Subject Company's Logo
Metanor Resources Inc.
(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.
1) CONTINUE PRODUCTION RAMP UP AT
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
• 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
Reports its Financial Results for the Quarter Ending December 31st 2013
with a Cash Cost of US$766/oz:
Métanor Resources Inc. ("Metanor") (TSX
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
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
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
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
Figure 2. Images captured at Metanor's refurbished
Bachelor Gold Mill and Mine (clockwise; the mill, drill result
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)
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
Oz of gold
Oz of gold
Total Measured + Indicated
Oz of gold
Oz of gold
Underground Mineral Reserves
Oz of gold
Oz of gold
Oz of gold
Figure 4. (above)
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
The veins that comprise Bachelor
- There are currently four veins of
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
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
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
Metanor appears to have over
1 million ounces Gold in the process of being targeted for
quantification at Bachelor
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
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
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
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).
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
• 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
• 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
• November 13, 2012 'Metanor
Continues the Development of the Bachelor Project Toward Commercial
• 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
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
The independent international professional geological firm SGS
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:
Report [9.4MB PDF]
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
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
“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.”
SGS Geostat's technical report on Metanor's Barry
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;
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).
of January 2013)
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
of January 2013)
Barry deposit - open in
9 & 10.
Barry core and
Oxidized Mineralization in the Main E-W Shear Zone. With
Coarse to Fine Grained Pyrite Boxwork
"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.
12. Barry Deposit
The Barry property gold system
is part of a new Quebec mining camp in the
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
(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
Details of Metanor Resources
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.
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
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 =
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
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.
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
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
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:
Company's web site:
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