Chapais-Chibougamau is a major character in Canada’s mining story. Recognized as the second-largest mining district in Quebec’s portion of the Abitibi belt, Chapais-Chibougamau produced approximately 1.57 million tonnes of copper and 176.1 tonnes of gold, along with significant amounts of silver and zinc from 1953 to 2008. One notable discovery in the region, the Troilus mine, operated by Troilus Gold Corp., produced two million ounces of gold and 70,000 tons of copper from 1996 to 2010. QC Copper and Gold (QCCU.V) is hoping to build on this rich history and write a new chapter of discovery success in Chapais-Chibougamau with its flagship Opemiska project.
The Project
Opemiska is located in the town of Chapais Quebec, approximately 40km west of the Chibougamau Mining Camp and consists of four historical mines that produced over 22M tonnes of ore at 2.40% copper and 0.33 grams per tonne gold.
Since QC acquired the 1560 hectare project from private mineral explorer Ex-In back in December 2018, the company has conducted extensive exploration activities. In 2021, QC completed a 20,000-metre drilling program, leading to the release of a Maiden National Instrument 43-101 mineral resource estimate, which reported 81.7 million tonnes at 0.88% copper equivalent (CuEq) in the Measured and Indicated (M&I) category, and 21.3 million tonnes at 0.73% CuEq in the Inferred category.
In January 2024, following more than a million metres of core drilling and approximately 350,000 assays, QC Copper updated this resource estimate. The updated figures are impressive, highlighting 93% of resources in the M&I category, with a total global resource of 2.24 billion CuEq pounds at 0.94% CuEq. A particularly notable feature of the updated resource is the high-grade Starter Pit, estimated at 19 million tonnes at 1.09% CuEq, which offers prospects of accelerated payback and enhanced economics.
QC CEO and chairman Stephen Stewart commented, “We are proud to deliver to shareholders an MRE that defines Canada’s highest grade copper open pit deposit. This MRE details the immense value of owning such a sizable, high-grade asset with excellent accessibility and infrastructure. Furthermore, QC Copper and Gold’s Opemiska is in the heart of NW Quebec, a stable mining jurisdiction, where we see Opemiska as the anchor to revitalizing the storied Chapais-Chibougamau copper-gold district in Eastern Canada. We look forward to Opemiska’s continued expansion, development, and significant economic impact for stakeholders in the years ahead.”
Opemiska benefits from the region’s established infrastructure as well as Quebec’s Plan Nord, launched in 2011. This comprehensive initiative by the Quebec government provides a stable regulatory and financial environment for mining in the province, encouraging investment, and ensuring the sustainability and community integration of mining activities.
The People
QC benefits from expert leadership. One shining light within the explorer’s halls of power is Charles Beaudry, VP Exploration & director. Beaudry is a industry veteran with over 30 years of experience in project generation, business development, exploration chemistry and project management. His successful track record includes a stint at IAMGOLD, a major Canadian gold producer valued at $1.53 billion, as well as nearly 17 years in various capacities at storied mining combo Noranda-Falconbridge-Xstrata.
Denis McNichols, senior geologist and project manager for QC Copper and Gold, has over 25 years of experience in exploration and mining geology. He has deep field experience managing exploration programs for gold and base metals. Holding a geology degree from the University of Chicoutimi, Denis is well familiar with the region’s geological landscape, making him the perfect for leading up exploration activities at Opemiska.
What we think:
What’s this mean?
The updated MRE shows tremendous potential for mineral extraction at Opemiska, but there are still risks at the project you should be aware of. First off, the conceptual pit is a little close for comfort to the town of Chapais which could alarm residents and environmental activists. QC Copper and Gold will need to be attentive and probably complete additional environmental studies to smooth feathers. Also, much of the data that drives the project’s valuation is historical and cannot be validated by re-assaying as none of the drill cores remain for the historical holes drilled from 1953-1991. QC will have to pull up their sleeves to verify the data as they push toward development. You should also know that some of the copper and gold assays prior to 1977 are of lower quality and QC will have to build a new set of drill assays to offset the old ones. But hey, junior mining is risky, right?
Sure, QC Copper and Gold has its work cut out for it in 2024, but the updated mineral resource will provide some good fuel to progress the story at Opemiska. If the company can continue expanding/confirming its resource while keeping the locals happy, it could create a tremendous investment growth opportunity and economic shot-in-the-arm for community stakeholders. That’s a legacy we’d all love to bank on. Remember, do your due diligence and speak with an investment professional before making any portfolio decisions. Good luck to all.