Gold supply is getting tighter, deposits of quality are getting rarer and the project development timeline is getting longer. Enter Canada. The Canadian Shield still offers the possibility of break-out discoveries, says PearTree Securities analyst Eric Lemieux. The recent spate of M&A activity points to the potential of the region, and Lemieux discusses several companies that are well positioned to add value.
The Gold Report: In the month since the Prospectors & Developers Association of Canada convention (PDAC), the markets have been holding steady. Has the “PDAC curse”—where mining equities fall after the PDAC convention—been broken?
Eric Lemieux: I hope so, although it really is still too early to say. Perhaps at this stage, with the drop in copper prices and gold in the $1,240/ounce range, we’re in a gray zone. However, there’s a certain sense of optimism based on the fact that we’re in the last amplitudes of a bottom. Certainly medium fundamentals look interesting. Gold supply is getting tighter, deposits of quality are getting rarer, and there is a lengthening timeline for the development of projects because of more stringent permitting and social acceptability elements.
TGR: What is going on with merger and acquisition (M&A) activity in Quebec and Ontario?
EL: There has been a recent flurry of M&A activity in Quebec and Ontario. One could almost say it is the flight to the old parents. . .comfort in stability, access to know-how and the realization that there is still much to discover in the ‘old’ Archean greenstone belts of the Canadian Shield, a geological province that covers the heart of Canada. It is notorious for being very well endowed with different commodities.
The merger announced last week between Adventure Gold Inc. (AGE:TSX.V) and Probe Metals Inc. (PRB:TSX.V) is a terrific fit. The combination of two strong exploration teams that merge good Québec and Ontario expertise, as well as project know-how, sets the stage for advancements in exploration.
For the rest of this interview, click here: https://www.theaureport.com/pub/na/the-canadian-shield-could-host-the-next-bonanza-discovery-eric-lemieux