{"id":1157356,"date":"2019-12-27T11:40:28","date_gmt":"2019-12-27T17:40:28","guid":{"rendered":"https:\/\/www.mining.com\/?p=1010098"},"modified":"2019-12-27T11:40:28","modified_gmt":"2019-12-27T17:40:28","slug":"sphinx-unfazed-by-sinking-zinc","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1157356","title":{"rendered":"Sphinx unfazed by sinking zinc"},"content":{"rendered":"<p>Zinc prices have fallen 32% from a high of US$1.63 per lb. in early 2018 to US$1.15 per lb. today. But Jeremie Ryan, CEO of <strong>Sphinx Resources<\/strong> (TSXV: SFX), is rolling with the punches.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>\u201cPrice fluctuations are part of our business,\u201d he says. \u201cIf you want to operate in this industry you need to work around them.\u201d<\/p>\n<p>Sphinx Resources is leveraging several plays in the Pontiac region of southwestern Quebec, but its most promising zinc property is Calumet-Sud, a joint venture with <strong>SOQUEM<\/strong>, a subsidiary of Investissement Qu\u00e9bec and a leading player in mineral exploration in the province.<\/p>\n<p>Calumet-Sud is adjacent to the site of the former New Calumet mine, which produced 3.8 million tonnes at a grade of 5.8% zinc, 1.6% lead, and 65 grams silver per tonne between 1944 and 1968.<\/p>\n<p>All 29 holes along a 1,500-metre zone in the company\u2019s early 2019 drill program returned zinc mineralization. Highlights included 4.9% zinc over 2 metres from 70 metres downhole, including 8.5% zinc over 1 metre in drill hole 1926. Drill hole 1905 cut 2.63% zinc over 1 metre starting from 5 metres\u2019 depth, while drill hole 1917 returned 1.36% zinc over 6 metres from 73 metres, and drill hole 1911 cut 12.75% zinc over 1 metre from 41 metres.<\/p>\n<p>While promising, Ryan admits the initial drill results suggest that Calumet-Sud would not be economic at today\u2019s metal price. Nevertheless, he plans to \u201cdrill for bulk\u201d near the initial drill holes to keep his options open in case the zinc market changes.<\/p>\n<p>Ryan\u2019s priority is to get government approval for more drilling. \u201cWe have approvals from the farmers that own the properties, but we need permission from the [Commission de protection du territoire agricole du Qu\u00e9bec], as well,\u201d hesays. \u201cWe filed a revised claim in June, and are currently waiting for an answer.\u201d<\/p>\n<p>Michel Gilbert, who recently took over as president of SOQUEM, Sphinx Resources\u2019 joint-venture partner, isn\u2019t phased by current low zinc prices, either. \u201cIt\u2019s always better to do exploration when prices are low, because there is less competition,\u201d he says. \u201cThe mining industry operates on very long cycles, so short-term fluctuations are less of a concern than they would be in other industries.\u201d<\/p>\n<p>Quebec Premier Fran\u00e7ois Legault, whose Coalition Avenir Qu\u00e9bec government took office in October 2018, has made the development of the province\u2019s mining sector a priority. SOQUEM, a division of Ressources Qu\u00e9bec, which invested in more than 20 projects last year, should be a beneficiary.<\/p>\n<p>\u201cWe are looking to foster diversification of Quebec\u2019s mining base outside of the Abitibi region,\u201d SOQUEM\u2019s Gilbert says. \u201cWe have been investing a lot in the James Bay area. But the Pontiac region, where Calumet-Sub is located, is also promising, as there used to be considerable mining done there in the 1940s and 1950s.\u201d<\/p>\n<p>Gilbert, a mining geologist, says SOQUEM encourages the exploration of sedimentary exhalative deposit zinc opportunities, such as those in Calumet-Sud, which are relatively underexplored in a province better known for volcanogenic massive sulphide-type deposits, such as those in the Matagami Camp.<\/p>\n<p>Ryan took over as CEO of Sphinx Resources in December 2018. He has been investing in mining companies for more than three decades. Today, he is a major shareholder in the company, where zinc properties are concentrated along a 40 km long, northwest-trending corridor in the Pontiac municipal regional county. \u201cI have lived in the area and done business here for many years,\u201d Ryan says. \u201cThat gives me several advantages, particularly on the social-licencing front.\u201d<\/p>\n<p>There are plenty of people cheering Ryan on in his efforts. The Pontiac region has seen a paper mill and associated sawmills close during the last couple of years, and jobs are scarce. \u201cLocals want us to do business here,\u201d Ryan says. \u201cI met with the city council and they were highly enthusiastic.\u201d<\/p>\n<p>Ryan\u2019s connections paid off recently when he was able to recruit Lawrence Cannon \u2014 a retired federal cabinet minister, ambassador to France and longtime friend \u2014 to sit on Sphinx\u2019s board. Cannon, who has connections in the province dating back to his time as former prime minister Stephen Harper\u2019s Quebec lieutenant, has taken on the chairman\u2019s role at the company, as well.<\/p>\n<p>\u201cQuebec is a great place to do business,\u201d Ryan says. \u201cIt always does well on the Fraser Institute [mining jurisdiction study] and offers significant advantages, including tax credits and low after-tax costs for flow-through shares.\u201d<\/p>\n<p>The big question though remains low zinc prices, which show few signs of a short-term bounce back, he says.<\/p>\n<p>Recent data from the International Lead and Zinc Study Group show output currently exceeds demand, with the global zinc market registering a deficit of 134,000 tonnes during the first half of 2019.<\/p>\n<p>Unless that trend reverses, Ryan says, things are unlikely to bounce back anytime soon.<\/p>\n<p>Ever the entrepreneur, he has been finding ways to keep busy while he awaits developments on the zinc front.<\/p>\n<p>In June, Sphinx Resources bought 42 claims in Calumet North from Ressources Tranchemontagne, and Ryan got to work, commissioning flyovers, soil sampling, mapping and induced polarization.<\/p>\n<p>Initial results look promising from 56 grab samples collected in September on the latest stripped exposure of the Shae zone. In October the company announced it traced a 10-metre-wide, copper-gold zone grading up to 3.8 grams gold per tonne and 11.8% copper.<\/p>\n<p>\u201cWe will know a lot more once our drilling campaign gets underway next year,\u201d Ryan says. \u201cBut we are quite hopeful.\u201d<\/p>\n<p><em>(This story first appeared in <\/em><a href=\"https:\/\/www.northernminer.com\/\"  rel=\"noreferrer noopener\"><em>The Northern Miner<\/em><\/a><em>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sphinx Resources is leveraging several plays in the Pontiac region of southwestern Quebec.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1157356"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1157356"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1157356\/revisions"}],"predecessor-version":[{"id":1157396,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1157356\/revisions\/1157396"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1157356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1157356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1157356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}