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Feature article April 23, 2014

 

 

Metanor accelerates Gold production at Bachelor

  

Metanor appears to have stabilized Gold production at over 4000 oz Gold per month, and is now targeting 5000 oz per month at its Bachelor mill. Metanor plans to increase the mill capacity by ~50% at low capex and target 6,500 - 7,500 oz/month in 2015

  

Metanor Resources Inc.

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

  

 

Gold Production with Exceptional Cash Flow & Resource Growth

MTO.V possesses two projects of significance located in stable, mining friendly Quebec that together have 1.6 Million oz Gold in all categories:

 

  

1) Bachelor Mine & Mill, Quebec:

Bachelor Gold Mine and Mill

Commercial Gold production status achieved

 

This November 2013 Metanor Resources achieved commercial Gold production status (defined once 80% of current capacity is maintained for 60 days). MTO.V is still undergoing a ramp-up in production that is targeting a steady-state run rate of 4,000 - 5,000 oz gold per month at 800 TPD. Bachelor is a very 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). MTO has identified zones at Bachelor that Mining MarketWatch Journal anticipates will contribute to rapid resource growth and an extension of mine life closer to 10+ years. The mill capacity may be increased by ~50% at low capex (~$4 million) to process Bachelor ore and target 6,500 - 7,500 oz/ in 2015 (contingent on obtaining additional electricity from Hydro-Quebec planned for 2015).

  

2) Barry Gold Project, Quebec (located ~65 km from Bachelor): The 100% owned Barry property resource estimate now sits at 309,500 oz Gold of Indicated Resources (7,701,000 t at 1.25 g/t Au) and 471,950 oz gold of Inferred Resources (10,411,000 t at 1.41 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. Metanor is hoping to explore large anomalies in 2013/2014 proximal to neighbouring Eagle Hill's Windfall Lake Deposit (288.5 g/t Gold over 12.4 m). Metanor has found the gold system at Barry and only needs to now track it. The Barry deposit is a potential 10M+ 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 Osisko's Malartic gold deposit & Detour Gold's Detour deposit.

 

Two recommended research reports with near-term price targets on MTO.V:

Q4 2013 Secutor Capital Mgmt. Analyst Report

$0.47/share target

Mar. 21, 2014 Research Report

C$0.50 - $0.70/share target

 

Major shareholders -- % ownership (as of Nov. 15, 2013)

 • Sprott Inc. -- 8.3%
 • Caisse de Depot et Placement du Quebec -- 1.175%

 • Sentry Investments -- 1.71%
 • Insiders -- ~2%

 

Noteworthy Endorsements

1) Jay Taylor recommends MTO.V to clientele

"...I have no problem seeing $1 - $2 with this company in the not too distant future" -- Jay Taylor 01-28-2014

 

Mining analyst Jay Taylor of Hard Money Advisors Inc. is intimately familiar with Metanor, having visited Metanor’s Bachelor Lake Mill in the past to see firsthand the infrastructure upgrades and has followed its progress toward becoming a Gold producer over the last five years. Mr. Taylor has a business MBA in Finance & Investment, in-depth accredited studies in geology, has decades of mining sector analysis under his belt, and is known for being reserved in his advice, thus investors should pay attention when he does decide a company is finally poised to appreciate in value and worth establishing a long equity position for superior return potential; MTO.V is now in that category. Mr. Taylor recently released a recommendation update to his paid subscriber base in December on the merits of establishing a long position in MTO.V, he also reiterated the recommendation at the Vancouver Resource Investment Conference in January 2014, and again recommended MTO.V to his radio audience and revealed he has recently personally purchased MTO.V for his retirement account.

 

...Click here for January 28, 2014 interview

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

2) Lawrence Roulston initiates coverage on Metanor in Advisory to clientele

 

"...there is a great deal more upside potential for investors who can accurately anticipate results. In this situation, it appears highly likely that the company will achieve favorable operating costs. By bringing the mine into commercial production, the Metanor management team has substantially de-risked the project. The resulting increase in value is just beginning to show up in the share price, which is only a few pennies off its all-time low."

- L. Roulston Feb. 2014

 ------ ------ ------      ------ ------ ------      ------ ------ ------

 

3) Mr. Florian Siegfried, CEO of Swiss Investment Company Precious Capital Ltd., managers of the Precious Capital Global Mining & Metals Fund, has identified Metanor Resources as a 'top selection' for extraordinary gain potential. Source: Analyst Interview, September 17, 2013 [related URL]

 

 

Drill results - news flow imminent:

Metanor currently has 7 active drills at two locations. Metanor's growth aspirations and commitment to add value through development, production, and exploration is a refreshing change compared to numerous juniors out of money and doing nothing. Metanor has a permanent program underground at Bachelor with 3 to 4 drills ongoing, plus there are 2 drills at surface at Bachelor. There are also 2 drills at Barry. Mining MarketWatch Journal has confirmed with Metanor's V.P., Ronald Perry, that drill results are being compiled at both its internal lab and an outside/independent lab -- the first of many results from recent drilling were released on January 16, 2014 "Metanor intersects 13.4 g/t Gold over 9.5 m at Bachelor" and February 6, 2014 "Metanor Expands the Deposit at Bachelor by Intersecting 10.4 g/T Over 17.1 m" and more results will be forthcoming soon.

