BonTerra Resources Inc TSXV:BTR announced results from its Eastern Extension Property in northern Quebec. Highlights include 0.73 g/t gold over 169.7 metres (including 1.33 g/t over 89.7 metres), 1.77 g/t over 2.2 metres and 1 g/t over 1.5 metres.
BonTerra President/Director Mitchell Adam tells ResourceClips.com, “We acquired the property about a year ago from Abitex, which drilled it in the 1990s before the price of gold collapsed, and we saw some good historic numbers. We started by twinning their historic intercepts and then stepping out. We’ve drilled 10,000 metres, about 40 holes, and we’re working towards a resource calculation—inferred of course.
When everyone’s portfolio values are erasing, people are actually buying physical gold. But for the majors to mine gold, the juniors have to find it.—Mitchell Adam
“Today’s hole that you saw in the news release was probably the longest intercept that we’ve hit. We’ve been sort of chasing veins and hitting high-grade pockets, and we’ve been going deeper, and that’s paying off, because we now have a 169-metre intercept with two good zones in there. So we’re quite excited—other than the fact that Dow’s off 500 and Toronto’s down 500. Gold is up, and everyone’s down. But we’re quite pleased. We’ll just keep plugging away,” Adam says.
“When everyone’s portfolio values are erasing, people are actually buying physical gold,” he points out. “But for the majors to mine gold, the juniors have to find it. My goal for BonTerra is to build a million ounces in Quebec and I guess Doug Casey [market analyst and chairman of Casey Research] sort of says, ‘Forget $40 in the ground, it’s now $65, $70.’ If I can get $70 million out of a million ounces in the ground, with 70 million shares out that’s a dollar a share. So the plan is to keep drilling and take it from inferred to indicated to proven and just keep growing the asset.
“The resource calculation should be ready in September, with two or three weeks either way. These geos always want more holes, but we’ve almost completed our data compilation. I want to have that to build on and then go into a winter drill program,” he explains.
“We share with Abitex a director in Robert Bryce. I was introduced to Abitex when they were looking to vend out some property. We acquired 100% interest by option; we’ve spent more than our share of earn-in commitment. We own the property 100% subject to a 2% NSR.”
Asked whether BonTerra would take the project into production itself, Adam responds, “It’s too early to tell. You have to run numbers, CAPEX, dilution, market financing capabilities. I wouldn’t be able to look at that until probably January of next year. But as long as we keep drilling and expanding and growing the asset, the closer we get to that decision. I like the idea of Agnico-Eagle or someone with expertise coming in and doing that hard lifting and all of us getting rewarded for it. Not only is it capital intensive, but it’s manpower- and time-consuming.”
Adam concludes, “We’re very pleased with our results, and I think this last hole is a real company-maker. The market was always sort of lacking length—if we were up 200 in the market in the last two days, our stock would have definitely appreciated much more. But we’re holding in well here on a pretty dismal day. I think that if we keep going, people are going to start taking a more serious look. People, institutions, mining companies and the Agnico-Eagles of the world are going to say, ‘Wow, look what they’re doing there.’”
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by Greg Klein