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8:00 pm Pacific – link to interview at bottom

As BMR readers know, I’ve taken a great deal of interest over the last year-and-a-half in exploration opportunities in northwest Quebec, one of the world’s most prolific and friendly areas for mining and exploration.   I’ve had my boots on the ground at several properties there, battling everything from deep snow and freezing temperatures in the winter to black flies and beaver dams in the summer – all in an attempt to get a feel for the next potential major discovery.  This “Indiana Jones” style research allowed BMR to identify Gold Bullion Development’s (GBB, TSX-V) Granada Property as a possible multi-million ounce Gold discovery, well before the Coffin Brothers and others jumped on the story, and the stock soared from under a dime to 93 cents late last year (from a market cap of $6 million to $140 million) and became a 10-bagger for some of our readers.  We were also (and continue to be) ahead of the crowd on the potential of Richmont Mines‘ (RIC, TSX) growing Wasamac deposit, a watershed development for that company with much more, we’re sure, to unfold at that exciting project.

Gold Bullion was overlooked and unloved at 7 cents.  Right now there’s another stock with a northwest Quebec focus that’s overlooked and unloved, sitting at 23 cents for a market cap of just $11 million – only a few million dollars above its cash value.  In our view this company represents one of the most intriguing opportunities we’ve seen since we uncovered GBB in December, 2009.  Visible Gold Mines (VGD, TSX-V) isn’t on too many radar screens at the moment which is good – we expect that to change soon as developments on the ground fundamentally shift the dynamics of this play.

We started following VGD earlier this year and with the TSX Venture Exchange now sitting at its 300-day moving average (SMA), where it bottomed out last year, now is the ideal time for investors to take a close look or another look at this company, especially after today’s news that VGD now plans to focus its exploration efforts on its Joutel Property which is a joint venture with Agnico-Eagle Mines (AEM, TSX).  Joutel is a jewel.  Not only does this former producer have outstanding geological potential, but our research and market intuition suggest this is a story that is going to resonate with investors in a major way.  Joutel, 150 kilometres north of the famous mining community of Rouyn-Noranda, has all the right ingredients to spark excitement in VGD and once again highlight the incredible exploration opportunities in this part of the world where it’s safe to invest.

Robert Sansfacon, VGD‘s senior geologist, was instrumental in the discovery of Osisko’s Canadian Malartic Deposit, the largest in Canada and just an hour’s drive down the Golden Highway from Rouyn-Noranda.  I sat down with him a while back for lunch on one of my trips to the area.  He’s a genius when it comes to understanding geological structure and chasing after a deposit, and I know he’s incredibly eager to tackle Joutel.  It’s a massive land package – more than 10 times the size of Granada – with three former deposits on it.  The mining operation there was shut down prematurely after production of more than a million ounces of Gold plus some Silver.  Major parts of the Joutel land package have never been properly explored, not to mention the ground under the village that is no longer there.  Mining veterans I’ve spoken to believe the village was built right on top of another deposit.

Sansfacon is highly respected in Quebec geological circles.  I believe he’s the reason Agnico-Eagle elected to put Joutel – the property that gave birth to AEM – into the hands of Visible Gold Mines.  Sansfacon’s theory proved correct at Canadian Malartic – now his aim is to unlock the value of Joutel and discover a multi-million ounce deposit there.

Below is an interview I just recently conducted with Visible Gold Mines‘ President and CEO Martin Dallaire.  It runs about 20 minutes and gives a good overview of the company with a significant portion devoted specifically to Joutel.  As always, perform your own due diligence but we believe the interview, which is quite revealing, will assist you in that process.

BMR Interview With VGD’s Martin Dallaire

Note: The writer and interviewer (Jon) holds a position in VGD.  No compensation was paid to BMR by Visible Gold Mines for this interview in accordance with BMR policy.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Please read our disclaimer.