A tailings permit is the only thing that Metanor Resources (MTO-V, MEAOF-O) needs before starting up the Bachelor Lake mill in Desmaraisville, Que., despite an economic assessment released on Oct. 30 that provided a long to-do list of tasks to be completed before production.
Engineering consultants Geostat International started the assessment last spring, but while the study was carried out, Metanor started work on many of the recommendations outlined in the report.
The company has invested $12 million on the rehabilitation of the Bachelor Lake mill and prepared for a 50,000-tonne bulk-sampling program at the Barry gold property, 65 km southeast, 113 km by road.
“We were obligated to release (the economic assessment),” says Metanor’s vice-president of corporate development, Ghislain Morin. “We have the permitting for the Barry pit bulk sample. . . We only need that little permit to go ahead.”
Last spring, Metanor said it would be a gold producer by the end of this year. If the company gets the tailings permit in time, the company will have just met its goal.
“We already have seven thousand tonnes crushed and stockpiled at the mine site right now,” Morin said.
The company has repaired the road between the mill and the Barry pit, built a bridge over the Pinache River, cutting the round-trip distance by 32 km. All positions have been filled and cookeries have been installed at both camps, where about 60 staff in total will reside.
Metanor has also doubled resources at the Barry deposit.
Measured and indicated resources there now stand at 52,000 oz. gold plus 126,000 inferred oz., while measured and indicated resources at the Bachelor Lake mine are 210,000 oz. gold and 90,000 oz. gold inferred.
Metanor also raised $20 million and bought 7% of the 8% net smelter return (NSR) on the Barry deposit held by Murgor Resources (MUG-V, MUGRF-O).
As a part of the deal with Murgor, Metanor will acquire eight additional claims on the Barry property as well as a 100% interest in the surrounding Barry United property and an option to acquire 70% of the nearby Nelligan property. Barry United is held jointly by Murgor and Freewest Resources (FWR-V, FWERF-O). The price of the deal comes to about $901,000, plus $200,000 upon production of Metanor’s first gold ounce as an advance for Murgor’s remaining 1% NSR. Murgor and Freewest will each hold a 0.5% NSR for Barry United, while Nelligan is subject to a 2% NSR from a previous agreement.
“The money has been raised and spent on the mill, the road has been repaired, we are ready for production,” Morin says.
Metanor shares traded at around 75 recently in a 52-week trading range of 50-$1.37.
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