Anomalies and Select Assay Value Intercepts to date.

 

Figure 7b (above)- Gold Producer Metanor Resources Bachelor Project, location of new discovery zone 10.1 g/T Gold over 26.2 m indicated by red dot.

 

Moroy - The Next Gold Mine

Figure 7c (above) - South Zone Discovery Moroy Property,

 

Figure 7d (above) - South Zone Discovery Moroy Property.

 

Figure 7e (above) - South Zone Discovery Moroy Property

  

This new discovery gold zone corridor fits well into the future expansion plans for Metanor; being only ~900 m from the headframe, the Company may decide to build a ramp into the near-surface high-grade that starts only 6.4 m depth and maybe build a conveyor over to the mill, or maybe build a drift over from Bachelor to reach material at depth -- many options exist depending on how big this gets. Additionally it is anticipated that for only few million in capex Metanor could increase the milling capacity to accommodate a second front and facilitate output that could possibly yield 80,000 to possibly 100,000 ounces Gold per annum from the Bachelor Mill, the increase in scale would also translate toward lowering cash costs.

 

 

Figure 7f (above) - Conceptual Development - Click image above to see live 3D animation

 

Mining analyst sees potential for 1,000,000+ new gold ounces from the Moroy South Zones

 

Mr. Thibaut Lepouttre, Managing Director at Belgium-based mining and commodity research BVBA firm Caesar published a report in February 2016 in which he extrapolates results to date and sees potential* for 1,000,000+ new high-grade ounces from the South Zone:

 

Excerpt:

The discovery hole was already very interesting (with an intercept of almost 6 meters at 10 g/t gold) in hole 15-14, but we weren’t too excited just yet. And then we talked to the company’s management team at the past Cambridge House show in Vancouver. Metanor now has an exploration target of 500 meters by 570 meters (and the most aggressive expectations are now pointing in the direction of a 500 X 700 meter zone of interest), and is assuming an average width of 4 meters.
 

That’s roughly in line with the first exploration results at Moroy which returned for instance 6.6 meters (true width: 3.6 meters) of almost half an ounce (!) of gold per tonne of rock, as well as 10 meters at 5.4 g/t (with a true width of 8 meters!). These exploration results are very intriguing and as the higher grade mineralization seems to be starting close to surface, Metanor could still upgrade the current exploration target as the Moroy mineralization could be more widespread than originally thought.

 

If we would now base a rough exploration target based on a 500 X 600 X 4 meter target zone, this zone would contain 1.2 million cubic meters of ore. Using a density of 2.65 tonnes per cubic meter, we are talking about an exploration target of 3.2 million tonnes of rock. It’s of course way too early to discuss numbers, but if Moroy would have an average grade of 6 g/t, these 3.18M tonnes of rock would contain almost 600,000 ounces of gold.

 

Should the internal target of 500 X 700 meters be realized, this exploration target would increase to in excess of 700,000 ounces of gold. We compiled a table with different tonnages as well as average grades to give you a better idea of how sensitive the total amount of ounces is versus the total tonnage and average grade.

 

click here for full copy of the report.

* Estimates of potential made by the mining analyst are non 43-101 and not from the Company.

 

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2) Barry Deposit & Property, Quebec, Canada - 100% Owned, located ~65km southeast of the Bachelor Lake Mine/Mill

 

Recent (September 22, 2016) news release from Metanor regarding PEA:

 

Metanor Announces Positive PEA on its Barry Gold Project: NPV of $53.5 M and IRR of 198% Before Taxes

 

VAL-D'OR, QUEBEC--(Marketwired - September 22, 2016) -  Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to present the highlights from the positive preliminary economic assessment study (PEA) completed by GoldMinds Geoservices Inc. on its Barry gold project (Mining Lease BM number 886) which is located 100 km east of Lebel sur Quévillon and 115 km south of the Bachelor Mine in Quebec.

Highlights of PEA Barry (*) all in CAD dollars, include:

  •  Net present value (NPV) before taxes (at 6%) of $53.5 million;

  • Internal rate of return (IRR) before taxes of 198%;

  • NPV after taxes (at 6%) of $25.9 million;

  • IRR after taxes of 94%;

  • Capital startup of $8.5 million;

  • Payback of 0.71 years with a gold price of $1,560 / oz;

  • All-in production cost of $1,114 / oz (US $891 / oz);

  • For the life of the mine, a production of 193,457 ounces of gold over 9 years;

  • An average of 21,495 ounces of gold production with up to 37,573 ounces in year 2;

  • Milling of 1,200 tonnes per day at the Bachelor plant, with an average grade of 1.75 g/t diluted for the life of the mine including the first 3 years at 2.61 g/t with a metallurgical recovery of 95%;

  • Strip ratio mineralization of 2.17 to 1.

Mr Ghislain Morin, President and CEO of Metanor Resources Inc., declared, on behalf of the board of directors: "This positive preliminary economic study is an important milestone for Metanor. We point out that the deposit is located on a Mining Lease previously granted, the deposit is ready to be exploited and it has the potential for expansion. Moreover, there are no streaming agreements covering the Barry project. We will be moving quickly with startup planned for the summer of 2017, following a feasibility study which will include current drilling results."

