High-Grade Discoveries and Strategic Growth in Quebec's Gold Sector
Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE) has announced significant assay results from its Moss target exploration and the resumption of drilling activities at the Phoenix Joint Venture (JV). Learn more about the Phoenix Joint Venture's potential to redefine Quebec's emerging Urban-Barry gold camp.
Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE) has announced significant assay results from its Moss target exploration and the resumption of drilling activities at the Phoenix Joint Venture (JV), operated by a wholly-owned subsidiary of Gold Fields Ltd. The Phoenix JV, located in Quebec's emerging Urban-Barry gold camp, is governed by a definitive earn-in agreement that allows Gold Fields to acquire up to 70% ownership by committing CA$30 million ($US22.5 million) in exploration expenditures over three years.
Exploration efforts at the Moss target have revealed high-grade mineralization. Notable drill results include 6.23 grams per tonne of gold (g/t Au) over 2.8 meters (including 18.1 g/t Au over 0.9 meters) and 7.50 g/t Au over 0.9 meters (including 20.9 g/t Au over 0.3 meters). These results indicate promising Lynx-style mineralization similar to other major regional deposits. To date, over 60,000 meters of drilling and approximately US$12 million in expenditures have been completed under the JV.
Highlights at the Moss Target, according to the news release:
6.23 g/t Au over 2.8m, including 18.1 Au g/t over 0.9m in hole OSK-PHX-24-11212.3 g/t Au over 0.5m and 3.97 g/t Au over 3.4 m in hole OSK-PHX-24-0737.50 g/t Au over 0.9 m, including 20.9 g/t Au over 0.3 m in hole OSK-PHX-24-1065.05 g/t Au over 1.0 m in hole OSK-PHX-24-053Gold Fields, the new operator of the Phoenix JV, has initiated plans for an ambitious exploration program. Their 2025 campaign targets 20,000 meters of drilling focused on high-priority areas along the Barry Shear Zone and other promising locations. The Barry Shear Zone is strategically positioned near the Gladiator deposit, which holds an estimated 1.4 million ounces of combined Measured, Indicated, and Inferred mineral resources.
Marc-Andr? Pelletier, President and CEO of Bonterra Resources, highlighted the significance of these advancements, stating, "The start of exploration activities under Gold Fields as the new operator marks an exciting milestone for the Phoenix JV. We are eager to collaborate with Gold Fields to advance Quebec's newest emerging gold camp."
Resilience and Consolidation in the Gold Mining Sector
According to a December 5 report from Kitco Media, gold futures settled at US$2,653.90, supported by a 0.58% decline in the U.S. dollar index. The report highlighted that attention was firmly on the upcoming nonfarm payrolls report, which was expected to show 200,000 new jobs added in November. This data was anticipated to shape Federal Reserve policy, with a 70.1% likelihood of a 25-basis-point rate cut projected by the CME's FedWatch tool.
A December 6 article from Ahead of the Herd described gold's recent performance as part of a "monster upleg," characterized by a 53.1% increase over 12 months. The report attributed this surge to robust global demand, particularly from China, central banks, and India. The article stated, "Global demand has generally remained robust-to-strong," helping gold maintain stability during volatile periods.
Also, on December 6, The Daily Gold emphasized gold's breakout from a 13-year technical pattern earlier in the year, which advanced prices from US$2,100 to US$2,800. Despite the rally, the report noted that gold had yet to outperform traditional 60/40 investment portfolios, which was cited as a key metric for sustained growth. The article observed that "new capital is not coming into the sector," underscoring the need for fresh investment to drive valuations higher.
A December 7 commentary from Excelsior Prosperity reflected on gold's trajectory from a low of US$1,618.30 in late 2022 to a peak of US$2,801.80 in October. The analysis described the recent consolidation phase as "the calm in the middle of the storm," with gold futures flirting with the 50-day exponential moving average at US$2,652.91. The report highlighted that investor sentiment remained steady, with no cause for alarm despite the pullback.
The Forces Behind Bonterra Resources
As noted in the company's investor presentation, the Phoenix JV represents a transformative opportunity for Bonterra Resources, benefiting from Gold Fields' expertise and significant exploration investment. The detailed exploration plan includes 20,000 meters of drilling using up to four rigs, with additional geophysical surveys under consideration. These activities are expected to expand mineral resource estimates and define new high-grade zones across the property.
Strategically located in Quebec's Abitibi Greenstone Belt, the Urban-Barry camp remains underexplored compared to other prolific regions. Gold Fields' commitment to funding exploration ensures robust progress in identifying new deposits, advancing the Moss target, and unlocking value in untested areas such as the Duke NE, Chanceux, and Tourmaline Ridge extensions.
Bonterra also benefits from its established infrastructure, including the Bachelor Mill Complex, which offers processing capacity and proximity to the exploration sites. Combined with the 2025 development plans for the nearby Windfall Gold Project, the area is poised to emerge as a major gold-producing hub.
Strategic Positioning and Potential in Quebec's Gold Mining Sector
In an October 3 report, Eight Capital highlighted Bonterra Resources Inc.'s strategic positioning within the Urban-Barry gold district, emphasizing its proximity to Osisko's high-grade Lynx Zone and the Windfall project, one of Canada's most significant undeveloped gold deposits. The report described Bonterra as offering "exposure to its strategic land package," which includes the Phoenix JV, Gladiator, and Barry deposits, all viewed as critical assets with potential for resource growth.
The analysis noted the exploration potential of the Phoenix JV, noting that its location near high-grade zones could provide considerable upside. They stated that Bonterra had completed over 110,000 meters of drilling since its 2021 resource estimate, suggesting opportunities for resource expansion. The report also mentioned that Bonterra is currently trading at an EV/oz multiple of CA$8.5/oz of gold in total resources, a substantial discount compared to Canadian peers. This was noted as potentially positioning the company as an attractive candidate for mergers and acquisitions.
Streetwise Ownership Overview*
Bonterra Resources Inc. (BTR:TSX.V; BONXF: US; 9BR:FSE)
*Share Structureas of 12/11/2024Source: Bonterra ResourcesEight Capital further pointed out Bonterra's fully permitted operational mill and advanced exploration infrastructure as significant advantages. They suggested that these assets enhance the company's appeal as a potential target for consolidation within the Quebec gold mining sector, particularly given the continued interest in high-grade deposits and scalable projects in the region.
Ownership and Share Structure
According to the company, 24% of Bonterra is held by Strategic shareholders, including Wexford and Agnico Eagle. 20% is owned by institutions and high-net-worth individuals, including Fidelity, Stephens, R. Vora, Ruffer, CDPQ, and Horizon Kinetics. 2% if held by management and the board. The rest is retail.
Bonterra has a market capitalization of CA$46.6 million and 23 million free float shares. The 52-week range is US$0.16 - $0.34
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Important Disclosures:
Bonterra Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.