Metanor Resources MEAOD

Mining Journal Article on MTO

[djtrump]

Mining Journal Review tells the value and the reason for it to excel, https://www.miningmarketwatch.net/mto.htm is URL

Funny enough, the last poster said they are trying to tie the value proposition excelling to a neighbouring company that does NOT have a mine yet... What the last poster fails to recognize is "that makes the point"; Osisko does NOT have a mine as they do not have a mill!!!!!! The PEA at Windfall shows the grades are stellar, but the cost of construction of a mill is enormous. The key primary asset for Metanor is the Bachelor Mill. The Bachelor Mill would dramatically change the economics of Windfall as Windfall along with Bonterra are near 9 g/T. Osisko will need to bulk sample anyways, so better take out Metanor while it is only 35M market cap, might need to offer 75M but you get all of the mill without sandstorm, you get all of Barry, and you get all of Bachelor Mine (but ignore it for now, due to Sandstorm). Metanor is a stinkin deal here and keeping its head above water fine, when Barry comes online it will cash flow well at sub-US$900 cost per ounce. This is the plan and if Osiko wants to lock up the area and jump start things, it needs the mill and Barry. Heck, if I were Osisko I would lay rail line to Bachelor, but that's another argument.

Regardless, Metanor chugs along and has excess $$$ it can plow into growth non dilitively until the consolidation happens. It will. The big excitement is the drilling on trend with Windfall on Barry, that will pop things sky high if it hits (and if it doesn't, thats cool, as Osiko increasingly knows it is worth it to buy out the missing parts as I just described.

Here is initial copy:

 Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is a successful commercial junior gold producer at its 100%-owned Bachelor Gold Mill in stable, mining-friendly, Quebec. Gold recovery rates at the mill are >96%, and in 2015 the Company produced >40,000 ounces of gold. With a current market capitalization near-$32.5 million Canadian (trading at only ~7.5 cents), MTO.V presents a significant opportunity for shareholders as its primary asset, the Bachelor Mill, has a replacement value of several times the Company's current market cap and is increasingly being viewed as a coveted strategic asset being the only mill within 200km in a gold-rich district. Metanor's total infrastructure is valued (estimated replacement value) at between CDN$150M to $200M. Of note, Eric Sprott recently increased his equity position in MTO.V, last purchasing shares on the open market 'above' the current trading price, and there is strong potential for MTO.V to excel near-term as the Company exhibits enhanced attractiveness as a potential take-over candidate in an area undergoing consolidation. The math on the inherent asset value seems to indicate Metanor is substantially undervalued and apt to trade higher, especially as the Company affirms the serious potential for production on a second front; possibly even totally supplanting Bachelor ore, beginning in Summer-2017 from a new 347,000 oz Au In-Pit resource (in all categories) at the Company's 100%-owned Barry deposit (located ~116 km by road from the Bachelor mill) under an improved higher-grade (2+ g/T) model. Barry is a game-changer as it will allow Metanor to process ore at its Bachelor Mill that is NOT subject to a streaming agreement. The Company is rapidly advancing toward reopening mining its nearby Barry open-pit, having received a positive preliminary economic assessment study (PEA) this September-2017 with NPV of $53.5M, IRR of 198% before taxes, and all-in production cost of $1,114/oz (US $891/oz).

Fig. 1 (below) Primary asset: 100%-owned Bachelor Gold Mill

On September 22, 2016 Metanor announced a positive PEA on Barry. Metanor's Barry project now appears destined to become the first to achieve a steady gold production scenario amongst a handful of players (include Osisko Mining Inc.'s prolific Windfall Property, Bonterra Resources' Gladiator Deposit, Beaufield Resources' Macho claims, and Urbana) whose gold system collectively is part of a new mining camp in the Barry-Urban township of Quebec.

Significant cash flow without high development costs at Barry open pit:

Read the whole thing at an IRR of 246% before taxes. Spot gold is currently (as of October 6, 2016) near C$1,660, and many believe substantially higher gold prices are in the cards. Under the base PEA we are looking possibly C$15M+ in positive cash flow per annum from Barry, under current gold prices we are looking closer to C$23M+ per annum in positive cash flow. Important to note is that Metanor will pay no taxes for at least the first 2 - 3 years with its loss carry forward on the books, plus there is no streaming agreement on the Barry project.
https://www.miningmarketwatch.net/mto.htm for yourself.

Love, you all, TheDonald