Spotlight: Gold and critical minerals in northern Quebec

Building on the ambitious mining and infrastructure development strategy set out in Quebec’s Plan Nord policy, Quebec envisions a full-cycle domestic value chain for the battery sector, while the historic Abitibi gold belt continues to yield promising high-grade deposits. Here are four companies exploring for critical and precious metals in Quebec. 

Amex Exploration 

Amex Exploration (TSXV: AMX.V; US-OTC: AMXEF) last month released an updated preliminary economic assessment (PEA) for its Perron project, just four months after a resource update nearly tripled the high-grade gold deposit at the project in the Abitibi Greenstone belt. Perron is located about 5 km from the town of Normétal.  

The updated PEA outlines a two-stage production strategy, with output of 1.66 million ounces of gold over a 17.5-year life at an all-in sustaining cost (AISC) of $1,061 per ounce. It assumes a base case gold price of $2,500 (C$3,460) per ounce.  

The study forecasts a post-tax net present value (NPV) of C$1.08 billion  and an internal rate of return (IRR) of about 70%. Net capital costs are pegged at C$77.5 million, with a post-tax payback period of 1.4 years.  

Perron hosts open pit and underground stope-constrained resources of 8.18 million measured and indicated tonnes grading 6.13 grams gold per tonne for 1.61 million ounces, according to the resource update in May. Inferred resources total 5.04 million tonnes at 4.31 grams gold for 698,000 ounces. 

New drilling has also identified copper-rich volcanogenic massive sulphide deposits. 

Exploration is focused on the high-grade corridors around the Perron fault and a feasibility study is expected next year. The company forecasts production could start in 2032. 

Amex plans to eliminate the need for a tailings management facility by back-filling the open pits with tailings. 

Eldorado Gold (TSX: ELD; NYSE: EGO) owns 17% of Montreal-based Amex, while 8.8% investor Eric Sprott owns an 8.8% stake. 

Amex has a market capitalization of C$377.2 million. 

Azimut Exploration 

Azimut Exploration (TSXV: AZM.V; US-OTC: AZMTF) is advancing its main projects Elmer and Wabamisk, where in August it discovered a new high-grade gold target called the Rosa zone.  

At Rosa, located in the Eeyou Istchee James Bay region, deposits in quartz veins include visible gold across a 700-metre area. Samples show grades between 1 to 5 grams per tonne.  

Exploration at Wabamisk is also underway for antimony-gold in the Fortin Zone. Azimut also has an option agreement with Rio Tinto (NYSE, LSE: RIO) in which the major would provide C$25 million for lithium exploration at its adjacent Wabamisk East Property. 

The Longueuil-based company is also scoping at the Elmer project. It expanded Elmer in July when Azimut acquired the K2 Property from Dios Exploration, adding 25 potential sites for gold and copper-gold-silver deposits. 

The main Patwon zone at Elmer hosts 4.99 million indicated tonnes at 1.93 grams gold for 311,200 contained oz., and 8.22 million inferred tonnes grading 1.94 grams gold for 513,900 oz., according to a 2023 resource. Scoping at Patwon has also identified significant grades copper, zinc, tellurium and bismuth.  

Azimut has been working with Miikan Drilling, a joint-venture partnership between Chibougamau Drilling and the Cree First Nations of Oujé-Bougoumou and Mistissini. 

Agnico Eagle Mines (TSX, NYSE: AEM) and Centerra Gold (TSX: CG; NYSE: CGAU) hold about 11% and 9.9% of Azimut, shares respectively. 

Azimut Exploration has a market capitalization of C$76.4 million. 

Cartier Resources 

Cartier Resources (TSXV: ECR) has embraced Quebec’s strategic focus on the circular economy at the decommissioned Chimo gold mine, which produced from 1964 to 1997. 

Cartier seeks to extract gold from old tailings at Chimo, which is situated at the company’s Cadillac project, just east of Val-d’Or. 

Cartier acquired Cadillac from O3 Mining in 2022, and in August it launched a 100,000-metre drilling program that is to last 18 months. Drilling last year returned results as high as 142.2 grams gold, with some deposits starting from surface.  

Indicated resources at Cadillac total 7.1 million tonnes at 3.1 grams gold for 720,000 oz., and inferred resources come to 18.5 million tonnes grading 2.8 grams gold for 1.6 million ounces.  

Cartier has partnered with Vancouver’s VRIFY for mineral exploration driven by artificial intelligence. Targets are both high-grade discoveries from last year and untested historical showings from drilling across 44 sites, including the Chimo mine.  

In September, Cartier awarded Stantec with a contract for the first environmental baseline and geochemical studies for Cadillac, and an initial evaluation of economic assessment of tailings at Chimo.  

A 2023 PEA for Chimo outlines production of 116,900 oz. annually over 9.7 years, a NPV of C$388 million, and IRR of about 21% at $1,750 per ounce of gold. 

Cartier Resources has a market capitalization of C$70.6 million. 

Critical Elements Lithium  

Critical Elements Lithium (TSXV: CRE) received key federal approvals this year for its Rose Lithium-Tantalum project in Eeyou Istchee James Bay.  

Rose is an open-pit lithium and tantalum mine on the traditional lands of the Cree Eastmain Community, about 38 km north of Nemaska.  

In May, Critical Elements received an amended decision statement for Rose from the Minister of Environment and Climate Change of Canada. Amendments to the 2021 agreement include the construction and development of a permanent workers’ camp and the use of two borrow pits.  

The federal decision is informed by the 2019 Pikhuutau Agreement with the Cree Nation of Eastman, the Grand Council of Crees (Eeyou Istchee) and the Cree Nation government. 

This February, Critical Elements also received environmental authorization to prepare the site for construction.  

Rose is estimated to produce 203,765 tonnes of spodumene concentrates and 580 tonnes of tantalite concentrates over its projected 17-year life.  

Indicated resources are pegged at 30.6 million tonnes grading 0.93% lithium oxide and 145 ppm tantalum oxide. Inferred resources are 2.4 million tonnes grading 0.78% lithium oxide and 129 ppm tantalum oxide.   

Using conventional lithium processing technologies, grading is estimated at an average of 0.87% lithium oxide and 138 ppm tantalum oxide after dilution.  

Rose has an after-tax NPV of $2.2 billion (at an 8% discount rate) and an IRR of 65.7%. Net capital costs are estimated at C$651 million with a post-tax payback period of 1.8 years, and a discount rate of 8%.   

Critical Elements has a market capitalization of $94.8 million.