VAL-D'OR, QUEBEC, CANADA--(Marketwire - Aug. 23, 2011) - Metanor Resources Inc. ("Metanor") (TSX VENTURE:MTO) is pleased to provide a further update on its activities at the Bachelor Lake Gold Project. The shaft sinking of 536 feet was completed before the end of July and on budget, including the development of the 2 shaft stations (Levels 13, 14). Over 90% of the equipment required to complete the 5,000 ton bulk sample is already on site. The infrastructures are being upgraded, and are on schedule to be ready for the execution of the bulk sample. The project team is presently working with its operating team and contractor to take over the operation as the shaft sinking is complete, this phase is called the changeover - from shaft sinking to lateral development and should be complete this week. Lateral development and underground infrastructure construction will begin immediately thereafter. Serge Roy, Chairman & CEO and Ghislain Morin, President & COO both stated: "We are extremely pleased that this critical phase at the Bachelor Lake Gold Project has been completed professionally by our project team and on budget".
The Pre-Feasibility Study outlines an average annual production of 60,000 ounces commencing in July 2012 using only 66 2/3% capacity of the 1,200 tonnes per day mill with a cash cost of $464. The project has an 85% IRR with a 10 month payback using gold priced at $1,271/oz. Ron Perry, Vice-President and Treasurer commented "With today's gold price well over $1,800/oz., it is evident that the Bachelor Lake projections will far exceed those noted above".
The 15,000 m definition diamond drilling campaign at Bachelor/Hewfran is well underway and assays are in the laboratory and results are pending. Both the Bachelor Lake and the Hewfran properties, which are accessible by the present shaft, are open in all directions and at depth (with a deep hole intercept at approximately 3,500 feet). This campaign began on surface while the shaft sinking is being executed, and will move to the three new levels 13, 14 and 15 in October. The results of this drilling campaign will be inserted into the Feasibility Study.
About Metanor
Metanor is a Canadian based gold mining company with a focus on adding value per share through efficient exploration, and development of it properties. Maintaining a low risk profile through a strong operating team, sound financial management, and operating in secure jurisdictions like Quebec are key priorities for Metanor's management team.
Qualified Person
Pascal Hamelin, P. Eng, Ing, General Manager of Operations, is the Qualified Person under NI 43-101 responsible for reviewing and approving the technical information contained in this news release.
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such 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 in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
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Contact Information:
514-262-8286
rperry@metanor.ca