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Archived article as of April 2, 2012:    Bulk Sampling has Commenced, Metanor Entering Gold Production   5,000 oz Gold per month run rate expected in Q3 2012 utilizing 2/3 capacity       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 the potential to take MTO.V to mid-tier producer status:   1) Bachelor Lake Mine & Mill, Quebec: Metanor is currently conducting a bulk sample, this is expected to lead to a ramp-up in production that will see a run rate of 5,000 ounces gold per month (60,000 oz per annum) in Q3 2012 at an estimated cash cost of US$464/oz gold (pre-feasibility by Stantec) using 2/3 capacity of the 1200 TPD mill. Bachelor Lake 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 Lake that Mining MarketWatch Journal anticipates will contribute to rapid resource growth and an extension of mine life closer to 10+ years.   Note: February 22, 2012 News of significance "Metanor Starts Milling Bulk Sample From Bachelor Lake Gold Mine Project".     2) Barry Gold Project, Quebec: 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 4km and there are in excess of 150 anomalies outside the pit area (a potential 13km strike length). Metanor has found the gold system at Barry and only needs to now track it. The Barry deposit is a 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.

Q3 2011 Report $1.35/share target Q4 2011 Industrial Alliance Securities Report $0.95/share target Notes from the editor on feature article:   Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) has begun a 5,000 tonne bulk sample, this bulk sample is expected to lead to a ramp-up in production that will see a run rate of 5,000 ounces gold per month (60,000 oz per annum) in Q3 2012 at an estimated cash cost of US$464/oz gold (pre-feasibility by Stantec) using 2/3 capacity at their newly refurbished 1200TPD Bachelor Lake Mine & Mill, in Quebec. MTO is leveraged to the price of gold, able to sell 80% of its Bachelor Lake Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement. On schedule, fully capitalized and debt free, MTO presents investors with an exceptional opportunity as it enters gold production.   Undervalued Opinion (Share Price Target C$1.35):  A recent analysis by National Bank Financial of Sandstorm's 20% interest in the Bachelor Lake sourced ore for the initial years of production values Sandstorm's 1/5 interest at over $50M using $1760/oz gold. Hence, extrapolating the remainder 4/5 that belong to Metanor would place Metanor's portion of the initial years production at over $200,000,000 after cash costs (before factoring the reality MTO.V will cost out portions of these proceeds for expansion of resources and mine life, further adding shareholder value). This money is only from the first few years of production and validates our theory the share price (market cap) of MTO.V is destined substantially higher. Metanor has ~$15M in the bank (as of September 2011) and appears to have no need for further dilution.   Metanor's infrastructure is valued (estimated replacement value) between CDN$150M - $200M, is fully paid, fully permitted, fully functional with proven production capabilities (having poured >40K oz gold from interim sourced ore with ~95% recovery). 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. As MTO.V enters gold production the reality of the infrastructure and resource value, cash flow growth, and clear ability to add ounces should lead to share price appreciation.    Sprott Asset Management has taken an equity position in MTO.V and for good reason; with two projects of significance that together many believe will take Metanor Resources to mid-tier producer status (between 150,000 oz - 200,000 oz Gold per annum) within 2.5 years, the time to pay attention is now while MTO.V is trading at a fraction of its infrastructure value (close to book value) and entering gold production. With strong cash flow growth, strong organic resource growth, and sitting geographically as the only mill located within 200 km in a gold rich district, MTO with ~224M shares outstanding (~288M fully diluted) the share price appears destined higher. Video of Metanor in Operation <= Click to Watch Video footage of interim ore from ground to furnace  Running Time 3 min. 02 sec.

