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Near-Perfect Recoveries Reported for High-Grade Gold Project

Stockhouse Editorial
0 Comments| April 23, 2018

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Click to enlargeMetallurgy is an important (and sometimes critical) factor to validate the economic potential of a project. Grade is key. Location, scalability, geo-political stability and infrastructure help, but if you can’t extract the commodity (such as gold) from the rock, all projects will quickly fail miserably.

For this reason, answering these questions early in the project’s life cycle helps provide confidence to management to push towards the engineering stage – and a Preliminary Economic Analysis (PEA) or Feasibility Study. At minimum, companies seek to deliver a 90%+ recovery, specifically in the gold sector.

Realistically, when modelling the economics, optimization of metallurgy will allow a 95%+ recovery rate, significantly enhancing the profitability of a mining project. Every percentage point counts in mining.

Bonterra Resources’ Gladiator Gold Deposit has already demonstrated excellent grades (>9 g/t gold). The Gladiator Project is located in mining-friendly Quebec and near infrastructure. Now this Project has met its last and biggest de-risking milestone: near-perfect metallurgical recovery, highlighting one of the cleanest deposits in the industry.

On April 17th, 2018, Bonterra Resources Inc. (TSX: V.BTR, OTCQX: BONXF, Forum), reported a gold recovery rate of up to 99.4% at its high-grade Gladiator Gold Deposit. This is a level of metallurgical perfection almost unheard of in the mining industry, with even its best peers reporting 95-96% recovery.

This remarkable recovery rate was achieved through the combination of gravity and gravity-cyanide testing. Even Bonterra’s basic gravity circuit produced a recovery rate of 76.1%. Typically, recovery for a gravity circuit process is closer to 35-40%, with some projects as low at 5-10%.

Bonterra’s CEO, Nav Dhaliwal put these results into the following context:

The outstanding metallurgical results, when compared to the overall average lower recoveries within our industry peer group, are a significant milestone for the Gladiator Gold Deposit. The exceptional gravity recovery rates of up to 76.1%, combined with a simple flotation circuit, may reduce capital requirements related to a future potential milling operation.

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Drilling highlights, put in perspective the potential thickness and robust nature of the deposit. Some of the more recent drilling highlights include:


These drill results are spread across many “zones” of gold mineralization on this 10,541-hectare land package. Similarly, on April 9, 2018, Bonterra reported its first drilling intersections on a sixth gold zone at Gladiator, which intersected 11.8 g/t over 2.6 meters.

The Company is now advancing to an updated resource estimate for Gladiator, with completion of the 43-101 Mineral Resource Technical Report expected in the second half of 2018. A focal point for investors: this system remains open in all directions. This means even more potential to significantly increase in the overall size of this gold resource.

Bonterra has been busy. The 2012 resource estimate was derived from a total of 15,600 meters of drilling. Since then BTR has completed more than 100,000 meters of additional drilling. With the potential to increase this resource by many multiples of its current size (273,000 ounces), investors have a great window to take a position now – in anticipation of a substantial revaluation later this year. The resource in 2012 had dimensions of 200 meters strike and 250 meters at depth. The current dimensions of Gladiator is 1,200 meters in length, and 1,200 meters at depth. Close to 500% larger.

With very high grades and exceptional metallurgy, the Gladiator Gold Deposit already demonstrates robust fundamentals as an underground high grade operation. For that reason, it should be no surprise to see who has invested in Bonterra over the last year: Eric Sprott, Kirkland Lake Gold, and Van Eck Gold Fund to name a few.

With such a high-grade resource, Bonterra has the luxury of more than one option as it looks to move this top-rated gold project towards the next stage of engineering studies, and eventually production. The Company’s simple gravity circuit will save on initial capital costs and ongoing operating costs. To maximize recovery, Bonterra will likely add the simple flotation circuit and produce an extremely robust recovery rate.

Currently, gold mine production is falling, a function of the relatively low price for gold. That price must rise to restore sustainability to the gold mining industry. When it does, the high-grade Gladiator Gold Project will look even more appetizing to mining investors.

Grade. Metallurgy. Infrastructure. Location. Institutional/corporate support. Bonterra has all these key check marks, plus (coming later this year) a new resource estimate with significant upside potential.

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www.bonterraresources.com


FULL DISCLOSURE: Bonterra Resources Inc. is a paid client of Stockhouse Publishing.


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