Cartier Resources (ECR) - Chimo Leads the Way for Portfolio Explorer

Cartier Resources is an exploration company focused on discovery in the prolific Abitibi Gold Belt in Quebec. The Company operates a process that allows to develop and maintain a balanced portfolio of mining projects ranging from exploration to resource definition, development, and production.

We recently spoke with Phillipe Cloutier, President and CEO at Cartier Resources, a Val-d’Or, Quebec, Canada-based junior minor. He shared with us some recent happenings in his company and gave us an idea where things are headed.

Company Information

Cartier Resources is a gold and silver exploration company founded in 2006 and focused in the Grenvillian-aged (Proterozoic) Abitibi greenstone belt of Quebec. The Abitibi is a globally prized jurisdiction because of its favorable geology, attractive fiscal environment and pro-mining government.

The company employs a strategic view of the Abitibi in which they target and prioritize the best projects at the right time throughout the greater Abitibi Gold Belt area. Cartier has a strong cash position and significant corporate and institutional endorsement.

C-Suite

In addition to Cloutier, the management team at Cartier consists of Gaétan Lavallière, Vice President; Nancy Lacoursière, Chief Financial Officer; and Ronan Deroff, Senior Geologist. Collectively, this group has well over 60 years of professional experience.

Brief Company Summary

Cloutier told us that his company focuses on advanced gold exploration in the Abitibi Gold District of northern Quebec.  The company’s main focus is to concentrate on known gold-bearing properties where there are good controls on the geology and structure. They take niche projects where discovery has already been made and advance them to higher value status. During the last bear market in precious metals, the company was able to acquire four prime Abitibi projects.

Cartier Projects

The company is currently involved in seven projects: Chimo Mine, Benoist, Wilson, Fenton, MacCormak, Dollier and Cadillac Extension. The projects range in maturity from early exploration stage through mineral extension and delimitation drilling stages of development. The most advanced projects in house are Chimo Mine and Benoist, where delimitation drilling is taking place.

Business Timing

Cartier has four projects that are more advanced than the others on which they would like to make deals on or sell: Chimo Mine, Benoist, Wilson and Fenton. In an ideal world, one could make a deal with any of these as soon as they are advanced enough and ready. But that’s not how it works, we suggested.

Cloutier responded to that prompt by saying that they like to get their projects fully evaluated as quickly as possible, because you really never know when an offer or other opportunity will come in. Being nimble is a virtue. Work paths and trajectories are different for each of their projects. They like to take steps forward without taking two steps backward, he said.

Who Are the Natural Buyers?

We are strongly focused on value creation and the biggest return for the value they generate, he told us. Because the Abitibi District is so prolific and home to some very senior operators, there is a natural tension among the various miners and mills in the region. There is always the possibility that a big firm might view a junior miner like Cartier as a “warehouse” for future ounces. Very senior producers can take a very relaxed approach. It’s the nature of the Abitibi market, he said. Not everyone has the same sense of urgency, he continued, and they are aware of that and prepared for that.

Chimo Mine: The Flagship Project

Chimo Mine is a past producing deposit consisting of twelve contiguous claims and is Cartier’s flagship project. Drilling to date has resulted in 124 holes totaling some 58,000 m and from which 21,867 samples have been collected for gold analyses. Cloutier told us that they’ve recently come up with their third resource estimate at Chimo Mine, which consists of 684,000 indicated ounces of gold and 1,358,000 inferred ounces of the yellow metal.

The company has been involved with additional specific engineering and economic studies, the CEO told us. They are wrapping up their work there. They are now prepared to seize upon any viable offers for their 100% interest in Chimo Mine, a position that they were not in even 6 months ago, Cloutier told us.

The Happenings at Benoist

Cartier is currently drilling at Benoist, a gold deposit on which the company has 100% working interest. This four-year, $7.3M drilling program follows earlier drilling at the occurrence. The current drilling program intends to cut some 30,000 m of auriferous rock to further delimit the opportunity.

Unlike Chimo Mine, Benoist is not a past producer and has had less detailed geologic analyses done. Therefore, the drilling is of a more delineation nature and is guided by a geologic interpretation made on 72 previously drilled holes.

Cartier Resources has directional drilling capability on site and are utilizing it to their advantage as they go. So far the results have been encouraging, with abundant mineralization confirming that the gold-bearing system is in place.

The Deals at Wilson and Fenton

With most of the company capital focused on Chimo Mine and Benoist, Cartier decided to look to make deals with some of their other projects. In April of this year the company farmed out a 100% option on the Wilson Gold Project to a preferred junior miner, Hawkmoon Resources. The agreement is over a five-year period with 24,000 m of new hole and a resource assessment required. The deal is structured so that Cartier retains NSR (net smelter return) should the work result in additional value creation.

In April 2021, Cartier Resources announced acquisition of additional acreage at the Fenton Project. This deal covers 5 contiguous claims over the occurrence and brings the firm’s holdings up to 18 mining claims at the Fenton property, over which Cartier has a 100% working interest. They knew at the outset that they would not be interested if they could not get 100% interest, said the CEO. The deal is particularly creative with regard to NSR. Both Cartier and the selling company (SOQUEM) have an option to buy back each other’s NSR going forward. It's a win-win, “scratch my back I’ll scratch yours”kind of deal, said Cloutier.

Appetite for Additional Projects

We also asked about additional projects for Cartier. We noticed that they had looked at over 40 projects recently and we wondered why. Cloutier responded that they always keep their eyes open, and in the process they've found some real gems. By actually reading the detailed resource assessment and PEAs, one gets a real view not only into ounce estimates but how well any given property has been evaluated and marketed. By doing so, they uncover some assets with Chimo-like qualities, he said. Once Chimo Mine has been monetized, Cartier would like to keep adding to their growing pipeline of advanced precious metals projects. They always want to be prepared to seize an opportunity, said the CEO.

Bottom Line

Cloutier summed up his company’s bottom-line approach like this: We focus on commodities, on a jurisdiction that doesn't get outside our comfort zone, and on our specific skill set. By doing those things at maximum efficiency, we become most effective, he told us.

Cloutier’s job is to make certain that Cartier can deliver the ounces to people who can produce them. With four advanced projects in the hopper, they are looking to find more. Some things, like commodity prices, are out of their control, but they focus on what they can control, like drilling, modeling, and wise use of money, and do those things well.

To find out more, go to the Cartier Resources Website