Metanor Gets Results At Barry Pit, Nelligan

Metanor Resources (MTO-V, MEAOF-O) has been seeing promising results from expansion drilling at its Barry pit at the operating Bachelor Lake gold mill, in Desmaraisville, Que., and at the Nelligan property just west of Bachelor Lake, and its share price has responded.

Most recently, it reported that drilling at Nelligan, in which it has an option to earn a 70% interest from Murgor Resources (MGR-V, MGRRF-O), hit a new gold-bearing shear zone. From surface, hole 2 cut 4.5 metres of 28.06 grams gold per tonne uncut, or cut to 1 oz. gold per ton, 6.61 grams gold.

The interval included sections of 0.5 metre grading 234 grams gold on the hangingwall and 0.7 metre of 17.9 grams gold on the footwall of the zone. True widths are estimated at 80-90% of apparent widths. Other assays are pending.

The new discovery is located on the Valley group at Nelligan, and is about 10 km southwest of the Bachelor Lake mill.

The company says the results confirm the potential for new mineralization in the deformation corridor that stretches west from the Bachelor mine.

Metanor shares were up 6¢ or more than 10% to 63¢ on the news, near the stock’s 52-week high. The shares traded as low as 26¢ last October.

Murgor Resources shares climbed 1¢ or 5% to 20¢ on the Nelligan drill results.

At the Barry pit, which Metanor is currently mining, positive results have prompted management to order a new drill to help delineate a new 500-metre-long zone located 80 metres south of the Main zone. The pit is open in all directions and a resource estimate is under way.

In early September, Metanor reported that hole 409 at Barry returned 7.8 metres (from surface) of 7.71 grams gold per tonne in the Center zone, which connects the West zone to Zone 43. Just 10 metres west, hole 370, an earlier hole, cut 27 metres of 4.86 grams gold from 43 metres depth.

Commercial production at Bachelor Lake with ore from the Barry pit began last October. Metanor is in the midst of an expansion at its operations that will increase mill capacity to 1,200 tonnes per day from 800 tonnes this year. The company is also completing work at Bachelor Lake, including a new hoist and shaft sinking, that will allow underground mining to begin next summer.