MTO.V has just formed a rather bullish cup and handle formation. It matches all the criterion for this formation enumerated by Bulkowski's Encyclopedia Of Chart Patterns. Here's the chart:

The catalysts for this break out appear to be:

• Gold hitting all time highs this week.

• The buzz on the message boards. The boards say that Metanor's mill is running (for the first time) and soon a start of production, first gold pour announcement should be forthcoming.

The basic story on Metanor is that it is a Northern Ontario mine gold mine restart. Its got the only mill in a historic gold mining district and as such could grow to pickup all the properties in the district. The web site is pretty weak and the stock has a really low market cap. Its so illiquid I can only put a small fraction of my portfolio in it. I consider Metanor to be a speculative buy.

Here's the highlights of my fundamental analysis (you should check this yourself, because the stock is so small and the web site is so poor that some of the inputs for this are hard to find):

• 76MM$C market cap with no significant debt.
• 58M oz/year initial annual production with a cash cost of $350. The only source for the cash cost I could find was message board buzz (for whatever that is worth).
• 260M oz Measured and Indicated resource with 480M oz Measured, Indicated and Inferred. This puts Metanor clearly in the Junior category, but again there is considerable exploration upside and the drills are already working on proving additional resources up. This leaves Metanor a little short on resources (without this upside) as it is only underpriced on a price to measured and indicated basis by 18%.
• The above gives MTO an absolutely stunning price to annual oz ratio of $1327 and price operating cash flow ratio of 2.9! 

I consider Metanor to be a good price / risk ratio at this point with a great upside if it produces as expected and increases its resources and a non-negligible risk given the potential for startup problems and some of the uncertainty associated with its upcoming exploration.

According to Bulkowski, the target price for this pattern is 34% above the top of the cup (or $1.20C) and 50% of cases achieve this target.

It has a great catalyst for a price jump in the form of anticipation of its production startup announcement and has significant downside protection in the form of two different warrantless private placements at $C.80. This means the smart money thinks anything close to $C.80 is a real value.