Commentaries

Metanor Resources Update

MiningMarketWatch.net recently sent an update on Metanor Resources, which is one of my top penny mining stock picks. Metanor has exceptional management, great upside potential, and is a gold producer. Cash cost per ounce should be around $US 500 per ounce. I don’t of too many new gold producers you can buy today with a 1Moz+ gold resource, targeted to produce 60K-70K ounces of gold per year, with a cash cost of just $500 dollars,  run by a great management team , and you can buy for about 50 cents/share. If you do, then please let me know. For more information, see Metanor Resources Trading Card for my complete review.

Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is a story of gold resource growth and valuation:

Gold Resource Growth: Both the Barry and Bachelor Lake deposits are wide open for resource expansion and the Barry deposit appears to hold the potential to take Metanor to mid-tier producer status. A new NI 43-101 compliant resource estimate on the Barry deposit is expected to be released within days and is the subject of a Special Situation Advisory.

Valuation: Once Bachelor Lake underground comes online we expect at least 5-6 g/t (mixing Bachelor & Barry ore) at 1200TPD with ~95% recovery, this should result in between 60,000 – 70,000 ounces gold per annum, with an anticipated blended direct cash cost under US$500 — it is obvious the stock of MTO.V is poised for significant upside revaluation. The current valuation of MTO.V is less than 2/3 the $150M infrastructure value alone ignoring the 1Moz+ gold resource, growth potential, and gold production potential. With 128,450,005 shares outstanding and currently trading under CDN$0.70/share, the present valuation appears to present exceptional opportunity. Source:http://miningmarketwatch.net/mto.htm

Source: http://goldstockmania.com/metanor-resources-update-7-2-2010/