resources as the game changer ?
| | 1-24 Sep 2012 | Mar 2012 | Feb 2012 | Sept 2011 |
| Kitco – Average gold price | $1,739 | $1,673 | $1,742 | $1,771 |
| Metanor average weekly sp | 0.24 | 0.33 | 0.33 | 0.39 |
| | | | | |
Metanor’s sp is at least 30% below levels that is has traded at during the last 12 months, when the gold price has been at or about its present level. This so reduction is after having issued the following press releases :-
- May.2012 - BL 1st gold bar pour.
- June.2012 – Commercial Production
- July.2012 – 25% improved grade from bulk sample.
- Sep.2012 – hi grade gold intersections & 2 drill rigs drilling underground to infinity.
It seems that the Feasibility study results may be delayed until December 2012, at which time it is reported that Metanor will be cash positive.
A potentially positive result arising from the reported delays, relate to the level of the mineral resource which is expected to be announced at the time of the Feasibility.
In October 2011, Industrial Alliance gave Metanor, $0.36 at the time, a 12 month target of $0.95 – they may have some ground to reach their target by next month. However, the I/A model for reserves was 465k ounces of gold, which was above the M&I 210k ounces. This is one metric where Metanor may outperform expectations, as drilling has continued far longer than envisaged. If this could be increased to the 700k (I/A back of envelope prospects) possibility projected by I/A, then, as a gold producer, this could be valued at ………….. but, if say $250 ounce, the mkt cap would be circa $175m – or 60p with full dilution.
Table 3: Underground Mineral Resource (Pre Feasibility 4 January 2011)
| | | Bachelor | Hewfran | Total |
| Measured | Tonnes | 177,898 | 14,696 | 192,594 |
| Grade (g/t) | 8.83 | 8.50 | 8.80 |
| Oz of gold | 50,487 | 4,018 | 54,504 |
| Indicated | Tonnes | 465,928 | 183,069 | 648,997 |
| Grade (g/t) | 7.63 | 7.14 | 7.49 |
| Oz of gold | 114,329 | 42,024 | 156,352 |
| Total Measured + Indicated | Tonnes | 643,826 | 197,765 | 841,591 |
| Grade (g/t) | 7.96 | 7.24 | 7.79 |
| Oz of gold | 164,815 | 46,042 | 210,857 |
| Inferred | Tonnes | 207,517 | 218,630 | 426,148 |
| Grade (g/t) | 6.76 | 6.30 | 6.52 |
| Oz of gold | 45,083 | 44,283 | 89,366 |