Complete News Releases are at the bottom of the article for further reading, as this is a summary of certain aspects regarding QIMC.
Please View NRs for photos.
On ceo.ca/qimc there is now a wiki page for new investors.
Industry Overview
Quebec Innovative Materials Corp ($QIMC -CSE, QIMCF-OTC, and 7FJ-Frankfurt) is a canadian company now looking into the exploration of natural hydrogen. This is being added to their movements in the silica and quartz space in tandem with HPQ and PYR. QIMC is one of the leaders in the early stages of this new industry, one that now has Bill Gates, Jeff Bezos (those two alone plugging 300 million dollars into Koloma), Mitsubishi and others rushing to fund these projects as the realization of renewable energy dawns on them.
$QIMC on its part has been approached by majors, including the Gates Foundation itself (per interview with Mario Nawfal), and Japanese majors, highlighting just how far along they have come. There is potential for QIMC to bring on strategic partners or a buyout. This work has come from years of ground work by the INRS (Institut Nationale de la Recherche Scientifique). QIMC and the INRS in their partnership, have worked together on extensive work that, if it were quantified on other operations such as the european ones, would cost millions of dollars including all expenses. Which means there would be no dilution for next steps needed (drilling, reservoirs, etc)
Next Steps
The processes that QIMC have used for sampling, and those for next steps align with scientific processes to be or that have been used with Marc Richer-Lafleches theories on the hydrogen. Now it is no longer a test on whether there is hydrogen, it is a question of how much hydrogen there is. The hydrogen is a dynamic underground system with constantly flowing hydrogen. Due to the timing of the year, this is the time where the team will be attempting to do the geophysics, with next steps being drilling in the spring of 2025.
Pricing Resources
Natural hydrogen is a low cost resource to exploit, at a cost of $1 per kg for extraction, and selling at about $10 per kg. As Gold Hydrogen has recently discovered, there are possibilities of helium in the grounds where the hydrogen is found. The team at QIMC will be exploring the opportunity for their helium on their property. (sells for about $50/kg)
Determining Natural Hydrogen
From the news release dated September 11th, "The tectonic zone of the graben appears to have been active since more than 546 Ma, as evidenced by the emplacement of alkaline magmatism represented regionally by numerous carbonatites (e.g. St-Honoré carbonatite, Niobec Mine), but also by lamprophyres and kimberlites (Gittins et al., 1975)" notes Prof Richer-Lafleche. "The graben's normal faults were subsequently reactivated between 200 and 250 Ma during the Triassic and Early Jurassic (Tremblay et al., 2013). The graben still exhibits neotectonic activity, as evidenced by the magnitude of the earthquake that struck the Saguenay-Lac St-Jean region in 1988." "In addition," states Professor Richer-Lafleche, "in the western and southwestern parts of Lac St-Jean, normal graben faults cut large volumes of potassic granitic and syenitic rocks, as well as mafic intrusive rocks associated with the Lac St-Jean anorthositic complex. Potassic rocks, which are also rich in actinides, are potential sources for the production of hydrogen by radiolytic processes."
Importance of soil samples, at the right time/temperature
“NO FALSE POSITIVES FOR QI MATERIALS: Soil samples are key to any hydrogen project and false positives need to be ruled out (something QI Materials does not have a problem with). Some hydrogen exploration companies are looking for H2 in old oil or gas wells and have issues with anthropogenic values where the corrosion of wells create hydrogen. Other hydrogen exploration companies have false positives coming from bio generation caused by the soil type whereby bacteria could break up and produce hydrogen. In QI Material's case, Existence of unique geological settings has been modeled which enables hydrogen to be generated by geochemical reactions deep in the underground where water geochemically reacts with specific type of basement rock that is rich in iron, potassium, radon, etc taking out the "O" from the H20 and generating hydrogen which then seeps up to the surface through seismic faults that are now being explored.
Expansions
The above helps to understand the selection of the land QIMC staked, when the land claims for QIMC were made, this came from the realization of the geology in certain parts of the region, of which QIMC claimed. For line 14, they tested the outer extent to see where their property stopped supporting the geology. QIMC have only gone over approximately 20% of their land and have found world beating numbers in their readings.
