Cartier Update

Canada gold, junior mining companies

Cartier Resources’ (V.ECR) most recent press release on the “deep results” from its drilling of target 6N1 at the Chimo Mine in Quebec just confirmed what Cartier CEO Philippe Cloutier had anticipated.

“This was exactly what we expected,” said Cloutier who was in Vancouver for Roundup. “When you have a past producer, when you have a robust dataset, it takes out the risk. These results are in line with everything else we’ve been finding.”

The press release reports on the deepest of the holes drilled in 6N1 going as deep as 1,100 meters.  “These were the pilot holes,” explained Cloutier. “We then drilled branch holes upwards from there and we are waiting on assays for those holes.”

These holes were part of what Cloutier calls Phase II of the Cartier drilling program. Phase II is all about looking at targets some distance away from the existing mine shaft.  Cloutier expects Phase II to be completed by the end of March and then a third Phase of drilling will commence.

“People are expecting that our work will lead us to do a 43-101 resource estimate report,” said Cloutier. “And we are working towards that. But we want the maiden resource estimate to reflect the value proposition at Chimo. We’re getting the results we expected. We don’t want to rush the 43-101. We don’t want to blotch the job in the last ten yards.”

Which may mean that Cartier will actually produce an initial Resource Estimate and then build on that with additional estimates that reflect the enhancement from its other targets that are being drilled off in the Phase II and then Phase III programs as assays are received.

Strategically this could make a lot of sense as it will create excellent news flow and ensure that the resource estimates are rock solid. Rushing to a 43-101 can actually hurt a company if it has to characterize too many of its ounces indiscriminately. Careful drilling and a conservative approach to the initial resource estimate will add the value Cloutier believes is at Chimo and respect investor expectations.

In every interview I have done with Cloutier he has always been consistent in his approach to building value at Chimo. The company knows there is gold in the old mine. It knows there is gold very near the old mine and it knows that there is gold in the step out targets it has drilled a few hundred meters from the old mine. “We’re repeating the proof of concept and Chimo just keeps delivering.”

Which is how you build value in a brownfield gold project.

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