 

Valuation commentary from the editor on Feature article:

 

Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is the first Gold producer in Quebec's Plan Nord. Metanor's recently refurbished Bachelor high-grade gold mine and mill is now operating near full current capacity and it has recently experienced accelerated production results. Bachelor is a very 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) -- MTO.V is still undergoing production ramp-up, blending high grade production stope ore with development ore, and the combined rate is improving. Recent development work to open new stopes at Metanor's Bachelor mine have translated into results; MTO.V appears to have stabilized gold production over 4,000 oz per month. Metanor is cash flow positive with initial cash costs as a commercial Gold producer of US$766/oz, and there is now a push to stabilize in the higher range of a 4000 - 5000 oz per month Gold target (at 800 TPD). Managements near-term plan is to increase the mill capacity by ~50% at low capex (~$4 million) and target 6,500 - 7,500 oz Gold/month in 2015 (contingent of obtaining additional electricity from Hydro-Quebec planned for 2015).

  

Metanor appears an inevitable buy-out candidate:

Inevitable does not necessarily mean imminent, however the reality is that as MTO.V approaches their run rate targets, not only are they undervalued, they are increasingly on the radar. It's conceivable we could see MTO.V in new hands this 2014 at the rate it is progressing. The Bachelor operation is one that would shine under a larger player as the elimination of duplication (management salaries, admin, etc.) and debt would allow MTO.V to cash-flow superbly. The recent acquisition of Brigus Gold by Primero demonstrates that even junior miners with Sandstorm deals (as Metanor does) are highly-desirable targets. A near-term 100% premium to the current share trading price of MTO.V is certainly a realistic scenario as the inevitable may become reality sooner than later -- a number of astute investment bankers (e.g. Barclays PLC’s Paul Knight, Cowen & Co.’s Adam Graf) see gold-mining deals rebounding in 2014 as producers target assets at fire sale prices.

 

Metanor offers increasing attractiveness as a gold producer with apparent growing future resources, plus MTO.V also offers a significant latent tax savings windfall for a future acquirer. Metanor has accumulated a large loss carry forward to get to the point where it is now as a new successful gold producer. A profitable mid-tier or senior producer (potential acquirer) may need to shelter income from corporate income taxes, hence when it acquires a new gold producing company it is able to deduct the losses of the new gold producer against its own. Therefore in Metanor's case, should a takeover occur by a profitable entity, it would immediately be able to realize a cash savings from income taxes due to a loss carry forward of >$50 million, resulting in a cash gain (assuming a simple 33.33% corporate tax rate) of more than $17 million. Deduct that $17 million from the current market cap of MTO.V and it becomes obvious that shares of MTO.V are dramatically undervalued; its infrastructure, resources, and gold production capability plus related growth dictate the share price of MTO.V are poised for significantly more upside revaluation.

 

Even absent a buyout, the fact is Metanor is an ideal vehicle for investors seeking exposure to precious metals as a 30% increase in the price of physical Gold could easily translate to a 200+% increase in the share price of MTO.V as it is a well managed, growing, cash-flowing, gold producer. The current market cap of MTO.V relative to its inherent value and accomplishments is disproportionate; shares of MTO.V are poised for upside revaluation.

   

Development work translates to ramp-up and steady-state Gold production:

Gold dore bar poured at Bachelor

Taking a mine into production is a non linear step-up function fraught with development challenges, but nothing a skilled technical team can’t solve. The ramp-up process is analogous to climbing Mount Everest; go up as high as you can and then come back and acclimatize before you push to the next level.

 

Metanor has demonstrated an increasing pattern of production. The development work performed in 2013 (necessary to open multiple access points/workstations) generated a large amount of lower-grade gold-bearing ore that needed to be processed through the mill with a lack of other workstations open to blend and maintain a high-grade (ironically temporarily exacerbating the very issue the development creating this ore is meant to cure), however the combined/blended rate is now dramatically improved. Metanor produced 4,380 ounces gold in March 2014, 4,234 oz in February, 4,028 oz in January, and 4,514 ounces of gold during the month of December. Recent ounces produced came from development activities on levels 14, 13, 12, and 10 as well as from stopes on levels 14, 13, 12, 11 and 10. A total of 20,478 tonnes of ore at a feed grade of 6.85 grams / tonne were processed during the month of March with a 97.1% recovery rate. For the quarter ended March 31, 2014, a total of 60,497 tonnes of ore at a feed grade of 6.71 grams / tonne were processed with a 96.8% recovery rate.

 

MTO.V demonstrates theoretical maximum (as indicated in its 2011 prefeasibility) is attainable, proving mill capable of 5,000 oz Gold/mo.:

During the month of December Metanor poured 1,193 ounces of gold during one week of production, which translates to a 5,113 oz per month run-rate equivalent (extrapolating 1,193 divided by 7 days, and multiplied by 30). The next few months goal should be to stay above 4,000 oz per month gold production as blended development ore is still being processed, however it is comforting to see 5,000 oz per month is achievable and around the corner.

   

Commercial Gold Production Declared - Cash cost US$766/oz
Bachelor Project reached commercial production this November 2013, and Metanor has calculated its cash cost at US$766/oz for the initial period as commercial Gold producer (see related February 28, 2014 release entitled "Metanor Reports its Financial Results for the Quarter Ending December 31st 2013 with a Cash Cost of US$766/oz").
  