Per news release from October 3rd
“Recent soil gas measurements from Line 13 showed high readings of 594, 543, and 463 ppm, the highest levels detected outside of Line 7.”
“in addition to our westward expansion, we are excited to announce new zones in the Duhamel, Fabre-West, and Bearn areas, located to the south of our high ppm findings. These areas align with our geological indicators of our natural hydrogen district.”
From the site visit, there has been plenty of local support, and provincial support as this provides a great resource, with a minimal environmental footprint. Since this trip, insider buying has increased, we have connected to the local community, and have received positive updates in relation to reservoirs, as the belief is one or two main ones, feeding 3-4 secondary reserves.
INRS & Insiders
Minimal to no dilution in the short, medium or long term timeline for QIMC.
In partnership with the INRS they have access to drilling equipment and funds, leaving the company in a good position to not need massive dilution to get their end goal. This presents a unique opportunity as the INRS are part of it, insiders are very committed, and a CEO (John Karagiannidis) and a team with the know how to bring QIMC in the best direction. Sheldon and Jakson Inwentash as well, with their know how in the market and getting the word out on the company. At the time of writing, the approximation on their other exploits (quartz/silica) pays for the market cap. As per morningstar reports, the company is also trading at approximately a 65% discount with a price target of $1.10 per share (not incorporating hydrogen per the morningstar valuation) https://cdn-ceo-ca.s3.amazonaws.com/1jgu4lk-2647-0P0001M7B8-2HKQC1N5P2C3IFFKK48S7PU13F.pdf
Please view Sedi Insider Filings.
As per last available, highest insider buys varying from $0.39 to $0.43.
Update on Quebec's Bill 69
Drilling concerns have been brought up, but per the company, legislation is changing, and there is nothing against our interests, as of right now.
For further reading please see; https://www.legisquebec.gouv.qc.ca/en/document/cs/R-1.01?langCont=fr#se:43
“We are also pleased to provide an update on Quebec's Bill 69, which has recently undergone special consultations and public hearings. The special consultations and public hearings have been conducted to gather stakeholder feedback and ensure that the bill reflects a balanced approach to resource management and environmental stewardship. We have been following these discussions, advocating for policies that support sustainable development and responsible practices. "We are thrilled about the ongoing hearings and public consultations on Quebec Bill 69," said John Karagiannidis, CEO of Quebec Innovative Materials. "This legislation aligns perfectly with our mission to explore and develop clean natural hydrogen and high-grade silica deposits-two vital resources for a sustainable future. At QIMC, we are dedicated to supporting Bill 69's objectives and applying our expertise to drive significant progress in Quebec's energy transition and carbon neutrality.”
Natural hydrogen would not be blocked by Bill 69 as it is not considered a hydrocarbon.
Geophysical Updates:
“The results are in line with our expectations and further confirms Professor Marc Richer-Lafleche hydrogen model of a deep seated hydrothermal source. Even without drilling data, the anomalies seen in the imagery along line 1 suggest a break in the clay horizon's integrity, potentially allowing hydrogen to migrate to the surface. Also, the disturbances on line 3, combined with strong hydrogen soil anomalies, point to the likely presence of gas in the sediments. This geophysics data provides a clear and detailed understanding of the Quaternary geology underlying the hydrogen anomalies and the reservoirs.” As the company notes here, this shows further data to support the theory that there are reservoirs in the area searched by the company as of now.
Objective of these next steps:
One of the objectives of INRS and QIMC is to identify areas of maximum thickening of the sedimentary rock sequence overlying the Archean basement in order to identify the most likely places for the reservoirs. This objective should be easy to achieve, given the difference in density between the Proterozoic and Ordovician sedimentary rocks and the volcanic and intrusive rocks of the Baby Group (greenstone belt).
The data generated by the galvanic and electromagnetic geoelectric surveys will also be used to optimize the injection and recording parameters for the electromagnetic data (TDEM) to be measured in winter 2024 going into early 2025.
Key Techniques Used
1. Geoelectric Tomography (GTS): This method maps subsurface geological features by measuring electrical resistivity and chargeability. It provides high-resolution imagery of the geological layers beneath the surface.
