-- Posted Friday, 23 December 2011 | | Disqus
While many jurisdictions are working hard to prevent mining or mineral exploration, the province of Quebec is encouraging it. In this exclusive interview with The Gold Report, Alain-Jean Beauregard, founder of Geologica Inc., a geological consulting firm based in Val-d'Or, talks about the shining future of gold mining in Quebec.
The Gold Report: The province of Quebec where Geologica is based offers some of the best infrastructure and mineral exploration incentives of any state or province in North America. Why has Quebec embraced mining when so many other jurisdictions are working hard to prevent mining or mineral exploration at all?
Alain-Jean Beauregard: Like forestry, mining has traditionally been a region developer in the province of Quebec. Native land issues have already been settled for large parts of the province. Mining is an important job creator—one of the most important in the province. It's good income for the province because of revenues from taxes. Quebec is happy to have mining companies in the province. The highest salaries are now in mining. Mining regions have the lowest unemployment in the province and a lot of young graduates are back from the larger cities to their families, to the great satisfaction of their parents. Also, a large world-class, web-accessible Quebec Ministry of Natural Resources geoscientific database, SIGEOM, has been in place for several years.
TGR: There are a couple specific incentives Quebec offers that other provinces don't. You can get up to 50% of the money back that you spend on exploration from mineral deposits. You also have government-sponsored investment funds and, perhaps most notably, a large web-accessible database. Tell us a little bit about those things.
A-JB: The stimulations ultimately encourage companies to reinvest in more exploration, which will bring about more discoveries, more jobs and more wealth to the province. Companies can have a tax credit varying between 30% and 50%, depending on the remoteness of the projects.
The database that the province has put together is an important one. All companies are obliged to file their statutory work reports and make that information available for the other players in the province so that they can benefit from strategic acquisitions and understand the geology better. Moreover, they don't have to repeat the same exploration surveys or drill the same targets because the information is available. It increases the efficiency of the exploration companies quite significantly. In Quebec, flow-through funds for surface exploration work after tax cost less than 50% of the original investments. This type of financing is the most generous for investors in all of Canada. Several discoveries were stimulated by these programs in the past 30 years.
TGR: Have you ever used that geoscientific database?
A-JB: We constantly use SIGEOM when reviewing statutory work reports to complete our compilations. Also, when relogging and resampling old core, it is always enlightening to help recognize typical rock alterations and associated typical mineralizations. The geologists then understand and look for the right metallogenic environments favorable for future potential discoveries.
TGR: With gold around $1,600/ounce (oz), what is business like for Geologica these days?
A-JB: The price of gold permits us to collaborate on projects we really like. Gold is our main field of activity. However, rare earth minerals, lithium and other industrial minerals, as well as base metals projects, are challenging mandates for us as well. We have been around for 30 years and we are well advised and prepared to serve our clients in Quebec and on at least three continents.
TGR: Do you expect this run that started 9–10 years ago to continue for a while?
A-JB: As long as the world markets' metal demand is there, as long as China has internal demand and emerging countries such as Brazil, India and Russia need metals. At present prices of gold, there are a lot of interesting, favorable host structures with projects that are going to be revived again. I'm confident of that. Some say the best place to look for a mine is near another mine.
TGR: Thanks for your insights.
Alain-Jean Beauregard is founder, shareholder, director and administrator of Geologica Groupe-Conseil Inc., Val d'Or, Quebec, a geological consulting firm that includes management, project supervision, property evaluations and geoscientific compilations at the national and international levels. He holds a Bachelor of Science in geological and mining sciences from Concordia University and a Certificate in Business Administration from Université du Québec.
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-- Posted Friday, 23 December 2011 | Digg This Article
| Source: GoldSeek.com