MTO is leveraged to the price of gold, able to sell 80% of its Bachelor Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement. Fully permitted and sufficiently staffed with professional mining personnel able to handle the ramp-up, MTO presents investors with an exceptional opportunity as the first new gold miner in Quebec's Plan Nord. Operational highlights of this new low-cost gold producer include;
• Low geopolitical risk.
• Low hydro-electric costs, not affected by oil prices.
• Targeting 60,000 oz per year production at 800TPD, >96% recoveries (current capacity of mill is 800TPD - 1200 TPD depending on hardness of material being processed).

• Identified zones should lead to resource growth and extension of mine life over 10+ years as Metanor appears to have over 1 million ounces Gold in the process of being targeted for quantification at Bachelor; Industrial Alliance analyst calculated (non 43-101) 700,000 oz Gold achievable based on deep hole intercepts and extrapolation of data, plus we speculate a new (Q2 2013) deformation shift gold discovery readily accessible off levels 12, 13, and 14 may add another 300,000+ ounces Gold on top of the aforementioned 700,000 oz figure.

Metanor's V.P. interviewed on BNN, Nov. 15, 2013

Click to view

Metanor's infrastructure is valued (estimated replacement value) at ~CDN$200M. The intrinsic value of Metanor’s known resources (~1.6M oz gold in all categories on all its properties) and infrastructure are several times the company’s current market capitalization. With MTO now entering steady-state gold production and cash flow positive status around the corner, this should result in improved market awareness and appreciation for the Company; the reality of the infrastructure and resource value, cash flow growth, and clear ability to add ounces should translate to share price appreciation. 

 

Metanor has two projects of significance (Bachelor and Barry) that together many believe will take MTO.V to near mid-tier producer status (between 150,000 oz - 200,000 oz Gold per annum) within a few years. The time to pay attention is now while MTO is trading at a fraction of its infrastructure value and closing in on its gold production targets. MTO has only $16 million in long-term debt ($6M from the government and $10M on a convertible debenture with a buyback provision) at very manageable terms. Going into March 2014 Metanor's working capital/liquidity appears to stand between $4-5 million. Metanor possesses large organic resource growth potential, and is sitting geographically as the only mill located within 200 km in a gold rich district -- MTO with ~270.5 million shares outstanding (~281M fully diluted, however all options are out-of-the-money and there are no warrants) provides an ideal vehicle for investors seeking exposure to precious metals.

 

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

Figure 1. Subject Company's Logo

Metanor Resources Inc. (TSX-V: MTO)
     

       Metanor Resources Inc. (TSX Venture: MTO.V) (US Listing: MEAOF) (Frankfurt: M3R) is an advanced stage development and exploration mining company that is a new gold producer utilizing their 100% owned Bachelor Gold Mill in the prolific Abitibi Mining District of Quebec. Metanor has come to our attention due, in part, to the extraordinary opportunity and intrinsic value afforded investors. MTO.V has declared commercial Gold production (effective November 14, 2013) and is experiencing continual steady-state cash flow positive gold production. Metanor possesses two projects of significance located in stable, mining friendly Quebec that together posses over 1.6 million oz Gold in all categories.

 

Metanor's plan:

 

 1) CONTINUE PRODUCTION RAMP UP AT BACHELOR/HEWFRAN

     (Increase in stages/interval increases, Access high-grade ore, Continue pouring gold)
   DECLARE COMMERCIAL PRODUCTION - ACCOMPLISHED NOVEMBER 14, 2013 -- COMMERCIAL STATUS DECLARED
   CONTINUE EXPLORATION/EXTEND MINE LIFE (2 new drill programs underway, at surface and underground)

 2) PLAN TO INCREASE BACHELOR MILL CAPACITY BY ~50% AT LOW CAPEX,

     TARGET 6,500 - 7,500 OZ/MONTH (contingent of obtaining additional electricity from Hydro-Quebec planned for 2015)
     (Successful upgrades in the past 700tpd, 800tpd and 1,200tpd -all on time and under budget)

 3) PREPARE BARRY STRATEGIC PLAN
     (Drill campaign to target extensions/anomalies (>150))
     (Substantially increase the existing resources)

 4) CONSOLIDATE GOLD RESOURCES AROUND BACHELOR MILL
     (Potential of a further 1.5M oz in a radius of 100 km of the mill (historical resources not compliant with NI 43-101))

 

Steady-State Gold Production, Large Intrinsic Value, & Targeting Significant Resource Growth

Mining MarketWatch Journal provides insight below into Metnaor's two main gold projects and aspects that make shares of MTO.V such a compelling vehicle for investors seeking large gains and exposure to precious metals in a safe mining friendly jurisdiction:

   

1) Bachelor Mine, Mill & Surrounding Properties, Quebec, Canada

100% Owned Targeting higher-end of steady-state 4,000 - 5,000 oz per month run rate at 800 Tonnes Per Day (TPD)

 

Opening a gold mine is a rare feat for a junior miner, most sell out well before, and Metanor has accomplished much in the last couple years despite a 5 month permitting delay, and a lack of qualified labor (a situation which was resolved with mine closures in the region). Metanor is still undergoing a ramp-up in production toward a targeted run rate of 5,000 ounces gold per month at 800 TPD. Bachelor is a very 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). MTO has new workstations that have recently come online that appear to be resulting in MTO attaining its goal of continual steady-state Gold production at over 4,000 ounces gold per month; recent press releases marks significant milestones for the company and affirms the development plan bearing fruit:

 

Excerpts from February , 2014 Company news release

 

 Metanor Reports its Financial Results for the Quarter Ending December 31st 2013 with a Cash Cost of US$766/oz:

 

Métanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to report on its financial results for the quarter ending December 31st 2013 (Q2). This press release should be read in conjunction with Metanor's interim consolidated financial statement for the three month period ended December 31st 2013 and related Management's Discussion and Analysis (MD&A), which can be found on the company website www.metanor.ca or on SEDAR www.sedar.com. All amounts are in Canadian dollars unless otherwise stated

 Highlights

  • Metanor achieves Commercial production November 2nd 2013(declared December 1st 2013).