The Study

The Barry gold mine could potentially support an open pit mine with a conventional treatment plant using mineral industry standards, including: crushing, grinding, gravity concentration, cyanide leaching tanks, adsorption of gold by coal activated desorption of coal, electrolytic sensing, refining and reactivation of coal in addition to the destruction of cyanides released from the leach circuit. The Bachelor processing plant has been resized for an annual capacity of 420,000 tons in this preliminary technical and economic study (PEA). The anticipated gold recovery is expected to exceed 95%. No provision has been made for the treatment of low mineralized material and content for material that could be mined by underground method. The calculation of the tax and mining rights was conducted by the firm Raymond Chabot Grant Thornton (RCGT) of Val d'Or from a cash flow document prepared by GMG. The current scenario plans for transport by road train of 150 tons. An average milling index of 13.3 kWh / t is used.

The pit resources in all categories totaled 2.23Mt @ 1.54 g / t measured, 270kt @ 1.40 g / t Indicated, and 1.17Mt @ 2.69 g / t inferred. The pit resources are derived from the total mineral resources using a model of blocks 3m E x 3m N x 3m Z - rounded - capped at 35 g / t, with a cutoff grade above 0.66 g / t.


 
Classification Mineral Resources Waste Total
Tonnage Grade Au Au content Tonnage Grade Au   Au content Tonnage Sterile/ore
T g/t Oz T g/t   Oz T  
Measured 2,225,000 1.54 101,000 4,175,000 0.24   33,000 6,400,000  
Indicated 270,000 1.40 12,000 515,000 0.21   3,400 780,000  
Measure + indicated 2,490,000 1.52 122,000 4,690,000 0.24   36,000 7,180,000  
Inferred 1,170,000 2.69 101,000 2,660,000 0.07   6,000 3,825,000  
                  2.01
Technical Summary
Mine life (LOM) 9 years
Pit resources 3.612Mt
Average diluted grade gold 1.75 g/t
Uncovering rate (sterile ration: ore) 2.17:1
Tonnage treated per year 420,000t
Average annual production sold 21,495 oz
Gold produced and sold total 193,457 oz
   
Main Capital cost CAD
Overburden stripping 0
Processing plant $1.1 M
Road repairs (40 km) $2 M
Mine, Drilling, Feasibility $2.85 M
Tailings $0.55 M
Infrastructure $2 M
Total starting capital cost $8.5 M
   
Operation cost (per ton processed) CAD
Mining cost $27.28/t
Processing cost $19.90/t
Exploration (resources renewal) $2.01/t
Accommodation & employee transportation $1.88/t
Increasing of the tailings pond capacity $0.15/t
Administrative fees $6,76/t
   
Financial results before taxes with a price of gold at 1,560 / oz (CAD)  
NPV at 6% $53.50M
IRR 198%
Cost for the production of one ounce $1114/oz
Capital reimbursement period 0.58 yr
Available Cash Flow $61.15 M
   
Financial results after taxes with a price of gold at 1,560 / oz (CAD)  
NPV at 6% $25.9M
IRR 94%
Capital reimbursement period 0.71 yr
Available Cash flow $30.95M

The financial analysis using a price of gold of CAD$1,710, representing a 10% increase from the $1,560 used in the PEA would generate a NPV of $78.07 million with an IRR of 246% before taxes. ...

 

...click here for full copy from source

 

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The Current Resource Estimate on Barry;

Below is an excerpt from Metanor's June 22, 2016 news release:

 

Metanor Increases Total Ounces in New Gold Resource Estimate at Barry Pit

 

VAL-D'OR, QUEBEC--(Marketwired - June 22, 2016) - Metanor Resources Inc. (« Metanor ») (TSX VENTURE:MTO) has received an updated Mineral Resource estimate on its Barry property located 116 km from the Bachelor mill. The independent mineral resource estimate was prepared by GoldMinds Geoservices Inc. (GMG) and update the previous resource estimate of 2010. A technical report (NI43-101 compliant) will be available on SEDAR within 45 days.

The new estimate is based on a total database of 1,100 diamond drill holes and rock saw channel samples for 79,055 meters with 51,524 assays.

This update takes the 1 g/t range base case resource to 209,400 ounces gold in Measured category grading 1.21 g/t in 5.383 Million tonnes, 96,000 ounces gold in Indicated category grading 0.98 g/t in 3.037 million tonnes and 1.046 million ounces grading 1.02g/t Au in 31.92 million tonnes in inferred resources using a cut-off grade of 0.50g/t.

A total in-pit resources of 347,350 ounces at 2.07 g/t in 5.24 million tonnes is calculated using parameters for direct shipping of mineralized material to Bachelor Lake mill where 45% is in the measured and indicated category and 55% is in the inferred category.

