Another article from the ottawa sunOttawa's Beaufield Consolidated Resources digging its find in northern Quebec
OTTAWA MINING firm Beaufield Consolidated Resources has found gold in northern Quebec and plans to stay in the area for the long haul.
The company announced this week that rocks near the surface of its property contain as much as 12 grams of gold per tonne.
Beaufield director Paul Carmel said companies have operated profitable mines after finding three to four grams of gold per tonne deep in the ground.
"Twelve grams is awesome," he said. "It's exceeded my expectations."
Carmel said he can't predict if an actual mine will be possible on Beaufield's property, based on the results of the surface rocks. Still, he said there will be long-term activity in the James Bay region.
"There's going to be a mine there," he said. "There's no doubt about it."
'WE HAVE LOTS OF MONEY'
As the Sun reported on Saturday, Beaufield and local miner Everton Resources have substantial land claims beside a known gold discovery owned by Quebec City's Virginia Gold.
Carmel said since Beaufield raised $4 million through a brokerage firm earlier this year, it can afford to send more crews north to search for gold. The company is not actively looking for a larger mining company to partner with yet, he said.
"We never say no right away, but we're happy with our position right now," Carmel said. "We have lots of money, so we're happy to bang away at this ourselves right now."
Junior mining companies usually sell partial stakes in their land claims to larger mining companies, since many small firms don't have the cash to sustain long-term mining camps.
Ron Little, president and CEO of Ottawa's Orezone Resources, which has also had success in gold exploration, said the longer a junior mining company sticks with its projects, the more attractive the firm becomes to a major mining company looking for new discoveries or takeover prospects.
FIRMS EAGER FOR TAKEOVER
"The further you take it, the better the deal you will get with your partner," Little said. "For most junior exploration companies, their mindset is, 'Let's find it, build it and someone will take us over.' "
Little said investors have been generally receptive to mining companies in the past several years, which has boosted stock values on the public markets.
Little's own company has benefitted. Thanks to some of its acquisitions in Burkina Faso, the firm plans to begin mining in the African nation in the next several years.