GOLD STUDY: Bachelor Lake PFS outlines profitable operation, 85% IRR

QUEBEC - The pre-feasibility study conducted for Metanor Resources of Val d'Or, QC, indicates that its Bachelor Lake gold project near Desmaraisville will be profitable with an 85% internal rate of return (IRR). Over the initial three years of underground operation, the project would pour about 200,000 oz of gold and generate over $96 million of free cash flow.

Pre-production capital costs are estimated to be $35.4 million. Costs are low because there is an existing mill and surface infrastructure. Total operating costs are planned at $464/oz during the production phase.

Work has begun on deepening the shaft another 165 metres to allow development of two new levels allowing a 5,000-t bulk sample to be mined. Metanor's team is working on the feasibility study, and a production decision may be made by the end of this year.

The Bachelor Lake project has measured and indicated resources of 841,591 tonnes averaging 7.79 g/t Au.

Detailed information about the project is available at www.Metanor.ca.