Highlights

  • Important increase in confidence level of the mineralization at Barry;

  • 209,400 ounces in the measured category in the base case resource estimate above 0.5 g/t;

  • 96,000 ounces in Indicated category in the base case resource estimate above 0.5 g/t;

  • 1.046 million ounces in the inferred category in the base case resource estimate above 0.5 g/t;

  • 347,350 ounces of inpit resources at 2.07 g/t in 5.24 million tonnes with a strip ratio of 2.29 to 1;

  • Deposit open in all directions;

  • Drill hole results of the 2013 campaign outside the Barry pit perimeters are not taken into account in the current inferred mineral resources;

  • Screen metallic samples for one mineralized zone shows 11% more gold than standard fire assay;

  • Higher gold grade mineralization occurs in Basalt on edges of Diorite as well as Feldspar Porphyry.

Cautionary statement: Mineral resources that are not Mineral Reserves do not have demonstrated economic viability.

The following tables show two global resource estimate scenarios, each with a different cut-off grade with capping at 35 g/t on assays, density to convert volume to tonne is 2.8. Rounded numbers, total may not add up.

Base case Mineral resources above 0.5 g/t

Classification Au (g/t) Tonnes Ounces
Measured 1.21 5,383,000 209,400
Indicated 0.98 3,037,000 96,000
Indicated+Measured 1.13 8,420,000 305,000
Inferred 1.02 31,919,500 1,046,000

Mineral Resources above 1.0 g/t

Classification Au (g/t) Tonnes Ounces
measured 1.82 2,421,000 141,900
indicated 1.55 1,022,000 51,000
Indicated+Measured 1.74 3,443,000 193,000
inferred 1.69 10,325,000 560,000

Estimation and classification

These upgraded Resource Estimates encompass data from surface to a depth of 250m within the mineralized envelope. 3D envelopes of barren rocks (Diorite and FP) has been done to avoid smearing and maintain integrity of estimates with the domains.

The estimation of 3m x 3m x 3m blocks was made with capped to 35 g/t assays and composites of 3 meters.

Inverse square of the distance is used with 3 different search ellipsoid as well as different parameters in each pass. The first ellipsoid has a long axis of 50m intermediate 10 meters and small of 5 meters, the second is 75 m, 15 m and 10 meters while the third has 150 m long axis, 50 m intermediate and 25 m short axis.

Direction of the long axis is UTM 84 degrees North with an inclination of 19 degrees and 45 degrees. In clear: the long axis plunge down 19 degrees at 84 north, intermediate 45 degrees south west and the short axis plunge 354N at 71 degrees.

The estimation was done in 3 pass where for the first pass: a minimum of 6 composites and maximum of 12 composites limited with 3 from the same hole, a minimum of 6 composites and maximum of 12 composites limited with 3 from the same hole in the second pass and a minimum of 1 composite and maximum of 12 composites limited with 3 from the same hole for the third pass.

The estimation ellipsoid are the same for the classification where a minimum of 2 holes in the ellipsoid are required for measured and indicated and one for the inferred. Search ellipsoid were validated with geostatistics and visually where mineralized zones showing up to 300 meters strike length.

Finally, the 2016 drilling of the western extension has brought a new zone in the resource model. This zone deserves additional drilling to define its size and increase its level of confidence as well as extension of mineralisation around the existing pit and other targets on the property.

The significant change from the 2010 resource model is the fact that high grade gold mineralization is East West oriented gently dipping Eastward along the regional North East trend. The high grade zone are associated with intrusive rocks.

Ghislain Morin president and chief executive officer, declared: "This updated resource, namely with the in-pit resources, is a game changer for Metanor as it now demonstrates the important value of Barry for our company. We will immediately take all required steps to increase its value by bringing the mineralized material to our Bachelor mill and increasing capacity. With such positive numbers, Metanor is moving forward with the development of Barry with production targets of 30,000 to 35,000 ounces of gold per year in a near future."...

... click here for full copy from source

 

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SGS Geostat Iidentifies Metanor’s Barry Deposit as Comparable in Potential to Rival Other Major Gold Deposits Such as the Canadian Malartic (formerly Osisko) and Detour Gold's Detour Deposit
 

The independent international professional geological firm SGS Geostat has issued (November 2010) its NI 43-101 Technical Report on Metanor Resources' Barry Deposit property detailing the sizable resource and providing revealing commentary, comparing Metanor’s Barry deposit in potential to Canadian Malartic deposit and Detour Gold’s Detour deposit.
 

The following excerpts are from SGS Geostat’s summary section found in the 43-101 technical report:

Barry Technical Report [9.4MB PDF]

…the exploration and development work at Barry has significantly increased the amount of resources. The mineralisation is open in all directions and the property has not been drilled out to its full extent. … In the context of larger tonnage with lower grade with an onsite mill, the property has the potential to become a significant low grade high tonnage deposit similar to the Aurizon (Joanna), Osisko (Malartic) and Detour Gold (Detour) deposits. The gold is in the system, the mineralized fluids have circulated in the major shear. Additional exploration and geological work are required to increase level of knowledge of the mineralization system to better define the high grade zone behaviour in addition to development of additional resources laterally in junction to the latest geophysical survey.
 

