The Canadian Shield Could Host The Next Bonanza Discovery: Eric Lemieux

The merger announced last week between Adventure Gold Inc. (AGE:TSX.V) (AGONF) and Probe Metals Inc. (PRB:TSX.V) (PROBF) 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. The combined company should continue to unlock value within Adventure's portfolio of ~20 projects. Goldcorp Inc. (G:TSX; GG:NYSE), with a 17.7% stake in Probe, will invest an additional $2.9 million ($2.9M). Probe will have a treasury of ~$22M, well positioned to finance a portfolio of projects.

Indeed Ontario saw much activity in 2016 as Tahoe Resources Inc. (TAHO:NYSE; THO:TSX) merged with Lake Shore Gold Corp. (LSG:TSX) for a foothold in West Timmins; Kirkland Lake Gold Inc. (KGI:TSX) (KGILF) acquired St Andrew Goldfields Ltd. (SAS:TSX)(STADF) and its East Kirkland assets; Wesdome Gold Mines Ltd. (WDO:TSX) (WDOFF) expanded its Moss Lake land package in northwestern Ontario; and, finally, BonTerra Resources Inc. (BTR:TSX.V, BONXF:OTCMKTS, 9BR1:FSE) is acquiring ground in the Kirkland Lake-Virginiatown area via an agreement with Kerr Mines Inc. (KER:TSX)(AISCF).

All this suggests that there remains excellent geological potential in Québec and Ontario. With distressed assets because of the lack of cash—good assets with no monies to advance—inside quality jurisdictions and with relative proximity to infrastructure, the M&A of certain issuers should keep on pace.

TGR: Would you talk about some of the companies you follow that are active in the area?

EL: Integra Gold Corp. (ICG:TSX.V; ICGQF:OTCQX) is advancing the Triangle zone. Integra's Gold Rush Challenge was a success and showed that the company has matured and grown. Integra hosted the Gold Rush Finale at the PDAC Convention after making available over 6 terabytes of digital mining and exploration data from Sigma-Lamaque in Val-d'Or. The Gold Rush Challenge has given Integra a wealth of enticing information and interpretation of targets. The new platform should incite mining companies, governments and mining financiers to go beyond traditional thinking, share information and consider disruptive technology as a means to captivate a new generation of industry professionals.

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Disclosure: 

This article does not constitute investment advice. Each reader is encouraged to consult with his or her ...

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