Issue link: http://resourceworld.uberflip.com/i/162873
Exploration and mining in QUÉBEC by Ellsworth Dickson W hile there are still many good reasons to explore for minerals and develop mines in Québec, there are some challenges facing resource companies in Québec's mining sector. A new mining act was recently proposed by the minority governing Parti Québécois party that would require mining companies to produce studies on the feasibility of processing ore in the province before proceeding with a new project. As might be expected, junior explorers are upset. This doesn't make much sense as processing ore is not a consideration at an early stage of exploration; just finding sufficient ore at an economic grade is the task at hand. Mother Nature, being as unpredictable a she is, means that many early-stage projects won't even make it to the point where ore processing can be considered. Then there is the added expense of producing the study. Another disappointment was the cancellation by Canadian National Railway of a study focused on the building of a major 14 www.resourceworld.com new railway in northern Québec to ship iron ore to port on the St. Lawrence River for shipping overseas. Of concern, to some in the mining industry, is the upcoming new mining tax to be implemented next year that would see miners make payments to the provincial government on the output value at the mine shaft head. Then there is the ban on uranium exploration and mining. Even though it is banned, uranium explorers still have to pay the Québec government funds to keep their claims in good standing, a situation viewed as unfair by the mining community. However, the news is not all bad. The Caisse de dépôt et placement du Québec recently announced the creation of Sodémex Développement, a $250 million fund that will invest in developmentstage mining projects. In addition, the mineral exploration rebate on exploration expenses remains in place. All told, Québec remains one of Canada's most important provinces for exploration and mining. Below is a selection of projects under way. Abcourt Mines Inc. [ABI-TSXV; ABMBF-PK; AML-Berlin, FSE] reports mine development at the Elder gold mine near Rouyn-Noranda is progressing well. Three stopes are in production, two stopes are in preparation and one old access drift has been rehabilitated. Extraction for May was between 4,000 and 5,000 tonnes, ramping up to 12,500 tpm by year end. Adventure Gold Inc. [AGE-TSXV] is continuing the 2013 exploration program on its 100%-owned Detour and CasaCameron projects situated respectively along the Detour gold trend and the Casa Berardi-Cameron gold trend in the Abitibi region that consisted of helicopter-borne and ground geophysical surveys on the best areas previously targeted. The company is evaluating different scenarios for its 100%-owned Val d'Or East flagship project (Pascalis-Colombiere). Based on the 770,000-gold-ounce resource estimate, which includes an in-pit inferred resource of 330,000 oz gold at 2.4 g/t, an internal economic model calculation is under way. SEPTEMBER 2013