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Nuvau Minerals: Revitalizing Critical Mineral Production in Quebec’s Premier Matagami Mining District
Nuvau Minerals (TSXV:NMC) revitalizes critical mineral production in Quebec with its flagship project, the Matagami Mining Camp, which represents a premier opportunity in the Abitibi Greenstone Belt.
Quebec's Abitibi Greenstone Belt is renowned for its high-grade deposits and significant production history and is recognized as a Tier 1 jurisdiction with exceptional mining infrastructure and skilled labor. Nuvau Minerals has an agreement to acquire the Matagami Mining Camp from Glencore. The camp has a rich mining history with 60 years of production and nearly 60 million tons mined across 12 past mines.
Aerial view of the Matagami Mining CampThe Matagami Mining Camp covers over 1,300 square kilometers, comprising more than 2,500 claims. The property offers exceptional exploration potential for critical minerals, particularly zinc and copper. The Matagami Mining Camp has produced nearly 60 million tons of ore over 60 years of continuous operation.
The property features a 3,000-ton-per-day concentrator, last operated by Glencore in 2022. This infrastructure not only reduces the capital requirements for reactivation but also accelerates the timeline for potential production. Extensive geological and operational data inherited from Glencore provides a strong foundation for efficient exploration and development.
Company Highlights
- Nuvau Minerals has an agreement to acquire the Matagami Mining Camp from Glencore, a historic mining camp with 60 years of production history and nearly 60 million tons mined across 12 past mines.
- The flagship Matagami Mining Camp spans more than 1,300 square kilometers with more than 2,500 claims in Quebec’s Abitibi Greenstone Belt. The project includes a 3,000-ton-per-day concentrator operated by Glencore until June 2022.
- Nuvau has invested nearly $30 million since early 2022 in a three-year exploration program to discover critical minerals, primarily zinc and copper, leveraging highly prospective targets across the property.
- The companyaims to re-establish the Matagami Mining Camp as a leading critical minerals producer by leveraging historical data, robust infrastructure, and modern exploration techniques.
- Quebec's Abitibi Greenstone Belt is globally recognized as a Tier 1 jurisdiction with exceptional mining infrastructure and skilled labor.
- Approximately $25 million has already been invested in the property, with the earn-in phase with Glencore expected to be completed by 2025.
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Nuvau Minerals
Investor Insight
Nuvau Minerals offers a compelling investment opportunity with an aggressive strategy to revitalize a prolific, past-producing mining camp in Quebec, a globally recognized Tier 1 jurisdiction.
Overview
Nuvau Minerals (TSXV:NMC) is a Canadian metals exploration company focused on revitalizing critical mineral production in Quebec. The company’s flagship project, the Matagami Mining Camp, represents a premier opportunity in the Abitibi Greenstone Belt, which is renowned for its high-grade deposits and significant production history.
Quebec's Abitibi Greenstone Belt is globally recognized as a Tier 1 jurisdiction with exceptional mining infrastructure and skilled labor. Nuvau Minerals has an agreement to acquire the Matagami Mining Camp from Glencore. The camp has a rich mining history with 60 years of production and nearly 60 million tons mined across 12 past mines.
The Matagami Camp spans over 2,500 claims across 1,300 square kilometers. Its strategic location, combined with existing infrastructure, like a 3,000-ton-per-day concentrator, positions Nuvau for cost-efficient reactivation and exploration. The company’s exploration efforts will focus on critical minerals, mainly zinc and copper, to address the growing global demand for these essential resources.
Nuvau Minerals is led by a team of seasoned professionals with extensive experience in the mining industry.
Company Highlights
- Nuvau Minerals has an agreement to acquire the Matagami Mining Camp from Glencore, a historic mining camp with 60 years of production history and nearly 60 million tons mined across 12 past mines.
- The flagship Matagami Mining Camp spans more than 1,300 square kilometers with more than 2,500 claims in Quebec’s Abitibi Greenstone Belt. The project includes a 3,000-ton-per-day concentrator operated by Glencore until June 2022.
- Nuvau has invested nearly $30 million since early 2022 in a three-year exploration program to discover critical minerals, primarily zinc and copper, leveraging highly prospective targets across the property.
- The companyaims to re-establish the Matagami Mining Camp as a leading critical minerals producer by leveraging historical data, robust infrastructure, and modern exploration techniques.
- Quebec's Abitibi Greenstone Belt is globally recognized as a Tier 1 jurisdiction with exceptional mining infrastructure and skilled labor.
- Approximately $25 million has already been invested in the property, with the earn-in phase with Glencore expected to be completed by 2025.
