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Sector: Mining - Metals and Minerals   :

News Release - September 13, 2013 5:40 PM ET 

Precious Metal Mining Investment Manager Identifies Six Top Selections for Extraordinary Gain Potential – Metanor Resources Inc. Identified as a Top Pick

NEW YORK, NY, September 13, 2013 /Sector Newswire/ - Over the last few weeks Mr. Florian Siegfried, CEO of Swiss Investment Company Precious Capital Ltd. (managers of the Precious Capital Global Mining & Metals Fund), made public his top selections in the precious metals mining sector and shared the points of consideration Precious Capital Ltd. emphasizes to ensure value investment and protection. Below is a synopsis of Mr. Siegfried's fund, his findings, his 'top picks', and review of the potential in new junior Gold miner Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) which made his list and was the subject of a recent site visit.
 
The Precious Capital Global Mining & Metals Fund is a securities fund operating under Swiss law, regulated by the Swiss Financial Market Supervisory Authority (FINMA). The fund was one of the few precious metal mining sector funds that generated a net positive return in 2012. The fund’s investments are made within the different stages of the mining lifecycle with strategic focus on mid-sized precious metals companies. Florian Siegfried holds a master’s degree in finance and economics from the University of Zurich.
 
According to Siegfried, on a general level Precious Capital prefers companies which generate free cash flow after CAPEX and net working capital expenditure, specifically, mid-tier gold producers with cheap production costs. Value is highlighted by investing in higher grade and lower cost producing companies, as high production costs are often a function of mining low-grade gold deposits. Other criteria worth considering are production margins (by avoiding low-grade producing companies where margins largely depend on by-product credits such as copper), exploration success (which promise leverage to gold price as production grows), and cost control, as we believe that companies which generate shareholder value mainly by short-term production maximization regularly see themselves faced with long-term strategic challenges.
 
Market Equities Research Group has conducted a review of research and commentary Florian Siegfried has written from August 22 through September 10, 2013; described as ‘favorite picks’ at Precious Capital are Alacer Gold Corp. (TSX:ASR), Torex Gold Resources Inc. (TSX:TXG), Silver Lake Resources Limited (ASX:SLR), Timmins Gold Corp. (TSX:TMM) (AMEX:TGD), Kirkland Lake Gold Inc. (TSX:KGI), and Metanor Resources Inc (TSX-V:MTO).
 

Metanor Resources Inc. is focused on adding shareholder value via Gold production, development, and exploration. Mr. Siegfried is able to issue the latest recommendation on Metanor Resources as a top selection with authority as Precious Capital Ltd. has recently conducted a site visit to several of Metanor Resources’ properties, including its flagship Bachelor Gold Mine and Mill in Quebec.
 
Metanor has had two news releases of significance over the last week regarding exploration achievements and ongoing development ramp-up at its newly refurbished Bachelor Gold Mine and Mill in Quebec. Recent development work appears to now be translating into results, allowing MTO stabilization of production at over 3,000 oz per month -- last week Metanor announced it had produced a new record of 4,312 ounces Gold in August. This sets the stage for a cash flow positive scenario and a push to stabilize at a 4000 - 5000 oz per month Gold target (at 800 TPD). Forward looking, once commercial production status is attained at Bachelor, it is managements stated plan to increase the mill capacity by ~50% at low capex and target 80,000 - 90,000 oz Gold/year in 2015.
 
Metanor's record monthly Gold production milestone announced last week underscores progress made and the undervalued nature of MTO.V as it advances toward commercial production; on a replacement value basis MTO.V has infrastructure replacement value of over $200 million – several times its current market cap. 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.
 
Other news of significance last week involved the announcement of continued high-grade intercepts at Bachelor (i.e. 17.66 g/t Gold over 12.55 m). 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). Metanor has an ongoing drilling campaign to enlarge the resource/mine life; Identified zones should lead to resource growth and extension of mine life closer to 10+ years -- an Industrial Alliance analyst calculated (non 43-101) 700,000 oz Gold achievable based on deep hole intercepts and extrapolation of data and a new deformation shift gold discovery readily accessible off levels 12, 13, and 14 it may add another 200,000+ ounces on top of that. 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.
 
Metanor's other property of significance (near-term potential open-pit mine, second production front) is its Barry Gold project, 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. According to Precious Capital Ltd. Metanor is developing a strategic plan for a drill campaign for the prolific Barry open project which according to SGS has the potential to be developed in to “a significant low grade high tonnage deposit similar to Osisko (Malartic) and Detour Gold (Detour).

Market Equities Research Group has identified the following related research links on Metanor:

 
  - Precious Capital Ltd. site visit report: http://goo.gl/jT9goH
  - SEDAR Filings for Metanor Resources Inc.: http://goo.gl/fpbR3Z 
  - Recent Q1 2013 Analysts Report (C$0.66 price target): http://goo.gl/YpFr3D 
  - Metanor Resources Inc. Corporate Website: http://www.metanor.ca/en 
  - Recent Mining Journal article: http://miningmarketwatch.net/mto.htm 
 
 

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. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

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