VANCOUVER — Junior producer Metanor Resources (TSXV: MTO) expects that a restart at its Barry open pit gold mine in Val-d’Or, Que., will bring new life to the company, considering cash flow and profits from its flagship Bachelor underground gold mine, 150 km north, are being hampered by a gold stream.
Ronald S. Perry, vice-president and treasurer of Metanor, tells The Northern Miner during a phone interview that any advancement on mine life at Bachelor “is a win” for Sandstorm Gold (TSX: SSL; NYSE-MKT: SAND) – a royalty and streaming company that gave Metanor US$20 million in 2011, in exchange for a 20% purchase of Bachelor’s life-of-mine gold production for US$500 per ounce.
“Sandstorm has been a great financial partner and supporter of our business. At the time, the deal made sense, but then inflation hit and we got caught up in cost escalations,” he says. “For the past four years we’ve been in a position of weakness, mainly operating our company for our financial partners. But with Barry we can finally move into a position of strength, and generate cash flow and profits for our shareholders in 2017 and onwards.”
According to the company’s second quarter results, underground mining at Bachelor produced 8,500 oz of gold from 61,000 tonnes of 4.6 g/t Au, and generated $15.5 million in revenue from gold sales.
Read the entire story at The Northern Miner.