Metanor Resources (MTO.V) has produced 4,234 ounces of gold (at an average head grade of 7.31g/t and a recovery rate of almost 97%) in February which once again means the company has reached a very steady production level. Also keep in mind February has just 28 days so if the month would have counted 30 days, the production would very likely have been higher than 4,500 ounces, or approximately 55,000 ounces of gold per year. The cash cost for Q4 2013 was just $766/oz which means the operating margin at the current gold price is more than $600/oz, which bodes extremely well for the Q1 financial results.
Additionally, Metanor has announced it has extended the main vein almost 250 meters below its current infrastructure, as it intercepted 2.9 meters at 6.23g/t (with a true width of 65%). This bodes very well for a future resource expansion at Bachelor Lake and once again emphasizes the mine life at Bachelor Lake will very likely be longer than anticipated in the pre-feasibility study.
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Disclosure: The author holds a long position in Metanor Resources. Please see our disclaimer for current positions.
