Well, here's the money part of the news release (click here for the whole release):
"A drilling campaign tested the continuity at shallow depth of the gold bearing zones exposed on surface after the stripping program. Diamond drill hole B-137 returned directly under the stripped area an intersection of 3.72 g/t Au over 4.20m at a vertical depth of 45m and hole B-142 drilled approximately15m to the east returned at the same elevation an intersection of 3.10 g/t Au over 6.0m. On the same section, hole B-143 intersected at a vertical depth of 70m a gold bearing zone grading 3.01 g/t Au over 4.20m. Diamond drill hole B-145 intersected the West zone 75m to the west and at a vertical depth of 90m with a gold intersection of 2.87 g/t Au over 3.15m. At greater depth, diamond drill hole B-128 returned on the same section than hole B-137 and at a vertical depth of 140m, a gold intersection of 3.78 g/t Au over 2.9m and approximately 60m towards the east diamond drill hole B-132 intersected the West zone at a vertical depth of 170m with an intersection of 5.13 g/t Au over 5.15m.
These results indicate that in this sector the West zone is continuous from surface to the elevation 180m below surface where the resources have been evaluated in 2005."
My take is that:
(a) The widths are pretty good (4.2m,6.0m,4.2m,3.15m, 2.9m, 5.15m), but the grades are just ok (3.72,3.1,3.01, 2.876, 3.78,5.13 t/tonne).
(b) This find is not good enough to justify a major new development (mine and mill), but the fact that is that its right next to the existing mine and mill makes it nicely economic. The fact that it starts right at the surface means either starting with an open pit or a decline type mine makes sense which makes it even better.
It should serve to help make up for Metanor's only weakness, a relatively high price to oz in the ground ratio.
Metanor is great (way undervalued) on a price to annual oz ratio and price to operating cash flow ratio (click here), but is only middle of the road on price to oz in the ground ratio.
Overall its a positive result, but I think the market is waiting for confirmation that the current mine is running well and producing cash flow and that there is a good plan for keeping it going (and expanding it). Seems to me production results and an enlarged Barry deposit NI43-101 would give this stock quite a pop.
Now, was the recent pop from the 40s to the current high 50s (nearly 50%) a result of this leaking early or might we see a little more pop from this result? Time will tell. I'm pretty confident about my Metanor investment.
Of course, everyone should do their own due diligence and this is not a recommendation to invest in Metanor.