OTCPK:MEAOD - Post by User
Post by
tictactoe111on Apr 14, 2012 5:47am
686 Views
Post# 19793753
Metanor mention
Metanor mentionCM: Basically, gold stocks are trading cheaper than they were in 2008 relative to the underlying gold and silver price. There are only so many silver companies, but gold companies are a much bigger universe. One I like is Metanor Resources Inc. (MTO:TSX.V), located in Quebec. Its main property is the Bachelor Lake mine, which will be in commercial production this quarter. It will ramp up to feasibility levels by Q312 just because it's only running the mill at 65% capacity at this point. It has a $60M market cap but will be producing 60?75 Koz/year gold, although it does have a streaming agreement with Sandstorm Gold Ltd. (SSL:TSX.V) whereby it has to sell 20% at $500/oz. This shouldn't hurt it too much because it produces under $500/oz. Its average grade is about 7 g/t on that property. When it wants to access its Hewfran zone, it can increase production by about 25% or 70?80 Koz/year. That's a good smaller play.
It also has other properties. One is the Barry mine, which is also in Quebec and relatively close. It has a lot of the same features and structure as Canadian Malartic and Detour Lake. It's a high-tonnage, low-grade gold mine. Management will probably look for a joint venture partner on that one. This is another company that's gone under the radar.
TGR: Bachelor Lake used to be a separate company, or at least the mine was in a company called Bachelor Lake back in the 1980s and 1990s, as I recall.
CM: Yes, it's a past-producing shaft mine. I hate to harp on these really small caps, but they shouldn't be this small.
TGR: Any others that are interesting?