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Source: Streetwise Reports 12/17/2024
Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE) announced promising initial assay results from its 4,761-meter diamond drilling campaign at the Desmaraisville South Project near its 100% owned Bachelor Mill Complex in Quebec. Read more about how near-surface gold discoveries and infrastructure advantages position this project for future growth.
Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE) announced promising initial assay results from its 4,761-meter diamond drilling campaign at the Desmaraisville South Project near its Bachelor Mill Complex in Quebec. This 100% owned project, part of the Abitibi Greenstone Belt, focused on testing newly identified targets and extensions of mineralized zones. Notably, drilling targeted near-surface mineralization at depths of less than 300 meters, with results highlighting the potential for mineable gold zones close to infrastructure.
Key intercepts from the campaign included 1.13 grams per tonne (g/t) gold (Au) over 16.0 meters, with higher-grade intervals like 2.02 g/t Au over 6.0 meters in drill hole BRDS-24-063. Another highlight was 5.30 g/t Au over 1.4 meters, including a standout interval of 18.39 g/t Au over 0.4 meters in drill hole BRDS-24-060. These results are significant as they demonstrate both the lateral and vertical continuity of mineralized structures within proximity to the company’s operational Bachelor Mill.
Highlights Noted Within The News Release Include:
- 1.13 g/t Au over 16.0 m, including 2.02 g/t Au over 6.0 m in hole BRDS-24-063
- 5.30 g/t Au over 1.4 m, including 18.39 g/t Au over 0.4 m in hole BRDS-24-060
- 2.58 g/t Au over 6.0 m, including 4.50 g/t Au over 3.2 m in hole BRDS-24-065
- 0.59 g/t Au over 22.3 m, including 3.17 g/t Au over 2.4 m in hole BRDS-24-066
Highlights of the Diamond Drilling Results Noted In The News Release: The diamond drilling campaign at the Project was performed on four different areas based on results from the fall 2023 drill campaign, compilation work and a fieldwork campaign conducted during the spring and summer of 2024
The 16-hole program, conducted between August and November 2024, tested four target areas derived from previous fieldwork, including geophysical interpretations from the Opawica-Guercheville regional deformation corridor. Of particular importance, Bonterra identified new hydrothermal breccia zones and shear-hosted gold-bearing horizons across multiple drill holes. Assay results for 682 samples remain pending, suggesting further updates may reinforce the project’s potential.
Marc-André Pelletier, President and CEO of Bonterra Resources, noted in the release, “This year’s exploration efforts have led to the discovery of four new mineralized zones within 5 kilometers of our Bachelor Mill Complex. These zones are near surface, exhibit extensive widths of mineralized material suitable for mining, and will be prioritized for future follow-up work.”
The Desmaraisville South Project is strategically located within the Abitibi Greenstone Belt, a prolific gold-producing region that hosts several major deposits. Its proximity to existing infrastructure, including Bonterra’s fully permitted 800-ton-per-day Bachelor Mill Complex, reduces potential capital expenditures for future operations.
Gold Sector Consolidates Gains Amid Bullish Tailwinds and Investor Sentiment
On December 5, Gary Wagner of Kitco reported that gold futures settled at US$2,653.90, a decline of 0.76% for the day, with losses mitigated by a weakening U.S. dollar, which fell to 105.692 on the index. Wagner emphasized the market’s focus on the upcoming December jobs report and its potential influence on the Federal Reserve’s policy decisions. Economists forecasted 200,000 new jobs in November, with a 70.1% probability of a 25-basis-point rate cut at the Fed’s final meeting of the year. Wagner highlighted that lower interest rates could further support gold prices by reducing the opportunity cost of holding the metal.
On December 6, Jordan Roy-Byrne of The Daily Gold examined gold’s long-term positioning relative to traditional investment benchmarks. He argued that for gold to enter a secular bull market, it must outperform both the stock market and the conventional 60/40 portfolio (60% stocks, 40% bonds). Roy-Byrne noted that while gold prices surged from US$2,100 to US$2,800 earlier in the year, it has yet to outperform equities in a meaningful way. He emphasized that fresh capital flows into gold stocks and juniors are necessary to drive the next leg higher, stating, “When gold begins to outperform . . . leveraged plays will soar as fresh capital moves into the sector.”
Later on December 6, Adam Hamilton of Ahead of the Herd discussed the broader gold market dynamics, labeling the year-long price surge a “monster upleg.” Hamilton noted that gold climbed 53.1% from October 2023 to its peak in October 2024 without the usual inflow from U.S. gold-backed ETFs. Instead, robust demand from Chinese investors, central banks, and Indian jewelry consumers underpinned the rally. Hamilton highlighted that gold’s post-election 8.0% pullback remained within a healthy range, describing it as a “larger pullback” rather than a correction, which kept the upleg intact. He observed that investor participation from the U.S. remains minimal, suggesting room for future upside once broader markets shift focus from equities to gold.
