Metanor – a predator? As I understand mining camp strategy, the first claim that spends the millions to build a mill complex has an advantage to buy up smaller surrounding claims that can not support a mill on their own and would either have to pay to have their ore milled by Metanor or sell out to them. And right now Metanor is the most advanced project in the Barry area and closest to needing a mill/concentrator.
There are compelling reasons to believe that, after initial disappointments with the 43-101 grade at Barry, Metanor is now in a very strong position to assemble a Barry Camp merger on most favourable terms for Metanor shareholders. The other key players would be Eagle Hill Exploration and Bonterra Resources. Metanor should be the key player, in the region, whose shareholders are on the path to benefit most …….
- Metanor’s 43-101 grade is based on open pit extraction – hence the low overall grade, although drilling revealed good core widths.
- The higher grades reported from both Bonterra and Eagle Hill’s windfall property seem to be a depth, although further drilling on these large properties may reveal open pit resources.
- Bonterra has been restrained from a lack of resources to enable it to go forward and exploit a potentially very attractive grade resource under a lake on its property. The Bonterra SP has fallen by 77% from a high of 0.70 to about 0.16 over the last two years.
- Eagle Hill may have similar problems before it could be in a producing stage. The Bonterra SP has fallen by 60%% from a high of 0.40 to about 0.16 over the last two years.
- Currently, Metanor SP has fallen by a mere 50% over the last two years.
- Even at today’s depressed prices, Metanor could acquire most of the Barry camp property at attractive prices, in a paper for paper exchange.
- Non Exec Director Robert Bryce sits on all three company boards……
- However, when BL is producing in just over 1Q, the SP could put it in a position to consolidate major Barry camp properties under the Metanor umbrella.
Following the disapointing response, after the announcement of the 43-101 ounces at Barry back in 2009, I suspect that VP geologist Andre Tremblay may be on a mission to prove the true worth of Barry. BL will soon become an engineering and producing project, whilst Barry (100% attributable to Metanor Shareholder) could become the “jewel in the crown”.
From a tactical point of view, the planets may be aligning up for Metanor, at its Barry project.