  • Gold production of 12,751 ounces for the quarter which 4,514 oz were produced in December.

  • Gold sales of 10,427 ounces for the quarter of which 2,863 oz were sold in December.

  • Gross Margin of $149,128 for the quarter after depreciation and depletion of $1,070,138.

  • Net Loss for the quarter of $410,174 which includes revenues and cost of sales for December and three months of expenses.

  • Milled 62,033 tonnes of ore at a feed grade of 6.6 g/T and a recovery of 97.5%.

  • Total of $3,556,885 in gold sales in December (commercial production period) at an average selling price of $1,242/oz (US$1,167/oz at an exchange rate of US$0.94/CA$1.00).

  • Cash Cost of $815 per ounce sold in December (US$766/oz at an exchange rate of US$0.94/CA$1.00).

  • Began the payment on the capital totaling $933,333 during Q2 on the loan provided by Ressources Québec.

  • Subsequent to December 31st, Ressources Québec and Métanor concluded an amendment distributing the balance of the loan until March 2015. (See the press release issued February 27th 2013)

Ghislain Morin, president and chief executive officer, and Serge Roy, executive chairman of the board, declared: « We are very pleased with our quarterly results which show that Metanor can already generate a positive gross margin at the onset of commercial production. We plan to improve these results during the coming quarters as we attain full production capacity. »...

click here for full copy from source, including financial tables and net figures

 

It appears Metanor has hit the mark it had projected in corporate presentations in which it anticipated initial $800/oz cash costs -- it delivered US$766/oz.
 

In reviewing Metanor's numbers for the first quarter ending as a commercial Gold producer we note several important points that show good health; 1) The P&L bottom line of $410,000 net loss is extremely positive after factoring out depreciation (a non cash item) of $1.07 million and the fact it had to include two months of expenses that were not in the commercial gold production period. 2) Even though Metanor produced 4,514 oz Gold in December it could only show 2,863 ounces of that as sales in the quarter because 2,375 ounces of Gold (representing ~$2 million at cost to Metanor and ~$3 million in terms of sales) was on deposit at the mint. 3) Cash-wise Metanor should be currently sitting well with somewhere between CDN$4 million - $5 million as it would have received that aforementioned $3 million from the mint in early January + it already had ~$1 million cash closing out the period + it is understood to have had an abnormally large GST(sales tax) refund (receivable) of an extra $700,000. 4) Also important to note is MTO.V announced earlier this week the amendment of a ~$5.3 million note with the Quebec Government, pushing the note back over a year and thus negating the potential cash call in April 2014.

   

 

Figure 2. 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 infrastructure is valued (estimated replacement value) at ~CDN$200M, several times greater than its current market cap.

 

 

Figure 3. Q2 2013 drifting -- 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

Metanor currently has resources at Bachelor in all categories of 300,000 oz Au and is open in all directions at depth with plans to upgrade to 1,000,000 oz:

 

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

 

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

  

 

Figure 4. (above) Resource Area: The red zones are the identified 300,000 ounce Measured, Indicated and Inferred of which 200,000 is Proven & Probable (forming the initial three year mine life), the blue zones are not yet counted but have been identified and represent near-term future ore potential. MTO.V has identified zones that we believe will contribute to extending mine life above 10 years.

 

Potential to Add Gold Ounces at Bachelor Lake is Strong

Metnaor is wide open at depth for big exploration potential at Bachelor; the company has deep hole intercepts at ~3,500 ft.

 

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.

 

 Figures 5a & 5b. Bachelor Deposit

    

The veins that comprise Bachelor - There are currently four veins of significance;

 

The 'Main' vein and 'B' vein both run parallel (going East - West) and are mineralized throughout. The 'Main' vein dips ~70 degrees vertical and the 'B' vein is ~90 degrees vertical. The 'Main' vein is open at depth and was mined, in part, (by past operator) from 1981 - 1989. The 'B' vein was discovered later in the past operators mining effort (discovered off level 12 of the mine), it has all of the characteristics of the main vein, the 'B' vein too is open at depth but was never mined. There has been much excitement of late surrounding the near-term added potential of the 'B' vein with the recent discovery of the western section of the 'E' vein which intersects the 'Main' and 'B' vein, causing an 200 foot offset (prior to Q2 2013 this was not understood) -- Metanor now has an understanding where the 'B' vein goes toward surface and this opens up the possibility of mining the readily accessible untested zone that 'B' is now believed to traverse between the mineralized surface and ~level 15 -- this holds the potential to add significant ounces of Gold.

