I had the chance to go to the Cambridge House Resource Investment Conference in Toronto yesterday.

Although Metanor was not at the conference I have a few observations which reflect on the company:

1) the show was not that well attended causing many exhibitors to question their participation

2) it was clear that there are major problems in the junior mining and exploration sector. The main problem is lack of money to continue operations. A fair number of the companies at the show seemed to be low on cash and could have severe difficulties in the next few months

3) there will likely be a strong shake-out of junior resource companies in the next year

4) companies with plenty of cash (certainly enough to last for the next year or so) positive cash flow and good prospects will be able to take advantage of this shake-out by acquiring new properties at rock bottom prices

5) solid producers with relatively low mining costs and sufficient resources will survive and can prosper in this environment

6) the price of gold will not decline much below current levels and likely increase significantly over the next year.

It is clear to me that in the current environment Metanor is in a good position. They are a low cost producer and have good and growing resources as well as deposits in the vicinity of the mill which they might be able to acquire at relatively low cost.

I seems to be a good time to accumulate more shares.