Metanor Resources MEAOD

RE:RE:RE:RE:Is it time for MTO !

[JRaffles]

Even at 117km SGS stated in their 2010 technical report that barry would need to have a mill built on site to be economical and to access the resources full potential.  

So if barry need a mill on site, why would osisko be looking at the bachelor mill for use of processing windfall ore?  That is the point we are discussing here.
 
There are a number of factors that could result in Barry / BL being considered as an interim step for Metanor independently, or under alternatively under the control of Osisko:-
 

• It is understood that the economics of trucking ore from Barry is more viable in 2016 over 2010, as a result of reduced energy costs.
• SGS produced a reserves calculation on a block plan that resulted in an average grade of ~ 1%.  As a result of this, there seemed to be a “difference of opinion” between Metanor’s geo’s and SGS, which resulted in SGS not being used again by Metanor.
• The current proposals appear to build on lower trucking costs in 2016, combined with accessing hi grade ore from Barry’s pit.
• Returning to the question of why Osisko may seek Metanor / Barry as an interim measure, this could revolve around the lost opportunity of waiting for the construction of a mill at Windfall, at a cost of about $250k.
• Notwithstanding the more economic trucking costs in today’s climate, if Osisko were to buy MTO at, say, 20c, this would cost $100m and add a concentrator at Barry for about $75m, then this would enable 2gt gold ore to be concentrated to about 20gt equivelant and trucked to the BL mill.
• In contrast, if Osisko were to build a mine and mill at Windfall, there would be a 5 year + delay before an ounce of gold could be mined and sold.
• In the meantime, Barry and windfall’s open pit resources could be generating cash and upgrade Osisko to being a producer.