Bachelor Lake Mine & Mill - Metanor preparing bulk sample of high-grade underground ore

Metanor acquired 100% interest in the Bachelor Lake mine and mill property in 2006 with a plan to refurbish the mill and infrastructure to restart mining, initially using interim mill feed from a remote deposit. The mill has since been brought to 1200 TPD capability and proven capable of 95% gold recovery using interim sourced ore. Metanor's plan from the outset was to access the high-grade ore under the mill as Bachelor Lake hosts 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). This plan is now about to come to fruition as rehabilitation of the underground mine at Bachelor Lake and is now essentially finished, development of substations and shaft work is complete. Metnaor is conducting a bulk sample this Q1 2012 from Bachelor Lake sourced ore and this is expected to lead to a run rate of 5,000 ounces gold per month (60,000 oz per annum) at 2/3 capacity in Q3 2012.

Metanor currently has resources at Bachelor Lake 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:

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.

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 has identified  zones that we believe will contribute to extending mine life closer to 10 years. This interpretation was corroborated following a site visit to Bachelor Lake by an analyst from Industrial Alliance earlier this year, prompting commentary back-of-the-envelope calculations of (non 43-101) 700,000oz 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) – and that underground mining was stopped at this boundary. 

There is clear potential to increase ounces in several ways:

• Upgrade inferred resources (~89,000 oz),

• Define the now known extension to surface at Hewfran West (600 m to surface – estimated ~50,000 oz),

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

• Drill at depth – part of the planned 15,000 m deep drilling program –  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).

News releases regarding recent accomplishments and exploration developments at Bachelor Lake:

 February 29, 2012: "Metanor Intersects 9.26 g/T Au over 2.63M and 10.83 g/T Au over 1.96M at Hewfran/Bachelor Lake"

 February 22, 2012: "Metanor Starts Milling Bulk Sample from Bachelor Lake Gold Mine Project"

 November 16, 2011 "Metanor Intersects 5.07 g/T over 17.08 M Including 10.30 g/T over 7.89 M at Bachelor Lake"

 October 13, 2011 "Metanor Intersects 8.26 g/T over 2.10 m and 7.40 g/T over 2.97 m at Bachelor Lake"

 September 27, 2011 "Metanor Intersects 9.71 g/T Over 3.11m and 6.92 g/T Over 10.10m at Bachelor Lake"

 August 23, 2011 "Metanor Resources Inc.: Shaft Sinking Complete at Bachelor Lake; Bachelor/Hewfran Drill Campaign Underway".

 May 19, 2011 "Metanor Resources Inc.: Encouraging Results on the New Gold Zone at Bachelor/Hewfran".

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 Lake to full production, in return Sandstorm is entitled to purchase 20% of all gold produced from Bachelor Lake 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).

Near term options for taking mill to full capacity (Increasing gold production to 80K – 90K oz per annum possibly)

The 1200 TPD capacity Bachelor Lake mill will be at 2/3 production capacity in Q3 2012 producing 60,000 ounces gold from Bachelor Lake sourced ore. To process more ore alternate sources need to be implemented. Three near term options include:

Possible long term plan for achieving mid-tier producer status

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

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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:

 
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;

"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 announced very promising drilling results. The Windfall property has received ~330 diamond drill holes including one hole that has graded 52.3 oz/t over 4.8 metres -- less than two years after acquiring the project (from Noront), Eagle Hill Exploration has completed significant steps towards the definition of a large gold system, potentially amenable to bulk mining. The Barry property is also close to BonTerra Resources' (BTR - V) Eastern Extension property which too has encountered excellent intercepts of late. 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 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 4km, and Metanor has documented over 150 anomalies outside the pit on the property (a potential 13km strike length).

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 transportation costs (all-in fuel, maintenance, snow removal, etc.) MTO.V has identified ~18M tonnes of material now, that becomes $360M of just transportation costs of what is known today in all categories -- this certainly justifies ~$50M 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 highly profitable mining this low grade ore underground, they have 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.

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Growth Potential in Resources: Both the Bachelor Lake and Barry deposits are open at depth and along strike. Metanor is targeting over 1M ounces at Bachelor Lake 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 Lake 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 4km, and Metanor has documented over 150 anomalies outside the pit on the property (a potential 13km strike length).

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• Mr. Serge Roy, Chairman CEO, 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 & COO. 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, 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.).

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

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