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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Message: Gold Producer Metanor Advancing Barry Pit toward Reopening Under New

High-Grade Model, and Poised To Outshine Operationally At Bachelor

2016-05-02 07:15:00 AM ET (ACCESSWIRE)

NEW YORK, NY / ACCESSWIRE / May 2, 2016 / Metanor Resources Inc. (TSX VENTURE: MTO) (OTC: MEAOF) (Frankfurt: M3R.F) is a commercial gold producer at its 100%-owned Bachelor Gold Mill in Quebec. Metanor is the subject of a Mining MarketWatch Journal review. Eric Sprott recently increased his equity position in MTO.V and for good reason -- the Company is predicting to be cash flow positive, is poised to excel with high-grade (between 6 g/T - 9 g/T) gold Hewfran sourced ore coming online, is building serious new ounces in a new gold system adjacent the mill, and is rapidly advancing toward a scenario that could see it reopen mining its nearby (~65 km SE from the Mill) Barry open-pit as a second front under an improved high-grade model.

The full Mining Journal review may be viewed at http://miningmarketwatch.net/mto.htm online.

MTO.V geologists are working under an updated interpretation of the orientation of the high-grade shoots at the Barry Mine. The old interpretation had two shoots dipping down, they are now viewed as three stacked shoots more horizontal than they are vertical. The old off-orientation interpretation resulted in the mixing of high-grade with low grade, lowering the high-grade and smearing the gold into lower grade, resulting in a lower average grade when estimating and block modeling. Now the geologists are collecting and affirming data under the new model that constrains the envelopes which contain the high-grade, Mining MarketWatch Journal believes this has the potential* to yield in excess of 1 million ounces and better grades than the current near-800K oz resource (in all categories).

Metanor originally mined ore from Barry when it first took the refurbished Bachelor Gold Mill online several years ago, while it was still prepping to access the high-grade underground ore at Bachelor mine, it poured a total of ~45,000 oz gold from Barry sourced ore during that initial interim period. Metanor is currently using consultants, looking at a new potential mining scenario, and has been conducting drilling in the pit with the aim of targeting 2+ g/T gold material. The latest drill results from Barry have confirmed a high-grade extension of the pit, intersecting 5.4 g/T gold over 9m. The Barry deposit is essentially ready to go, geologists are pinpointing the high-grade, and within the year it is possible Metanor could be back in operation at Barry. Additionally, Barry sourced ore is not subject to the Sandstorm gold participation agreement.

With a current market capitalization near-$38 million Canadian (429,961,649 shares outstanding X ~9 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.

Metanor is also in the process of adding serious new gold ounces adjacent its mill 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; Metanor is near the beginning of a 60,000 m drill program on the Moroy property. Mr. Thibaut Lepouttre, Managing Director at Belgium-based mining and commodity research BVBA firm Caesar published a report in Q1-2016 in which he extrapolates results to date and sees potential* for 1,000,000+ new high-grade ounces from the South Zone.

Operationally:

Metanor's latest gold production figures (for the period ended December 31, 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 US$1,008 per ounce sold for the quarter ended. Sustaining cost of US$1,179 per ounce sold for the quarter ended, All-In cost of US$1,305 per ounce sold for the quarter ended, Gold sales for the quarter were 7,476 ounces from gold production of 7,774 ounces. In the quarter MTO.V milled 54,426 tonnes of ore at a feed grade of 4.6 g/T and a recovery of 96.7%. A Total of $10,178,629 Canadian in revenues from gold sales in Q2 at an average sale price of $1,362 Canadian per ounces sold (US$1,022/oz at an exchange rate of US$0.75/CA$1.00).

Forward looking Metanor is expected to excel (cash costs are expected to drop dramatically): The Company is aiming to attain a 40,000+ oz per annum gold production run rate. Sophisticated investors know a mine is not a homogeneous unit; there are lower-grade areas, average-grade areas, and higher-grade areas -- Metanor had been mining sub-5 g/T for the last several months however that is expected to change going forward as the Company is expected to begin (this spring-2016) processing higher grade Hewfran section ore with grades between 6 g/T and 9 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, after which 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.

Besides improved grades and grade control on tap, it is important to note that Metanor also benefits from foreign exchange, receiving a ~$325/oz price differential (as of May 2, 2016) for gold in Canadian dollars over US dollars).

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).

2) Barry Gold Project, Quebec (located ~65 km from Bachelor): The 100% owned Barry property is neighbor to Oban Mining's Windfall Lake Deposit (formerly owned by Eagle Hill). 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. Important to note is that Osisko Gold Royalties has recently orchestrated acquisitions near Metanor's Barry deposit (via Oban Mining).

Metanor is currently studying the possibility of restarting gold mining operations at the Barry Property. Ghislain Morin, President and Chief Executive Officer of Metanor stated: "We feel that the metrics are optimal for a restart of operations at the Barry Pit. Our surface infrastructure is still operational, and the mining permit is still active. Combining this with the current low fuel prices and a gold value of $1,700 per ounce in Canadian dollars, we see restarting as an attractive option for the Company at this time." The technical and management teams at Metanor are extremely competent, having acquired a great deal of experience over the years, and start-up costs are forecast to be relatively low. No processing problems are anticipated, as processing of previous Barry Pit ore was handled by the nearby Bachelor Mine treatment plant, at a maximum of 1,100 tonnes per day. Other than a 1% royalty (NSR), an additional 2% NSR is payable on metals derived from 13 claims, representing 10% of the property. There are no other obligations arising from production from the Barry open pit.

Near-term catalyst potential for MTO.V:

- Improved grade control.

- Second mining operation.

- Exploration upside.

- Improved price of gold.

- Potential acquisition/strategic moves.

The full Mining Journal review may be viewed at http://miningmarketwatch.net/mto.htm online.

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Estimates of potential* made by the mining analyst and journals are non 43-101 and not from the Company. 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.

Contact information:

James O'Rourke, Editor

Mining MarketWatch Journal

[email protected]

SOURCE: Metanor Resources Inc.

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