The Barry project geology has the potential to become an important gold deposit and SGS Geostat recommends the continuation of the development of the Barry project. SGS recommends continuation of exploration and development on the Property.

Source: SGS Geostat's technical report on Metanor's Barry deposit

 
Full copy of the 121 page 43-101 technical report is available here and is also filed on SEDAR. Mining MarketWatch Journal notes the comparable deposits mentioned by SGS Geostat that Barry appears to have the potential to rival are sizeable and growing;
 

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Excerpt from news release regarding recent drilling at the Barry Deposit:

 

November 15, 2016 "Metanor Intersects 4.25 g/t Au Over 16.7 Meters at Barry";

 

VAL-D'OR, QUEBEC--(Marketwired - Nov. 15, 2016) - Metanor Resources Inc. ( "Metanor") (TSX VENTURE:MTO) is pleased to announce preliminary results from its 10,000 meter drilling campaign currently underway at the Barry project near the old pits. This drill program, targeting the area covered by the mining lease, aims to delineate the extensions to the west, south-west, and to validate the geometry of the mineralized materials north of the regional shear Urban-Barry. Results from 13 new drill holes are reported in this press release.

The holes 16, 19, 20, 21, and 22 were drilled north of the existing pits. The holes 17 and 18 were drilled to west of the pits, and the holes 23 to 28 were drilled to the south-west of the pits. See attached diagram.

Highlights:

  • 4.14 g/t over 3.6 meters in MB-16-17,

  • 4.25 g/t over 16.7 meters in MB-16-24 including 11.89 g/t over 4.8 meters,

  • 1.30 g/t over 15.45 meters in MB-16-26 including 2.18 g/t over 6.85 meters,

  • 2.33 g/t over 16.8 meters in MB-16-27 including 3.58 g/t over 8 meters,

  • 2.27 g/t over 16.6 meters in MB-16-28 including 3.67 g/t over 5.5 meters.

The table of the drill holes coordinates is the following:

Drill hole UTM - East UTM - North UTM - Elevation Azimuth Dip Length
MB-16-16 443603.38 5426450.19 408.98 330.0 -45 63.0
MB-16-17 443430.39 5426342.89 407.40 330.0 -45 138.9
MB-16-18 443408.11 5426299.84 405.71 330.9 -44.7 102.0
MB-16-19 443544.53 5426449.90 409.30 330.0 -50 123.0
MB-16-20 443507.57 5426510.67 408.54 330.0 -45 75.0
MB-16-21 443469.91 5426481.57 411.26 330.0 -45 87.0
MB-16-22 443488.00 5426452.00 412.00 330.0 -45 81.0
MB-16-23 443583.10 5426090.22 400.47 330.0 -45 126.0
MB-16-24 443517.09 5426100.34 401.79 330.0 -45 255.0
MB-16-25 443517.09 5426100.34 401.79 330.0 -80 123.0
MB-16-26 443459.27 5426099.45 402.77 330.0 -45 66.0
MB-16-27 443388.47 5426019.83 401.57 330.0 -45 243.0
MB-16-28 443443.00 5426028.00 401.00 330.0 -65 264.0

The holes 16, 19, 20, 21, and 22 that were drilled to the north tend to demonstrate that the mineralization may not be oriented the same way north of the pits. Hole 20 did not intersect the gold intersected by hole 19. The holes 16, 21, and 22 did not intersect significant values. Additional holes in a different direction should be drilled to validate this possibility.

The holes 17 and 18 drilled to the West intersected interesting mineralization near surface in relation to the presence of a porphyry intrusive below another porphyry. This sector is open to the West and at depth.

The holes 23 to 28 located south-West from the pits intersected the mineralization on the contact of the intrusive. Only hole 25 did not intersect mineralization because it was too shallow, and it should be extended eventually. These new holes confirm the extension of a zone at least 250 meters along strike by 200 meters along dip direction. The zone is open in all direction.

Drill results:

Drill hole From To Length Au
  (m) (m) (m) g/t
MB-16-17 24.00 27.60 3.60 4.14
MB-16-17 34.00 36.30 2.30 2.07
MB-16-17 82.00 83.50 1.50 1.60
MB-16-17 131.00 133.00 2.00 2.50
MB-16-18 93.40 97.90 4.50 0.69
MB-16-19 26.80 29.70 2.90 1.15
MB-16-19 70.70 72.00 1.30 1.31
MB-16-19 108.60 110.60 2.00 1.91
MB-16-23 80.20 83.40 3.20 1.22
MB-16-24 61.20 64.60 3.40 0.81
MB-16-24 187.00 203.70 16.70 4.25
including 191.20 196.00 4.80 11.89
MB-16-26 36.15 53.20 15.45 1.30
including 36.15 43.00 6.85 2.18
MB-16-27 101.70 126.00 16.80 2.33
including 118.00 126.00 8.00 3.58
MB-16-28 89.40 92.50 3.10 1.01
MB-16-28 118.50 136.50 16.60 2.27
including 122.10 127.60 5.50 3.67
MB-16-28 158.00 162.80 4.80 3.38

*Core length (true thickness at 90%), assay uncut

...click here for full copy of release from source

 

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April 27, 2016 "Metanor Confirms High Grade Extension of Barry Pit Intersects 5.4 G/T Au Over 9m";

 

VAL-D'OR, QUÉBEC--(Marketwired - April 27, 2016) - Metanor Resources Inc. (« Metanor ») (TSX VENTURE:MTO) is pleased to announce the preliminary drilling results from the 1,200 m diamond drilling campaign at the Barry property, located 116 km from the Bachelor mill.

