One of the highest grade, richest mineral deposits in North America has been hidden from investors for years.
But it is about to have a BIG coming-out party.
SOQUEM—Quebec’s incubator of mineral assets—has developed a deposit that has
- Advanced stage
- over 11 million tonnes of 3% ~ copper equivalent (43-101 compliant!)
- open at depth, and along strike
- NEVER been in the public markets before
- several other high grade mines within a few kilometres
A talented team with a small market cap was able to convince SOQUEM—a subsidiary of Investissement Quebec—that THEY (the junior) were the right group to expand this high grade deposit. And I mean, expand it to the point where it would be OBVIOUS TO EVERYBODY that this could be a real mine.
And when you get to START with 11+ million of indicated and inferred tonnes—you don’t have to spend a year and a bunch of money to convince the Market you MIGHT have a deposit. No, at this advanced stage, EVERY single hole that keeps hitting that rich grade can add obvious and valuable tonnage.
Market caps can go up FAST when you get to start with 11+ million tonnes of 3%~ copper.
And this sub-$1 stock is moving fast. They quickly raised $14.5 million (with NO warrants) to go drill DOZENS of expansion holes. They now have two drills on the property and are considering a third.
They have drilled 14 holes so far and I’m expecting the first set of drill results BEFORE the annual Canadian mining convention—the PDAC—is held in Toronto starting March 2.
TOMORROW MORNING—I give you the name and symbol of this micro-cap stock with this big deposit, so you can be ready.
This management team won this asset because of their track record in Quebec, and making a creative deal with SOQUEM.
First off, they were the founding family behind Air Creebec, which showed they could also work with First Nations—very important in resource development everywhere in Canada.
Second, they thought outside the box on their deal with SOQUEM—they are paying almost no cash directly for this asset (almost all the cash goes into the ground to earn their 80% interest), but are leaving SOQUEM with an undilutable 9.9% of the asset. SO SMART—your major shareholder besides management will NEVER sell.
THIS IS EXACTLY THE KIND OF ASSET THE MARKET WANTS
This is a very high grade ready-for-expansion deposit that is in North America. Big assets in exotic locations are NOT in favour right now. THIS is what gets the majors excited. This is something for which they will open their wallets.
And it’s not just major mining companies who open their wallets—institutional and retail investors do as well. Look no further than Foran Mining FOM-TSX, who is a couple years ahead of tomorrow morning’s micro-cap stock. They have developed a VERY similar polymetallic copper project in Canada—at slightly lower grade than my new favourite—and look at that stock in the last five years:
To get a chart like this, you need MULTIPLE percent copper—which this junior now has, thanks to all the hard work SOQUEM has done. So investors today are already starting with over 400 million pounds of copper in a 43-101 compliant resource.
The Selbaie mine—only 7 km (4 miles) away produced 53 million tonnes of similar geology from 1981 – 2004.
But you know what makes this even more interesting—to me at least: SOQUEM built this deposit up in a GOLD camp. And this asset has been underexplored for gold. This deposit is actually in a major GOLD camp in Quebec. That could be a HUGE value-add for investors.
BE READY FOR THIS COMPANY’S NAME AND SYMBOL
TOMORROW MORNING BEFORE MARKET OPEN
This micro-cap stock with the big management team has a huge head start for investors—11+ million tonnes of 3%~ copper equivalent, with a deposit that is open at depth and along strike. So far, the mineralization goes almost straight down which makes for very cheap underground mining. But there may be a lot more mineralization to discover!
They have a Quebec gov’t funded company as a 9.9% partner. Cash payments are minimal.
And fresh off raising $14.5 million, they have already drilled 14 holes, and results will be coming within days.
I like the share structure here—98 million shares, only 400,000 warrants, and $15 million working capital.
With a float like that good news will get amplified in the market.
If any of you are armchair geologists—consider this: management has said that in two different holes, they hit 10 metres of 10% chalcopyrite and 8 meters of 20% chalcopyrite. So there’s a strong chance the high grade can continue.
Lots of exploration stocks are now running up on good news—Foran (Saskatchewan), as mentioned, and Snowline Gold (SGD-TSXv) in the Yukon has gone from 24 cents to $6 in three years, and Founders (FDR-TSXv) in British Columbia has run from 24 cents to $1.75 in the last 12 months.
The tiny market cap with this very high-grade deposit has a GREAT shot at being the next one. Be ready tomorrow!
