Metanor Resources (MTO.V) announced new drill results from its underground drill program which is aimed at increasing the resources at Bachelor Lake by drilling between levels 13 and 14. The returned intercepts are better than expected, as the company intersected 13.1 meters of 11.9 g/t gold and in excess of 17 meters at more than 1/3rd of an ounce per tonne. Unfortunately the true width of these intercepts is anywhere between 10 and 40%.
This bodes very well for an eventual resource expansion, as the grade and length of the intercepts are excellent (keep in mind that the average head grade at Bachelor Lake is approximately 5-7g/t), so intercepts with a double digit amount of gold will be extremely beneficial for the future output and cash cost at Bachelor Lake.
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Disclosure: The author holds a long position in Metanor Resources. Please see our disclaimer for current positions.
