RE: Price of gold Look for neighbor Bonterra to come out with a 43-101 to boost the resources available in the area. Bonterra was too drll on the ice over the lake where the gold looks to be getting better. Metanor needs to start generating some interest on its own.
Bonterra has had some positive drill results, but it is now capitalised at only $11m. Bonterra does not have any near term prospects of production and some of its high grade core results are much deeper than Metanor’s Barry pit. Fund raising is therefore going to be a struggle, as Metanor has found.
Bonterra SP
At BL, Metanor must be well advanced with the 15,000m of definition drilling underground in the high grade zone at the new shaft levels. It is likely that management are “keeping their powder dry”, until the bulk sample and updated feasibility becomes available…… which may be after 0.40 March warrants expire. At this time, the SP could be such that if shares were issued at a re-rated price, then Metanor may be in a position to purchase Bonterra with paper in order to enhance growth prospects at Barry.
Analysts have suggested that BL underground definition drilling could result in ~ 700,000 ounces of gold being available to Metanor, as a producer, then valuing reserves at up to $500 ounce.