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The Gold Stock Strategist analyzes leading junior gold producers and major gold mining companies.

Comments are welcomed!

Saturday, April 26, 2008

Metanor executes plan . . . and shows it on video

Every once in a while, a company executes a plan, pulls everything together efficiently, and packages it up in a way that makes it easy to understand for investors not schooled in the details of the industry. Metanor Resources has completed all three goals with two press releases this week.

There are strategic advantages Metanor has over most junior gold producers/explorers that are not common knowledge to the casual investor in mining companies.

For example, Metanor has it’s own on-site lab to test drill results. There are significant backups at the official labs used to confirm deposits for purposes of determining “Measured and Indicated” reserves, Having an on-site lab is a great advantage for real-time feedback that can be used to guide drilling. This advances discovery by several months each year rather than waiting to hear drill results from the official labs and then devising additional drilling plans.

Metanor also owns their own diamond drills, reducing delays in getting scarce and expensive drilling resources to mine sites. They are prepared and on track to prove up additional resources at the Barry project with their aggressive drilling program.

At this pace of execution in production, Metanor should be cash flow positive to over one million dollars each month.

Metanor is also expanding the mill to accommodate 1,200 tons per day compared to the current 500 tons per day rate. At that increased rate, annualized net cash flow would likely exceed $0.30 per share at $900 per ounce of gold. Metanor is trading at $1.00 per share currently or about 3x projected cash flow. My short-run valuation model has Metanor at $2.86 per share using a conservative industry standard of 10x cash flow. This is the reason why Metanor is the largest position in my portfolio at about 30%.

In short, I continue to like the reward to risk ratio on Metanor compared to other emerging junior gold producers. As long as the company continues to successfully execute their production expansion and discovery plan, there remains considerable upside share price potential in Metanor.

Good luck and do your own due diligence.

The Gold Stock Strategist
-----------------------------------------
Full disclosure: I own shares in Metanor Resources. The information provided in this post is believed to be correct, but not guaranteed. Investing in junior gold miners entails risks. Readers are responsible for their own investment decisions. Do your own due diligence.

=======================

News Release - April 25, 2008 03:34 PM ET

Video Footage of Canada's Newest Gold Mill in Operation; Unique Insight Into Metanor's Operation "From Ground to Furnace"

NEW YORK, NY, April 25, 2008 /Sector Newswire/ - Metanor Resources Inc. (TSX-V: MTO) (Pink Sheets MEAOF) is a new, debt free, unhedged, gold producer in mining friendly Quebec and the subject of video insight that shows Canada's newest gold producer in operation. With less than 73M shares outstanding, no debt, and infrastructure replacement value of approximately $140M; the current intrinsic value (ignoring gold resources, growth, and cash flow from production) is close to CDN$2 per share. Valuation metrics based on forward projected cash flow potential of Metanor's Bachlor Lake Mill operating at full capacity of 1200 TPD and generating in excess of 65,000 oz gold in 2009 suggests a substantial upside share price adjustment as Metanor continues to execute upon its goals.

Video of Metanor in Operation
footage from ground to furnace

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.

SOURCE: Sector Newswire per: Mining MarketWatch Journal and Metanor Resources Inc.

------------------------------
Metanor Pours More Gold, Moves 2nd Drill to Promising Barry Property
Thursday April 24, 9:15 am ET


VAL-D'OR, QUEBEC--(Marketwire - April 24, 2008) - Metanor Resources Inc. (TSX VENTURE:MTO - News) is pleased to announce that it has poured more gold at its Bachelor Lake Mill facilities, bringing the cumulative total to more than 3,000 ounces of gold dore bars. The bulk sample mill-feed is from its promising Barry open pit property. The Bachelor Lake Mill continues to operate consistently at 500 tons/day, 7 days a week, 24 hours a day and is well on its way of producing its minimum 1st year forecast of 25,000 ounces. Ghislain Morin, President and COO commented "The mill continues to operate very well during this start-up phase, with each day comes continued improvements - for instance -recovery is presently at 96.6%. The operations at the mill continue to show testament of the hard work of our team."

As previously announced, Metanor has commenced a 15,000 meter diamond drilling program at its promising deposit at the Barry camp. This drilling campaign was initiated to the southwest of the main zone trying to connect the main zone with zone 48. Due to the core samples taken to date with visible gold present, Management has mobilized a second diamond drill to the Barry camp and the second drill is presently on site and operating at full capacity. The core samples are analyzed at our on-site laboratory and are sent to an independent laboratory for verification, results are pending. This drilling program is being done in an effort to prove up the resources at the Barry camp and to better plan its ongoing excavation and processing of the ore body. To reinforce this program were the very promising results obtained from the most recent study published by Diagnos showing a potential body stretching 4KM in length. "With these core samples ,we continue to believe that the Barry pit is potentially a very large deposit as it is open in all directions and open at depth , this is why we are accelerating the drilling campaign with the addition of a second drill on site " stated Serge Roy, Chairman and CEO.

Mr. Andre Tremblay, P Eng. is the qualified person pursuant to National Instrument 43-101 and supervised the technical information presented in the news release.

72,159,450 shares

The TSX Venture Exchange does not accept any responsibility for the adequacy or the accuracy of the press release.

Contact:
Serge Roy, CEO
Metanor Resources Inc.
819-825-8678
info@metanor.ca
------------------------------
Source: Metanor Resources Inc.

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