Metanor Resources (MTO.V) has released a production update, and the second quarter of its financial year 2017 was the best quarter it had in quite a while. Thanks to a (much) higher head grade of 5.1 g/t gold and a recovery rate of 96.5%, the company produced almost 9,800 ounces gold, an increase of almost 1,400 ounces compared to the previous quarter.
No financial results have been published but with a total of 18,324 ounces, the financial result of the first semester of the current financial year should be substantially better than the second half of FY 2016. Even though the total amount of gold that has been sold is practically the same, Metanor should have benefited from a higher average gold price and a weaker Canadian Dollar.
Metanor now expects to produce 30,000-36,000 ounces of gold this year, indicating the H2 production rate will likely be a bit lower (unless the company will beat its production guidance), but Metanor sounds optimistic about the potential to keep mining ore below level 14. An updated resource estimate will be published in the next few days or weeks.