From the Ottawa SunTWO OTTAWA mining companies could soon know whether they've struck gold in northern Quebec.
Everton Resources and Beaufield Consolidated Resources have both staked out hundreds of hectares of land next to a known gold deposit in the James Bay area.
Investors now want to know how much gold there is in the area.
Both firms have done initial exploration work on their properties, and both expect to have results in the next few weeks.
Speculation suggests the Opinaca site will produce Canada's largest gold discovery in 20 years. Estimates peg the gold find in the area at 10 million oz.
"The results keep getting better and better," said Everton chief executive Andre Audet.
"This could be the best find in many, many years."
Of course, the mining industry is based on such boundless optimism. But in the case of this northern Quebec deposit, Quebec City-based Virginia Gold has already proven there is gold in the ground.
HOT COMMODITIES
And Ottawa's two junior miners hope their larger counterpart strikes large pockets of gold, since it will likely mean their properties will become hot commodities.
"Gold doesn't know property lines," Audet said.
Beaufield chief executive Jens Hansen recently returned from the Quebec wilderness, where he saw how Virginia is expanding its presence in the area. Hansen said it's a promising sign.
"I think they're downplaying it, but there are 60 people in their camp and they have drills in there now," he said. "I think they're onto something."
Hansen said the Virginia camp had 30 people just a few months ago.
Investors are also betting that the two local miners are onto something.
In June, Beaufield raised more than $4 million from a brokerage firm. Hansen said he expects his company to have about $3 million remaining at the end of the summer exploration season.
Everton is considering offers from larger mining companies that want to buy into the miner's property in the area. Virginia Gold's main drilling camp is located just 2 km from Everton land.
10 TIMES YOUR MONEY
Audet said he hopes this project, which Everton bought into last year, ends up being a "ten bagger," meaning investors get a 10-fold return on their money.
Local mining companies have started to discuss how to capitalize on the local sector's rising fortunes.
In addition to Everton and Beaufield, which both trade on the TSX Venture Exchange, Ottawa also boasts TSX-listed Orezone Resources, Patrician Diamonds and Phoenix Matatchewan Mines, which also trade on the Venture Exchange.
Several of these companies, like Everton, emerged in the wake of the city's dot-com collapse several years ago.
Audet said mining executives have been discussing ways of pooling their resources to promote the local industry to potential investors.
"It's still a small market, but it's growing," Audet said. "We're looking at expanding ourselves."
michael.hammond@ott.sunpub.com
Golden terminology
- Bedrock: Solid rock underlying soil or other unconsolidated materials, or appearing at the surface where these are absent.
- Flake gold: Gold in the shape of a flat, thin chip.
- Glacial drift: Deposits of clay, sand and gravel transported by glacial action and sometimes stratified by running water.
- Mother lode: This is the main vein of quartz in a region which exhibits many veins of lesser content.
- Nuggets: A lump of precious metal, usually gold.
- Pocket: A hollow in rock or gravel which yields an unexpected amount of gold.
- Strike: When gold is found in quantity, it is called a "strike."
- Vein: (or "seam") Usually a quartz vein which is assayed for its gold content.
- Wheat gold: Small nuggets of symmetrical shape and size.