Metanor Resources MEAOD

Cut Off Grade

[JRaffles]

Ron Perry (RP) made two interesting comments during his interview with Jay taylor this week.  Writing from memory, these related to:-

Cut off Grade - RP noted that when the original 43-101 was produced for Barry, the gold price was about $400.  The implication was that had the 43-101 using the same drills been done today, that the gold ounces would be much higher, since lower grades would become economic at $1,250 ounce.

Bachelor Lake 43-101 - RP said that they hope to get out an updated 43-101 for Bachelor before the end of the year (2010?).

This raises a number of points:

1. Is there an industry wide cut off grade or does this vary from mine to mine?
2. If the 43-101 cut off grade is flexible, project by project, then the ounces reported by the 43-101 should be significantly higher at today's gold prices.  It would be interesting to know when the cut off grade for the Barry 43-101 was decided and also, whether it was changed during the period of delay when the gold price was picking up?
3. An upgraded Bachelor Lake 43-101 could produce significant increases in ounces for the following reasons- [a] Possibly a lower cut off grade due to a more efficient mill, apart from the increase in gold price since the 4+ year old 43-101 [b] The increase in shaft depth and thereby access to additional reserves, was almost doubled since the last 43-101 [c]  other drilling being done around Bachelor at Hewfrem (which rattle reminded me of some time ago).

The potential for increase of reserves at Bachelor could be a pice of the jigsaw which will enable Metanor to increase their company resources to over 2m ounces, which they forecast in their 2009 presentation.  Therefore, it will be very interesting to receive the upgraded presentation that RP also commented to Jay Taylor, that they would make available when the Barry 43-101 is released, or at least soon thereafter.