Metanor Resources MEAOD

RE: RE: RE: Euphoric experience holding just getti

[JRaffles]

Tradinghigher seems to “get it” ……. Stay on board.

On a side note, I laugh at people trying to rationalize share price coming too far – has it not occurred to them that it dropped too far? Things go in extremes and surround milestones. MTO hit a milestone and is going higher, this milestone is everything the company was meant to do from inception in 2006; get BL up and running--- IT’s HAPPENING NOW!!!! RIGHT NOW!!!! NOW!!! NOW NOW!!!!!.

• The BL shaft is now at the centre of about 200,000 ounces P&P.
• The analyst from Industrial Alliance calculated that 700,000 ounce is achievable as a result of underground drilling which will commence during bulk sample work, between now and when commercial production starts in 4 months time.
• The Market equities Research Analyst estimated that these ounces should be re rated and valued at production ounces rather than exploration ounces from next year.
• The analyst reports that production ounces are valued up to $500 ounce.
• Therefore, when the “Aladdin’s Cave” of resources is determined at BL, they could be valued up to $350m – the current market cap of comapny is $70m ……
• Irrespective of any value at Barry, for a shareholder to consider taking profits, or recovering costs at 0.40, seems to be extremely short sighted.

But these are decisions for MTO down the road. First thing is get the wild cash flow at 60K gold per annum going using 2/3 capacity and BL then ramp up substation at Hewfran to get that other 1/3. Then more exploration drilling should have Barry at 2M ounces resource and in a year MTO can commit to either a concentrator or Nicromet’s mill onsite at Barry.

• Barry and a concentrator is not a decision for the near term – time will mature this project, to be ready when BL is generating cash, although drilling should continue ……
• As BL production ramps up the Metanor SP, the company will be well placed to offer paper for undervalued companies with resources surrounding Barry and it could become a huge low cost gold producer. Eagle Hill Expl has already gone public to say that they could process their resource at BL’s mill (ref Forg) ..... it seems that they are admitting that they are dependent on Metanor.....
• With regard to BL & Barry, it could be said that management did all the right things, but not necessarily in the right order, resulting in the share decline to th elow point of 0.215. In the medium term, it may prove to have been prescient that drilling was done at Barry, as some land buy ins required expense to be incurred otherwise it may have been lost. 

On a side note, I laugh at people trying to rationalize share price coming too far – has it not occurred to them that it dropped too far? Things go in extremes and surround milestones. MTO hit a milestone and is going higher, this milestone is everything the company was meant to do from inception in 2006;

• Metanor was excellent value at 0.50 and above when most savvy investors purchased …….. including Sprott & other institutions.
• My average price is mid 50’s and I bought back the only sale I made – the last three transactions were  …… bought 25k shares 0.55 20 May 2010 – sold 25k shares 0.44 27 Sep 2010 – bought back 25k shares 0.225 10 Aug 2011 (perhaps I ought to have used all the 0.44 proceeds to by at 0.225).