RE: RE: LOM & Resources That number of oz looks very good if it is really right
Those ounces are also in alignment with the Industrial Alliance 2011 projection, whre it is stated that their estimate could increase to 700k ounces over the LOM. It should also be noted that these estimates only relate to ounce projections at the underground level now reached. However, in Q3, Metanor commenced drilling of a further 1000 ft, 50% beyond the existing 2,300 ft. If this proves that there is an extension or increase of gold reserves beyond gold already proven down to level 15, then Metanor’s LOM could be ………..
PS: as a result of the confirmation of Prefeasibility LOM from 3 to 5 years, then it follows that Metanor will now be producing gold in 2016 and 2017. Any guesses of the price of gold in 2016 / 2017?
Source - Industrial Alliance Securities Inc – Report 26 October 2011
Therefore, our preferred model for Bachelor Lake consists of a 465,000oz Au resource to be continuously developed and expanded over the LOM. While we believe Metanor will eventually reach our previous back-of-the-envelope estimate of 700,000oz Au, we restrained the resource estimate used in our model.
Source – Metanor Press Release 16th May 2012
In addition, in the third quarter, Metanor intends to initiate a series of drill holes to probe the Bachelor deposit up to 1,000 feet below 15 (level 15 is located 2,300 feet below the surface) since the recent drillings confirm the deposit is open at depth.