The Mining Sector Needs A Major Discovery To Get Investors Excited - QMEA
(Kitco News) - The mining sector is seeing some renewed excitement as gold prices post their third week of gains, but one mining executive said that the sector still needs more to attract fresh investment capital.
Mathieu Savard, president of the Quebec Mineral Exploration Association and vice-president of exploration for Osisko Mining
In an interview with Kitco New on the sidelines of Xplor, the annual Quebec Mining Exploration Conference, Mathieu Savard, president of the Quebec Mineral Exploration Association and vice-president of exploration for Osisko Mining, said that what the mining sector really needs is a major discovery to spark some excitement in the sector.
“The last time we had a really difficult market was in the early 2000s. A major discovery is what helped create the new rally,” he said. “It’s difficult now because to find a significant discovery you need the capital for exploration. It’s like the chicken and the egg.”
However, he also noted that he thinks it should only be a matter of time before investors come back to the mining sector.
“There are still lots of opportunities to find a significant discovery but it’s going to take some outside-the-box thinking,” he said. “It’s a difficult market, but it’s in times like these that can you can find value.”
One of the jurisdictions he said that investors should keep their eyes on is Quebec. The Abitibi region is one of the world’s largest mining districts and has produced 180 million ounces of gold. However, Savard said that companies have only scratched the surface when it comes to gold.
“There is so much land in Quebec and while there is a lot of historical data there are also a lot of blind spots that still need to be explored,” he said.
Along with embracing new technology and new ideas, Savard said that the mining association is hoping to have strong backing from the province’s new government. He added that Quebec needs to build its infrastructure to support the resource sector.
“Most discoveries have been made close to infrastructure,” he said. “Having infrastructure close by can reduce a company’s costs by 50%.”