The Mining Sector Needs A Major Discovery To Get Investors Excited - QMEA
(Kitco News)- The miningsector is seeing some renewed excitement as gold prices post their third weekof gains, but one mining executive said that the sector still needs more toattract fresh investment capital.
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| Mathieu Savard, president of the Quebec Mineral Exploration Association and vice-president of exploration for Osisko Mining |
In aninterview with Kitco New on the sidelines of Xplor, the annual Quebec MiningExploration Conference, Mathieu Savard, president of the Quebec MineralExploration Association and vice-president of exploration for Osisko Mining,said that what the mining sector really needs is a major discovery to sparksome excitement in the sector.
“The lasttime we had a really difficult market was in the early 2000s. A major discoveryis what helped create the new rally,” he said. “It’s difficult now because tofind a significant discovery you need the capital for exploration. It’s likethe chicken and the egg.”
However, healso noted that he thinks it should only be a matter of time before investorscome back to the mining sector.
“There arestill lots of opportunities to find a significant discovery but it’s going totake some outside-the-box thinking,” he said. “It’s a difficult market, butit’s in times like these that can you can find value.”
One of thejurisdictions he said that investors should keep their eyes on is Quebec. TheAbitibi region is one of the world’s largest mining districts and has produced180 million ounces of gold. However, Savard said that companies have onlyscratched the surface when it comes to gold.
“There isso much land in Quebec and while there is a lot of historical data there arealso a lot of blind spots that still need to be explored,” he said.
Along withembracing new technology and new ideas, Savard said that the mining associationis hoping to have strong backing from the province’s new government. He addedthat Quebec needs to build its infrastructure to support the resource sector.
“Mostdiscoveries have been made close to infrastructure,” he said. “Havinginfrastructure close by can reduce a company’s costs by 50%.”
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |