Coverage URL source: http://miningmarketwatch.net/mto.htm

STRONG BUY AT THIS PRICE - EXCELLENT EXPOSURE TO GOLD VIA SHARES OF MTO (Will rise in multiples as underlying commodity takes off)

Here is article in part, click on the URL for it in full

Gold Producer Metanor Building Ounces in New High-Grade Gold System Adjacent Mill -- Presents Exceptional Opportunity

Trading with a market cap of ~$13 million Gold producer Metanor is a bargain, healthy operationally & balance sheet-wise, and in the process of building serious new ounces;

Assets-wise:

Liabilities-wise:

Valuation Commentary: Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is a commercial gold producer at its 100%-owned Bachelor Gold Mill in Quebec. With a current market capitalization under ~$13 million Canadian (421,189,849 shares outstanding X ~3 cents) MTO.V presents a significant opportunity for shareholders as its primary asset, the Bachelor Mill, has a replacement value numerous times the Company's current market cap and is increasingly being viewed as a coveted strategic asset being the only mill within 200km in a gold-rich district. Additionally, Metanor is in the process of adding serious new gold ounces as it continues to systematically drill to define a new high-grade system in a previously unexplored region (known as the South Zone/Moroy Property) located south of the pluton, only ~900 meters south of the headframe at Bachelor. Drilling in this new area began in earnest following its September 22, 2015 new discovery zone announcement of 10.1 g/T Gold over 26.2 m. Results to date in this new South Zone have been stellar, the new system appears to be huge and to be of higher average grade and thicker structure than the Bachelor/Hewfran sections. New in-hole geophysics reveal high-priority target anomalies of conductors that have correlated well with high-grade gold found to date, and are highly perspective for large gold values Metanor will be targeting in the months ahead. This South Zone is expected to contribute towards adding numerous years of additional mine life and is a game-changer that takes Metanor's future prospects to a whole new level, dramatically increasing the attractiveness of MTO.V for shareholders and for potential suitors looking to acquire/buy-out(as is rumored to be afoot spearheaded by increasingly motivated parties).

Primary asset, Bachelor Gold Mill

Operationally: Metanor's latest gold production figures (for the period ended September 30, 2015 click here to see related release) reveal a Gold producer that is holding its own, successfully executing on cost-cutting measures, and keeping its head above water after stripping out 'depreciation and depletion'; Metanor reported Cash Cost of $1,140 per ounce sold in Q1 (US$877/oz at an exchange rate of US$0.77/CA$1.00). Sustaining cost of $1,355 per ounce sold (US$1,043/oz using an exchange rate of US$0.77/CND$1.00), All-In cost of $1,451 per ounce sold in Q4 (US$1,117/oz at an exchange rate of US$0.77/CA$1.00), Gold sales for the quarter were 7,797 ounces from gold production of 8,060 ounces. In the quarter MTO.V milled 56,448 tonnes of ore at a feed grade of 4.6 g/T and a recovery of 96.6%. A Total of $10,741,352 in revenues from gold sales were reported at an average sale price of $1,378 per ounces sold (US$1,061/oz at an exchange rate of US$0.77/CA$1.00).

Forward looking, the Company is aiming to attain a 40,000+ oz per annum gold production run rate; the production from Hewfran is expected to increase the average grade of the mine between 5.8 and 6.2 g/t and cash costs are expected to drop back down. For the current year, Metanor has stated it expects to produce 40,000+ ounces of gold. The Bachelor Lake mill has a capacity of 1,200 tpd but is currently running at a rate of ~800 tpd, with an effective rate of ~700 tpd with periodic routine downtime for maintenance.

There exists opportunities to expand production beyond the current production capacity of ~50,000 ounces of gold per year; the Bachelor mine sourced rock is 'hard', making it a limiting factor in-part, however this can overcome with a nominal capital outlay to move to 1,200 tpd, also sourcing alternate sourced material from a secondary front is another obvious option in this gold-rich territory -- the flexibility Metanor has on this front positions Metanor's mill as its primary asset and increasingly 'in-play'. Hydro Quebec is expected to complete an area substation near-term, afterwich may be the optimum time for Metanor to be positioned to focus on increasing the capacity (Metanor has been waiting for that substation). The level of interest swirling around Metanor's primary asset appears high -- shares of MTO.V are poised for upside revaluation as the inherent value and accomplishments are appreciated by the market, and apt to respond in multiples as gold retrenches and strengthens.

Metanor is ready to take advantage of three things; 1) improved grades and grade control, 2) foreign exchange (MTO.V is protected to the downside by forex gain from US to CDN, it is currently (as of January-2016) receiving a ~$500/oz price differential for gold in Canadian dollars over US dollars), and 3) the price of gold.

Metanor currently has two permitted mines:
1) Bachelor Mine: 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). Recent drilling results continue to demonstrate, in-part, Metanor's ability to readily extend the mineable life of Bachelor, similar to how other successful area miners have operated (and several continue to this date) -- typically lining up a couple years of initial quality mineralized material but remaining operational for many decades, adding as they go. MTO is able to sell 80% of its Bachelor Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement (Note: this arrangement is only on Bachelor-area sourced material, Metanor's mill is a separate asset that is 100%-owned by the Company and the mill may be used to process material sourced from outside Bachelor without restriction (for Metanor's sole-benefit) as long as it meets minimum covenants to Sandstorm -- covenants Metanor has been more than able to satisfy to date).

The following is a sampling of recent drill intercepts surrounding Bachelor Mine that will contribute toward extended mine life:

• January 21, 2016 "Metanor Intersects 7.5 g/t Au Over 7.2 m at Bachelor Mine",

• December 3, 2015 "Metanor Intersects 6.3 g/t Au Over 4.2 Meters at Bachelor Mine; Confirms Trend Below Level 8",

• August 6, 2015 "Metanor Intersects 10.2 g/t Over 13.1 Meters at Bachelor Mine",

• July 29, 2015 "Metanor Intersects 11.9 g/t Au Over 11.85 Meters at Bachelor Mine",

• July 2, 2015 "Metanor Intersects 6.82 g/t Over 8.7 Meters at Bachelor Mine",

• June 25, 2015 "Metanor Intersects 12.8 g/t Over 10.8 Meters At Bachelor Mine",

• June 22, 2015 "Metanor Intersects 22.85 g/T Over 4.04 Meters at Bachelor Mine",

• March 20, 2015 "Metanor Intersects 8.64 g/T Over 5.8 Meters at Bachelor Mine",

• May 14, 2015 "Metanor Intersects 12.24 g/T Over 4 Meters in the Hewfran Sector of the Bachelor Mine"

However the big excitement is the new high-grade discovery zone south of the pluton (A.K.A. South Zone - Moroy Property):

This September 22, 2015 Metanor announced it has intersected 10.1 g/T Gold over 26.2 meters near-surface (hole M0-15-14) in a new discovery zone not linked to anything previously known, only ~900 meters south of the headframe at Bachelor. This exceptionally stellar high-grade intercept begins at only 6.4 meters depth and has since been systematically followed-up to investigate how it is connected to an earlier drill hole intercept (MO-15-08) at 605 m depth that yielded 26.8 g/T Gold over 1 m -- the results to date have been stellar;

• December 17, 2015 "Metanor Intersects 5.4 g/t Au Over 10.0 Meters on the Moroy Property"

• December 8, 2015 "Metanor Intersects 15.3 g/t Au Over 6.6 Meters"

• November 11, 2015 "Metanor Intersects 18.9 g/t Au Over 5.6 Meters Near Surface"

• October 29, 2015 "Metanor Intersects 6.7 g/t Au Over 38.4 Meters Near Surface"

• October 27, 2015 "Metanor Confirms the Discovery of a New Auriferous Corridor Near Surface"

Results to date in the new zone confirm a huge multi vein system and the interpretation to date clearly shows at least one of the structures has an East-West orientation, and a dip near 70 degree to the North -- this explains why anything in the area was never found in old exploration efforts; the main Bachelor Mine veins dip to the South and all historic drilling in the South Zone was mistakenly drilled to the North (parallel, making an intersect impossible). Surface IP geophysics in the South Zone in 2014 told Metanor's exploration team to drill a near-surface anomaly assuming a direct correlation between the percentage of pyrite and the hole grade -- the correlation was a major hit when drilled in 2015, the theory was affirmed (26.8 g/T Gold), the drilling refined to reveal the discovery hole (10.1 g/T Gold over 26.2 meters near-surface), the understanding of orientation was developed, and an in-hole geophysics test was ordered on old holes (the results which were recently released and are extremely exciting)...

