Normand Champigny of Sphinx Resources explains the benefits of the project generator model and discusses the gold and zinc markets
Sphinx Resources (TSXV:SFX) is a mineral exploration company focused on generating and acquiring precious metals and zinc projects for low-cost exploration in Quebec.
The company has built an impressive portfolio of projects across a range of metals and levels of advancement, all within close proximity to existing or former mines. Sphinx Resources has been active at a number of its projects in the last few months, and most recently acquired the Tessouat zinc project.
In the interview below, Normand Champigny, president, CEO and director of Sphinx Resources, explains the benefits of the project generator model and discusses the gold and zinc markets. Champigny is a geological engineer, and in his decades-long career he has been involved in diverse areas of the mining industry, including engineering, project evaluation and project management.
The transcript of this interview is available below. It has been edited for clarity and brevity.
Investing News Network: Please give our investor audience an overview of Sphinx Resources.
Sphinx Resources President, CEO and Director Normand Champigny: I’ve been involved in the mining industry for the last 30 years in Canada [and] internationally. I run Sphinx Resources, a company based in Quebec. [It’s] TSXV-listed, symbol SFX, and we’re focusing on zinc and precious metals in Quebec.
INN: Please explain Sphinx Resources’ model to our investor audience, and your strategy for maximizing long-term shareholder value.
NC: We generate projects from scratch. We look at areas first that are socially acceptable in the province of Quebec. We also look at areas where we can work 12 months of the year — that reduces the exploration costs, and also allows us to generate more news and advance a project faster than elsewhere. We also work in areas where the geology has been qualified as complicated because our mine-finding team has got lots of experience to unravel that geology.
INN: Many of your projects are focused on gold and zinc. What can you tell us about the fundamentals for these two commodities and the value for shareholders?
NC: Gold has a promising future because of geopolitical risk, and also the fact that not a lot of new gold-mining projects are being found. There’s a lot of pressure to have the price rise gradually over time.
In the case of zinc, it’s all about China. China has had difficulty in getting enough zinc for their own construction internally. There’s an environmental awakening in China as well to close down those old and polluting mines — that’s putting pressure on supply, and at the same time we have not seen many mines come into production in the last while, and there are very few new zinc projects that are being discovered.
INN: What attracted you to the projects Sphinx is developing?
NC: We have a number of features that are attractive on our projects. First, the fact that they are zinc and gold, and also palladium, which we believe are attractive commodities. At the same time, we are able to advance our projects quickly, as I mentioned earlier. And finally, we’re able to work with solid partners, such as SOQUEM for our zinc project and Sirios Resources (TSXV:SOI) for our gold project.
INN: Please tell us about your latest acquisition in Southwestern Quebec.
NC: We announced the acquisition of a project called Tessouat, which indicates that northwest [of] where we’ve been working for two years on a zinc project with SOQUEM we have other potential for zinc. This shows that we have a large belt, a large area which has zinc potential. That’s all very exciting, and we look forward to doing systematic exploration in this area.
INN: You have built an impressive portfolio of quality properties in Quebec. Please tell our audience why Quebec consistently ranks as one of the world’s top mining jurisdictions.
NC: Quebec has had stable regulations for mining for many years. Quebec has good geological potential, Quebec has got good databases, good infrastructure, [a] good mining workforce and very importantly, excellent tax incentives for exploration companies.
INN: Please tell us about your exceptional team of mine finders.
NC: We have actually three mine finders. We have Michel Gauthier, who’s been involved in the discovery of the Eleonore gold mine operated by Goldcorp (TSX:G,NYSE:GG). We have Kerry Sparkes, [who was] involved in the Voisey’s Bay nickel discovery in Labrador [and the] Rainy River gold project in Ontario. [And] Robin Adair — lots of experience in base metals, involved in discoveries for nickel in Northern Quebec as well as zinc in the Matagami area.
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