Metanor Resources MEAOD

Increased BL Shaft v Source gold ounces < 50km from mill

[JRafflesUK]

Cost / benefit of sourcing additional ounces for BL from potential new ore zone, 250m below existing shaft, or alternatively sourcing near surface ore at less than half the trucking distance of Barry from BL (Ref page 20 of the presentation).
 
Ounces less than 50km from BL include:-
 

Ounces	Location name
82,300	Lac Shortt
45,000	Mariposite
24,000	Gandex
64,800	Fenton
84,800	Pusticamica
300,900	Total ounces

 
 

• SSL is not required to provide additional capital to fund a 250m increase in the existing mine shaft. 
• In addition, SSL will be entitled to 20% of the new ounces produced.
• Moreover, SSL is only contractually liable to contribute $500 per ounce of gold under their 20% stream.
• The current cash cost is circa $998 and therefore MTO will be required to contribute at least half of the cash costs of SSL’s stream.

 
Therefore, the cost of acquiring the above 300k ounces will need to be compared and contrasted with the cost of a 250m shaft increase and the fact that the ounces at BL will be subject to SSL’s 20% stream and production contribution of about $500 per ounce.
 
A scenario could arise where SSL may decide to voluntarily reduce its stream, in order to achieve a smaller share of a bigger cake.