Welcome To The Metanor Resources HUB On AGORACOM

Metanor (MTO-V) is a new Canadian Gold Producer located in Quebec. It reached commercial production on December 1, 2013 and will produce 50,000 oz in calender 2014 with a present all-in cash cost of $1,018US.

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Here is the actual content of the interview as it relates to Metanor:

BC: That's true. A little smaller company we like is called Metanor Resources Inc. (MTO:TSX.V; MEAOF:OTCPK) . It is bringing its Bachelor Lake mine in Québec into production and has begun milling ore from a 5,000-ton bulk sample. Metanor is expected to produce 60 Koz of gold at a cash cost of $464/oz. Some 20% of the gold goes to Sandstorm Gold Ltd. (SSL:TSX.V) at $500/oz. Metanor has 1.6 Moz of resources with a fully permitted 1,200 tpd mill and the infrastructure replacement value is $150M. The huge upside comes from the 781 Koz Barry deposit, which has the potential to become a significant low-grade, high-tonnage deposit like Osisko Mining Corp.'s (OSK:TSX) Malartic mine. Osisko has a $4.5B market cap and will be producing about 610 Koz/year starting this year. Barry has only had 50km of drilling on a potential 13km strike, compared to the million meters of drilling at Malartic. If you multiply the drilling at Barry 20-fold, it could conceivably host a 14 Moz deposit.

TGR: That's a lot of expensive drilling.

BC: Perhaps, but it should have cash flow to help with the drilling. Industrial Alliance recently put out an estimate that the 300 Koz resource at Bachelor Lake is estimated to be about 700 Koz, which can extend the mine life to 10 years. So, if we take Bachelor Lake at 60 Koz/year, Metanor's 80% portion is 48 Koz. If we only assume $1,000 of operating cash flow per ounce, we've got $48M of cash flow. And, the company is trading at only about a $68M market cap.

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