Back in 2019, the Fraser Institute ranked the province of Quebec as the 4th best mining jurisdiction on the planet. The James Bay region, known for gold, base metals and diamond deposits is Quebec’s jewel. X-Terra Resources (XTT.V) is one of the junior explorers capitalizing on the region’s earthbound riches. The company’s flagship Troilus East Gold/Silver project spans 9200 hectares about 160 kilometres northeast of the town of Chibougamau.
Located on the Frotet-Evans Greenstone Belt, a relatively underexplored geological district, Troilus East sits adjacent to Troilus Gold project with 8.11 million ounce AuEq inferred and indicated resource.
Back in April, the company announced the completion of an IP survey of Troilus East. The survey, spanning 19-line kilometres identified a one-kilometre long complex anomaly pattern centered on a strong conductor coincident with a kilometric gold in soil anomaly combined with a polymetallic copper, silver and tungsten signature. The high chargeability and low resistivity anomaly revealed a complex shape with an apparent width between 50 and 400 metres. The strong conductor can be followed along strike for over 800 metres.
X-Terra announced at the end of July that it had completed its Phase 1 drill program at the property and according to management, the program exceeded expectations. With 10 of the 12 holes planned complete, the inaugural drill program revealed an important alteration system in the principal southwest target about three kilometres east of the Troilus Mine. The company expects the results sometime in Q3 2021.
On the heels of the discovery the junior explorer announced a non-brokered placement for aggregate gross proceeds of up to $2.1 million. As I said before, the company is very early-stage and as such, has a tremendous challenge raising cash to advance exploration and in the face of this challenge, X-Terra managed to close the round having raised $878,750.
Using these funds, X-Terra has begun planning a follow up exploration program for Q4 2021 with additional geochemical testing in the hopes of extended the known mineralized corridor further to the northeast. A Phase 2 drill program is in the works and will be finalized once the initial drill results are received and analyzed by the company’s technical team.
X-Terra is headed by president and CEO, Micheal Ferreira. One could say his youthful approach to mineral exploration is refreshing in an industry typically run by individuals closer to the grave, but his budding experience may give investors pause because the science and success of mining is also modeled on the school of hard knocks.
That said, Ferreira is teamed with more senior industry veterans like director Kim Oishi who has 20-plus years in financing and business development as the founder of Grand Rock Capital, not to mention director Dr. Michael Byron, Ph.D., P.Geo., a thirty-year veteran of field work, research and senior management in gold, base metal, magmatic nickel, PGE, diamond, and gemstone exploration.
The company’s portfolio is a grab-bag of properties mostly in Quebec with one project, Grog and Northwest, in northeastern New Brunswick where the junior explorer has an option to aquire 70% ownership. The company’s other projects are as follows:
- X-Terra owns 100% of Troilus East,
- 100% with a 2% NSR of Ducran located in the Eeyou Istchee James Bay Territory,
- 10% of the Gold-Silver-Nickel Veronneau project also in James Bay,
- 100% of the Natural Gas-Lead-Zinc Rimouski project in the St. Laurent Lowlands and finally,
- 100% of the Natural Gas Rimouski North project also in the St. Laurent Lowlands.
X-Terra’s story is one of potential and that dream can carry juniors for a while, but only real exploration with satisfactory results will propel a project into production. At this point, the junior explorer is pinned on hope. If assay results prove otherwise, it could provide a catalyst that will both further the company’s exploratory endeavors and enrich investor value.
That said, Company insiders are standing strong on their investment, which usually indicates their faith in the best is yet to come. Then X-Terra has the big plus of operating in territories where no one has to worry about rebel attacks and government appropriations. The company also has a conservative market cap considering its assets. Valued at a little more than $5.0 million and trading at $0.06 per share, it’s riding the bottom and depending on the upcoming results has only one direction to go.
I know what you’re saying, mining companies are bad for the environment and behind the times, but this is a reputation earned more out of stubborn self-righteousness than reality. The green energy revolution isn’t going to come out of nowhere and in order to harken in the new age, we will need more industrial metals and risk-off assets than ever. That means minerals like copper, silver and gold will remain in high demand for the foreseeable future.
Besides the inherent need for mineral exploration and extraction, mining and energy companies are constantly introducing new technologies and methodologies to lessen their environmental impact while increasing productivity. It’s not as bad as you have been led to believe.
Therefore, as an investor, you stand more chance of sustainable long term returns by putting your money down on these technically involved and relatively boring industries than risking your hard-earned cash backing bitcoin.
Where does X-Terra fit into all of this? Maybe get your feet wet to see where things are going and if the results are as good as they predict, create a real stake and hang on for the ride. Of course, I am just a commentator, you should do your own due diligence and as always, good luck to all!
If you’re looking for a more in-depth breakdown of X-Terra, check out the following article links as well as the company’s Roundtable video, TK’s fundamental analysis and Vishal’s technical treatise.
The risks in straying outside the safe zones – the Fraser Institute unveils its Top Ten – also Freemont (FRE.V), Nomad (NSR.T), Arizona Metals (AMC.V), Delta (DLTA.V), X-Terra (XTT.V), and Freeman (FMAN.C)