VAL-D'OR, QC, Oct. 20, 2017 /CNW/ - Metanor Resources
Inc. ("Metanor") (TSX - V: MTO) is pleased to report on its
financial results for the quarter (Q4) and year ended June 30th, 2017. This press
release should be read in conjunction with Metanor's financial
statements for the year ended June
30th 2017, and the related Management's
Discussion and Analysis (MD&A), which can be found on the
Company website www.metanor.ca or on SEDAR www.sedar.com. All
amounts are in Canadian dollars unless otherwise stated.
Q4 2017 HIGHLIGHTS FOR THE QUARTER
- Gold production 7,248 ounces for the quarter.
- Gold sales of 7,416 ounces for the quarter.
- $12,462,203 in gross gold sales
for the quarter at an average realised price of $1,681 per ounce sold (US$1,250/oz using an exchange rate of
US$0.74/C$1.00).
- $11,450,316 in net revenues from
gold sales for the quarter after sales of ounces to the stream
agreement.
- Cash cost1 of C$ 1,134
per ounce sold for the quarter (US$
843/oz using an exchange rate of US$0.74/C$1.00).
- 10,260 metres drilled in the quarter
HIGHLIGHTS FOR THE YEAR ENDED JUNE
30TH, 2017
- Gold production of 34,853 ounces of gold for the year.
- Gold sales of 36,620 ounces for the year.
- $60,682,905 in gross gold sales
for the year at an average realised price of $1,657 per ounces sold (US$1,159/oz using an exchange rate of
US$0.75/CND$1.00)
- $56,292,643 in net revenues from
gold sales for the year after sales of ounces to the stream
agreement (compared to $48,313,864
for the year ended June 30, 2016 2).
- Cash cost1 of CND$ 1,021 per ounce sold for the year
(US$ 770/oz using an exchange rate of
US$0.75/CND$1.00) (compared to CND$
$1,212 and US$
929 for year ended June 30,
2016).
- Net loss and comprehensive loss of $404,245 for the year (compared to $7,319,624 for the year ended June 30, 2016) with gross profit of $11,366,984 (compared to $1,154,950 for the year ended June 30, 2016)
- Cash and cash equivalents of $19,392,815 as at June
30th, 2017, pursuant to the closing of three
private placements in the aggregate of $26,282,006 ($6,680,475 from the issuance of flow-through
shares) with working capital of $13,872,583 (compared to cash of $1,888,938 for the year ended June 30, 2016 and a working capital deficit of
$1,322,083 for the year ended
June 30, 2016).
- Common share consolidation on a 10:1 basis, April 13, 2017.
- Repayment of principal amount outstanding of $9,000,000 on secured convertible
debentures.
- Appointments of Messrs. Greg
Gibson, Mr. Akiba Leisman,
Mr. Pascal Hamelin and Mrs.
Christina Ouellette to the Board of
Directors. Mr. Greg Gibson was
appointed Chief Executive Officer and Mr. Pascal Hamelin, Chief Operating Officer.
______________________________________
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1
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The cash cost is
composed of all costs related to the mineral extraction and
processing including royalties associated to the property and
by-product credits.
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2
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As restated pursuant
to the change in accounting policy for exploration and evaluation
expenditures (E&E) to recognize such expenditures in the
statement of comprehensive income for the period
incurred.
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OPERATION SUMMARY
Bachelor Mine overview
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Three months
ended
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Twelve months
ended
|
Operation
results
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June
30TH 2017
|
June
30TH 2016
|
June
30TH 2017
|
June
30TH 2016
|
Tonnes milled
(Tonnes)
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53,372
|
61,002
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239,237
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232,603
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Feed grade
(g/T)
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4.4
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4.5
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4.7
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4.6
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Mill recovery rate
(%)
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96.6%
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96.1%
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96.4%
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96.4%
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Ounces
produced
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7,248
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8,502
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34,853
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33,450
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Ounces
sold
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7,416
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9,887
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36,620
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33,890
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Underground
development (metres)
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1,292
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1,559
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4,638
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6,492
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Diamond drilling
(metres)
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21,544
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24,557
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74,217
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66,748
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EXPLORATION OVERVIEW
During the year ended June 30,
2017, the exploration and evaluation expenditures net of
credit on duties and tax credits were of $5,590,125 compared to $4,051,739 for the same period in the prior year.
This increase of $1,538,386
represents exploration work performed mainly on the Moroy and Barry
properties. Exploration and evaluation expenditures for the
three-month period ended June 30,
2017, were $1,748,809.
Bachelor Mine
In the last year, the exploration drilling continued in the
Hewfran sector to verify the extension of the Hewfran stopes below
level 14 and further west on level 8. An additional drill was
mobilized in May 2017 to further
explore below level 16 in the Main vein. In the coming months, the
underground exploration drilling will be on the Moroy structure
south of Bachelor.