The drilling program at Barry aimed to test the extension of high grade mineralization and the new mineralization model proposed by GoldMinds Geoservices Qualified Person (QP), Claude Duplessis P.Eng. The drill program is almost completed.

Previous modeling of the mineralization and estimation of resources was done under the basis that mineralization was striking North-East and dipping South East. Goldminds' analysis of the high grade mineralization using GENESIS © software has allowed the visualisation of 3 stacked oreshoots plunging East at 19 degrees over 225m strike length (open) inclined to the south at 49 degrees, these high grade zones are about 55-60m wide (25-30m true thickness-see figure attached) These high grade zones are located to the west and connect the west pit and the center pit in the East direction.

This trend was also tested in other sectors and Hole MB-16-14 located to the extreme East of the Main Pit demonstrates continuity of high grade mineralisation in that direction. Hole MB-16-07 located in the west outside the pit area has also shown mineralization of interest and is in line with limited surrounding holes. This will require additional drilling to define a possible new zone to the West.

Preliminary highlights of the program at Barry - Partial results (only holes 06, 07, are completed)

Hole Number from (m) to (m) Length(*) grade Au (g/t)
MB-16-04 1.6 6 4.4 2.1
MB-16-04 17 27 10 2.5
MB-16-06 28 58 30 1.8
including 28 41 13 3.6
MB-16-07 58 78 20 0.8
MB-16-14 52 61 9 5.4

(*) Core length

Included maps:

1) Location map of the drilling program


[Editors Note: The image above shows the location of the drill holes released April 27, 2016. drill hole 7 seen in the upper right hit 5.4 G/T Au Over 9m, extending the main pit. Drill hole 14 (seen at the bottom left) appears to have intersected part of the third stacked zone which is theorized to carry up to surface, ~500 m into the trees, off to the left where an old channel sample intersected interesting grades.]

2) Section with high grade mineralization trend


 

3) Typical high grade mineralization

...click here for full copy of release from source

 

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Image of main pit from May 19, 2016 press release:

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Figure 9 & 10. Barry core and Oxidized Mineralization in the Main E-W Shear Zone. With Coarse to Fine Grained Pyrite Boxwork

 

Figure 11. Barry Deposit - Old interpretation of zones. The old interpretation had two shoots dipping down, they are now viewed as three stacked shoots more horizontal than they are are vertical.

"The gold is in the system, the mineralized fluids have circulated in the major shear" -- Those are the words SGS Geostat is using to describe Metanor's Barry project and is what investors in junior mining should be on the lookout for -- the key for a highly successful exploration company is to find a structure that carries gold and then with that the company can use it as building blocks. Now that Metanor knows it has the structure supporting gold it only has to follow it like it did with the initial 35,000 ounce deposit MTO.V originally bought from Murgor; Murgor hit a dyke and essentially stopped but MTO.V discovered the structure dipped 150m and popped back up on the other side, joining it up to the west zone. The gold system is now understood to be there and understood to be very large. SGS describes the deposit as "open in all directions and has not been drilled to the fullest extent."

 

 

Figure 12. Barry Deposit -- Metanor has encountered quality intercepts (e.g. 9.24g/t gold over 33m, 6.12g/t over 37.8m). Figures/images depicting the Barry deposit above show numerous drill holes to ~100m, however the drill intercepts at 400m - 450m are very telling as it is important to remember that area miners such as Aur Resources (now Teck Cominco), Agnico-Eagle and Sigma are currently mining at depths of between 5,000 and 10,000 feet – the Barry deposit has the potential, like the gold grade at their Bachelor property, to increases at depth and the strike is open in directions. It is very common in this region for the grades to increase at depth and with the values Barry is intersecting near surface, it is clear the Barry open pit deposit has enormous inherent value.

