Largest Gold Drilling Program in Quebec
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Bonterra Resources (TSXV:BTR; US:BONXF, FWB:9BR1) is a Canadian gold exploration company based in Vancouver. The company’s primary holding is the Gladiator Gold project in Quebec, Canada. The management is to working on defining a multi-million ounce, high grade gold resource at its 100 percent controlled Gladiator Gold Deposit in the Abitibi Gold Belt in Quebec.
The company is currently advancing the Gladiator Gold project towards production. Located in what the Fraser Institute calls a top-10 mining jurisdiction, the property has a 2012 inferred resource estimate of 905,000 tonnes at 9.37 g/t gold, equivalent to 273,000 ounces of gold. This was developed following 15,600 meters of drilling on the property. Since then, further drilling has been conducted and the company has scheduled an additional 70,000 meters of drilling within the next year. As the company continues advancing the project, they expect to publish an updated NI 43-101 mineral resource estimate.
Alongside its exploration work, Bonterra has also been conducting metallurgical testing which has been returning promising results. The gravity concentrate recoveries are range from 68.3 to 76.1 percent, while Bonterra’s peers are recovering 20 to 35 percent.
In September 2018, Bonterra acquired Metanor Resource Inc. Metanor was owned the Barry and Moroy deposits and the Urban-Barry mill, which is the only permitted gold mill in the region. With this acquisition, Bonterra has now acquired a land package of 22,004-hectares in the Urban Barry mining camp.
Bonterra’s management team and directors bring extensive experience in mining that enables them to continue exploring and developing the Gladiator project. The company’s focus on defining and extending the project has been noticed by Sprott Global Resource, who own 10.3 percent of Bonterra’s shares, respectively. The combined investments of Sprott Global Resources and Kinross, among others, has ensured that the company is fully financed and debt free.
- Control of three advanced high-grade gold deposits (Gladiator, Moroy, Barry) and significant regional targets.
- 100 percent ownership of the Urabn-Barry mill, the only permitted gold mill in the region.
- Strong shareholder base including Eric Sprott and Kirkland Lake Gold.
- New NI 43-101 mineral resource estimate anticipated in 2018 for the Gladiator and Barry deposits.
Gladiator Gold Project, Quebec
Bonterra’s Gladiator Gold project is located approximately 170 kilometers northeast of Val-d’Or and 125 kilometers southwest of Chibougamau in Quebec. The project sits in the Urban-Barry Camp within the Abitibi Gold Belt.
The property is 10,541 hectares in size, and is set to expand to an additional 3,590 hectares as the company has signed a definitive agreement to acquire a 70 percent interest in the neighboring Duke property from Beaufield Resources Inc. (TSXV:BFD). The Duke property has similar geology to the Gladiator Gold project and contains numerous gold showings with expansion potential and includes the Lac Rouleau and Zone 18 gold deposits.
The Gladiator Gold project is situated along major regional crustal shear zone that is known throughout the Abitibi area and is the main reason why there have been many significant gold deposits found. The area has been described as being highly silicified with altered sheared mafic volcanics and intrusions of syenite and quartz porphyries. Smokey quartz veins contain the bulk of mineralization and free gold. The mineralization includes pyrite, chalcopyrite and yellow sphalerite deposits throughout, but especially near veins of quartz. Significant gold values have been uncovered in drill and surface samples of the quartz veining throughout Bonterra’s property.
Bonterra’s Gladiator project is currently one of the largest drill programs in Quebec. There are seven drill rigs on the property, five of which are actively working on the Gladiator site. There is also a drill rig each at the Saint Cyr and Coliseum zones. The company has scheduled at least 70,000 meters of drilling to be completed by the end of 2018. This drilling campaign will result in over 120,000 meters of new drilling to be included in the updated mineral resource estimate. To date, drilling has indicated a strike length of 1,200 meters and a depth of over 1,100 meters. The deposit remains open in all directions and drilling is focused on the Rivage Gap.
As exploration continues, Bonterra has been intercepting promising grades from the Rivage Gap area. Highlights include three intercepts of two meters grading 30.5 g/t gold, 18.7 g/t gold and 10.3 g/t gold, respectively. The company has also been able to extend the South zone to the west by 50 meters and the Footwall zone down-plunge to the east.
“The resource development program continues to be extremely successful in terms of the extension of mineralized zones and in terms of demonstrating high grades throughout,” said Bonterra CEO Nav Dhaliwal. “Most significantly however is how well we have shown continuity down dip and along strike for all five of the primary zones to date. High grades that were encountered on both the west side of the deposit and the down plunge of the east side are obviously significant to the deposit as a whole.”
As part of the company’s preliminary metallurgical activities, gold recovery has been successful in numerous extraction techniques. Using a combination of gravity and gravity-cyanide tests, Bonterra was able to recover up to 99.4 percent gold. Meanwhile, gravity and gravity-tail flotation tests, without the use of a cyanide leaching circuit, showed recoveries of between 96.8 percent and 97.3 percent. When conducting a regular gravity concentrate recovery test, 76.1 percent of gold was recovered, a value significantly higher than those attained by competitors. These results indicate that the company does not have to process the ore extensively in order to obtain the gold within the ore with grinding or crushing.
