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Bonterra Resources

Bonterra Resources finds new high grade gold zone north of Gladiator; shareholders approve Metanor deal

Significantly, the new zone is near surface and just around 200m north of the most northerly Gladiator zone.

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Bonterra geologists have been busy recently

Bonterra Resources Inc (CVE:BNE) was back in the news Wednesday -  as it revealed it had uncovered a new high-grade gold zone near its Gladiator gold deposit in Quebec.

The new zone is near surface and just around 200m north of the most northerly Gladiator zone.

It was found by hole BA-18-60, which hit 27.4 g/t (grams per ton) of the yellow metal over 7m.

The intersection occurred between 96m and 103m downhole and contained numerous fine specks of visible gold within smoky quartz veining with pyrite and minor sphalerite mineralization, typical of the Gladiator deposit, the firm said.

The hole also intersected the main zone at 600 m below surface with 14.8 g/t gold over 7m.

Follow-up holes are continuing to validate continuity of mineralization.

"Our geological model continues to produce results with this new high-grade zone that appears to project nicely from our established pattern of veining within the multizone Gladiator deposit," said Nav Dhaliwal, president and chief executive at Bonterra.

"Our recent option to earn interest in the Duke claims has allowed us to now step out northeast and southwest with drilling in order to locate new parallel zones.

"We are extremely encouraged with our first results in stepping away from the Gladiator to the northeast and look forward to extending the new zone further."

As reported on Monday this week, as Bonterra posted a decent set of latest drill results from the property, all drilling, which is to be included in a new NI 43 101 resource estimate, earmarked for the fourth quarter this year, has now been completed.

Drilling continues with three drills at the deposit focused on extension drilling along strike to the northeast and southwest.

Separately today, Bonterra also revealed that its merger with Metanor Resources Inc (the Metanor arrangement) was approved by shareholders.

The Bonterra arrangement, which involves spinning out of certain assets of Bonterra to Gatling Exploration Inc, was also approved by Bonterra shareholders.

Completion of both arrangements is expected to occur on September 24 this year.

Gatling shall receive Bonterra's Larder Lake assets in Ontario and approximately C$7mln in cash.

In July this year, Bonterra entered a definitive agreement to combine with Metanor  to create a new advanced Canadian gold explorer in a deal valued at C$78mln.

The new group will focus on building out and future mining at the Urban Barry Quebec gold camp.

Among the highlights, the deal provides Bonterra with a clear pathway to bringing Bonterra’s Gladiator deposit into production and  consolidates the entire southern portion of the Urban Barry camp, when combined with its recently executed option with Beaufield.

Bonterra shares today advanced 5.56% to C$0.475.

Quick facts: Bonterra Resources

Price: $2.30

Market: TSX-V
Market Cap: $146.39 m
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