In a December 7 report, Excelsior Prosperity echoed the theme of consolidation within the gold market, describing the current phase as “the calm in the eye of the storm.” Following gold’s recent peak of US$2,801.80, analysts noted that prices have stabilized near key technical levels. The report cited support at the 50-day EMA of US$2,652.91 and the 200-day EMA at US$2,466.76 as critical thresholds. Craig Hemke, in a referenced discussion, underscored the dollar index’s influence on gold and the role of broader market sentiment in maintaining current price momentum. Excelsior also noted that while gold equities, as tracked by the VanEck Vectors Gold Miners ETF (GDX), pulled back harder than bullion, they remained in a “muted bullish posture,” consolidating gains from earlier in the year.
On December 13, Reuters reported that gold remained on track for a weekly gain as attention turned to the U.S. Federal Reserve’s upcoming meeting. Spot gold prices were US$2,671.39, buoyed by expectations of a 25-basis-point rate cut. Ole Hansen of Saxo Bank observed that market convictions were low ahead of year-end, leading to position-squaring and modest volatility. Hansen suggested that gold’s upward trajectory could resume in 2025, with a potential target of US$3,000. Similarly, Nicky Shiels of MKS PAMP SA noted that gold’s performance will depend on the Fed’s ability to manage inflationary pressures, adding, “Gold prices at $3,000+ or $2,500 is contingent on whether the Fed is ahead or behind the Trumpflation curve.”
Bonterra Advances Key Exploration Projects with Resource Expansion Potential
Bonterra’s investor presentation highlights a series of catalysts that could impact the company’s strategic positioning and project advancements. With regional drilling ongoing, including at the Nelligan Joint Venture (70% Bonterra, 30% O3 Mining Inc – now Agnico Eagle Mines), the company remains focused on expanding mineralized zones near the Bachelor Mill Complex. Additional exploration targeting geophysical anomalies within the Opawica-Guercheville corridor provides further upside potential.
Notably, the Bachelor Mill Complex represents a strategic asset within the underexplored Urban-Barry Camp. Bonterra plans to leverage this existing infrastructure to fast-track resource development, as the mill’s capacity could potentially be expanded from 800 to 1,800 tons per day, pending permitting.
The company’s near-term milestones include additional drill results from the ongoing drill campaign as part of the Phoenix JV by Gold Fields, , and advancing targets identified through AI-assisted geophysical modeling at Desmaraisville. Furthermore, Bonterra’s collaboration with Agnico Eagle on the Nelligan JV strengthens its position by drawing on the expertise of a major gold producer.
Eight Capital Highlights Bonterra’s Strategic Position and Growth Potential
In an October 3 report, Eight Capital highlighted Bonterra Resources Inc.’s strategic position within Quebec’s Urban-Barry gold district, emphasizing its proximity to Osisko’s (now Gold Fields) high-grade Lynx Zone and the Windfall project, one of Canada’s most significant undeveloped gold deposits. The report described Bonterra as providing “exposure to its strategic land package,” which includes the Phoenix JV, Gladiator, and Barry deposits—all considered critical assets with notable potential for resource growth.
Eight Capital underscored the exploration potential of the Phoenix JV, particularly its location near high-grade zones, which they suggested could offer considerable upside. The report noted that Bonterra had completed over 110,000 meters of drilling since its 2021 resource estimate, identifying opportunities for resource expansion. Additionally, the company was trading at an EV/oz multiple of CA$8.5/oz of gold in total resources—a substantial discount compared to Canadian peers—positioning Bonterra as an attractive candidate for mergers and acquisitions. [OWNERSHIP_CHART-3902]
The analysis further pointed to Bonterra’s fully permitted operational mill and advanced exploration infrastructure as key competitive advantages. Eight Capital indicated that these assets enhance Bonterra’s potential as a target for consolidation in the Quebec gold mining sector, particularly as interest continues in high-grade deposits and scalable projects across the region.
Ownership and Share Structure
According to the company, 24% of Bonterra is held by Strategic shareholders, including Wexford and Agnico Eagle.
20% is owned by institutions and high-net-worth individuals, including Fidelity, Stephens, R. Vora, Ruffer, CDPQ, and Horizon Kinetics.
2% is held by management and the board. The rest is retail.
Bonterra has a market capitalization of CA$46.6 million and 23 million free float shares. The 52-week range is US$0.16 – $0.34
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- Bonterra Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: BTR:TSX.V; BONXF: US; 9BR:FSE,
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