Metanor Resources MEAOD

RE: RE: RE: RE: RE: september target price at 0.48

[JRaffles]

it a lot easier to make some high grade hits , for an example crj just hit 10 Meters width of over 30 gram per ton it is doing wonders for the share price

a key point..... the grades from the feasibility bulk sample and new underground drilling being conducted this fall may be the information that will have the most effect on SP .......  until that is available, the experience of the Barry grade dissapointment may hold back SP enthusiasm.

However, if grades equal, or exceed the January pre feasibility (and there is no reason to suspect otherwise) combined with gold prices having increased nearly 50% in price in 2011, then the two vital factors - grade and tonnage will determine BL's future earnings.  Whereas, production is a management controllable process and since the BL mill has produced gold from Barry ore, then plant operations are tried and tested.

Assuming gold prices reach JPM's gold price forecast of $2,500 this year - before BL production starts - then it would seem that the SP would be undervalued at $1.25 when commercial production is expected to be declared in January 2012.

PS:

I sent an email equiry to Metanor info concerning the qualification of Quebec capex  investment grants of ~ 50%, in respect of funding provided by SSL, in addition to capital raised by PP's.  -  I did not expect a reply, but about 3 weeks later, Andre Tremblay confirmed by email that this was still receivable on all capex at BL and Barry.

The implication is that the SSL $20m non returnable gold sale will provide about $30m of development costs, when the grant receivable is added.   

Therefore, with SSL's cash producing $30m development cash - it seems that, with a market cap of about  $45m, there is a SP disconnect which could be rerated at any time.