Metanor Resources MEAOD

RE: two things

[gahdc]

Well nothing is 100% sure, they could drill all remaining 30,000 m and find nothing or very low grades, but what are the odds of that? After all, much of it is upgrading known resources not doing new exploration,  the geologists have a good idea of what is down there. And if you believe that gold price will be going higher, then that alone would make lower grades still profitable.

If we have inflation and higher gold prices, keep in mind that the vast bulk of the BL infrastructure is already built, that sunk cost would not be affected by inflation, compare that to other juniors still spending money to build out their infrastucture.

As to Barry, I have also wondered why not continue to process shipments, even if the profit margin is low compared to future BL ore. Several possibilities come to mind.

1) With Sandstorm deal in place they are not desperate for cash right now. They may feel it is better to focus closely on pushing BL over the goal line to production. Since BL production is less than 6 months away, I can live with that decision.

2) They have not abandoned Barry entirely. They still are doing 20,000 m of drilling this year. Barry's current <1 mil ounces reserves are not enough to support a mill or concentrator, but just doubling that with this current drill campaign would make a mill/concentrator a bankable project. And also in less than 6 months their cash flow from BL starts and that could help finance Barry.

3) MTO is not a large company, they have been  attacked in the past on here for spreading themselves too thin between BL and Barry. I would bet that any workmen that are not being used at Barry now have probably been sent over to BL. The management team itself is small and better to have them focus on BL also. I think this makes sense with BL so close now to producing profits which will be over $4 mil a month to the bottom line at full capacity.

4) The mill upgrade to 1200 from 800 thousand tons/day does not bother me. They did it when they could get the money and now it is an asset that will allow them to grow, especially if they hit  the  better grades at BL they may need that extra capacity sooner rather than later. And the mill has been tested. they produced roughly 20,000 ounces last year from Barry.

 Reread their last June 16 PR on BL. Besides being less than 90' to the bottom  of the 600' shaft extension, they said that 80% of the infrastructure equipment  is already onsite and they are recruiting a production team to take over when the shaft extension is complete  in July. GLTA