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Research Report - Metanor Resources to Prepare Q4 Bulk Sample Leading to 60,000 oz per Annum Gold Production
Metanor Resources Inc. (TSX-V: MTO) (Pink Sheets: MEAOF) (Frankfurt: M3R) is the subject of two separate research reports this week by Industrial Alliance Securities and Market Equities Research Group. The Industrial Alliance report follows a site visit by its mining analyst whom states there are "no barriers left to Metanor's success". The Market Equities Research report provides an in-depth analysis of Metanor, identifying a near-term price target of C$1.35 as MTO enters gold production at its Bachelor Lake Mine and Mill in Quebec. Both reports follow news from Metanor that it has completed sinking of the mine shaft on time and on budget.
 The reports may be accessed via online.
 Metanor is on schedule at its newly refurbished 1200TPD Bachelor Lake Mine & Mill, in Quebec. MTO is expected to prepare a bulk sample in Q4 2011, leading to a ramp-up in production that will see a run rate of 5,000 ounces gold per month (60,000 oz per annum) by Q3 2012 at an estimated cash cost of US$464/oz gold using 2/3 capacity of the 1200 TPD mill. MTO is leveraged to the price of gold, able to sell 80% of its Bachelor Lake Mine sourced gold at spot prices with the balance sold to Sandstorm as per gold participation agreement. With gold forecasted by respected analysts to remain near or above US$2,000/oz as MTO begins selling in 2012, MTO is positioned to generate enormous free cash, dwarfing the original Stantec projections used for validation (based on an initial three year mine life). MTO has identified zones (see page 4) that we believe will contribute to extending mine life closer to 10 years. This interpretation was corroborated following a site visit to Bachelor Lake by an analyst from Industrial Alliance earlier this year, prompting commentary back-of-the-envelope calculations of (non 43-101) 700,000oz resource achievable based on deep hole intercepts and extrapolation of data. MTO has tremendous leverage to adding more mineable ounces, a plan to augment these resources, and high exploration potential at its properties.
 Metanor's infrastructure is valued between CDN$150M - $200M, is fully paid, fully permitted, fully functional with proven production capabilities (having poured >40K oz gold from interim sourced ore). The intrinsic value of Metanor’s known resources (~1.6M oz gold in all categories on all its properties) and infrastructure are several times the company’s current market capitalization; we believe MTO is a high value buyout candidate as it enters gold production and should gravitate upwards towards a per share valuation of C$1.35. ##