Quebec Precious Metals (CVE:CJC) Exploration Plans for Highly-Prospective James Bay Territory
Quebec Precious Metals Corporation (TSX.V:CJC) (OTC-BB:CJCFF) CEO Normand Champigny joins Midas Letter to discuss the highly-prospective Eeyou Istchee James Bay territory in Quebec, which it describes as “the next Eleonore Mine”. The Eleonore Mine is 90 kilometres from the Eleonore mine, which is one of Canada’s largest gold mines producing over 350,000 ounces of gold annually.
The project already has infrastructure in place to be able to explore and drill all-year round. The CEO states Quebec Precious Metals is planning on drilling at least 10,000 meters. The company have recently announced exploration plans for the first phase of the 2019 program in the James Bay territory. The program will primarily focus on advancing its flagship project Sakami and the La Pointe deposit. As of the interview date, a total of 100 diamond drill holes have intercepted the deposit.
James West:I’m joined now by Normand Champigny. He is the CEO of Quebec Precious Metals. Normand, welcome.
Normand Champigny, CEO:Pleasure to be here.
James West:Yes Normand. So, tell me about this project? I’ve had some preliminary discussion and I was so excited. I said, wait a sec. Stop the conversation. Let’s get this on camera right away. Tell me about it.
Normand Champigny: So we’re also very excited because this project was created through the creation of a company by combining two existing companies a year ago with the support of what is today Newmont Goldcorp – our largest shareholder, the largest pension fund in Quebec and a few other shareholders to fund the Éléonore mine in this area of Quebec called James Bay, which most people recognize as the “new Abitibi”. This is the new Abitici, but it has good infrastructure today where you can explore all year round and drill, and this is what we’re doing. Drilling to make this big and eventually find a buyer to have the power by the deposit and put it into production.
James West: Newmont sounds like there are built-in buyer. At least they’ve got first look.
Normand Champigny: They have a vested interest because they have invested 1.4 billion Canadian dollars to build this mine. They’re running the mine, but obviously they want to run this for a long time. So, they need other sources of gold in the area and that could be a logical one. We’re about 90 kilometers by a crew of flight from the mine.
James West: Interesting. The things that attracts me most about the company is the fact that you guys a) did a five million dollar raise at the height of the misery of the gold market arguably. Although back in June, it was starting to show some signs, but nobody thought it was going to do that. You did it with three checks. Newmont and it’s a participant with the right of first refusal on future financings in a down gold market while still only having 40 some odd million shares issued and outstanding to me is a remarkable feat of championship and I congratulate you on that. So how is it that this company has been so advanced with over a hundred drill holes as you said earlier with such little dilution?
Normand Champigny: Well we did consolidation of the shares with two companies before so we have a good share of structure and that’s what also important to attract new shareholders. Including Newmont. We had lots of work done on a project but it was a joint venture before and the two joint venture Partners on their own couldn’t really Advance it very fast. So, we have over 30,000 meters of drilling that has been done. We could calculate a resource today but we want to keep drilling to make it big enough and attractive to meet the threshold and you need to have say around two million ounces to make this very worthwhile project for a company like new Mount or other major companies that may be interested to come in.
James West: Alright. Why don’t you show me some of the location and geological relativity to other mines and everything.
Normand Champigny: So, this is the Éléonore Mine 90 kilometers away and we have the property boundaries here shown where we are border of the second me Reservoir. The distance is about 23 kilometers, 23 kilometers is roughly the equivalent of what is the val-d’or gold mining camp and on there we’ve been focusing on an area called La Pointe. Where as I mentioned earlier about 30,000 meters of drilling and we can see that by going below so we can see the intersection that we have gold-bearing Rocks. We have a horizon that continues and we can see that here on Surface by projecting the same drill hole intersection. There are two zones, the larger one is shown in pale green. What’s interesting also, is that this Point here, this is what we call La Pointe but there’s another Point we’ve done some soil sampling that works quite well to find gold and that we believe represents the extension. We’ve been doing some work this summer and we’re getting ready to drill that area in the fall to extend the zone to the Northwest and that could be doubling the size of potential area here we can find gold.
James West: How much drilling is planned?
Normand Champigny: At least 10,000 meters, maybe up to 15,000 meters.
James West: A real Drill program!
Normand Champigny: A real drill program.
This is James Bay. We are here on Flagship project we’ll also have other projects that we are working on. But primarily our intention is selling or optioning them. There are First Nation communities that are well Serviced, they also are involved heavily in servicing the mine
James West:They have engaged with them?
Normand Champigny: We have engaged with them. The owners have spent time. They are very supportive and Quebec in that region of Quebec we have agreement which ensures they get Revenue as the continue to support Industrial Development. So, they’re very keen to see more happening in the area. We have a paved road here, that’s actually paved. And here we have a winter road that is about 30 kilometers. These are in purple power lines, hydro-Quebec lines, built in the 70s. So good infrastructure. Yes, your further north it cost a bit more to do things. But you can work 12 months of the year. And first person you need camps. We can take the supplies to the site. You don’t need copters very much, except to carry some emergency supplies sometime people.
James West:Sounds great Normand, I thank you for the presentation because that’s a great project by the looks of things. I do believe I will be a participant in the shares. Thank you very much for joining me today.
Normand Champigny: It’s a pleasure to be here. Thank you.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.