Post by
gnote1 on May 02, 2018 6:18pm
No Sell-off today, hmmmm!
Wonder why, with the bashers touting how terrrible the financials were there was no major sell-off today and we're even in the green! Who would have thought!
METANOR REPORTS ITS FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017 May 1, 2018 - Val-d'Or, Quebec, Canada: Metanor Resources Inc.
("Metanor" or the “Company”) (TSX - V: MTO) reports its financial results for the quarter and year ended December 31, 2017. This press release should be read in conjunction with Metanor’s financial statements for the year ended December 31, 2017 and the related Management’s Discussion and Analysis (MD&A), which can be found on the Company’s website www.metanor.ca and on SEDAR www.sedar.com. All amounts are in Canadian dollars unless stated otherwise.
KEY DEVELOPMENTS
Corporate Refocusing: Simultaneously Increasing Production and Exploration Programs By Leveraging Our Infrastructure. The Company is currently developing new mining areas with the intent of mining greater tonnages in the near future. Management firmly believes that the Company is in the strongest position within the Urban-Barry Camp as Metanor has the only permitted mill, and most advanced infrastructure in the Camp. This competitive advantage, along with our robust organic exploration and development opportunities put us in the prime position to reap the rewards of what is likely to be significant consolidation within the Urban-Barry district.
Metanor has begun a public consultation, as part of the permitting process to increase the daily capacity of it’s mill from 800 tonnes per day to 2,400 tonnes per day. This increased capacity at Bachelor would allow feed from the Barry project, the Bachelor mine and Moroy sector.
Metanor is also focusing on developing Moroy 1 km south from Bachelor mine which, if successful, could generate enough ore, in the short term to increase the tonnes milled per day to 800 tonnes (the quantity the mill is currently permitted for) from the current milling rate of approximately 525 tonnes per day. Increasing the milling to 800 tonnes per day would have a significant positive impact.
The development on level 11 of the Bachelor Mine toward the Moroy deposit, 1 km south of the Bachelor Mine, continued in the period. A second diamond drill on level 11 was commissioned in the period to define the Moroy structures from underground and 5,566 metres were drilled in the period.
The Company restructured its streaming contract with Sandstorm Gold Ltd., as it believes it to be in the best interest of the Company to end the requirement to sell 20% of the gold produced from its Bachelor mine (which includes the Moroy sector) to Sandstorm, at US$500 per ounce of gold, in exchange of a 3.9% NSR on the Company’s properties (of which, 2.1% can be repurchased). The Company began the construction of a new camp at the Barry project, to accommodate the additional workers required to proceed with an underground bulk sample scheduled for this year (2018).
Using two drills, 32,271 metres were drilled at the Barry Project in the period focusing on the shear type structures below and laterally from the pits. These drill results have led to: o Presence of a series of high grade gold sub-vertical shears below the three small pits, 1,500 metres along strike length, and a depth of 440 metres; o Presence of a series of gold bearing tension veins associated with the shears; o Since then, a third drill was added to the Barry project to accelerate the definition of the veins.
A total of 16,709 metres of surface drilling were completed on gold targets mainly in the Urban-Barry, and Bachelor camp.
HIGHLIGHTS FOR THE TRANSITIONAL YEAR ENDED DECEMBER 31, 2017 The Company has changed its fiscal year end from June 30 to December 31, to better align its reporting requirements with its industry peers. Therefore, the reader should consider that the amounts presented in the financial statements are not entirely comparable, as the transitional fiscal year ended December 31, 2017, is a six-month period and the comparative information is for the full twelve-month fiscal year ended June 30, 2017.
Gold production of 13,651 ounces of gold leading to gold sales of 12,895 ounces from Bachelor Mine;
$20,800,441 in gross revenues from gold sales at an average realized price of $1,613 per ounce sold (US$1,278/oz using an exchange rate of US$0.7926/C$1.00);
$18,647,281 in net revenues from gold sales for the quarter after sales of ounces in the stream agreement.
OPERATION SUMMARY Three months Ended Three months Ended Six months Ended Twelve months Ended 31-Dec-17 31-Dec-16 31-Dec-17 30-Jun-17
Operational Summary Drilling - metres Underground development 1,263 999 2,589 4,638 Diamond drilling Bachelor 10,239 7,748 21,204 35,796 Diamond drilling Barry 12,864 7,843 32,271 17,815 Diamond drilling Moroy 4,961 2,832 5,566 10,969 Diamond drilling Other 10,113 0 16,709 10,401 Tonnes milled 44,979 61,790 97,261 239,238 Feed grade (g/t) 4.54 5.1 4.51 4.7 Mill recovery rate (%) 96.8 96.5 96.8 96.4 Ounces produced 6,358 9,764 13,651 34,853 Ounces sold 5,848 10,430 12,895 36,620
Financial results
Gross sales $ 9,456,192 16,917,461 20,800,441 60,682,905
Net sales $ (net streaming) 8,098,420 15,874,919 18,647,281 56,292,643 average realized price $ 1,617 1,522 1,613 1,657 average realized price US $ 1,272 1,141 1,278 1,159
Exchange rate US to CDN $ 0.7867 0.7500 0.7926 0.7500 Cost of sales $ 9,747,406 12,565,028 19,865,998 44,925,659