How is the current environment for juniors? 

The market is still tough for juniors. Financings are down, but investment in exploration and meters drilled remains good. However, the general sentiment at the beginning of 2024 is on the downside of things. Our members are prioritizing their core assets. 

Overall, it is extremely difficult to raise money for juniors right now, which is ironic as gold, copper and base metals prices are all currently high. Most of the mineral investment for both mine development and exploration is still very much focused on precious metals in Québec. That disconnect is partly related to the investor base, which has changed over the years. There are fewer exploration-specific funds, so the industry is targeting the generic investor, which is less cognizant of how exploration works and how patient one needs to be. That investor base is less patient, but it is the one holding the capital, so companies will have to shift their approach to address them. 

Is it becoming more complicated to do exploration work in Québec? 

On 6 May, the Ministère des Ressources naturelles et des Forêts (MRNF) introduced a new permit for certain types of mining exploration activities, called the authorization on impact-causing work. We felt this measure was quite rushed, and the period to get it across was too short. We are monitoring what is going on in the field, and what we are hearing is that most authorizations have been delivered on time, so the next challenge will be for companies to apply and not get left behind. In reality, it is a new permit for certain activities like drilling and trenching. Before, only a permit from the Forest Department was required, so this adds another layer of authorization. This is more red tape for exploration and mining activities and causes delays. The next step will be asking the government to synchronize that authorization with the Forrest permit to streamline the process. 

Exploration has become more complicated in Québec, but it is the same all over the world. We need to adapt to regulations and be in-synch with society and our social responsibility. We also need the general population to understand mining better. New regulations are a challenge to accessing territory, which is paramount. As of 2022, 94% of all exploration and mineral development expenditures were in Abitibi, Cote Nord, or Nord du Québec. The same applies for meters drilled: In 2022, less than 4% of the 2 million meters drilled was outside of these three regions. 

Are you seeing enough greenfield exploration? 

In 2022, over 80% of exploration was done by juniors in Québec. Exploration will remain junior-driven, although majors are picking up more of that exploration split. However, majors are doing most exploration around their sites, in brownfield areas. So the danger is the lack of investment in greenfield exploration. 

Brownfield and greenfield exploration are well and alive in James Bay. Some explorers looking for base and precious metals realized they had the potential for lithium-baring pegmatites and changed their strategic focus, leading to more discoveries. This boom in lithium exploration is great for James Bay, as the region had been mostly explored for gold ever since the Eleonore discovery and development. We have not found another Eleonore yet, and the next step is building a project in James Bay to prove the area can be a reliable supplier of lithium for the electrification of the world. 

What is the potential for new gold discoveries in Québec? 

There is still a lot of potential in the Porcupine Dexter Fault and the Cadillac break. If I take the example of the Malartic camp, the redevelopment is proving that old camps still hold a lot of potential. There is still lots to be found. The best place to explore is in the shadow of a headframe!

What will 2024 look like for explorers in Québec?

The government said it had plans to amend the Mining Act, which will affect how our industry can operate in the field. We see some risk associated with a shift between the provincial government and some municipalities. The electric transition is still ongoing. The gold price is at a record high, and the fundamentals are still here for battery metals.