“The outstanding metallurgical results, when compared to the overall average lower recoveries within our industry peer group, are a significant milestone for the Gladiator Gold Deposit,” said Nav Dhaliwal. “The exceptional gravity recovery rates of up to 76.1%, combined with a simple flotation circuit, may reduce capital requirements related to a future potential milling operation. Potentially not requiring a cyanide leaching circuit minimizes the environmental footprint of any future mining operation and could also improve potential future process economics of the project.”
Bonterra’s goal for the property is to continue to explore in every direction. They are in the process of updating their NI 43-101 mineral resource estimate. The company is planning to develop an underground mine when they reach the production stage of the project.
Metanor Resources Acquisition
Bonterra is focused on bringing their Gladiator Gold project into production and to further that goal, the company set out to acquire Metanor in June 2018 and closed their acquisition in September 2018. As part of the acquisition, the two companies have formed a spin-out company called Gatling Exploration Inc. who will acquire possession of and responsibility for developing Bonterra’s Larder Lake project. Gatling will also receive $7 million in cash from Bonterra.
“Putting together two, arguably, undervalued companies like Metanor and Bonterra is extremely beneficial and logical in a number of ways,” said then Chairman and Interim CEO of Metanor. “Resource growth, exploration synergies and de-risking the path to production are all considerations, as well as potential to access different and larger markets and shareholders. I look forward to working with the Bonterra team, as the combined effort provides the opportunity to create significant shareholder value.”
After the acquisition of Metanor, Bonterra owns the Bachelor mine and mill, the only permitted gold mill in the region and has consolidated a 22,004-hectare land position in the Urban Barry Camp, which includes numerous regional targets and three high-grade gold deposits: Gladiator, Moroy and Barry.
Nav Dhaliwal — President, CEO & Director
Nav Dhaliwal brings a wealth of entrepreneurial, sales, and financing experience. He is adept at nurturing early stage companies through their phases of evolution and has founded a number of companies over his career. Dhaliwal is experienced in corporate development, corporate communications and investor relations. He has valuable business relationships with international analysts, brokers and investment bankers from Canada, the United States and Asia.
Greg Gibson — Executive Chairman
Greg Gibson is President and CEO of Sprott Mining and Jerritt Canyon Gold LLC. Greg cumulates over 30 years’ experience in the mining industry as a miner, mine manager, director, CEO and President. Gibson’s experience has focused on gold and copper mines primarily in Canada, US, and Australia.
Dale Ginn, B.Sc., P.Geo. — VP of Exploration
Dale Ginn is a mining executive and geologist with nearly 30 years of experience. He is the founder of a number of exploration and mining companies, many of which are in production today. While specializing in complex, structurally-controlled gold deposits, he has extensive mine-operations, development and startup experience. Ginn is an advocate for First Nation and local community participation in mining and exploration.
Ginn’s career has included mine and exploration geology, mine management along with various executive roles. Ginn has held senior positions with Sprott Mining, Jerritt Canyon Gold and was a founder of the San Gold Corporation. Prior to that, he held positions with Harmony Gold Mining, Hudbay, Westmin, Goldcorp and Granges Exploration. He is a graduate of the University of Manitoba and a registered professional geologist in Manitoba and Ontario.
Joseph Meagher — CFO
Joseph Meagher became a Chartered Professional Accountant (CPA, CA) in 2008, and obtained the Chartered Director (C.Dir.) designation from The Directors College (a joint venture between McMaster University and The Conference Board of Canada) in 2017. He currently serves as the Chief Financial Officer and Director at Bonterra and he is a Director for several publicly listed companies. Previously, he worked at Smythe CPA as a manager. Meagher holds a Bachelor of Commerce from the University of British Columbia.
Allan J. Folk — Director
Allan Folk brings over 35 years of extensive leadership experience in the Canadian mining finance industry. During his career, he has financed and advised both junior and advanced Canadian companies at the senior board or executive level. Folk is a graduate of the University of Wisconsin, and currently is Vice President of Brant Securities Ltd. He is also the Interim CEO of Monarca Minerals Inc. and is the Chairman of Atlanta Gold Inc.
Richard Boulay, B.Sc. — Director
Richard Boulay has over 40 years of experience in the exploration and mining industries in Canada and internationally. He has 15 years of mining and infrastructure financing experience gained with Bank of Montreal, Royal Bank of Canada and the Bank of Tokyo. He has extensive experience in the management and financing of public companies in Canada and the United States. He is also a Director of Moneta Porcupine and Latin American Minerals Inc.
Robert Gagnon, P.Geo. — Director
Robert Gagnon has over 10 years’ experience as a professional geologist. He earned his Mining Techniques Diploma Collège de la Région de l’Amiante in 1995 and his BSc., Geology from the University of Quebec in 1999. He has been a member of the Ordre des géologues du Québec in 2002, the Board of Directors of the Quebec Mineral Exploration Association in 2009 and he was President of the Association des prospecteurs du Nord du Québec in 2012.
Tina Ouellette — Director
Tina Ouellette has over 20 years’ experience in Human Resources and management acquired through a number of senior positions with Lake Shore Gold Corp, FNX Mining, Dynatec and Domtar Forestry. She has a proven track record in providing leadership and strategy in the development and growth phase of mining operations, as well as merger and acquisition transactions.
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