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Sector NewswireTM Sector: Mining - Metals and Minerals : Sub Sector: Precious Metals :
News Release - July 3, 2009 5:36 PM ET
BonTerra Resources Offers Exceptional Risk-Reward Scenario with 650,000 Ounce Gold Resource and Strong Resource Expansion Potential
The risk-reward characteristics are highly advantageous for investors establishing a long position in BonTerra Resources Inc. (TSX VENTURE: BTR) as their Red Mountain acquisition positions BTR.V with an immediate 650,000oz gold resource, equipment, buildings, and strong resource expansion potential. After closing on the acquisition and capitalizing the purchase plus sufficient drilling to build the resource we estimate the share structure will expand to roughly a nominal 40M with a per share valuation of BTR.V well in excess of at least CDN$1 and a multiple upward revaluation appears readily in store.
NEW YORK, NY, July 3, 2009 /Sector Newswire/ - Mining MarketWatch Journal has published a review on BonTerra Resources Inc. (TSX VENTURE: BTR) which includes insight from a July 2, 2009 interview with Bonterra's geologist Dr. Gerald Carlson, P.Eng. The review also offers insight and opportunity afforded investors as as Seabridge Gold has agreed to take a potential equity position through a $5,000,000 debenture in BonTerra and sell BonTerra its Red Mountain gold claims near Stewart BC Canada. The deal positions BonTerra with immediate gold resources of 650,000 ounces at Red Mountain.
The full review and valuation commentary may be found at: http://miningmarketwatch.net/btr.htm online.
After closing on the Red Mountain acquisition BonTerra will control ownership of both the Willoughby claim group and Red Mountain claim group whose gold systems are connected and ripe for resource expansion. BonTerra will also be capitalized to advance the Red Mountain/Willoughby Claim Group towards a 3,000,000+oz gold resource target.
The Red Mountain claim group places BonTerra in an enviable position with a high-grade deposit (> 0.25 opt), 400,000 in measured and indicated categories plus an additional 248,000 ounces in the inferred. It is important to note the Red Mountain deposit was previously owned by a number of majors including Royal Oak which had the resource up to 2,000,000 ounces gold at one point (pre NI43-101) and a Seabridge engineering report makes note of there being inferred, indicated, and reserves of 1,400,000oz gold and 3,000,000+oz of silver. A 2003 SRK engineering study (link to study summary) estimates an 8 year operation with life-of-mine cash operating costs of US$213 per ounce.
The SRK engineering study placed a nominal cap ex of ~CDN$62M to take a full underground mine & mill into production there as it sits now. It seem obvious to Mining MarketWatch that BonTerra will be taking the Red Mountain/Willoughby claim group to a state of heightened attraction that should richly reward shareholders. We asked Mitch Adam, BonTerra's President and CEO, what plans BonTerra had going forward and he offered the following synopsis: "Bonterra will have control of the whole area, 650,000 oz proven at Red Mountain, plus the Willoughby claims with the results there -- We are going to immediately drill both areas. The Seabridge report recommends infill drilling in some of the zones and further expansion of the zones for further potential. We think BonTerra can take this 650,000 oz to about 3,000,000 oz proven."
The price tag for BonTerra to acquire the Red Mountain gold claims plus schedule of assets from Seabridge is CDN$12,000,000: $50,000 already given, $6.950M cash plus BTR.V issuing a $5,000,000 convertible debenture. It is important to note that Seabridge Gold Inc. (TSX: SEA)(AMEX: SA) is a high growth gold major whose taking an equity position in BTR.V is an obvious vote of confidence in Bonterra's management, technical leadership, and the belief that BTR.V can take the resource substantially higher.
Mining MarketWatch talked with BonTerra's geologist, Dr. Gerald Carlson, P.Eng., on July 2, 2009 to get his insight on the two properties and to comment on the recently announced exploration/drilling program for Willoughby. He explained the geology of the Red Mountain and Willoughby properties is very similar; the mineralization appears to be related to gold slide intrusive rocks which are the same age and carry the similar types of minerals and alteration. Mineralization has been described in earlier reports as porphyry style gold mineralization, the same as the nearby Sulphurets-Mitchell camp to the north of Red Mountain, and these deposits can be fairly sizeable. Dr. Carlson emphasized the high grades found on both properties (see review of each property) and said "the fact that both Willoughby and Red Mountain have particularly high grades associated with them is really important here, if you can start increasing the size with those kind of grades then obviously economically it becomes more and more attractive."...
The full review and valuation commentary may be found at: http://miningmarketwatch.net/btr.htm online.
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. The term investment advisory refers to the fact the reader is being advised there is a publication on an item that is also an investment, and not advice to buy or sell. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
SOURCE: Sector Newswire Per: Mining MarketWatch Journal
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