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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: AlphaRomero who wrote (64825)	4/13/2009 10:54:02 AM
From: niceguy767	Read Replies (1) \| Respond to of 78424

Answer to your dilemma is here: Q. 2 Mining MarketWatch: What type of expenditures are coming up to get the mill and underground to where you want it to be, could you have done it on cash flow alone, and I assume you are capitalized well enough now to get to where you want to be? Ronald Perry, VP & Treasurer Metanor: "With regards to the mill upgrades necessary to get where we want to be -- the key is we can now proceed, we can now go and issue contracts and we don’t have to worry about whether we will have the money – we have it. When you operate a business do you want to take the risk? - Not knowing where the capital markets will be. We can’t count on cash flow. What we did was the prudent thing. It is dilutive, but look what we’re bringing onboard with Eric Sprott and Goodman & Company. We are currently at 800TPD and are taking it to the next stage. We raised CDN$12M, we had a ~CDN$2M on hand and we still have a line of credit available. We budgeted CDN$5M to take the mill from 700 to 1200TPD, we did do from 700TPD to 800TPD for well under $100K so we don’t think we will be using the full $5M. We are going to do the headframe at ~$1.5M, hoist room ~$1.5M, the shaft sinking budget for 2009 will be about $4.5M, other work at Bachelor is about $3M. We have money available to do all this work now and we will proceed to award contracts. We pride ourselves on improving on consultant estimates and budgets and always try to do so; one of the contracts was about $1.5M and we are going to be awarding it for about $1M plus taxes. The point of doing things the way we did is that it secures our future. Going from cash flow alone to progress underground we wouldn’t be awarding all these contracts as it would have taken much more time, and we felt the time is ‘now’." I suppose one can read this as "fluff", but it makes sense (to me) within the context of their 70,000 ounces goal for July /10.

To: AlphaRomero who wrote (64825)	4/13/2009 2:34:40 PM
From: kayco	Respond to of 78424

MTO - Appreciate your reply. I bought MTO strictly as a spec play. I am hoping that they will end up expanding their ore body significantly. If they get to 70,000 oz production I would expect the stock to go to $1.00, maybe a little more, but no real movement unless gold goes up a lot or they expand their ore body by 50-100%. I am not an engineer, but I like to have some idea of what is going on now. Where are they drilling now, How many drills do they have on. What are their goals besides the general they want to find more gold. When I look at MTO diagrams, I see "main vein", "vein A" "vein B",Hewfran west, Bachelor Lake surface discovery, etc - help. "Open in all directions". Probably have this also repeated on "World of Wallstreet" "Mining World" and then repeated on the blog by guys who never saw a drill core in their lives. "Open to the east or west or north" is that not what every single drilling operation says. I am looking for some thing more specific than it looks good. I have not bought mining stock for a long time, but people I know who consistently made money on mining had diagrams on their walls with drill holes, etc, etc. They were one step ahead of the game. They had the where with all to try and calculate the size of the ore body themselves and would buy accordingly. Any ways. I don't think I was directing my previous email specifically at you. Again thanks your email