1% NSR on Metanor Resources MineSlow day so I thought I would go over some reports and filings. In doing so I came across the reference to the 1% NSR that Halo owns on Metanor's Bachelor Lake property that I was looking for about a week ago.
In the reference, quoted and sourced below, it states that the NSR is expected to generate approx. between $35,000 to $50,000 per month in cash flow. In my previous statement I alluded to a number between $50,000 to $60,000 so I was slightly off in my recollection. Nonetheless, it is a pretty significant number which will hopefully be recurring revenue for some time to come.
In addition to Red Lake and Sherridon, Halo also has a 1% NSR on Metanor Resources' (CVE:MTO) Bachelor Lake Property in Quebec, which is expected to generate in the region of
.4 million to
.6 million of income annually when underground mining commences in 2011.
https://webcache.googleusercontent.com/search?q=cache:6Y7skZVx4EkJ:www.proactiveinvestors.com/companies/news/9210/halo-resources-begins-drilling-at-west-red-lake-in-ontario-9210.html+halo+metanor+nsr&cd=8&hl=en&ct=clnk&gl=ca
That gets me to my next point. I had read varying reports regarding when we could expect NSR revenues from the Bachelor Lake mine. Pin pointing these types of start dates is far from an exact science. Typically, companies will give investors the "best case" scenario start date, but as we all know, things rarely tend to go as planned and delays are typically encountered. As such, I went to the Metanor site and came across this update which was spot on. I highlighted 2 parts which I found to be relevant and significant to Halo shareholders. I guess that we will have some news to look forward to before the year is out:
1. Pre-Feasibility Study
2. Results from a new zone
December 14, 2010
Metanor Resource provides an update on its activities at the Bachelor Lake Gold Project
December 14, 2010-Val-d'Or, Quebec, Canada: Metanor Resources Inc. ('Metanor') (TSX-V: MTO) is pleased to provide an update on its activities at the Bachelor Lake Gold Project.
BACHELOR LAKE MINE
As mentioned in the press release dated October 4th, Metanor is beginning to sink the shaft another 600 ft to develop two new levels. These 2 levels will provide access to the lower portion of the mine's 43-101 resource and allow the completion of a bulk sample targeted at 5,000 tonnes.
On November 3rd, the mining contractor brought their shaft sinking equipment to switch from rehabilitation to sinking mode. As of December 13th, the commissioning is nearly completed and on schedule. The first blast, at the shaft bottom, is planned before year-end.
In parallel, the project team is progressing on the Pre-feasibility Study at Bachelor Lake Gold Project. Metanor has selected Stantec Inc. (TSX: STN) as an Independent Consultant to complete the Pre-Feasibility Study in collaboration with Metanor's project team. Before year-end, the company is planning to release the pre-feasibility numbers including the reserves for this project.
BACHELOR LAKE-POTENTIAL NEW ZONE (DIAGNOS Target)
Due to the recent excellent grab samples, Metanor initiated a stripping campaign and has removed minor surface overburden to access the structure on both sides of the main road to the mill. The structure which is visible now is close to 300 feet long by about 30 feet wide and is still open in all directions. Further, a diamond drill rig is presently on site and has commenced a 1,000m drilling campaign on this promising new zone only 3 km from the Bachelor Lake Mill. Results are pending and should be released before year-end.
About Metanor
Metanor is a Canadian based gold mining company with a focus on adding value per share through efficient exploration, and development of it properties. Maintaining a low risk profile through a strong operating team, sound financial management, and operating in secure jurisdictions like Quebec are key priorities for Metanor's management team.
https://www.metanor.ca/exploration-miniere/investisseurs_communiqueDePresseDetails_ang.cfm?noCommuniquePresseMetanor=188
The good news is that progress is being made on the mine and we will hopefully start to see some cash flow from the NSR as Gold continues to break new highs.
The 300 (Molon Lave)