Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Maple Gold Mines (TSXV: MGM; US-OTC: MGMLF) is building exploration momentum at its flagship Douay and Joutel projects in Quebec’s Abitibi gold belt, where it is working with Agnico EagleMines (TSX: AEM; NYSE: AEM) in a 50-50 joint venture to jointly unlock their regional potential.
On February 2, Maple Gold Mines and Agnico Eagle signed a joint venture agreement under which the parties formed a 50-50 joint-venture that incorporates Maple Gold’s Douay gold project and Agnico’s Joutel gold project into a consolidated property package. The Douay and Joutel projects, the latter hosting Agnico’s past-producing Telbel mine, are contiguous properties located in the James Bay subregion of Northern Quebec.
Maple also has an option with Globex Mining Enterprises (TSX: GMX) to acquire a 100% interest in the Eagle project next to Joutel, which holds significant exploration upside, and is not part of the joint-venture agreement.
“The goal is to create a new sustainable gold producer in an area of embarrassing riches,” CEO Matt Hornor tells The Northern Miner on a recent sponsored site visit, adding that mergers and acquisitions activity in the Abitibi has exceeded C$25 billion ($20bn) since 2013. “As was the case with the historical and currently producing gold mines along the Abitibi, things get bigger and higher grade at depth in the region. We hope to demonstrate the same feature at our projects.”