 

Neighbors to watch:

The gold system amongst a handful of players is part of a new mining camp in the Barry-Urban township of Quebec:

 

Osisko Mining Inc.'s Windfall Property (formerly Eagle Hill) TSX: OBM: In April 2015 Eagle Hill published the results of a Preliminary Economic Assessment (“PEA”) for the Windfall Lake Project. The PEA outlines the design of a 1,200 tonne per day underground mine producing 106,200 ounces of payable gold annually for 7.8 years at an average total cash cost of $558/oz of gold (US$480/oz). At a base case gold price of US$1,200/oz the project has a pre-tax internal rate of return (“IRR”) of 23.6% and a pre-tax net present value discounted at 5% (“NPV5”) of $241.4 million. Initial project capital costs are estimated at $240.6 million. Eagle Hill intended to complete a pre-feasibility study for the Windfall Lake project by 2017, it is unlear if that is still the plan under Oban. Oban is currently (as of January-2016)  drilling to expand the resource and is also conducting in-fill drilling. The current mineral resource is estimated at 2,762,000 tonnes grading 8.42 g/t gold for 748,000 ounces in the indicated category, and 3,512,000 tonnes grading 7.62 g/t gold for 860,000 ounces in the inferred category. 1 High-grade mineralization has been identified in multiple zones, yet only a small portion of the 12,400 hectare property has been tested to date. Mineralization has been identified only 30 metres from surface in some areas and as deep as 870 metres in others, with significant potential to extend mineralization along strike and at depth. Many gold deposits in this region continue well below 1,000 metres depth.

 

Bonterra Resources (neighbor to Osisko's Windfall Property and Metanor's Barry Property) TSX-V: BTR: Bonterra Resources was not part of the Oban (now Osisko) deal, however it was the recipient of funds from Osisko to advance the Gladiator Project (formerly known as their Eastern Extension Project). To date the Inferred resource on th project sits at 273,000 Oz @ 9.23 g/t gold, plus it has high-grade visible gold (up to 220 g/Mt Gold). Significant drilling has been performed since the last resource. Bonterra is currently drilling to expand the resource.

 

  

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An induced polarization (IP) survey executed by Abitibi Geophysique of Val d'Or in 2009 localized strong anomalies similar to those associated the main zone approximately 1.5km to the southwest of the west extremity of the pit and approximately 2.2km to the northeast of the east extremity of the pit. Extensions of mineralized zones were intersected in diamond drill holes at a vertical depth of 450m and are still open at depth. IP anomalies also demonstrated the potential of extending gold bearing zones of the Barry deposit to a minimum distance of 8.5km and the potential of considerably increasing the resources during future diamond drilling programs.

 

 

Figure 13. Barry Open Pit This image shows how the east pit meets the west pit. The Barry Deposit is growing width wise and length wise. Numerous forestry roads link Barry to the Bachelor mill (~65km distance away), facilitating material transport.

 

Drilling highlights from the previous 20,000m drilling program at Barry:

 

January 13, 2010 =
January 7, 2010 =
September 24, 2009 =
June 11, 2009 =
April 14, 2009 =
April 14, 2009 =
September 18, 2008 =

 3.42 g/t over 22.4 m
 3.49 g/t over 45.6 m
 9.24 g/t over 33.0 m
 10.4 g/t over 7.65 m
 48.9 g/t or 5.19 g/t (cut to 34.28 g/t) over 12.27 m
 4.86 g/t over 27.0 m
 6.12 g/t over 37.8 m

 

Figure 14. (Above) Barry Open Pit - 1 km Strike Length

 

 

Figure 15. Barry Open Pit (Above) - Further Potential The recent resource estimate is basically calculated at 100m depth, however it is clearly open at depth, they have intercepts at 450m down, it runs more than 1km in length located in the center of a 15km long property, a Diagnos study pegs the current 1km strike at Barry as potentially 13km; Metanor has documented over 150 anomalies outside the pit on the property.

 

The present gold corridor is nearly 1 km long with a width of approximately 140 m and up to depths ranging from 75m to 125m. The Barry pit is still open in all directions.

 

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Other noteworthy holding projects in Metanor's portfolio

Dubuisson (100% owned) and Nelligan (70% owned) Properties: Metanor also has several other properties of significance including their Dubuisson property which precipitated MTO becoming a publicly traded entity in 2003. The Dubuisson property lies within the city limits of Val-d'Or, Quebec, where 9,000 m of exploratory drilling has confirmed a measured, indicated, and inferred resource of over 450,000 ounces of NI 43-101 compliant gold. The Nelligan property, which consists of 58 claims totaling approximately 2895 ha located immediately to the west of the Bachelor property and approximately 8 kilometers southwest of the Town of Desmaraisville and has turned up significant results and new gold bearing zones of significance have been discovered. Nelligan is in close proximity to the Bachelor Lake Mill. Sheared and mineralized horizons at Nelligan similar to the Vein A at the Bachelor Mine were exposed on the Billy group and the Valley group of Nelligan property. On the Billy group, assay values of 582 g/t Au over 0.53m and 3.15 g/t Au over 3.0m were obtained from channel sampling. On the Valley group, the best assay result was obtained from a grab sample of altered mafic volcanic with minor pyrite stringers and quartz veining and returning 3.25 g/t Au. Values obtained in channel samples demonstrate continuity of gold mineralization across the shear zone with grades of 2.02 g/t Au over 2.10m and 1.47 g/t Au over 2.25m.

 

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Metanor's Key Technical Leadership and Management  Skip to top

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Serge Roy, Executive Chairman, Director

Before founding Metanor he was President of Ressources Pyrinor inc. Previously, he has held various positions with companies, such as Construction G.P.M., Stabell Resources Inc. and Ovaltex Consultant inc. (mining consultants and geological engineers).

