A tailings permit is the only thing that Metanor Resources (MTO-V) needs before starting up the Bachelor Lake mill in Desmeraisville, Que., despite an economic assessment released on Oct. 30 with a long list of milestones needed before production.
Geostat International started the assessment last spring, but while the study was carried out, Metanor initiated 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 property, located 65 km southeast, 113 km by road.
We were obligated to release (the economic assessment), says Metanors vice-president 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 7,000 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.
On top of that, resources at the Barry deposit have doubled.
Measured and indicated resources for the Barry deposit now stand at 52,000 oz. gold and 126,000 oz. under the inferred category 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 returns royalty on the Barry deposit held Murgor Resources (MUG-V).
As a part of the deal, 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 Nelligan property, both held by Murgor and Freewest Resources (FWR-V). 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 Murgors remaining 1% NSR. Murgor and Freewest will each hold 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 were down 2.6% in Toronto today, or 2, to 75 on a trading volume of 191,000 shares.
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