SOQUEM is a subsidiary of Ressources Québec. How do you work together to help exploration companies advance their projects?

SOQUEM is viewed as an exploration company with its main shareholder being Ressources Québec. Ressources Québec aims to secure mining development in the province, and SOQUEM should be viewed as a developer that is not only at the exploration stage, but rather the stage that provides the most efficient development. The relationship between the two is a lot more fluid than often understood and we work in unison at all stages of development.

We look at what would be the best scenario to advance development and then decide who has the best expertise for the specific project and who should manage it. SOQUEM currently has 20 projects all at different stages.

What does SOQUEM look for when assessing a new project?

SOQUEM does not choose projects per se, but tends to work with companies as long as there is a business plan that makes sense. These projects are not always early stage; for example, in 2018 SOQUEM made a deal with the junior company Enforcer Gold, which was looking for an advanced project. Another approach would be where a company has an interest and perhaps wants to share the risk. SOQUEM can manage or give them management guidance. Other times we have focus areas and approach people operating in those areas directly.

What is the focus of SOQUEM’s strategic alliance with Azimut Exploration?

We have heard a lot about industry 4.0 and the utilization of big data, and this is where SOQUEM has been working with Azimut. The objective here is trying to define and focus Azimut’s targeting on 10 properties. We have succeeded in defining six of them, and on four of these Azimut has recently announced discoveries. These discoveries are tangible evidence that the big data approach is working.

From the early stages, this will be SOQUEM’s approach – working with strategic alliances for new territory and for specific elements. We are focused on opportunities in minerals that are important today, as well as metals and minerals that will be important ten years from now.

Can you elaborate on how SOQUEM is utilizing big data to make meaningful discoveries?  

Using software developed by our partner, we focus on a specific geogrpahic area and a specific mineral.  The targets generated are validated by fieldwork at prospection stage. Should it be confirmed, we secure the land. Our partner has demonstrated tangible evidence that the software produces the right targets, and Azimut’s four recent discoveries add credibility to this technique.

Do you think a big data approach to exploration will become more commonplace?

After the success SOQUEM has had, we believe the big data approach will become more widespread. However, Mining 4.0 is not only related to big data; it is also about the way we combine all the different components of a project to work together. In the mining industry we used to focus on geology and technical aspects separately from human resources, community engagement and environmental processes. Technical studies may show that a project will be economical, but this will not be the case as long as there is a lack of environmental consideration or a strong link with communities. Fortunately, the people who work with SOQUEM and the new generation of workers in the industry are aware of this and already have these values.

How do you view the current investment climate for junior exploration?

Programs such as the mineral exploration tax credit (METC) help. However, competition for funding from new industries such as cannabis and cryptocurrencies has really impacted the mineral exploration sector. The share prices of junior companies have continued to suffer. We must remember that the markets will be cyclical for these new industries and will experience the same external impact on projects.

What are the main objectives for SOQUEM in the next 18 months?

You will see SOQUEM very active on the strategic alliance front, as the four recent discoveries made in partnership with Azimut will provide us with interest with new investment and maybe new company involved in this area. This is one of SOQUEM’s main objectives: ensuring mining development. We would also like to take on more advanced projects.

The current market climate presents challenges and there are many projects that need funding. Our message to the exploration community is that SOQUEM is designed to help projects at all stages of development.