Key Asset
Matagami Mining Camp (Flagship)
Aerial view of the Matagami Mining Camp
The Matagami Mining Campis Nuvau Minerals’ cornerstone asset and a critical part of the company’s strategy to revitalize mining operations in Quebec’s Abitibi Greenstone Belt. Covering over 1,300 square kilometers and encompassing more than 2,500 claims, the property offers exceptional exploration potential for critical minerals, particularly zinc and copper. Historically, the Matagami Mining Camp has produced nearly 60 million tons of ore over 60 years of continuous operation.
The property features a 3,000-ton-per-day concentrator, last operated by Glencore in 2022. This infrastructure not only reduces the capital requirements for reactivation but also accelerates the timeline for potential production. Extensive geological and operational data inherited from Glencore provides a strong foundation for efficient exploration and development.
Nuvau’s exploration efforts include leveraging advanced geophysical surveys, including MobileMT and drone magnetic surveys, to map conductive anomalies indicative of potential massive sulfide mineralization. Geological mapping, surface sampling and 3D structural modeling have been initiated to delineate priority zones. A robust drilling campaign is planned at the Caber, Caber Nord and PD1 deposits to validate historical data, upgrade resources, and identify new mineralization. Additionally, metallurgical studies and geochemical analysis will be conducted to optimize resource evaluation and processing methodologies.
MobileMT surveys have identified high conductivity anomalies, indicative of potential massive sulfide mineralization, while drone magnetic surveys have refined structural interpretations critical for drill planning. Initial results from drilling programs on some of these targets, confirm the presence of zinc-rich massive sulfides.
Nuvau Minerals has outlined an ambitious exploration and development strategy to maximize the potential of the Matagami Camp. Future work will include the expansion of the ongoing drilling program to test high-priority targets identified. The drilling campaign will incorporate advanced downhole geophysics to refine drill targeting.
Detailed metallurgical testing and ore characterization studies will be conducted to enhance processing efficiency and recoveries for zinc and copper concentrates. Environmental baseline studies will be expanded to support future permitting requirements, ensuring compliance with Quebec’s regulatory standards.
Additionally, modern data integration techniques, such as machine learning applied to geochemical and geophysical datasets, will aid in refining exploration targets across the broader property. These efforts will be supported by ongoing community engagement initiatives to secure stakeholder support and address social and environmental considerations.
Management Team
Christina McCarthy – Chair of the Board
Christina McCarthy is a geologist with over 15 years of experience in the resource capital markets. She is the former president and CEO of Paycore Minerals, which was acquired by i-80 Gold Corp for a $90 million valuation. Previously, she was vice-president of corporate development for New Oroperu Resources, acquired by Anacortes Mining in 2021. McCarthy also served as director of corporate development for McEwen Mining from 2014 to 2019. She has held various management and board roles, including positions in equity research at Euro Pacific and institutional sales at Haywood Securities. Prior to entering the resource capital markets, she managed exploration programs in Scandinavia for a junior exploration company. McCarthy holds a Bachelor of Science in geology.
Peter van Alphen – President, CEO and Director
Peter van Alphen has over 25 years of experience in leadership roles within the mining industry, encompassing all aspects from construction projects to production. Most recently, he served as the chief operating officer at Premier Gold Mines, managing the company’s mining and development endeavors. Prior roles include country manager for Canada at Pan American Silver, vice-president of operations at Tahoe Resources and Lake Shore Gold, and various management positions at FNX Mining in Sudbury, Ontario. Van Alphen holds a Bachelor of Science in mining engineering from the University of the Witwatersrand.
Steve Filipovic – Chief Financial Officer
Steve Filipovic is a chartered professional accountant with more than 23 years of financial management and oversight experience. He was a founding executive team member and chief financial officer at Premier Gold Mines, playing an integral role in transitioning the company from explorer to producer until its acquisition by Equinox Gold in 2021. Prior to that, he served as chief financial officer of Zinifex Canada and was vice-president, finance of Wolfden Resources, until its acquisition by Zinifex in 2007. Filipovic holds an Honours Bachelor of Commerce Degree from Lakehead University and is an ICD.D designated member of the Institute of Corporate Directors.
Gilles Roy – Director of Exploration
Gilles Roy is a highly skilled geologist with over 30 years of experience in mineral exploration across various countries, including Canada, Peru, Chile, Kazakhstan, Australia and Burkina Faso. Specializing in base metal deposits in volcanic host rocks, he spent much of his career at Glencore, leading exploration programs that resulted in the discovery of the McLeod deposit in 2004 and the Bracemac deposit in 2006. Roy holds a Bachelor of Science in geology from Université du Québec à Montréal and is a member of the Ordre des géologues du Québec.