 

Ghislain Morin, President, CEO, Director

Mr. Morin participated in many feasibility studies with a view to implementation of mines, mining projects and mining product installation companies. Between 1981 and 1989, he founded Équipement Minier GRM Inc. for which he is now vice president. Mr. Morin has been involved in planning, management, monitoring, construction and evaluation of various mining projects since 1974.
 

Ronald S. Perry, Vice President, Treasurer, Director

Mr. Perry has >30 years of accounting, financial and entrepreneurial business experience in high technology, venture capital and merchant banking companies. Since the year 2000, Mr. Perry has been the Founder and President of Briolijor Corporation, a financial consulting company to both private and public corporations. Mr. Perry has been involved in all facets of business including statutory reporting, internal controls, legal aspects as well as all administrative responsibilities.

 

Pascal Hamelin, VP of Operations

Mr Hamelin, holder of a Mining Engineering Degree decreed by the Ecole Polytechnique of Montreal, is member of the Ordre des Ingénieurs du Québec (since September 2009) and of the Professional Engineer of Ontario (since July 1993). Mr Hamelin cumulates nearly 20 years of progressive and relevant experience in mining operation project management and of surface and underground mining operations. This experience was acquired (from March 1991 to October 2007) mainly in the Stoble, McCreedy East, Copper Cliff North and Garson Mines belonging to the Inco Company. Mr Hamelin was Mine Manager of the Mine Lamaque from October 2007 to May 2009. Then, he worked as Mine Manager for the Lake Pelletier project (Rouyn-Noranda) and Lake Herbin Mine (Val-d'Or) of Alexis Minerals Corp. (May 2009 to September 2010). During his career, Mr Hamelin also performed and completed several mining prefeasibility and feasibility studies.

 

Norman Parker, General Manager of operations at Bachelor/Barry

Mr. Parker has more than 30 years of experience in working with narrow vein-type deposits. His increasing responsibilities gave him the opportunity to acquire experience in running and exploiting underground mines, both conventional and mechanical. He has worked on many mining sites throughout his career. He was General Manager at Don Bourgeois & Fils, a mining contractor, for five years before joining Metanor in September 2015.

 

 

Note: This article is not intended to be a complete overview of Metanor Resources Inc. or a complete listing of Metanor's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact Metanor Resources' head office at: Ph (819).825.8678

 

Company's web site: www.metanor.ca   SEDAR Filings: URL

 

Recent news releases regarding Company accomplishments and exploration developments:

  

• November 16, 2016 "Metanor Intersects 13.1 g/t Au Over 3.8 m at Bachelor Mine"

 

• November 15, 2016 "Metanor Intersects 4.25 g/t Au Over 16.7 Meters at Barry"

 

• November 3, 2016 "Metanor files PEA on the Barry project"

 

• October 31, 2016 "Metanor Intersects 70.9 g/t Au Over 2.6 m on the Barry Property Adjacent to Osisko Mining's Windfall Property"

 

• October 21, 2016 "Metanor Reports Its Financial Results for the Quarter and Year Ended June 30th 2016"

 

• October 6, 2016 "Metanor Intersects 12.0 g/t Au Over 3.9 M in a New Sector of the Bachelor Mine"

 

• September 22, 2016 "Metanor Announces Positive PEA on its Barry Gold Project: NPV of $53.5 M and IRR of 198% Before Taxes"

 

• September 21, 2016 "Metanor Clarifies Its Disclosure of the Resources of June 22 2016 Press Release and Files an Amended Technical Report"

 

• September 8, 2016 "Metanor Commences Drilling Program at Barry"

 

• September 6, 2016 "Metanor Discovers New Gold Structures on its Moroy Property"

 

• August 18, 2016 "Metanor Intersects 14.5 g/t Au Over 7.2 M at Bachelor Mine"

 

• August 9, 2016 "Metanor SEDAR Files a NI 43-101 Technical Report Updating the Mineral Resources of the Barry Pit"

 

• August 5, 2016 "Metanor Intersects 5.6 g/t Au Over 25.2 m at Bachelor Mine"

 

• July 13, 2016 "Metanor Moves Forward with a Preliminary Economic Assessment Study for the Barry Project"

 

• June 30, 2016 "Metanor Intersects 10.4 g/t Au Over 8.8 m at Bachelor Mine"

 

• June 22, 2016 "Metanor Increases Total Ounces in New Gold Resource Estimate at Barry Pit"

 

• June 13, 2016 "Metanor Discovers New Gold Zones on the Moroy Property"

 

• May 30, 2016 "Metanor Reports its Financial and Operational Results for the Quarter Ended March 31st, 2016"

 

• May 19, 2016 "Metanor Intersects 2.3 g/t Au Over 60m on Surface at the Barry Project"

 

• May 11, 2016 "Metanor Intersects 2.1 g/t Au Over 40m and Confirms New Zone to the West of the Existing Pits"

 

• April 27, 2016 "Metanor Confirms High Grade Extension of Barry Pit Intersects 5.4 G/T Au Over 9m"

 

• April 20, 2016 "Metanor Confirms the Extension of the Gold Structure at Depth on the Moroy Property"

 

• April 12, 2016 "Metanor Begins Drilling Campaign to Update the Mineral Resources of the Barry Gold Project"

 

• March 11, 2016 "Eric Sprott Announces Acquisition of Securities of Metanor Resources Inc."

