Metanor Resources MEAOD

RE: RE: Face the Analyst Interview

[gahdc]

The BL mill is valued at $150 mil, does anyone have an idea on cost of just a concentrator at Barry? I assume it is much less than a mill. Ron Perry mentioned concentration rate of 10x or 20x if built.

He also mentioned the new technology they are evaluating from  Nichromet (See January MTO press release). I still think that could be a wild card that changes the economics at Barry. Right now the Barry cut-off grade is 1.3 gr/ton, if for instance, the Nichromet process is 25% cheaper to use then that would make for a substantial increase in the amount of economic ore reserves, without doing any additional drilling at all.

No costs have been mentioned about going with the new process from Nichromet vs conventional concentrator, but Nichromet have a pilot plant up and running and I have seen one report on another board saying that the commercial version plant would cost $50 mil. How does $50 mil compare with the cost of a concentrator instead at Barry? The through put rate is supposed to be up tp 10x faster than existing technology.

At MTO current cost of $446/oz x 48,000 oz production by July (80% share of 60,000 oz after selling 20% at $500 to Sandstorm) they will see profits of over $4 mil per  month at market price of $1500/oz. Depending on the cost of whatever they decide to build at Barry, wouldn't that $4 mil month give them fexibility to do a Bank loan instead of giving away another 20% to Sandstorm? At $48 mil a year profit, they could finance that $50 mil Nichromet price in about a year, or repay a short term bank loan. At their current production cost of $446/ oz., every $100 increase in gold price is another $4.8 mil a year profit, and today right now we are up to around $1580.

So, does anyone have numbers on what concentrators cost versus mills. etc.?