 

Since mid-2012 Metanor has focused on development in the mineralized 'Main' and 'B' vein structures off levels 12, 13, and 14. Metanor has been drilling the 'Main' and 'B' veins, from the levels 13 and 15 of the Bachelor Project, the results confirm the presence of high grade gold in the 'Main' and 'B' structures. See related news release links further below for result details, highlights include 4.42 metres grading 29.63 g/t, 14.02 metres grading 14,79 g/t, 8.48 metres grading 19.19 g/t, 4.08 metres grading 26.36 grams gold, 5.64 metres grading 17.24 grams gold and 6.43 metres grading 17.18 grams gold, 8.49 g/T Over 15.24 m, 14.17 g/T Over 5.64 m.

 

The 'A' vein and 'E' vein are similar to each other, however they are not mineralized throughout, they both dip NE-SW on ~45 degree angle and intersect the "Main' and 'B' veins. The eastern end of the 'E' vein was previously known, however the western section of the 'E' vein (and its related offset off the 'B' to surface) is all a new discovery that opens up a whole new front.

 

The O'Brien pluton
 

Metanor’s Bachelor mine was built alongside a pluton discovered on its property. A pluton is a granite intrusion understood to be the main driver of gold in the surrounding rock and is like a stone hitting a windshield; it sends cracks all around, not just in one direction – so far Metanor has only tapped the west side of the pluton. The O'Brien showing is on the east side of the pluton, yet the decision long ago was made to follow the vein that was found on the west side and the east has never been pursued. A Q4 2013 drill program on the east section is planned.

 

The 'known' Bachelor deposit, on the west side of the pluton, 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) -- it is entirely possible an even richer area is on the east side of the pluton. An induced polarization (IP) survey executed in 2012 on certain area of Bachelor-Hewfran properties identified several east-west to east-south-east anomalies that may coincide with gold structures similar to those hosting the Bachelor mine. Some of these anomalies were detected in the area to the east of the O'Brien pluton and are extending in the eastern extensions of structures intersected in previous drill holes that have intersected gold intersections of 13.7 g / t Au over 1.35 m (hole 95-07), 4.87 g / t Au over 3.3 m (hole 82-40) and 41.1 g / t Au over 1.0 m (hole 87-56).

  

Figure 6. The big picture at Bachelor; shows how there is more than enough to keep mining for possibly several decades. Metanor’s O'Brien pluton is a granite intrusion understood to be the main driver of gold in the surrounding rock. Plutonic refers to rocks of igneous origin that have come from great depth, heat and pressure pushed gold laden liquid away from the intrusion and through the fissure. Gold deposits found at Bachelor are either orogenic lode or intrusion related, gold distribution is controlled by both structural and lithological features, and mineralization is related to brittle deformational features, dilatational zones and brittle-ductile shear zones.

Metanor appears to have over 1 million ounces Gold in the process of being targeted for quantification at Bachelor

MTO has identified  zones that we believe will contribute to extending mine over 10+ years. This interpretation was corroborated following a site visit to Bachelor Lake by an analyst from Industrial Alliance in 2011, prompting commentary back-of-the-envelope calculations of (non 43-101) 700,000 oz resource achievable based on deep hole intercepts and extrapolation of data. Shown in the top right shaded areas is the historic underground mine which produced 869,432 t @ 4.66 g/tonne Au for a total of 130,341 oz of refined gold.  Note the border between the two formerly independent claim blocks (Bachelor Mine, Hewfran) – underground mining was stopped at this boundary. The April 29, 2013 press release entitled "Metanor Provides Bachelor Project Update and Intersects 7.47 g/T over 19.3 M" and May 29, 2013 release "Metanor Intersects 8.49 g/T Over 15.24 m, and 14.17 g/T Over 5.64 m at its Bachelor Project" revealed a new deformation shift gold discovery readily accessible off levels 12, 13, and 14 and we speculate may add another 300,000+ ounces Gold on top of the aforementioned 700,000 oz figure. The exploration intercepts encountered on the Bachelor project (since the Industrial Alliance estimate) have affirmed the Industrial Alliance analyst's findings and if another similar calculation (non 43-101) were attempted with data encountered since, it is likely a figure over 1 million ounces would be derived.

 

Large blue sky & clear potential to increase ounces

 

Figure 7. Longitudinal view -- the red star on the left hand side (western side) represents roughly where the aforementioned 'E' vein related offset intercepts recently encountered are.

 

There is clear potential to increase ounces in several ways:

  • Upgrade inferred resources,

  • Define the now known extension to surface at Hewfran West (600 m to surface).

  • Define resources at Hewfran East. (historically part of a separate corporate entity and not as developed).

  • Drill the void that the 'B' vein is now believed to traverse between the mineralized surface at Hewfran and ~level 15.

  • Drill at depth – very important as mining camps in the Val D'Or area often have depths several times their length – there are now 2 zones at depth here (vs. 1 historically mined) and they also appear to be widening at depth, east, in the O'Brien pluton (below the original discovery).

