The following is a Stockhouse Q&A interview with
Canada Strategic Metals Inc. (
TSX: V.CJC,
Stock Forum) CEO and Chief Geologist, Jean-Sebastien Lavallee.
Introduction
Canada Strategic Metals is an emerging growth company, focused on exploration and development of a large portfolio of
gold and
graphite projects located throughout Quebec.
Who are the key players on Canada Strategic Metals management team and what skill-sets will support the company in accomplishing its strategic goals?
I am CEO and Chief Geologist at Canada Strategic Metals. My expertise is in international negotiations, I have a degree in Geology and my family and I have dedicated our careers to the metals mining sector.
Our President
Christophe Romary has spent more than a decade working in investment banking sector, where he specialized in mining. He has held management positions at numerous mining companies.
Our CFO
Nathalie Laurin has extensive experience working with companies in the mining and minerals sector. She has held a number of corporate secretary roles and has an in-depth understanding of the regulation in Quebec.
What were the company’s major achievements in 2014?
1.
Two drilling campaigns at the Sakami Apple gold project (4500m) delivered exceptional results and have once again confirmed the Sakami project's gold potential.
2. Our drill campaigns have confirmed the high-grade gold potential of zone 25 (the main zone) for the Sakami project. Zone 25 remains open in all directions. We also identified and confirmed the presence of multiple parallel, highly anomalous gold zones.
3. A 3100m drilling campaign at the La Loutre Graphite project delivered strong results and intersects (grades and lengths)
You have just received a permit for 38 drill sites on the Sakami project. What do you hope to accomplish with this campaign?
We are planning a minimum of 2000 meter campaign on Sakami-Apple FY2015 with the goal to increase the size of zone 25 and have a 43-101 compliant resource of a minimum of 1 million ounces.
What have you been able to accomplish by recently drilling on the La Loutre Graphite project?
This drilling campaign (FY2014) on La Loutre property has been successful. We have identified a graphite mineralized zone over 800 meters in length, up to 100 meters wide and more than 100 meters deep. This is a significant milestone to achieving our objective of rapidly establishing a mineral resources and a PEA on this asset.
What are the advantages of having all of your projects in Quebec?
We are lucky to have an extensive network of institutional investors and retail investors in Quebec who know the mining industry very well, support our company and other juniors like us. We have confidence in the current provincial government and its evident support in the mining industry. They demonstrate an understanding of the challenges of our sector while recognizing the potential Canada Strategic Metals has to contribute in a major way to the local economy.
What is your outlook for the commodities you are focused on?
We are mildly bullish on gold this year, mostly because of geopolitical risks and the over-extended dollar. We expect the price of gold to average US$1,300 an ounce in 2015, with prices ranging between a high of US$1,450 and a low of US$1,170. The drivers in the gold market have over the past two years switched from institutional investor interest to physical demand from fabricators and investors in bars and coins. During this period, confidence in the financial system has been restored while safe-haven demand has fallen. With equity markets setting all-time highs, the opportunity cost of holding gold has increased.
Organic growth in retail demand in China, and quantitative easing in Europe should also fuel demand for small bars and coins. Gold prices could also benefit from a pullback/consolidation in the dollar, which may have run ahead of itself given the weak global growth outlook. Like Standard Bank, we see gold gaining in 2016 and 2017 due to improved supply/demand dynamics. As an example, worldwide gold production is expected to decline 2% over the next five years, with the gold market posting a surplus of 322 tonnes in 2015 and 138 tonnes in 2016, before moving into deficit of 48 tonnes in 2017.
What are the company’s key goals for 2015?
1. To further extend Zone 25, explore other high potential zones on our Sakami-Apple project and retrieve over the million ounces in resources.
2. Add other high potential gold properties to our portfolio
3. Focus operations on our gold assets
4. Establish a mineral resource and Preliminary Economic Assessment (PEA) for the La Loutre graphite project
5. Partner with other companies for our other high potential non-gold assets
6. By generating results, we expect to provide a superior return to our investor base.
Does Canada Strategic Metals have any plans for expansion?
Our expansion plans are two-fold:
1. To explore the numerous high potential targets identified on our flagship Sakami-Apple property.
2. To acquire and explore new potential properties in highly prospective regions. I.e. The recent announcement of our acquisition of a property in the James Bay Area and adjacent to
Visible Gold Mines Inc.'s (
TSX: V.VGD,
Stock Forum) 167 extension property, where several boulders, containing gold, silver, copper and zinc mineralization were recently discovered.
Which asset would you say is Canada Strategic Metals’ predominant focus?
Our main focus is always to create more value for our shareholders. This year, we are confident we can achieve this by being focused on our exploration campaigns for our Sakami-Apple asset. Our main objective will be to exceed the one million ounces mark in resources.
Why is now the time to invest in V.CJC?
An investor needs to consider our company today because we are currently both a value and growth play.
i. Value, because we are still very affordable and trading below our industry comparables.
ii. Growth, because we have a significant upside, both short term (1 year) and longer term. Results to date have been strong and the direction of the company on an incline. If you would like more information, watch for news and check out our website at:
https://www.canadastrategicmetals.com/en