It’s was great being at a conference in Québec last weekend because it’s apparent that the government in Québec wants mining and exploration in the province. In fact, Québec gives rebates to companies exploring in Québec. The rebates are highest in Northern Québec, host to the Raglan area, where around 45% of every dollar spent in exploration is returned via rebates. The Raglan area benefits from this, and from the fact that there have been some spectacular high-grade nickel and copper discoveries there.
There has also been a lot of interest in the Raglan area since Jilin Jien Nickel, a major Chinese company, bid on Canadian Royalties, one of the Raglan area players. Many feel that the bid is undervalued because the project is already permitted and is expected to produce 26 million pounds of nickel and 39 million pounds of copper. Renewed interest in the Raglan area is undoubtedly a positive thing for other nickel exploration plays in the region. Minesite.com posted an article Nov. 9th about how Canada’s Far North opens up for more investment opportunities from the Far East.
Above all, what the Canadian Royalties deal shows the world is how valuable resources in the Raglan region can be. The junior that I use to be engaged by in the Raglan area is Knight Resources (TSXV:KNP), a company in a joint venture nickel/copper project with Anglo American, one of the largest mining companies in the world.
Knight and Anglo have exploration drilling results with high-grade nickel over width like 36.43 metres of 2.66% nickel and 1.10% copper, and 8.80 metres of 4.73% nickel and 1.16% copper. The market paid no attention to announcements of results like this in late 2008 because it was right in the middle of the world financial storm. Granted a lot was going on at that time, but these are still some excellent results and should no longer be overlooked. Anglo’s $3.5 million summer field program has further invigorated the West Raglan Project when they served up a platter with multiple new drill targets that look good, and that’s in addition to the targets from 2008. With a pipeline of drill-ready targets, the Anglo/Knight technical team is recommending a $5M drill program in 2010.
The Chinese are watching nickel and copper in Northern Québec; if Knight and Anglo are going to the West Raglan area together in 2010, we should expect more interest in this valuable region. You can read more about Knight at www.knightresources.ca.
Good Morning Peter, I am curious as to your thoughts on the Formation Captial share consolidation. Thanks in Advance.
Thank you Peter for the update, I have been waiting for something positive on Knight for quite some time—as you said it was left for dead since the crash. Here is to better days ahead for Knight share price. Have a blessed day.
Yes I also wonder what happens to Formation metal. Why they make such dramatic moves recently? Thanks