 

Other untapped high-grade locations to be exploited on the Bachelor property

 

Figure 7. "The Diagnos discovery" - Gold mineralized outcrop adjacent the main road leading to Bachelor mine site

Besides obvious expansion of existing zones to provide decades of additional mine life, there are other untapped high-grade locations to be exploited on the Bachelor property; the outcrop in the image above is a new gold zone commencing at surface situated ~2.5 km west from the Bachelor Lake Mill. This new gold structure discovered with the help of CARDS technology developed by Diagnos Inc. (TSX- V: ADK) is associated with a quartz tourmaline pyrite vein in a shear zone oriented east- west to east-southeast. This new mineralized zone was stripped and has been exposed over a distance of 50m and the best grab samples taken from the pyrite rich zones returned grades ​​of 11.05 g / t Au ( sample # 867355 ), 11.03 g / t Au ( sample # 867356 ) and 14.80 g / t Au ( sample # 867359 ). A diamond drilling program carried out by Metanor in 2010 investigated the gold zone over a horizontal distance of 250 m and to a vertical depth of 80 m. The best gold intersections associated with pyrite-rich zones were 2.42 g/t Au over 2.40 m (HW-10-03), 8.48 g/t Au over 2.65 m (HW-10-05), 2.06 g/t Au over 1.05 m (HW-10-10), 2.10 g/t Au over 1.15 m (HW-10-12) 4.04 g/t Au over 0.95 m (HW-10-17) and 3.87 g/t Au over 2.50 m (HW-10-22). -- A drill program to investigate the lateral extension and extension at depth was announced September 23, 2013.

 

Recent news releases regarding accomplishments and exploration developments at Bachelor:

  

• April 9, 2014 "Metanor Produces 12,641 Ounces During the Quarter Ending March 31st and 4,380 Ounces of Gold in March"

 

• March 31, 2014 "Metanor Extends its "A" Vein by Intersecting 9.5 g/t Over 10.1 Meters at Bachelor"

 

• March 13, 2014 "Metanor Extends its Main Gold Vein 244m Below its Infrastructures"

 

• March 5, 2014 "Metanor Produces 4,234 Ounces of Gold in February at Bachelor"

 

• February 28, 2014 "Metanor Reports its Financial Results for the Quarter Ending December 31st 2013 with a Cash Cost of US$766/oz"

 

• February 20, 2014 "Metanor Expands the Bachelor Deposit at Depth"

 

• February 13, 2014 "Metanor Produces 4,028 Ounces of Gold in January at Bachelor"

 

• February 6, 2014 "Metanor Expands the Deposit at Bachelor by Intersecting 10.4 g/T Over 17.1 m"

 

• January 23, 2014 "Metanor Excavates 10.7 g/t Over 33.5 m at Bachelor"

 

• January 16, 2014 "Metanor Intersects 13.4 g/t Over 9.5 m at Bachelor"

 

• January 9, 2014 "Metanor Produces 4,514 Ounces Au in December at Bachelor"

 

• December 12, 2013 "A New Record for Metanor; 1079 Ounces of Gold Poured in a Week"

 

• December 11, 2013 "Metanor Produces 4,154 Ounces Au in November at Bachelor"

 

• November 14, 2013 "Metanor Achieves Commercial Production at Bachelor"

 

• November 14, 2013 "Metanor Produces 4,082 Ounces in October at Bachelor"

 

• November 7, 2013 "Metanor Intersects 12.2 g/t Over 10.4 m at Bachelor"

 

• October 17, 2013 "Metanor Produces 3,231 Ounces in September at Bachelor"

 

• September 23, 2013 "Commencement of 30,000 Meter Drill Program at Bachelor and Barry"

 

• September 5, 2013 "Metanor Produces a New Record of 4,312 Ounces in August"

 

• September 4, 2013 "Metanor Intersects 17.66 g/t Over 12.55 m at Bachelor"

 

• August 27, 2013 "A New Record for Metanor; 1001 Ounces of Gold Poured in a Week"

 

• August 22, 2013 "Metanor Intersects 11.11 g/t Over 13.44 m and 8.04 g/t Over 7.92 m at Bachelor"

 

• August 20, 2013 "Metanor Provides an Update on the Development Activities at its Bachelor Project"

 

• July 11, 2013 "Metanor Produces a Monthly Record of 3,215 Ounces in June"

 

• June 6, 2013 "Metanor Produces 2,354 Ounces in May and Intersects 5.58 g/T over 21 M"

 

• May 29, 2013 "Metanor Intersects 8.49 g/T Over 15.24 m, and 14.17 g/T Over 5.64 m at its Bachelor Project"

 

• May 22, 2013 "Metanor Provides Bachelor Project Update"

 

• April 29, 2013 "Metanor Provides Bachelor Project Update and Intersects 7.57 g/T Over 19.3 m"

 

• March 6, 2013 "Metanor Produces 3017 Oz of Gold in February at Its Bachelor Project"

 

• February 27, 2013 "Metanor Pours New Record Weekly Gold Bar of 917 Oz"

 

• February 19, 2013 "Metanor Pours Record Gold Bar of 868 Oz"

 

• February 7, 2013 "Metanor Produces 2,236 oz of Gold in January at its Bachelor Project"

 

• January 21, 2013 "Metanor Intersects 29.63 g/t Over 4.42m, 14.79 g/t Over 14.02m and 19.19 g/t Over 8.48m at Its Bachelor Project"

 

• January 14, 2013 'Metanor Anticipates Operating Cash Flow Positive During February'
 

• December 11, 2012 'Metanor Produces 1,715 Oz in November vs 1,250 Oz in October at the Bachelor Project'

 

• November 13, 2012 'Metanor Continues the Development of the Bachelor Project Toward Commercial Production'

 

• October 17, 2012 'Metanor Continues to Pour Gold at Bachelor-97.4% Recovery at the Mill'

 

• September 26, 2012 'Metanor Announces the Signing of a Socio-Economic Participation Agreement With the Grand Council of the Crees and the Cree First Nation of Waswanpi for its Bachelor Project'

 

