Metanor Resources MEAOD

RE:Trucking of Barry Ore

[BASTILLEDAY4U]

BASTILLEDAY4U wrote:
Sectornewswire excerpt page 5: Transportation. This represents a significant cost associated with trucking material from the mine site to the mill, located just over 100km away by road. MTO is considering a road upgrade to accommodate road train from 80 to 100 tonnes. In the past, we understand that 50 tonne trucks were used, thus it may be possible to dramatically reduce haulage costs.

Found a 2010 Laurentian Bank document with an excerpt on the cost to truck the Barry ore. My point being transportation costs are enormous. "Having foresight to acknowledge that the underground mine required significant capital to rehabilitate, the Management looked for strategic alternatives to reduce the initial capital costs. Subsequently, the Company acquired the Barry Property (open pit) to feed the mill and commence generating cash flows. Gold bars were produced within 1- years of acquiring the mill, however, cash costs remain high due to transportation (Barry~116 km from the Bachelor Mill). To reduce transportation costs as well as overall costs, the Company plans to systematically reduce the ore being fed to the Bachelor Mill from the Barry (open pit) and increase production through the extraction of higher-grade ore from the Bachelor (underground), expected to come on line by the end of 2010.