New geophysics reveal the best is yet to come:

January 20, 2016 "Metanor Publishes the Results From the Geophysic Survey on the Moroy Property"; In short, anomaly 'C' was drilled and results correlated well, exactly as expected, attention now turns to the two largest anomalies 'A' and 'B' which have never been tested. The most intense anomaly 'A' is located under the tailings pond, Metanor plans to take advantage of the winter conditions to drill it first -- the voluminous size and intensity is highly prospective for large gold values:

Figure 2a (above) - Gold Producer Metanor Resources South Zone IP Anomalies and Select Assay Value Intercepts to date.

Figure 2b (above)- Gold Producer Metanor Resources Bachelor Project, location of new discovery zone 10.1 g/T Gold over 26.2 m indicated by red dot.

Moroy - The Next Gold Mine

Figure 2c (above) - South Zone Discovery Moroy Property, Hole MO-15-104 intersected 5.4 g/t over 10.0 meters. This hole intersects the structure along the section A-A' and extends it over 160 meters to the East; three holes intersected the structure with a dip similar to the one published on December 8th 2015. The holes BW-13-13, BW-13-19, HW-13-37 and HW-13-43 (published March 12th 2015) were drilled parallel to this new structure and partly touch it at 477 meters deep. In addition, the hole E14-14 intersected this same structure over 600 meters from surface. To date, the structure has the potential to be 400 meters long by 600 meters deep.

Figure 2d (above) - South Zone Discovery Moroy Property.

This new discovery gold zone corridor fits well into the future expansion plans for Metanor; being only ~900 m from the headframe, the Company may decide to build a ramp into the near-surface high-grade that starts only 6.4 m depth and maybe build a conveyor over to the mill, or maybe build a drift over from Bachelor to reach material at depth -- many options exist depending on how big this gets. Additionally it is anticipated that for only few million in capex Metanor could increase the milling capacity to accommodate a second front and facilitate output that could possibly yield 80,000 to possibly 100,000 ounces Gold per annum from the Bachelor Mill, the increase in scale would also translate toward lowering cash costs.

2) Barry Gold Project, Quebec (located ~65 km from Bachelor): The 100% owned Barry property is neighbor to Eagle Hill's Windfall Lake Deposit. The resource estimate at Barry 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. The current 1km strike at Barry is potentially 13km, there are in excess of 150 anomalies outside the pit area. The Barry deposit is a potential multimillion ounce target; the independent international professional geological firm SGS Geostat has identified Metanor’s Barry deposit as comparable in potential to rival other multi-million ounce deposits such as Canadian Malartic gold deposit (formerly owned by Osisko, now owned by Yamana and Agnico-Eagle) & Detour Gold's Detour deposit. Metanor is not currently mining from Barry, however one option is to put a concentrator on site and transport material to its Bachelor Mill. The Barry deposit is open in all directions, and Metanor is currently looking at it with consultants and will be doing a drilling campaign in the pit with the aim of targeting 2+ g/T gold material for new potential mining scenario. Important to note is that Osisko Gold Royalties has recently orchestrated acquisitions adjacent Metanor's Barry deposit (via Oban Mining).

Near-term catalyst potential:

Seeking Alpha opinion

Metanor was heavily discussed in an article recently that analyses the income streams of Sandstorm, of which Metanor forms a sizeable contribution. The author notes that Metanor is quickly approaching a point where it will have completed its $20 million cash flow guarantee to Sandstorm and will be positioned to minimize Sandstorm's impact on operations, forcing a renegotiation of terms and/or switch to processing high-margin (and likely softer/easier to process) ore sourced from outside of Sandstorm's reach; "Metanor certainly has a strong negotiating position for a restructure of the gold stream, growing stronger with the approaching deadline of completing the $20M cash flow guarantee". Excerpt of conclusion from article:

"In conclusion, we see three possible scenarios:

The author concluded his article on Sandstorm indicating investors "might try their hand on shares of Metanor Resources, betting on a takeover". The full seeking alpha article may be viewed athttp://seekingalpha.com/article/3299745-risks-linger-and-continue-to-weigh-on-sandstorm-gold online.