• September 5, 2012 'Metanor Intersects 17.18 g/t Au Over 6.43 m, 12.14 g/t Au Over 6.40 m and 8.63 g/t Au Over 4.27 m at Bachelor'

 

• August 22, 2012 'Metanor Resources Inc. Announces the Closing of a Private Placement of $10,000,000 of Debentures'

 

• July 12, 2012 'Metanor Produces 25.1 % More Gold Ounces Than Expected From Its Bulk Sample'

 

• July 6, 2012 'Metanor Receives Approval for Commercial Production at the Bachelor Project'

 

• June 5, 2012 'Metanor Intersects 20.42 g/T Over 3.91 m, 14.27 g/T Over 5 m, 14.18 g/T Over 3.51 m and 13.45 g/T Over 8.43 m'
 

• May 29, 2012 'Metanor Pours 1st Gold Bar at Bachelor'

 

• May 16, 2012 'Metanor Intersects 26.36 g/t Over 4.08 m, 17.24 g/t Over 5.64 m and 16.81 g/t Over 5.73 m at Bachelor'

 

• April 19, 2012 'Metanor Resources Inc. Announces the Execution of a Loan Agreement of $7,000,000 With Investissement Quebec'

 

News releases regarding Metanor facilitating gold production non dilutively:

 

January 17, 2011 "US$20M Gold Sale Agreement with Sandstorm Resources" whereby MTO.V receives US$20M to take Bachelor to full production, in return Sandstorm is entitled to purchase 20% of all gold produced from Bachelor Mine ore at $500/oz. Important to note is that the US$20M is NOT a loan, it never has to be repaid (there are no repayment terms as it is a participation investment).

 

Possible long term plan for achieving near mid-tier producer status

A tentative long term plan would be to put a concentrator (or maybe even a mill) at Metanor's 100% owned Barry deposit, located 65 miles from Bachelor. Concentrating the larger lower grade Barry deposit would allow a mix of high-grade Bachelor ore and concentrated Barry Ore, possibly achieving 150,000 oz - 200,000 oz per annum gold output.

------ ------ ------      ------ ------ ------

 

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

 

SGS Geostat Issues NI 43-101 Resource Estimate Report Identifying Metanor’s Barry Deposit as Comparable in Potential to Rival Other Major Gold Deposits Such as Osisko's Malartic and Detour Gold's Detour Deposit
 

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

 

The Barry resource estimate now sits at 309,500 oz Gold of Indicated Resources (7,701,000 t at 1.25 g/t Au) and 471,950 oz gold of Inferred Resources (10,411,000 t at 1.41 g/t Au) – by all measures a technical success. However, it is the opinion expressed by SGS Geostat that speaks volume to the large inherent value of the asset and resource growth potential that should translate to a market success for shareholders of MTO.V as it is now evident the Barry gold property holds enormous potential to dwarf its Bachelor Lake mine and mill operation.

 

The following excerpts are from SGS Geostat’s summary section found in the 43-101 Barry resource estimate 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;

-

Osisko's Malartic gold project sits at 10.7 Million Ounce Proven and Probable Gold Reserves (48.7 Mt @ 0.8 g/t Au & 295 Mt @ 1.00 g/t Au), 1.18 Million Ounces Indicated Gold Resource (47.6 Mt @ 0.77 g/t Au), 850,000 Ounces Inferred Gold Resource (3.9 Mt @ 0.78 g/t Au). (Figures as of January 2013)

-

Detour Lake contains an open pit mineral reserve of 15.6 million ounces of gold using a cut-off grade of 0.5 g/t. With production scheduled to start in the first quarter of 2013, the mine is projected to produce an average of 657,000 ounces of gold annually over a period of 21.5 years. (Figures as of January 2013)

 

Figure 8. Barry deposit - open in all directions

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

"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" -- Metanor went from 35,000 ounces Gold to ~781,000 ounces Gold (in all categories) with only minimal drilling of 20,000 metres, this begs the question; What will the next 25,000 metres will bring? It is not unreasonable to expect a doubling or tripling of the existing numbers in all categories.

 

 

 Figure 12. Barry Deposit

 

The Barry property gold system is part of a new Quebec mining camp in the Barry-Urban township

  

The Barry open pit is located ~9 km from the Windfall property presently owned by Eagle Hill Exploration (EAG - V) which has stellar deposit of 538,000 oz Gold Indicated (1,665,000 tonnes @ 10.05 g/t) and 822,000 oz Gold Inferred (2,906,000 tonnes @ 8.76 g/t) (figures as of May 2013). The Barry property is also close to BonTerra Resources' (BTR - V) Eastern Extension property which too has encountered excellent intercepts and hosts an initial inferred resource estimate of 492,000 oz of gold and bonanza grade drill intercepts of up to 204 g/MT gold (figures as of 2013). The Eagle Hill discoveries are on trend in almost a straight line at the end of Metanor's Barry open pit ~9km away, it is likely part of the same structure and a piece of it moves southeast to BonTerra which Metanor has more anomalies towards too.

 

The Barry deposit, located ~65km southeast of the Bachelor Lake Mine/Mill, has advanced over the year from being a temporary interim source of ore (to test equipment at Bachelor Lake mill before the Bachelor Lake underground comes online) into what is now being described in some geological circles as a new world class mining camp. Since acquiring the Barry deposit Metanor has extracted what resource was originally thought to be there when they bought the property and have added significantly.
 

