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Sector: Mining - Metals and Minerals   :

 

News Release -  March 14, 2014 4:34 PM ET 

 

 

Gold Producer Metanor Resources Extends its Main Gold Vein 244m Below its Infrastructures

 

Pouring gold at Bachelor

Bachelor is a rich underground mine with grades upwards of 26 g/t gold with an average grade of 7.38 g/t gold (fully diluted using long hole)

  

NEW YORK, NY, March 14, 2014 /Sector Newswire/ - Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) has released news of significance this week regarding achievements at its newly refurbished Bachelor Gold Mine and Mill in Quebec. MTO.V provided an update on the ongoing underground drilling program at Bachelor aimed at defining new resources at depth below level 14 -- further encountering quality intercepts that are expected to add to mine-life, extending its Main Gold vein 244m below its infrastructures. This news follows on the heals of Metanor releasing financial results for its initial period as commercial Gold producer with initial cash cost of US$766/oz and also news that it had produced Gold in the month of February at an annualized effective rate over 55,000 ounces per annum.

 

Successful mines in the Abitibi area typically have a few years of production lined up ahead of time and just keep going for decades, adding as they go. The two main veins at the Bachelor 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, MTO.V is currently only at ~2,300 feet with and is open to continue on. Metanor recently further sank the shaft 536ft to gain access to over 300,000oz all categories -- now, with the recent drilling intercepts, it has confirmed future mining potential down 800 ft which conceivably translates to the mine life more than double. In the expansion/exploration efforts Metanor has also proven new structures/veins. Additionally, at the adjoining Hewfran zone(s) Metanor is expanding and possibly connecting it to bachelor.

 

Metanor has a four compartment shaft ready for further sinking together with a hoist capable of >4,500 feet. One analyst's' back of the envelope calculation in 2011 estimates the Bachelor/Hewfran resource at 700,000 ounces as the structure is open in all directions. This calculation appears to becoming more a reality and deserved of upward recalculation interpretation closer to 1 million ounces in light drilling success since.

  

The news this week of quality intercepts follows on the heals of Metanor releasing financial results for its initial period as commercial Gold producer with initial cash cost of US$766/oz and also news that it had produced Gold in the month of February at an annualized effective rate over 55,000 ounces per annum. The stage is set for 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 production per month in late 2015 (contingent of obtaining additional electricity from Hydro-Quebec planned for 2015). MTO.V with ~267 million shares outstanding provides an ideal vehicle for investors seeking exposure to precious metals. Shares of MTO.V are currently trading near C$0.25 and the time to pay attention is now while MTO.V is trading at a fraction (near 1/4) of its infrastructure (replacement) value alone, ignoring the ~1.6 million oz Gold resource in all categories (on all properties), and ignoring the large resource growth potential. Metanor is also actively advancing on a second front, it's Barry Mine deposit, that many believe has a the potential to translate to a large increase of gold ounces in the ground and a significant percentage increase in production ounces on top of the >6,500 ounces Gold production per month target expected at Bachelor sometime in 2015.

 

Metanor currently has 7 active drills at two locations. Metanor's displays growth aspirations and commitment to add value through development, production, and exploration. Metanor has a permanent program underground at Bachelor with 3 to 4 drills ongoing, plus there are 2 drills at surface at Bachelor -- the shear volume of drilling on quality ground is bound to create steady news-flow and catalysts for shares of MTO.V.

 

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.

  

 Excerpt Metanor's March 13, 2014 release:

 

 

Metanor Extends its Main Gold Vein 244m Below its Infrastructures

 

Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to provide this update on the ongoing underground drilling program at Bachelor aimed at defining new resources at depth below level 14.

 

Metanor, still in the early stages of the at depth drill campaign, has intersected the extension of the «Main» vein, 244 meters below level 14. The drill campaign is continuing in this same sector to further expand the «Main» vein vertically and horizontally.

 

The table below summarizes the intersection obtained:

Hole No

From
(m)

To
(m)

Length
(m)

Grade Au
(g/T)

Zone

E14-03

376,7

379,6

2,9

6,23

Main (M)

 

True core length.

The true width is 65% of the core length obtained in the diamond drill hole in the «Main» vein. The cut-off grade used in the analysis is 51,5 g/T or 1,5 oz Au. The samples were assayed by fire-assay at the Metanor assay lab. The quality control program of the assay results (QA QC) adopted by Metanor includes a minimum of 10% of controlled assays being conducted as well as verification by an independent external assay lab.

  

...click here for full copy from source

 

 

Sector Newswire has identified the following related research links on Metanor:
 

  - Mining Expert Jay Taylor's interview with Metanor's VP and recommendation to clientele:

    http://jaytaylormedia.com/media/MetanorResources20140128.mp3  [Audio]

 

  - Mining Expert Lawrence Roulston initiates coverage http://sectornewswire.com/RoulstonMTO02-2014.pdf [PDF]

  

  - Ronald Perry, Vice-President of MTO.V, November 15, 2013 Business News Network interview: http://watch.bnn.ca/#clip1044420 [Video]

 

  - Recent Q4 2013 Analysts Report (C$0.47 price target): http://sectornewswire.com/MTOanalystOct2013.pdf [PDF]

 
  - Metanor Resources Inc. Corporate Website: http://www.metanor.ca/en [Website]

 
  - SEDAR Filings for Metanor Resources Inc.: http://goo.gl/fpbR3Z [Website]

 
  - Recent Mining Journal article: http://miningmarketwatch.net/mto.htm [Website]

 

   

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

 

 

  

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