Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Keep an Eye on Metals Mining Exploration Plays in the James Bay Area

Commodities / Metals & Mining May 26, 2009 - 03:30 PM GMT

By: The_Gold_Report

Commodities

Best Financial Markets Analysis ArticleEric Lemieux, metals and mining analyst with Laurentian Bank Securities, focuses on the emerging mineral wealth of the James Bay area of Quebec and discusses his favorite explorers in this exclusive interview with The Gold Report. Despite producers being more in favor, he believes the James Bay area with its exploration plays and favorable geological, geographic, and social fundamentals retains its advantages.


The Gold Report: Eric, when we last spoke (October 2008), you were focusing on mining companies in the James Bay area. You liked the area because it provided good infrastructure, a skilled workforce and promising geography. Do these advantages hold true today?

Eric Lemieux: Many things have happened since last fall that have made long-term focus and exploration plays much less attractive. Cash (the U.S. dollar) is said to be king and with gold's rebound in December 2008, quality gold producers have been more in favor as opposed to speculative plays. However, despite producers being more in favor, I believe the James Bay with its exploration plays retains its advantages. When people wonder what's next in the pipeline of the producers, exploration plays will garner favor and interest. Plays with great geographics may attract attention anew.

TGR: In October, you thought there were prospects for another discovery the size of the Éléonore deposit. What progress/drill results have been released that make you continue to feel a substantial discovery is possible?

EL: Activities in the James Bay have considerably subsided with Goldcorp’s (TSX:G) (NYSE:GG) decision in January 2009 to defer development costs on the Éléonore project and preserve its cash position (which is probably sound judgment in these turbulent times). This has had some impact upon the perception of the James Bay play. However, I do believe this is a short-term step back for a larger step forward as geological, geographical, and social fundamentals remain robust and tantalizing.

Infrastructure continues to improve in James Bay with Hydro-Quebec beginning the Rupert Diversion, the Quebec Government commitment to completing the Route 167 Extension from Temagamie (north of Chibougamau) to the Renard diamond project of Stornaway, etc. The essential fact that the area is an emerging mining camp has not changed. It's important to note that Goldcorp's total resources for Éléonore as of December 31, 2008 are 5.3 million oz. with substantial grade increase.

The Eastmain Resources Inc. (TSX:ER) results on Eau Claire continue to suggest an expanding gold resource as well, Virginia Mines Inc. (TSX:VGQ) remains very active and is generating new targets and projects, and finally Midland Exploration Inc. (TSX.V:MD) has partnered with Agnico-Eagle Mines (TSX:AEM) to explore the eastern James Bay. All this confirms that the pack leaders are advancing.

TGR: You are following just a few of the companies that have properties in this area. You told us previously that the reason for this is twofold—you are looking for quality management teams and companies utilizing a partnership approach. Are there more companies that qualify under those criteria now than last October? Can you tell us about them?

EL: Unfortunately, with the difficult times hitting the exploration industry, many players have left or are in the process of leaving the James Bay. I take comfort that the companies I follow continue in the area, even expanding their land positions.

I highlight works by Azimut Exploration Inc. (TSX.V:AZM), Quest Uranium Corporation (TSX.V:QUC), Abitex Resources Inc. (TSX.V:ABE), Golden Tag Resources Ltd. (TSX.V:GOG), Strateco Resources Inc. (TSX.V:RSC) and others that continue to show the polymetallic endowment of the area.

TGR: You were following four companies operating in that area, Midland Exploration, Virginia Mines, Eastmain Resources and Sirios Resources Inc. (TSX.V:SOI) (NYSE:SOI). The stock performance of these companies has been relatively flat over the last six months, while other junior miners have experienced significant gains. Can you address why you think the stock price of these companies continues to be flat? Do you feel there is still substantial upside for any of these companies?

EL: Though some exploration companies have had significant gains in the last six months, these have been an exception as most have languished in new lows. The adversity to risk has affected many and I believe it is just a question of time before the fundamental values of strong management, good projects and strong financial position will appear on radar screens, and quality explorers will appreciate.

Virginia Mines has started to receive the US$ 100,000 per month royalty payment on Éléonore and has enthusiastically initiated its important summer exploration program after a winter of extensive compilation works. I believe they have generated interesting new gold targets. They certainly are an experienced and focused team and I believe they are very well exposed for more discoveries.

Midland Exploration retains its partnership model and is assembling an important land package in James Bay, among other areas. Their ability to attract a major such as Agnico-Eagle suggests a good working relationship.

Eastmain Resources is very active on the Eau Claire gold deposit and in-fill drilling continues to show high-grade gold intercepts. The Eastmain mine project will gain enormously for logistics when the Route 167 Extension will be completed. A paved road to a site does give value and I believe this project will attract attention.

Sirios remains focused on the James Bay; however, current market conditions have considerably affected its ability to be very active.

TGR: Where do you think the price of gold will go in the near term, and what do you see as its effect on the miners?

EL: I believe the present price range is very good for all serious industry players. I expect a price range between US$775/oz. to $975/oz in the short term. In essence, I think gold has attained a new solid plateau at $800/oz. and spikes above $1000/oz. will be more frequent in late 2009 to 2010. This type of scenario does not create micro-inflation in the mining industry (which gold above $2,000/oz could foster) and provides nevertheless a robust environment. It's important to note that the USA remains the biggest holder of gold with China fast approaching.

Éric Lemieux, MSc, P. Geo., is a Mining Analyst who joined Laurentian Bank Securities (“LBS”) in January 2008. Prior to joining LBS, Eric worked for nine years as a consultant responsible for applying Regulation NI 43-101- for the Autorité des marches financiers (“AMF”) as well for the New Brunswick Securities Commission. Eric had previously worked at the Montreal Exchange and prior to that had managed exploration projects for Cambior, Noranda and Soquem. Eric holds two master’s degrees, one in Mineral Economics from the Colorado School of Mines (1997) and in another in Metamorphic-Structural Geology from Laval University in Quebec City (1992). Eric hold a B. Sc. in Geology from Laval University (1989).

Want to read more exclusive Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights page.

The GOLD Report is Copyright © 2009 by Streetwise Inc. All rights are reserved. Streetwise Inc. hereby grants an unrestricted license to use or disseminate this copyrighted material only in whole (and always including this disclaimer), but never in part. The GOLD Report does not render investment advice and does not endorse or recommend the business, products, services or securities of any company mentioned in this report. From time to time, Streetwise Inc. directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open mar ket or otherwise.

The Gold Report Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in