News Feed Item

Metanor Announces Positive PEA on its Barry Gold Project: NPV of $53.5 M and IRR of 198% Before Taxes

VAL-D'OR, QUEBEC -- (Marketwired) -- 09/22/16 -- Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to present the highlights from the positive preliminary economic assessment study (PEA) completed by GoldMinds Geoservices Inc. on its Barry gold project (Mining Lease BM number 886) which is located 100 km east of Lebel sur Quevillon and 115 km south of the Bachelor Mine in Quebec.

Highlights of PEA Barry ((i)) all in CAD dollars, include:

--  Net present value (NPV) before taxes (at 6%) of $53.5 million; 
--  Internal rate of return (IRR) before taxes of 198%; 
--  NPV after taxes (at 6%) of $25.9 million; 
--  IRR after taxes of 94%; 
--  Capital startup of $8.5 million; 
--  Payback of 0.71 years with a gold price of $1,560 / oz; 
--  All-in production cost of $1,114 / oz (US $891 / oz); 
--  For the life of the mine, a production of 193,457 ounces of gold over 9
--  An average of 21,495 ounces of gold production with up to 37,573 ounces
    in year 2; 
--  Milling of 1,200 tonnes per day at the Bachelor plant, with an average
    grade of 1.75 g/t diluted for the life of the mine including the first 3
    years at 2.61 g/t with a metallurgical recovery of 95%; 
--  Sterile ration mineralization of 2.17 to 1. 

Mr Ghislain Morin, President and CEO of Metanor Resources Inc., declared, on behalf of the board of directors: "This positive preliminary economic study is an important milestone for Metanor. We point out that the deposit is located on a Mining Lease previously granted, the deposit is ready to be exploited and it has the potential for expansion. Moreover, there are no steaming agreements covering the Barry project. We will be moving quickly with startup planned for the summer of 2017, following a feasibility study which will include current drilling results. "

The Study

The Barry gold mine could potentially support an open pit mine with a conventional treatment plant using mineral industry standards, including: crushing, grinding, gravity concentration, cyanide leaching tanks, adsorption of gold by coal activated desorption of coal, electrolytic sensing, refining and reactivation of coal in addition to the destruction of cyanides released from the leach circuit. The Bachelor processing plant has been resized for an annual capacity of 420,000 tons in this preliminary technical and economic study (PEA). The anticipated gold recovery is expected to exceed 95%. No provision has been made for the treatment of low mineralized material and content for material that could be mined by underground method. The calculation of the tax and mining rights was conducted by the firm Raymond Chabot Grant Thornton (RCGT) of Val d'Or from a cash flow document prepared by GMG. The current scenario plans for transport by road train of 150 tons. An average milling index of 13.3 kWh / t is used.

The pit resources in all categories totaled 2.23Mt @ 1.54 g / t measured, 270kt @ 1.40 g / t Indicated, and 1.17Mt @ 2.69 g / t inferred. The pit resources are derived from the total mineral resources using a model of blocks 3m E x 3m N x 3m Z - rounded - capped at 35 g / t, with a cutoff grade above 0.66 g / t.

Classification                         Mineral Resources
                         Tonnage    Grade Au  Au content
                               T         g/t          Oz
Measured               2,225,000        1.54     101,000
Indicated                270,000        1.40      12,000
Measure + indicated    2,490,000        1.52     122,000
Inferred               1,170,000        2.69     101,000

Classification                                Waste                    Total
                       Tonnage  Grade Au Au content   Tonnage    Sterile/ore
                             T       g/t         Oz         T               
Measured             4,175,000      0.24     33,000 6,400,000               
Indicated              515,000      0.21      3,400   780,000               
Measure + indicated  4,690,000      0.24     36,000 7,180,000               
Inferred             2,660,000      0.07      6,000 3,825,000               
Technical Summary                                                          
Mine life (LOM)                                                     9 years
Pit resources                                                       3.612Mt
Average diluted grade gold                                         1.75 g/t
Uncovering rate (sterile ration: ore)                                2.17:1
Tonnage treated per year                                           420,000t
Average annual production sold                                    21,495 oz
Gold produced and sold total                                     193,457 oz
Main Capital cost                                                       CAD
Overburden stripping                                                      0
Processing plant                                                     $1.1 M
Road repairs (40 km)                                                   $2 M
Mine, Drilling, Feasibility                                         $2.85 M
Tailings                                                            $0.55 M
Infrastructure                                                         $2 M
Total starting capital cost                                          $8.5 M
Operation cost (per ton processed)                                      CAD
Mining cost                                                        $27.28/t
Processing cost                                                    $19.90/t
Exploration (resources renewal)                                     $2.01/t
Accommodation & employee transportation                             $1.88/t
Increasing of the tailings pond capacity                            $0.15/t
Administrative fees                                                 $6,76/t
Financial results before taxes with a price                                
 of gold at 1,560 / oz (CAD)                                               
NPV at 6%                                                           $53.50M
IRR                                                                    198%
Cost for the production of one ounce                               $1114/oz
Capital reimbursement period                                        0.58 yr
Available Cash Flow                                                $61.15 M
Financial results after taxes with a price of                              
 gold at 1,560 / oz (CAD)                                                  
NPV at 6%                                                            $25.9M
IRR                                                                     94%
Capital reimbursement period                                        0.71 yr
Available Cash flow                                                 $30.95M

The financial analysis using a price of gold of CAD$1,710, representing a 10% increase from the $1,560 used in the PEA would generate a NPV of $78.07 million with an IRR of 246% before taxes.

((i)) Cautionary statement NI 43-101: The Mineral resources presented here are not mineral reserves, because they have not demonstrated economic viability. The PEA is preliminary in nature and includes inferred resources that are considered speculative geologically to have economic considerations that would categorize them into mineral reserves. There is no certainty that the conclusions of the PEA will be realized. The technical report will be filed within 45 days on SEDAR.

About GoldMinds Geoservices Inc.

Goldminds Geoservices Inc. is a consulting engineering firm specializing in the technical reports NI 43-101, the estimation of mineral resources, drilling program management, geological exploration and geotechnical studies. Goldminds Geoservices Inc. was founded in 2012 by Claude Duplessis, P.Eng., Who was the owner of Geostat Systems International Inc. founded in 1981 by Michel David. Geostat was specializes in geostatistics, orebody modeling, estimation of mineral resources, exploration, pre-feasibility study, and other services. In 2008, Geostat Systems International Inc. was sold to SGS based in Geneva, Switzerland and Mr. Duplessis worked as director / consultant of SGS Geostat division in Blainville until 2011.

Qualified Persons

Pascal Hamelin, P. Eng., Vice-president of Operations, is the Qualified Person under NI 43-101, responsible for reviewing and approving the technical information contained in this news release.

Claude Duplessis, Ing., Gaston Gagnon, Ing, and Gilbert Rousseau, Ing, of Goldminds Geoservices Inc., are the independent qualified person under NI 43-101 who have prepared and reviewed the technical information contained in this release.

Cautionary and Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements".

The potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. All statements in this discussion, other than those of historical fact, that address future exploration drilling, exploration activities and projected exploration, including costs and other estimates upon which such projections are based, and events or developments that the company expects, are considered forward-looking statements. Although the Company believes the expectations expressed in these forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements.

Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.