One of many hottest areas for gold exploration in Canada is the James Bay Lowlands, the place a number of important gold discoveries have already been made and one has develop into one of many nation’s largest major gold mines. One junior seeks to take its discovery to the subsequent degree, and up to date drilling suggests it’s on the appropriate path.
Quebec Treasured Metals Corp. (QPM:TSX; CJCFF:OTCQB) reported a high-grade interval of 69.6 grams gold per tonne (69.6 g/t gold) over 0.6 meter inside an extended intercept of 94 metres grading 1.32 g/t gold, in gap 187, a part of its fall drilling program on the La Pointe Extension gold deposit.
Gap 188 additionally hit 1.51 g/t gold over 42.15 meters inside an extended intercept of 0.95 g/t gold over 100.8 meters. The La Pointe Extension is a part of the corporate’s 100% owned Sakami gold undertaking within the Eeyou Istchee James Bay territory of Quebec, about 600 km north of Val d’Or, Que.
QPM has a 142-square-kilometer land package deal alongside a greenstone belt and controls a 23-kilometre-long geological contact that’s favorable for gold mineralization.
The junior continues to attend for assay outcomes from gap 189 on the La Pointe Extension, however QPM CEO Normand Champigny says the drilling outcomes recommend that the continuity of mineralization on the La Pointe Extension imply that it could possibly be mined by open-pit strategies — less expensive than underground mining however typically tougher to allow.
“These outcomes are the very best so far on the La Pointe Extension and validate our perception that the central portion of the deposit continues at depth with larger mineralized widths. I might say to buyers, the extra we drill to the southwest to the South Level State extension, the higher it will get. And that is why we preserve specializing in that. We could possibly be on the tip of the iceberg,” QPM CEO Normand Champigny advised Streetwise.
The assay outcomes from gap 189 could possibly be revealed as early as subsequent week, whereas the winter drill outcomes are anticipated in April.
These outcomes would be the subsequent catalyst for the share value, adopted by the corporate’s maiden useful resource estimate in Q3. The useful resource calculation will use knowledge gleaned from all 40 of the holes drilled so far into the La Pointe Extension and the full ounces for Sakami is anticipated to strategy 2 million.
A few of that may come from the principle La Pointe deposit, which is about 2 km northeast of the La Pointe Extension deposit. QPM has completely drilled La Pointe at 50-meter spacings and is aware of it properly. The corporate has achieved loads much less drilling on the La Pointe Extension however has a a lot increased discovery charge.
Quebec-based analyst Eric Lemieux sees promise within the newest outcomes.
“I estimate a grade (multiplied by a) thickness of 26.9 g/t gold (multiplied by) meters for the three holes on La Pointe Extension, which is sweet. My general estimate for the entire of the La Pointe zone is 16 g/t gold (multiplied by) meters (estimated true width). Not a slam dunk, however I feel it does benefit extra drilling. I’m extra within the higher-grade depth potential,” Lemieux advised Streetwise.
IP Surveys Result in Extra Potential Mineralization
Induced-polarization surveys by QPM level to extra potential alongside strike on the La Pointe Extension, together with what Champigny describes as totally different anomalies 2.5 km alongside strike south of the La Pointe deposit which are related to a “giant intrusive physique.”
QPM has traced the La Pointe Extension deposit over a strike size of three,750 meters and to a minimum of 400 meters under floor. The corporate’s 3-D mannequin suggests the mineralization is about 41 meters thick on the edges, whereas as a lot as 75 meters thick within the central a part of the deposit.
“We’ve expanded considerably the identified quantity of mineralization and are inspired by the interpreted giant intrusive physique. The 2021 IP outcomes point out that the La Pointe Extension deposit continues to the south over a goal space related in measurement to the deposit that we’re at present drilling based mostly on the 2020 IP outcomes,” mentioned Champigny.
IP places electrical present into the bottom by electrodes to permit geophysics technicians to measure the voltage response. The measurements decide the chargeability of the internet hosting metallic minerals, significantly sulphide minerals like pyrite (identified to host treasured metals). A better focus of chargeable materials will often produce a stronger response.
Early Metallurgical Work Sees Excessive Recoveries
QPM has additionally achieved some early-stage metallurgical work on samples taken from the La Pointe Extension.
“We’ve achieved a preliminary examination of the mineralogy, which confirmed that the gold was free, generally connected to sulphides. We did a take a look at utilizing typical methods. And we obtained recoveries from 90%, to as much as 99%. No deleterious components,” mentioned Champigny.
One noteworthy occasion for QPM is that Jean-François Meilleur stepped down as president and director in late January. The function of president has not been crammed, however Meilleur stays a major shareholder. Champigny says he thanked Meilleur for his contributions to QPM and that it’s “enterprise as standard.”
QPM is funding its exploration efforts partially by the sale of non-core belongings. The final asset to go is QPM’s 50% stake within the Matheson three way partnership, a gold exploration play close to the Hoyle Pond mine in northern Ontario’s Timmins camp. Champigny expects the sale to shut quickly and can present some non-dilutive financing.
“We have been very profitable monetizing our non-core belongings. We anticipate (Matheson) to shut shortly. And we anticipate that to usher in round $500,000 money and shares,” Champigny advised Streetwise.
Institutional Help Stays Robust
QPM stays properly supported by a number of giant Quebec-based establishments and Newmont Corp. (NEM:NYSE).
Goldcorp — earlier than it was acquired by Newmont in January 2019 — purchased into the newly fashioned QPM with an funding of CA$3.7 million. Newmont, which operates the close by Éléonore underground gold mine, has since participated in additional financings and owns about 13%.
Authorities-backed Caisse de Dépôt et Placement du Québec purchased in on the identical time, on the identical phrases as Goldcorp. It and different Québec establishments personal about 12%. QPM administration owns about 2%.
QPM has about 82 million shares excellent and trades in a 52-week vary of CA$0.33 and CA$0.145.
1) Brian Sylvester compiled this text for Streetwise Stories LLC and offers providers to Streetwise Stories as an unbiased contractor. He or members of his family personal securities of the next firms talked about within the article: None. He and members of his family are paid by the next firms talked about on this article: None. His firm has a monetary relationship with the next firms referred to on this article: None.
2) As of the date of this text, an affiliate of Streetwise Stories has a consulting relationship with Quebec Treasured Metals Corp. Please click on right here for extra info. The knowledge supplied above is for informational functions solely and isn’t a advice to purchase or promote any safety. Eric Lemieux or members of his household personal shares of Quebec Treasured Metals Corp.
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