Bonterra Resources Inc. (TSXV:BTR) reported encouraging initial results from its winter drill program at its Gladiator Gold Deposit which continue
to confirm our view that resource expansion is likely. Highlights from these first four holes include, high grades from hole BA-18-04 intersecting
16.9 g/t Au over 6.5m at the Main Zone and 14.1 g/t Au over 1.5m at the South Zone as well hole BA-18-03A extended the strike length and depth in the
Main Zone. Drilling to date, confirms a total strike length of 1,200m to depths of +1,000m from four horizons, North, Footwall, Main and South. The
company is expecting to drill 70,000m in 2018 with seven active drills on site. The program is a combination of infill and definition drilling which
should complement the 60,000m of drilling completed in 2017. Supported by recent exploration success we continue to believe Bonterra is well-positioned
to deliver significant resource growth in 2018. Bonterra currently trades at C$64/oz, a slight premium to peers (C$45/oz). Given our expectation for
meaningful resource growth at its flagship Gladiator deposit (update planned for H2 2018), Bonterra appears to be trading at a discount to peers; C$26/oz
if you assume a 2M oz Au resource at Gladiator.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
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Bonterra Resources Inc. - TSXV:BTR - 1,2,3
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