Ewan Downie – Director
Ewan Downie is a successful company builder and entrepreneur with over 25 years of experience in the mining industry. He currently serves as the chief executive officer of i-80 Gold. Previously, he was the president and CEO of Premier Gold Mines, and is now serving as non-executive chairman and director of Wolfden Resources, as well as a director of Clean Air Metals. Throughout his career, Downie has been part of several gold and base metal discoveries, earning recognition for his achievements, including being awarded the 2003 Prospectors and Developers Association of Canada’s “Bill Dennis Prospector of The Year.”
Michael Vitton – Director
Michael Vitton served as the executive managing director and head of US equity at BMO Capital Markets, where he was instrumental in originating and executing over US$200 billion worth of public and secondary offerings and M&A transactions across all sectors. In the metals and mining sector, he has been involved in numerous significant deals as a seed investor, lead/co-lead underwriter, or in an M&A capacity. Vitton holds a degree from the University of Michigan Business School and has served as a seat holder on the NYSE, and president of the New York Society of Metals Analysts.
Zinc Price 2024 Year-End Review
What other factors impacted the zinc market last year? Read on to find out.
How did zinc prices perform in 2024?
In the first half of 2024, the zinc market reacted to fallout from Q4 2023 production cuts.
An oversupply situation that drove prices down at the end of 2023 forced operators to curtail output, as high costs made production unsustainable. However, these cuts had little effect, and by the end of the first quarter, aboveground supplies at London Metal Exchange (LME) warehouses had surged to over 270,000 MT.
That supply/demand backdrop provided opportunities for some companies — in early April, Canada's Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK) was able to strike a deal with Korea Zinc (KRX:010130) that will see Teck pay US$165 per MT for treatment charges — that's the lowest amount since 2021 and a 40 percent discount over 2023.
In Q2, a price run failed to maintain momentum, as the market lacked the fundamentals to sustain its rise.
“Risk-on investor buying led to a sharp rally in zinc prices in April and May, as bullish sentiment on future copper demand related to the energy transition and AI data centres boosted the LME basket of metals,” Helen O’Cleary, zinc market specialist with CRU Group, wrote to the Investing News Network at the time.
Higher zinc prices came alongside speculation of a US Federal Reserve interest rate cut and renewed hope that rule changes for the Chinese housing markets would boost zinc’s fortunes.
However, by the end of Q2, the Chinese housing market had failed to improve — in fact, the slowdown in the sector had accelerated, with the value of new home sales in July slipping 19.7 percent from the same period one year earlier.
A Fed rate cut also didn’t materialize, with the expectation of when it would happen pushed back to July and then September, when the central bank ultimately made a jumbo-sized 50 basis point cut.
Zinc price, H2 2024.
Chart via Trading Economics.
As H2 began, the price of zinc was US$2,928.50, slightly off its first-half high of US$3,139.50 set on May 21. The metal continued to decline as July wore, falling to its H2 low of US$2,581.50 on August 7.
The next two months saw zinc experience significant volatility. It reached a peak of US$2,943 on August 27, slipped back to US$2,712 on September 10 and then rebounded to a yearly high of US$3,198 on October 2.
Zinc remained rangebound above US$3,000 for much of Q4. It fell below that mark on November 8, but by November 25 it was once again trading above that level. Zinc ended the year at US$2,978.50 on December 31.
What factors impacted the zinc market in 2024?
The most significant contributor to zinc's price rise in H2 was the lack of concentrate available to Chinese refiners, which are responsible for more than half the global supply of refined zinc. This resulted in increased competition, with some smelting operations reducing their treatment charges to under US$0 per MT.
Ultimately, 14 processors agreed to curtailments that would reduce their 2024 ore demand by nearly 1 million MT.
Despite the cuts, Reuters columnist Andy Home wrote at the end of August that the global refined zinc market was in surplus by 228,000 MT during H1, with much of that material finding its way to LME warehouses.
Also important in H2 were several large purchases of refined zinc from LME warehouses. Gains were fueled after 106,775 MT were removed from the LME network, leaving just 154,125 MT available, the lowest since November 2023.
At least some of the metal seemed destined for Trafigura, a leading trader and refiner of the metal, but the company declined to comment on the purchase. The move is reminiscent of Citi's (NYSE:C) zinc purchases from LME stockpiles during the second half of 2023 — the firm requested delivery of 40,000 MT of zinc at the time.
For now, the market remains weak on the demand side. More than half of refined zinc is used in the production of galvanized steel destined for the construction sector, which has been weak in China and Europe.
A raft of new stimulus measures in China have yet to affect the broader economy, and the country’s real estate sector is still reeling from the collapse of top construction firms.
Meanwhile, in Europe, the construction sector has been affected by the dual impact of high inflation and high interest rates. With the post-pandemic outlook coming into better balance, the industry is expected to rebound in 2025.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.