During the last quarter of 2017, a compilation of historical
geological data on all properties in the Bachelor block, was
undertaken. The objective of this exercise is to identify areas for
future exploration work.
BARRY PROJECT
- 17,815 m drilled for the year, 9,688 m for the quarter:
-
- Presence of a series of high grade gold sub-vertical shears
below the three small pits;
- Presence of a gold bearing contact zone against intrusive
dyke.
- The Company increased to two drills in May focusing on the
shear type structures below and laterally from the pits.
BARRY UNITED – pits sector
During the last quarter, 9,955 metres from 22 holes were drilled
around the pits. These holes have intersected several gold zones
associated with shear zones, located in the Southeast sector of the
pits. The average thickness of all intersected shears was 2.5
metres, ranging from a half meter to over 9 metres. Gold grades
ranged from 1.5 grams to 14.8 grams of gold. Occasionally, gold
grades were greater than 30 grams; then they are associated with
visible gold. These holes were published in the press release dated
June 8, 2017. The possibility of
underground extraction of the new auriferous gold-bearing lenses is
excellent. The next phase of work involves infill drilling.
BARRY UNITED - MOSS sector
A surface exploration campaign began in June, 2017, and 1,593
metres (10 holes) were drilled. The purpose of A surface
exploration campaign began in June, 2017, and 1,593 metres (10
holes) were drilled. The purpose of these holes is to extend
gold-bearing known zones in the Moss sector and to test some of the
geophysical conductors present along the NE-regional fault, which
controls the gold mineralization of the area. Gold zones were
intersected by these drill holes on a few locations on the
property. A follow-up is currently underway in the prospective
sectors.
UPDATE ON BARRY
On August 28, 2017: Metanor
announced that it had intersected 7.1 g/t Au over 8.2 metres in a
shear zone at Barry and the outlining the high-grade gold bearing
shear zones. Since June 8, 2017, 21
holes have been drilled and assayed and they have all intersected
multiple shears at various depth. The shears are now showing
continuity over 600 metres along strike, and 400 metres
vertically. A minimum of 5 parallel shear zones have been
identified so far while remaining open along strike and at
depth
On October 16, 2017:
Metanor announced the extension of existing shear zones down to 400
meters toward the east, and intercepts 27.8 G/T Au over 3
metres. Pursuant to the results released August 28, 2017 an additional 24 holes have been
drilled for a total of 11,163 metres.
SUBSEQUENT TO YEAR END
On September 29, 2017, the Company
completed the transactions relating to the amending agreement with
Sandstorm Gold Ltd., effectively reducing the existing gold stream
on the Bachelor mine (which required the Company to sell 20% of its
gold production at the fixed price of US$500) and replacing it with a 3.9% net smelter
return royalty (NSR) on all minerals produced from the Bachelor and
Barry properties (includes the surrounding exploration properties
held by the Company), of which 2.1% of the royalty can be
repurchased upon payment of US$2M for
each property, thereby reducing the NSR to 1.8%. These new terms
will become effective once the Company has delivered to Sandstorm,
12,000 ounces of gold at the fixed price of $US500. As part of the consideration, the Company
issued 3,164,156 common shares to Sandstorm, at the deemed price of
$0.77 per common share, for an
aggregate value of $2,436,400.
On October 10th, 2017,
the Company filed a Notice pursuant to NI51-102 (available under
the Company's profile at www.sedar.ca) advising of a change to its
year-end from June 30th to
December 31st.
Qualified Persons
Pascal Hamelin, P. Eng.,
President and Chief Operating Officer, is the Qualified Person
under NI 43-101, responsible for reviewing and approving the
technical information contained in this news release.
Cautionary and Forward-Looking Statements
This press release includes certain statements that may be
deemed "forward-looking statements". The words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" and similar expressions, as they relate to the
Company, are intended to identify such forward-looking statements.
Investors are cautioned that forward-looking statements are based
on the opinions, assumptions and estimates of management considered
reasonable at the date the statements are made, and are inherently
subject to a variety of risks and uncertainties and other known and
unknown factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These factors include, among others, the development of the
Company's properties, and the further potential of, the Company's
properties, the ability of the Company to successfully achieve
business objectives, the impact of general business and economic
conditions, fluctuating gold prices, changes in the Company's
corporate mineral resources, changes in project development,
permitting time lines, permitting and licenses, government
regulation of the mining industry, environmental regulation and
reclamation obligations, risks relating to litigation, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims. Should one or more
of these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Although the Company has attempted to identify important risks,
uncertainties and factors which could cause actual results to
differ materially, there may be others that cause results not be as
anticipated, estimated or intended. The Company does not intend,
and does not assume any obligation, to update these forward-looking
statements except as otherwise required by applicable law.
Neither the TSX Venture Exchange, nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE METANOR RESOURCES INC.