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: Metanor Resources Approaches Gold Production at Bachelor Lake
Metanor Resources Approaches Gold Production at Bachelor Lake, Featured in Report on Gold Mining Sector Valuations

Metanor Resources Inc. (TSX-V: MTO) (Pink Sheets: MEAOF) (Frankfurt: M3R) is the subject of a Madison Avenue Research report on mining sector stocks trading dramatically below fair market value offering insight and opportunity afforded investors as MTO.V enters gold production at its Bachelor Lake Mine and Mill in Quebec. The report details how a large numbers of gold miners with serious intrinsic value are currently trading below fair market value, some dramatically so.

The full report may be found at http://madisonaveresearch.com/marketsd2011.htm online.

Gold has risen significantly in price over the last few years while costs have increased only nominally on a relative basis, thus dramatically increasing the intrinsic value of reasonably well-run gold producers, however the stocks of these gold miners are not reflecting the increased value. Many gold investors originally bought precious metals and the related mining companies as protection against exactly the type of financial crises unfolding/developing now. In a logical world, the price of precious metals and related companies should be soaring based upon current conditions and developments. Astute investors will recognize irrational moves and the divergence occurring now as opportunity.

Metanor Resources is a superior gold production, development, and exploration junior mining company that is deeply undervalued (current market cap = ~C$70M based on 201.7M shares outstanding, trading at ~$0.35 cents per share) with key assets in the mining-friendly region of Quebec.

Metanor is an advanced stage development and exploration mining company that is a new gold producer in the making utilizing their 100% owned Bachelor Lake Gold Mill in the prolific Abitibi Mining District of Quebec. Metanor is expected to prepare a bulk sample beginning in Q4 2011, leading to a ramp-up in production that will see a run rate of 5,000 ounces gold per month (60,000 oz per annum) by Q3 2012 at an estimated cash cost of US$464/oz gold (pre-feasibility by Stantec) using 2/3 capacity at their newly refurbished 1200TPD Bachelor Lake Mine & Mill, in Quebec. MTO is leveraged to the price of gold, able to sell 80% of its Bachelor Lake Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement. MTO presents investors with an exceptional opportunity as it enters gold production.

Metanor's Bachelor Lake is a very 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). MTO is currently in the midst program aimed at building on the established resource and mine life. The Bachelor Lake Mining Camp is known for both its precious metals and polymetallic potential, MTO.V has blue sky potential on both fronts. The Bachelor Lake property is located directly to the west of the former Coniagas Mine and the Bachelor Lake operation as it sits now shares similarities to a young Agnico-Eagle LaRonde Mine -- Since 1988, LaRonde has been Agnico-Eagle’s flagship operation, producing more than 4 million ounces of gold as well as valuable byproducts. The mine still has 4.8 million ounces of gold in proven and probable reserves (35 million tonnes at 4.3 g/t) – among the largest gold reserves operating in Canada. However LaRonde started out too as a 1200TPD operation like Metanor's Bachelor Lake and just kept growing. The shaft at the Bachelor Lake 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 Lake property increases at depth and the strike is open in all directions at the 2,400 foot mark.

Metanor's infrastructure is valued (estimated replacement value) between CDN$150M - $200M, is fully paid, fully permitted, fully functional with proven production capabilities (having poured >40K oz gold from interim sourced ore with ~95% recovery). The intrinsic value of Metanor’s known resources (~1.6M oz gold in all categories on all its properties) and infrastructure are several times the company’s current market capitalization. As MTO.V enters gold production the reality of the infrastructure and resource value, cash flow growth, and clear ability to add ounces should lead to share price appreciation.

Sprott Asset Management has taken an equity position in MTO.V and for good reason; with two projects of significance that together many believe will take Metanor Resources to mid-tier producer status (between 150,000 oz - 200,000 oz Gold per annum) within 2.5 years, the time to pay attention is now while MTO.V is trading at a fraction of its infrastructure value (close to book value) and entering gold production. With strong cash flow growth, strong organic resource growth, and sitting geographically as the only mill located within 200 km in a gold rich district, MTO with 201.7M shares outstanding (~257M fully diluted) the share price appears destined higher.

The full report may be found at http://madisonaveresearch.com/marketsd2011.htm online.

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 URLs.


Contact Information:
Simon Levinson, Editor
Madison Avenue Research Group

[email protected]


Source: Accesswire IA (November 29, 2011 - 3:03 AM EST)

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