Metanor Resources (MTO.V) has announced it produced 13,083 ounces during the second quarter of this year, and based on the earlier published production numbers for April and May, the company produced ‘just’ 3825 ounces of gold which is a lot less than the impressive number of 5,202 ounces in May. No explanation was given by the company but we think this reduction is mainly due to a reduction in the average gold grade.
However, we are encouraged by the new exploration programme announced by the company at the Bachelor Lake mine. Metanor expects to drill 60-65,000 meters and even though such a drill program will come at a cost of roughly $12-15M, we hope the company will both increase the confidence in the current resources (which will increase the mining efficiency of the underground operations) as well as expanding the resource estimate to show the market the Bachelor Lake mine will operate for much longer than what the current resource estimate shows.
> Click here to read the press release
Disclosure: The author holds a long position in Metanor Resources. Metanor is a sponsor of the website. Please see our disclaimer for current positions.
