Bonterra ups Quebec gold estimate by 78%, shares rally
Bonterra Resources Inc. [BTR-TSXV, BONXF-OTC, 9BR1-FSE] said Wednesday it has significantly increased the mineral resource estimates across its gold deposits in the Quebec’s Urban Barry mining camp, a move that sets the stage for a preliminary economic assessment (PEA) later this year.
The updated estimates are for the Gladiator, Barry and Moroy deposits and the Bachelor mine. Following the successful exploration and infill drilling programs, comprehensive mineralization modeling and higher gold prices, Bonterra said it has been able to report a significant increase over earlier resource estimates that were prepared for the Gladiator, Barry and Moroy deposits by SGS Canada Inc., and dated July, 2019.
Resources in the measured and indicated category now stand at 7.4 million tonnes of grade 5.21 g/t gold or 1.24 million ounces of contained metal. That marks a 78% increase from July, 2019 estimate. On top of that is an inferred resource of 9.2 million tonnes of grade 6.05 g/t gold and 1.78 million ounces of contained metal. That marks a 27% increase from the earlier estimate.
Bonterra said the updated estimates are based on 130,000 metres of drilling across the deposits since the 2019 estimates were released. The company said it plans to continue expansion drilling in the coming months on all deposits to support its growth strategy.
“The significant growth in estimated mineral resources across all categories supports Bonterra’s view that the Urban-Barry Camp has the potential to host multi-million-ounce gold deposits, much like other camps within Canada’s Abitibi Greenstone Belt,” said Bonterra CEO Pascal Hamelin.
“The completion of the 2021 mineral resource estimates sets the stage for a preliminary economic assessment (PEA) expected later this year,” he said.
The PEA will examine the viability of a hub-and-spoke operation leveraging our existing Bachelor mill and associated infrastructure. “Importantly, the permitting process to allow for an expansion of the Bachelor mill to 2,400 tonnes-per-day from the current 800 tpd is approximately complete,” Hamelin said.
Bonterra shares advanced on the news, rising 4.7% or $0.06 to $1.34 in light trading volume. The shares are currently trading in a 52-week range of $1.62 and 79 cents.
Bonterra is working to develop assets in Quebec that it acquired when it snapped up Metanor Resources Inc. two years ago in a $78 million deal. The plan was to create a new gold exploration and development company with a focus on the Urban Barry mining camp.
By attaining control of three advanced high-grade gold deposits (Gladiator, Moroy and Barry) and the only permitted gold mill in the region, Bonterra believed it was placing the combined company in an excellent position to rapidly and cost-effectively become a significant Quebec-based gold producer.