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QC Copper & Gold - Building on the Past and Repositioning

October 18 2020, 08:44 GMT+01:00

QC Copper & Gold

  • TSX-V: QCCU
  • Shares Outstanding: 70.11M
  • Share price: C$0.12 (15.10.20)
  • Market Cap: C$8.063M

QC Copper is focused on acquiring and developing copper projects in the Chibougamau region, Quebec and share synergies with its past-producing Opemiska Copper Mine Complex.  

Through acquisitions, QC Copper has been able to expand its Opemiska property to over 13,000ha in the heart of Quebec with significant infrastructure, including direct rail and road access, already in place.  

QC Copper is re-envisioning the past-producing Opemiska Copper Mine Complex as an open-pit, given the previous operators targeted only the highest grades (+5% Cu). There is a considerable amount of metal left, near-surface that can be mined with the open pit method. 

The demand for copper is increasing and prices have increased significantly since Feb 2020. Stephen Stewart highlights that the copper industry needs new supply. Stewart is a company builder and never one to shy away from picking up projects with a bit of hair on them. They have changed the name of the company, repositioned the company and want to let the market know what they are doing. 

Interview with Stephen Stewart, CEO of QC Copper & Gold Inc. (TSX-V:QCCU) 

We Discuss: 

  • 1:16 - Ore Group: Overview, Representation, & Structure 
  • 4:41 - From Gold to Copper: A Macro View 
  • 7:41 - Managing Multiple Companies; Time & Focus 
  • 10:24 - Rename to Restart: Possibilities for an Economic Mine 
  • 12:38 - Blue Sky for Investors: More than a Small Company? 
  • 15:55 - Financing & Growth: Potential Challenges 
  • 20:48 - Cost of Money & Outlook for Copper 

The Ore Group 

The Ore Group is a band a of mining entrepreneurs who cover everything in terms of geology and engineering, finance, marketing, compliance, CFO and legal. Stewart explains that there is just one team which has been working together for a long time and the idea has been to acquire private mineral resource opportunities, raise capital, take it public, develop it, and then use the junior markets which is what they have been doing successfully. 

The Ore Group itself is a representation of a strong brand which represents the people. The Ore Group represents on a public company basis; Orefinders Resources, Mistango River Resources, QC Copper and Gold, Baselode Energy and a new IPO called American and Eagle Gold coming out later this year. 

Screenshot (71)

The Ore Group of companies - QC Copper and Gold Presentation Oct.'20

The Copper Story 

Stewart has been involved in Copper for a long time and he thinks that the way forward for Copper is in the requirement for the West to build hard infrastructure, roads, tunnels, ports and airports, etc. He thinks that the new China is going to beat the west to it in terms of building its infrastructure and that Copper will be a major part of that story. Electrification with electric cars and renewable energies which is where Copper connects too, so the demand for Copper is very bright but that there is a serious supply issueChile is a major Copper producer but a lot of the old Copper mines are 70-years old with much reduced grades. There are some fantastic new deposits out there but they're in very troubled jurisdictions. 

In March, Copper dropped to USD$2 but since then, Copper has probably outperformed virtually any metal going from USD$2 to USD$3. The big production companies, like Freeport have benefited from that margin but exploration companies like QC Copper, have slightly lagged behind says StewartIt was similar with the Gold market last year and Stewart thinks that the Copper market will be the same with companies like QC Copper waiting for thCopper wave to come. 

QC Copper & Gold 

The QC Copper project used to be a high-grade vein system and QC Copper looked at the high quality Falconbridge data and recreated and digitised it and saw very clearly that there was mineralisation outside of those veins. They then raised some money and in 2019 drilled 13 holes of over 100m that had ore-grade Copper. Some highlights would be 160m at 1% Copper which is Copper equivalent with Gold included as there is a lot of Gold in there too says Stewart. The headline hole he adds was 74m at over 2.5% Copper equivalent which are shallow holes and are also on the railway which means that all the infrastructure is there. He thinks that the resource has what it takes to be an economic mine. 

opemiska_location

The location and infrastructure of the Openiska Copper Complex - QC Copper and Gold Presentation Oct.'20

Drilling programme

QC Copper was renamed and repositioned as the focus of the company shifted towards Copper and Gold. They have USD$1.5M in the bank and they have a 20,000m-drill program planned and need to increase their cash treasury as they need between USD$3.5M to USD$4M to complete their economics and engineering on this project. They plan to drill out the Springer where they’ve already got about 13,000m which will be in-pit resource and then move on to the Perry, which was a 2nd mine next door which they haven’t drilled at all yet. They have the data which is very similar with Springer and Perry so there is potential to grow. They have also acquired the Robitaille earlier this year, which was the 3rd mine of the Opemiska operating under Falconbridge, and the 4th mine is called the Cooke. The Cooke is a Gold mine and the Cooke has produced 300,000oz at 5g/t.  

Screenshot (72)

The Chibougamau Camp - QC Copper and Gold Presentation Oct.'20

QC Copper has 4 mines that are very close to each other, and then additionally they acquired 13,000ha of land on the Gwillim Fault, which is the regional mineralisation controlling structure there.  So, they have a clear plan to delineate an open pit deposit on these 4 mines, and then they’ve got the optionality for discovery on this land package, on the fault.  

QC Copper have 62% of Baselode and are planning to sell in order to finance their exploration but that they need to sell at the right time both for Baselode and for QC Copper and Gold. 

The Copper Wave 

Stewart would be surprised if the rush of interest in Copper juniors comes between now and the end of this year, and thinks that Gold will continue to run for a bit longer and then people will be looking for the next thing. The infrastructure plans that define great demand for Copper, are ultimately going to be the catalyst which really moves Copper even further, if Copper goes to USD$3.50, then the Copper juniors will be excitedHe thinks that Copper story is really for 2021, as do we.

Outlook for QC Copper & Gold 

Stewart is aware that the QC Copper resource is not going to be a 1Bt sole Gold type of deposit, but that the capex will be lower too and expects the project will be attractive to a mid-tier investor.  QC Copper will continue to delineate the project and if they aim for 100Mt and can do that without having to build a rail or a road, then they will be in a fantastic situation. Stewart himself owns just under 4M shares, which is about 5% of the company and is excited in the QC Copper and Gold story. 

To find out more, go to the QC Copper & Gold website. 


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