John de Jong, President,
CEO and Director of Rogue Resources, discusses the
Company’s exploration plans at its flagship project, the
Lac de la Grosse Femelle silica project in Quebec, as
well as plans for the Langmuir nickel and Radio Hill
iron ore projects located in close proximity to Timmins,
Ontario.
In a challenging junior resource industry, Rogue
believes that its silica project holds the opportunity
for the greatest market potential for return, given its
capacity for near-term production and cost outlay
required to bring the deposit into production. In
addition, the construction of a silicon metal plant
nearby by one of the world's largest silicon metal
producers, Grupo FerroAtlantica, also provides a great
foundational point to launch the Lac de la Grosse
Femelle silica project.
SCMC: What is Rogue’s
strategy for the next 12 months? What milestones are you
aiming to achieve and what is the timing like?
JdJ: Our primary
focus will be on advancing the Lac de la Grosse Femelle
(“Femelle”) Silica Project located east of Quebec City.
We envision this as an open pit mining operation, and
hope to be at a Preliminary Economic Assessment (PEA)
stage early in the first quarter of 2016. We are also
working, in a lesser capacity, on our Langmuir Nickel
Project and Radio Hill Iron Ore Project, both advanced
stage projects located near Timmins, Ontario.
SCMC: You have a
portfolio of projects spanning across a diverse range of
commodities. Which of these projects do you find the
most compelling? Does one stand out as a potential
flagship?
JdJ: Definitely
our silica asset, especially after the results we
received late in 2014 after initial sampling. Our
Langmuir nickel and Radio Hill iron ore projects are
well advanced, near Timmins and its infrastructure, as
well as being easily accessible by road. The Redstone
nickel mill, adjacent to our Langmuir project, reopened
recently, which I believe increases its desirability if
we were to option the property or sell it. We recently
terminated our agreement on the East-West gold project
located near Val d’Or as we didn’t see it being able to
create near-term value for the shareholder. Taking all
of this in consideration, we view our Femelle property
as our flagship property going forward in 2015.
SCMC: In mid-2014, Rogue
announced the acquisition of the Femelle property. What
initially attracted your interest to this asset?
JdJ: The markets are telling us that
nickel and iron are commodities are likely to take more
time to cycle back into favour. Gold prices continue to
fluctuate and are not expected to rise significantly in
the next while. A significant consideration in moving
the Company to silica was the joint announcement in June
2014 by the Quebec government and FerroAtlantica, one of
the world’s largest silicon metal producers, of their
investment to build a $382 million silicon metal plant
at Port Cartier, Quebec. I was aware that analysts were
predicting a lightening of supply corresponding with
rise in silicon prices, which led me to start looking
for a high grade silica deposit in Quebec located
somewhere in the vicinity of Port Cartier. The Femelle
property fit the bill and adding to its attraction was
that its quartzite units are located on strike to the
quartzite units found on the adjacent property, Mine
Sitec, a private silica mine that has been in operation
for the past 50 years.
SCMC: Has the Femelle
property been explored historically? If so, how much
work was done, and for which minerals was the property
explored?
JdJ: All of the
previous work is related to the quartzite units on the
property. The Ministry did some preliminary geological
work in 1969 and 1975, GEX Silicium Limited in 1976,
SOQUEM in 1980 and Tremblay, a prospector in 1999. The
best sampling was done by GEX in whose grab sample
assays returned up to 99.5% SiO2 which are consistent
with what we found. No efforts were made by anyone that
I can see to validate the strike length, depth or width
of the two quartzite units found on the property.
SCMC: What are your
plans for the Femelle property in 2015? What are your
exploration plans and your budget exploration plans?
JdJ: We are committed to a budget of $1.9
million specifically for this project in 2015 and have
recently conducted an airborne mag survey which will be
complimented by an EM and radiometric survey planned for
Q2. We have already organized our line cutting crews and
what our ground geophysical survey work will entail.
Outcrop stripping, trenching, detailed mapping and
channel sampling will take place as soon as we can get
on the ground early in Q2. We will follow up with lab
analysis and if everything goes according to plan, we
may be ready for drilling in Q3. Our priority is to
determine the size, grade and purity of the quartzite
units. On site, we clearly saw the “G” quartzite
occurrence with an observable strike length at minimum
1.1 kilometres. It has widths of approximately 250
metres in places and is known to reach depths of 275
metres in other parts of the “G” quartzite units. We are
committed to gettng this project moving as quickly as
possible.
Eddy Canova, our Senior Vice President, has already
begun the community consultation process, visiting the
site with contractors who will be carrying out our
ground geophysical surveys, and meeting with ministry
officials at the local and provincial levels. We have
contracted out our permitting and environmental work to
GFE Forestry and Environment consultants and they have
already been on site several times. Their involvement
will greatly assist us in shorting up the time it takes
to get our project underway.
SCMC: When are you
planning to complete a PEA for Femelle property, and
what work is required?
JdJ: Our plan is to hit the road running
on the site as soon as possible and have all of our
permitting and contractors in place to avoid delays. I
hope to have our resource estimate completed by the end
of the fourth quarter this year and our PEA early in
2016. A big determining factor as to timing may be
whether this project gets a quarry or a mining
designation. This will likely be determined as we
advance the project.
SCMC: Can you give us an
overview of the silica market? What do the supply and
demand sides look like, what is the pricing like for
silica products, and who are the major players?...
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