Metanor loses $3.76-million in Q2 fiscal 20162016-02-26 17:05 ET - News Release Mr. Pascal Hamelin reports METANOR REPORTS ITS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER ENDED DECEMBER 31ST 2015 Metanor Resources Inc. has released its financial results for the second quarter ended Dec. 31, 2015. This press release should be read in conjunction with Metanor's financial statements for the quarter ended Dec. 31, 2015, and related management's discussion and analysis, which can be found on the company website or on SEDAR. (All amounts are in Canadian dollars unless otherwise stated.) Second quarter 2016 highlights: Gold sales of 7,476 ounces from gold production of 7,774 ounces; Milled 54,426 tonnes of ore at a feed grade of 4.6 grams per tonne and a recovery of 96.7 per cent; Total of $10,178,629 in revenues from gold sales in second quarter at an average sale price of $1,362 per ounces sold ($1,022 (U.S.) per ounce at an exchange rate of 75 U.S. cents per $1 (Canadian)); Cash cost of $1,346 per ounce sold in second quarter ($1,008 (U.S.) per ounce at an exchange rate of 75 U.S. cents per $1 (Canadian)); Sustaining cost of $1,574 per ounce sold in second quarter ($1,179 (U.S.) per ounce using an exchange rate of 75 U.S. cents per $1 (Canadian)); All-in cost of $1,743 per ounce sold in second quarter ($1,305 (U.S.) per ounce at an exchange rate of 75 U.S. cents per $1 (Canadian)); Following the gold discovery on the Moroy property, the exploration drilling was significantly increased. A total of $1,104,694 in exploration expenses was invested on the Moroy property during the quarter. This amount is included in the all-in cost of $1,743 per ounce; Net loss and comprehensive loss of $3,765,287 for the quarter after depreciation and depletion of $2,628,589; The company had a treasury of $ 2,179,601 on Dec. 31, 2015. SECOND QUARTER 2016 OPERATING AND FINANCIAL RESULTS Operating and financial Quarter Quarter Six months Six months results ended ended ended ended Dec. Dec. Dec. Dec. 31, 2015 31, 2014 31, 2015 31, 2014 Operational results Tonnes milled (tonnes) 54,426 59,013 110,874 115,962 Feed grade (g/t) 4.6 4.6 4.6 5.5 Mill recovery rate 96.7% 96.3% 96.6% 96.7% Ounces produced 7,774 8,332 15,834 19,930 Ounces sold 7,476 9,055 15,273 21,098 Underground development (metres) 1,768 1,998 3,362 3,636 Diamond drilling (metres) 18,062 5,734 35,387 17,298 Financial results (thousand dollars) Gold sales $10,179 $11,732 $20,920 $27,609 Operating costs (9,848) (10,723) (18,517) (21,963) Royalties (216) (187) (432) (417) Depreciation and depletion (2,629) (2,951) (5,322) (6,588) Gross (loss) (2,514) (2,130) (3,351) (1,359) Net (loss) (3,765) (3,745) (5,781) (4,703) For the quarter, a total of 54,426 tonnes of ore at a grade of 4.6 grams per tonne were processed at the mill at a recovery rate of 96.7 per cent, which resulted in a production of 7,774 ounces of gold. The ounces continued to come mainly from the A vein. The A vein is narrower compared with the other veins at Bachelor, causing higher dilution of the ore once blasted, and finally lowering the feed grade to the mill. Furthermore, the A vein in this sector near the O'Brien intrusive is intersected by a series of low-grade stringers that increase the ore dilution. These lower-grade ores resulted in lower ounces sold even if the tonnage is similar to the previous quarter, which increases the unit cost per ounce. Outlook for the coming quarters In the coming months, the production will gradually come from the Hewfran sector. The grade and thickness are generally higher in the Hewfran sector. Therefore, the feed grade will begin to increase as the production will come from the Hewfran sector. Qualified person Pascal Hamelin, PEng, vice-president of operations, is the qualified person under NI 43-101, responsible for reviewing and approving the technical information contained in this news release. We seek Safe Harbor.