There are two zones at Barry going down to 400m, it is a 1 km strike zone and is open at depth. Metanor has completed a 20,000m drill campaign on Barry in 2010 and had encountered quality intercepts (i.e. 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 Lake 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.

 

Details of Metanor Resources Barry Resource

 

The Gold resources above 0.5 g/t for the Barry deposit were re-evaluated by SGS Geostat in compliance with NI 43-101 and are now estimated at:

 
      309,500 oz Au of Indicated Resources (7,701,000 t at 1.25 g/t Au)
      471,950 oz Au of Inferred Resources (10,411,000 t at 1.41 g/t Au)

 
These resources were calculated for the Main, West, 43 and 45 mineralized zones which are included in a wide north-east striking deformation corridor. This resource re-evaluation is incorporating all recent drill results performed by Metanor in 2008-2009 (245 ddh's totalling 29,075m) and allowed to extend the mineralized zones almost 1,3km in a southwest and northeast direction. The mineralized corridor is open laterally and at depth. This resource re-evaluation was performed with a 0.5 g/t Au Cut-off and using the inverse distance method. High values were cut to 35 g/t Au and a fixed density of 2.8 g/cm was used for this calculation. A major portion of the resources are at, or near surface and are considered open-pitable, thereby reducing operating costs significantly. A study also confirmed the non-acid generating nature of the host and mineralized rock at Barry (Bodycote Material Testing).

 

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 last 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

Note: The above numbers give an idea of how high grade the pit can be, management has resisted the temptation to cherry pick mine the best sections as that could damage future development of a world class deposit.

 

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 (pit) 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. Future drilling will target strong anomalies to the East and West with the goal of extending the gold zone more than 5 km. Further, Metanor would drill around the present 1 km corridor (pit) and also below 125 m.

 

Justifying a concentrator on site at Barry

At $20/t - $22/t transportation costs (all-in fuel, maintenance, snow removal, etc.) MTO.V has identified ~18M tonnes of material now, that becomes >$360 million of just transportation costs of what is known today in all categories -- this certainly justifies ~$50 million for a mill or concentrator on site. MTO.V is not yet at bankable feasibility stage at Barry but that is where Metanor is going and if they double or triple the resource (which is likely since they managed to accomplish the sizeable resource to date on only 20,000m) after the next round of drilling.

 

If one needs reassurance Metanor is on the right track with a low grade (but significantly superior so far in average grade to Osisko's) high tonnage concentrator on site, look at Agnico-Eagle's (AEM) Goldex Mine which has a grade of ~1.4 g/t and starts at 2000 feet UNDERGROUND, AEM is profitable mining this low grade ore underground, they invested hundreds of millions to be able to get this gold, and they are concentrating the material on site transporting it to the Laronde Mine -- MTO.V would be open pit.

 

Other noteworthy deposits 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 is turning up significant results that investors need to keep an eye on as new gold bearing zones of significance are being discovered; See September 16, 2009 release "New Discovery". 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. The Dubuisson and Nelligan properties alone are a significant plum, however it is important to note that Metanor's flagship and main focus is their 100% owned Bachelor Lake Property; the exceptional revenue generation from the mill and vast resource base of the gold mine.

------ ------ ------      ------ ------ ------

 
Growth Potential in Resources: Both the Bachelor and Barry deposits are open at depth and along strike. Metanor is targeting over 1M ounces at Bachelor and Barry appears to have the potential for 5M+ oz (more using the comparables of Osisko and Detour  that SGS Geostat believes Barry possess the potential to rival) -- the newly released resource estimate at Barry reveals lower grades than Bachelor but large open pit tonnage, the resource estimate was 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. Metanor is hoping to explore large anomalies in 2013/2014 proximal to neighbouring Eagle Hill's Windfall Lake Deposit (288.5 g/t Gold over 12.4 m).

 

------ ------ ------      ------ ------ ------

 

Recent news announcements of significance regarding the Barry Deposit:

 

• October 7, 2013 "Metanor Initiates a 15,000 Meter Drill Program at Barry"


Metanor’s tax credit incentives found in mining friendly Quebec : Because of incentives offered by the government of Quebec, for every $1 that Metanor invests in underground development and exploration, they will receive ~$0.30 in the form of a tax credit. Tax incentives will benefit the company greatly, as plans include ongoing underground development and a  exploration.

 

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's Key Technical Leadership and Management:

  • Mr. Serge Roy, Executive Chairman, is a licensed professional who has held key positions for such companies as Stabell Resources Inc. and Ovaltex Consultant inc. (mining consultants and geological engineers), has made has made key strategic decisions that have maneuvered Metanor to a position of great strength in the region and is well qualified to maximize shareholder value as Metanor transitions from explorer to gold produce. 

  • Mr. Ghislain Morin is President & CEO. 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.

  • Andre Tremblay, Eng., V.P. of Exploration, holds a bachelor's degree in geological engineering and a masters' degree in earth sciences (structure) from the Universite du Quebec in Chicoutimi . He's acted as a director of exploration and/or various senior geologist positions with companies (as Ressources minieres Coleraine, GeoNova Explorations, Gestion S.R.C. Inc., Groupe Minier O, Mines Camchib, Campbell Resources Inc.).

  • Pascal Hamelin P.Eng/Eng., V.P. 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 Pascal 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.

  • Ronald S. Perry, Vice President and Treasurer. Mr. Perry has almost 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.

Note: This list 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 Inc.'s head office: Ph (819).825.8678

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

 

     

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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.

 

     

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