Report #1

Today, BonTerra Resources Inc. reported remarkable drill results from the eastern part of its fully owned Gladiator Gold Deposit in the north of the prolific Val d’Or Mining District in Québec, Canada.

Rockstone has initiated coverage of this exciting gold junior, currently valued at $21 million CAD, as today’s drill results have significantly expanded the Gladiator Deposit at depth and along strike.

In late 2015 and early 2016, the company made headlines when the deposit was extended along strike to the west with an extensive drill program which included high-grade gold intercepts over significant widths.

During the last few months, BonTerra completed geophysics in the eastern part of the deposit and drilled an additional first 7 holes, which results have been disclosed today:

Hole #39 discovered 70 g/t gold over 5.5 m at approximately 600 m below surface. Also of significance, 50 m deeper and 100 m east of hole #39, another hole (#38) intersected another high-grade gold zone with 12.4 g/t gold over 4 m, which indicates that both zones are connected and therefore represent a new zone likely to be connected to the Main Zone.

Thanks to today’s results, the drilled dimensions of the Gladiator Deposit are now outlined to a depth of 650 m below surface and with a strike length of 700 m. A “gap” between the Main Zone and the Rivage Zone to the west is set to be drilled off now to potentially further expand the strike length to 1,200 m.

The above cross-section highlights the current magnitude of the size of the Gladiator Gold Deposit, and today’s results indicate the strength of the system at depth.

On top of that, it becomes clear that the ongoing and upcoming drilling has great potential to further expand the deposit, first and foremost by drilling off the “gap”, respectively the undrilled area (highlighted in green), which could indicate a strike length of 1,200 m. The deposit already has an impressive strike length of at least 700 m and to a depth of at least 650 m below surface.

With 191.4 g/t gold over 2 m at a core length of 814.5 m in hole #39 it becomes clear that the deposit is open at depth and that gold grades may further increase at depth.

Rockstone is looking forward to the publication of further drill results, especially noting 2 drill rigs are currently operating. According to today’s news, several other holes have already been completed, of which some are already in the lab.

During the last few months, virtually no exploration or drilling news has been issued because BonTerra has focused on systematically exploring the eastern part of the deposit with geophysics to define drill targets, and to start drilling scout holes at a “measured pace” with 1 rig. As this crucial, but time consuming phase, has been completed recently, the company now intends to “aggressively” drill off and further expand the deposit. Rockstone now expects steady newsflow of new drill results in a regular fashion. Rockstone will now commence reporting BonTerra’s progress going forward as the Gladiator Deposit has the potential to significantly increase to become a large and high-grade gold deposit.

Nav Dhaliwal, President and CEO of BonTerra, commented today:

“On the back of our very successful winter drilling campaign that significantly expanded the Gladiator Gold Deposit to the west, we made the decision to concentrate on extending the east side and depth extensions of the deposit at a measured pace with one drill rig. This strategy has resulted in two major milestones: A major extension of grade and width eastward and to depth, and a much better understanding of the excellent continuity and predictability of the west side leading us to add an additional drill rig with the intention of proving that the Gladiator Gold Deposit could exceed 1,000 meters in strike length.”

Dale Ginn, Vice President Exploration of BonTerra, added:

“Our 2016 winter drilling campaign has proven that our Gladiator Gold Zones exhibit excellent continuity to the west and to depth. Our followup drill program was completed with the intention to methodically explore the eastern extensions at a measured pace over the summer months, while conducting ground geophysical and geochemical till programs over a majority of the large Bonterra land package. This summer’s drilling program has matured greatly our understanding of the deposit and has given us the confidence to take a more aggressive stance on further strike length and depth expansion drilling this coming winter. The down plunge results are a further confirmation of the strength and potential breadth of this mineralized system. Our technical team looks forward to expanding this deposit to the west, east and to depth this winter. ”

Gladiator Deposit

At a 4 g/t cold cutoff, the Gladiator Deposit currently hosts a NI43-101-compliant resource estimate of 905,000 tonnes averaging 9.37 g/t gold (total of 273,000 ounces of contained gold). This resource estimate was calculated in 2012 and as such does not include the many holes drilled in late 2015 and early 2016 (see best holes in table below), as well as the summer 2016 drilling. Hence, this resource estimate is poised to be expanded significantly soon.

Thanks to the many high-grade holes drilled since 2015, Rockstone anticipates an updated resource estimate exceeding 1 million ounces of gold. Osisko Mining Inc. (market capitalization: $370 million CAD) is not only a BonTerra shareholder but also owns the Windfall Lake Gold Deposit a few km north of Gladiator, both of which may share similarities in terms of grades and size.

Note: Approximately 90% of the world’s operating mines have an average gold grade less than 8 g/t.


Larder Lake Deposit

BonTerra also owns the Larder Lake Gold Deposit with an historic inferred resource of 917,000 ounces of gold at an average grad of 5.55 g/t gold. This highly prospective gold project may soon be explored with an extensive drill program in order to further increase the enterprise value.



Company Details

BonTerra Resources Inc.
#510 – 744 West Hastings Street
Vancouver, B.C. V6C 1A1 Canada
Phone: +1 604 282 7921

Shares Issued & Outstanding: 89,643,179

Canadian Symbol (TSX.V): BTR
Current Price: $0.23 CAD (11/15/2016)
Market Capitalization: $21 million CAD

German Symbol / WKN (Frankfurt): 9BR1 / A12AZ5
Current Price: €0.149 EUR (11/16/2016)
Market Capitalization: €14 million EUR



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Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.

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Name: BonTerra Resources Inc.
Canada Symbol: BTR
Germany Symbol / WKN: 9BR1 / A12AZ5
Shares Issued & Outstanding: 89,643,179
Phone: +1 855 678 5308

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