 

• March 7, 2016 "Metanor Retains GoldMinds Geoservices Inc. for a Mineral Resources Update on it's Barry Gold Project"

 

• March 3, 2016 "Metanor Intersects 9.2 g/t Au over 6.4 Metres at the Moroy Project"

 

• February 26, 2016 "Metanor Reports its Financial and Operational Results for the Quarter Ended December 31st 2015"

 

• February 23, 2016 "Metanor Starts Drilling the Moroy's New Anomalies"

 

• February 11, 2016 "Metanor Prepares New Drilling Campaign for the Moroy Zone and Evaluates Resuming Operations at the Barry Open Pit"

 

• January 21, 2016 "Metanor Intersects 7.5 g/t Au Over 7.2 m at Bachelor Mine"

 

• January 20, 2016 "Metanor Publishes the Results From the Geophysic Survey on the Moroy Property"

 

• December 17, 2015 "Metanor Intersects 5.4 g/t Au Over 10.0 Meters on the Moroy Property"

 

• December 8, 2015 "Metanor Intersects 15.3 g/t Au Over 6.6 Meters"

 

• December 3, 2015 "Metanor Intersects 6.3 g/t Au Over 4.2 Meters at Bachelor Mine; Confirms Trend Below Level 8"

 

• November 27, 2015 "Metanor Reports Its Financial and Operational Results for the Quarter Ended September 30th 2015"

 

• November 19, 2015 "Metanor Resources Inc.: Closing of Second Tranche; $ 842,327 in Private Placement"

 

• November 11, 2015 "Metanor Intersects 18.9 g/t Au Over 5.6 Meters Near Surface"

 

• October 30, 2015 "Metanor Increases Drill Program for South Zone and Undertakes Private Placement"

 

• October 29, 2015 "Metanor Intersects 6.7 g/t Au Over 38.4 Meters Near Surface"

 

• October 27, 2015 "Metanor Confirms the Discovery of a New Auriferous Corridor Near Surface"

 

• September 22, 2015 "Metanor Intersects 10.1 g/t Au Over 26.2 Meters Near Surface"

 

• September 15, 2015 "Metanor Intersects 7.2 g/t Over 8.1 Meters at Bachelor Mine"

 

• September 2, 2015 "Metanor Completes the Last Payment on Ressource Quebec Loan, and Announces Management Change"

 

• August 20, 2015 "Metanor Intersects 7.5 g/t Over 15.2 Meters at Bachelor Mine"

 

• August 6, 2015 "Metanor Intersects 10.2 g/t Over 13.1 Meters at Bachelor Mine"

 

• July 30, 2015 "Metanor Intersects 12 g/t Over 3.25 Meters at Bachelor Mine"

 

• July 29, 2015 "Metanor Intersects 11.9 g/t Au Over 11.85 Meters at Bachelor Mine"

 

• July 17, 2015 "Metanor Produced 10,277 Ounces During Quarter Ended June 30th 2015"

 

• July 2, 2015 "Metanor Intersects 6.82 g/t Over 8.7 Meters at Bachelor Mine"

 

• June 30, 2015 "Metanor Intersects 18 g/t Over 1.5 Meters in an Unknown Sector at Bachelor Mine"

 

• June 25, 2015 "Metanor Intersects 12.8 g/t Over 10.8 Meters At Bachelor Mine"

 

• June 22, 2015 "Metanor Intersects 22.85 g/T Over 4.04 Meters at Bachelor Mine"

 

• June 1, 2015 "Metanor Provides Update"

 

• May 22, 2015 "Metanor Reports its Financial Results for the Quarter Ended March 31, 2015"

 

• May 14, 2015 "Metanor Intersects 12.24 g/T Over 4 Meters in the Hewfran Sector of the Bachelor Mine"

 

• April 13, 2015 "Metanor Produced 9,860 Ounces During Quarter Ended March 31st 2015"

 

• April 9, 2015 "Metanor Reports Larger Intersection With 6.14 g/t Over 15 Meters at Bachelor Mine"

 

• March 30, 2015 "Metanor Intersects 8.64 g/T Over 5.8 Meters at Bachelor Mine"

 

• March 27, 2015 "Metanor Resources Inc.: Maturity Date of Debentures Extended 24 Months"

 

• March 17, 2015 "Metanor Intersects 6.1 g/T Over 6.8 Meters at Bachelor Mine"

 

• March 12, 2015 "Metanor Resources Inc.: New Gold Corridor at Bachelor Mine"

 

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*Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification. *Estimates of potential made by the mining analyst and journal(s) are non 43-101 and not from the Company.

 

     

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