PRZOOM - /newswire/ -
New York, NY, United States, 2008/04/29 - Metanor Resources (TSX-V: MTO) (Pink Sheets: MEAOF) is a new, debt-free, unhedged, gold producer in mining friendly Quebec and the subject of video insight that showing Canada's newest gold producer in operation.
Metanor is a new, debt free, unhedged, gold producer in mining friendly Quebec and the subject of video insight that shows Canada's newest gold producer in operation. With less than 73M shares outstanding, no debt, and infrastructure replacement value of approximately $140M; the current intrinsic value (ignoring gold resources, growth, and cash flow from production) is close to CDN$2 per share. Valuation metrics based on forward projected cash flow potential of Metanor's Bachlor Lake Mill operating at full capacity of 1200 TPD and generating in excess of 65,000 oz gold in 2009 suggests a substantial upside share price adjustment as Metanor continues to execute upon its goals.
The video may be seen at the URL below and is available both in flash and WMV format.
Existing resource base and expansion potential:
Metanor Resources’ (TSX-V: MTO) (Pink Sheets: MEAOF) current gold resource base between Barry Deposit, Bachelor Lake Mine, Hewfran Property, and Dubuisson Property is approaching 1,000,000oz. The potential is in place to identify 1.5 million ounces going forward at the Bachelor Lake Mine site. Area miners such as Teck Cominco Limited (NYSE: TCK) and Agnico-Eagle Mines Limited (NYSE: AEM)(TSX: AEM) are currently mining at depths of between 5,000 and 8,000 feet. The gold grade at the Bachelor Lake property increases at depth and the strike is open in all directions at the 2,300 foot mark.
At the Barry Deposit where ore is currently being mined for processing at the Bachelor Lake Gold Mill, Metanor has commenced a 15,000 meter diamond drilling program. This drilling campaign was initiated to the southwest of the main zone trying to connect the main zone with zone 48. Due to the core samples taken to date with visible gold present, Management has mobilized a second diamond drill to the Barry camp and the second drill is presently on site and operating at full capacity.
Additional resource base expansion potential is available to Metanor via new discoveries such as its Nelligan project and also via local proven deposits. There is 1.5M oz in local deposits available for MTO to do business with as Metanor is the only mill within a 60 mile radius.