Sphinx Resources is continuing its quest to create shareholder value from its Quebec assets.
In a letter to shareholders, president Normand Champigny said the company has continued to make progress towards strengthening its solid foundation and two significant deals have been made.
WATCH: Sphinx Resources teaming up with Osisko metals to search for zinc in Quebec
One has been the creation of a new gold explorer in the Eeyou Istchee James Bay territory of Quebec, in which major miner Goldcorp (NYSE:GG) has invested C$3.7mln.
Under a plan of arrangement, Canada Strategic (CVE:CJC) acquired from Sphinx Resources (CVE:SFX) three gold projects, including its 50% interest in the Cheechoo-Éléonore Trend project, and the remaining 50% interest in that project held by Sirios Resources (CVE:SOI).
The new company called Quebec Precious Metals (QPM) has been formed by the merger of Canada Strategic and Matamec Explorations (CVE:MAT).
The QPM deal will allow Sphinx to focus solely on zinc in southwestern Quebec, through its current projects and the new joint venture with Osisko.
In May this year, Sphinx announced a joint venture between it and Osisko Metals aimed at exploring for zinc in the Grenville geological province in Quebec, in the same area of southwestern Quebec where Sphinx is already exploring with its partner SOQUEM.
The latter is a leading player in mineral exploration in Quebec with eight mines discovered over 50 years.
Champigny also noted that on the Calumet-Sud project, Sphinx and SOQUEM have defined a significant near surface zinc-bearing horizon.
"Drilling results are very encouraging. A follow-up exploration program is being elaborated to drill the mineralized horizon to further establish its continuity and mineral resource potential.
"This program will begin later this year. Other Sphinx zinc projects will be the subject of surface work to identify drill targets. Osisko and Sphinx combine their robust and complimentary technical expertise to carry out an exploration program, which aims to discover Balmat-type or Broken Hill-type zinc deposits in this promising region. Planning of the latter program is underway."
Sphinx shares stand at C$0.04 in Toronto.