2. Audiomagnetotellurics (AMT): This technique measures the Earth's natural electromagnetic fields to identify electrical resistivity variations, helping locate faults and fractures that may allow gas migration.
3. Gravity Surveys: These surveys measure variations in the Earth's gravitational field to understand the thickness of sedimentary rock layers.
Importance of Geoelectric tomographic survey
The INRS team carried out a very high-resolution geoelectrical tomography (electrical resistivity and chargeability) survey to produce electrical resistivity and chargeability imagery along lines 1 and 3Est and north of line 3E. The objectives of the survey were to: 1) provide imagery to assess overburden thickness variability, 2) clarify the stratigraphy of Quaternary sediments overlying sedimentary rocks, and 3) verify that the strong hydrogen anomalies detected during the Soil-Gas survey are not associated with simple sulfide weathering processes. "This last point is critical", notes Professor Marc Richer-Laflèche, head of INRS' Applied Geoscience Laboratory, "as the aim of the project is to locate hydrogen anomalies originating from deep-seated sources, rather than small local anomalies associated with the weathering of sulphides located at the contact between mineralized bedrock and local groundwater. "
LINE 1
The presence of different sedimentary units was also identified, including sands, gravels, and clays allowing gases to reach the sub-surface and soils.
The section clarifies the contact between bedrock (between I and II) and the Quaternary sequence, comprising some 5 units (II: sand and gravels; III: clays; IV: sands; V: clays and silty sands at the top)(Fig. 2 a). "The imagery obtained along line 1 also shows significant heterogeneity, particularly affecting horizon III, which according to our model would be a low-permeability clay-rich horizon (Fig. 2b)" notes Professor Richer-Laflèche. "Despite the absence of drilling in this area, we believe that this anomalous domain marks a break in the tightness of a clay horizon", continues Professor Richer-Laflèche, "allowing gases such as hydrogen to ascend to the sub-surface and soils."
LINE 3
The second survey line showed a more complex geological structure, with evidence of major fractures that may facilitate hydrogen transfer to the surface. The data suggested the presence of gas in the sediments, correlating with the strong hydrogen anomalies detected earlier.
In the central part, the bedrock becomes sub-outcropping sub-flush (I) (Lorrain Fm sandstone) and shows more conductive sub-vertical anisotropies, which we interpret as major fractures that could be important in the process of hydrogen transfer to the surface(VI and VII)" states Professor Richer-Laflèche. "Note that these fractures (or faults) affect sub-horizontally dipping sedimentary rocks. As with the Line 1 section, it shows the presence of sandy-gravelly (III and IV) and silty-clay (V) sediments (Fig. 3a), which also appear disturbed in sectors VIII and IX (Fig. 3b and C). Despite the absence of drilling data at present, we interpret these disturbances as electrical resistivity anomalies related to the probable presence of gas in the sediments, as they are located in an area characterized by strong hydrogen anomalies in the soils.
"We believe that the presence of sub-vertical sandy dykes (more porous and permeable) could promote the ascent of hydrogen through the clay-silt cover (impermeable) and thus produce hydrogen anomalies in the soils." states Professor Richer-Laflèche. "Also, locally, if the gas flow is significant (advective flux sectors), subvertical resistive anomalies could be linked to the presence of significant quantities of gas, thus explaining a localized increase in electrical resistivity values." This will be further confirmed by geotechnical drilling planned for Spring 2025.
Future prospects
QIMC represents an intriguing investment opportunity, as the partnership with the INRS will reduce dilution as opposed to other options. There is no foreseeable cash raise coming in the short, mid or long term future. The drills as mentioned above, are provided for the exploration and provide a clear path to next steps. Utilizations of their resources are wide open, they can transport out to Europe, use for Canadian energy, or they can build server farms, or mine crypto as an example, using the renewable energy source to do so sustainably.
With a tight float held by insiders and long holding investors, QIMC has the potential, pending more discovery to become more established. Continuation of work with the INRS will provide a clearer path to more findings and establishing reservoir sizes, with proven scientific methods similar to those being used worldwide. QIMC has four prongs to their arsenal, with interests in hydrogen, silica, quartz, and potential in helium.
Steady news flow will be coming from the company from November through to Spring. The company has contracted a PR firm in Germany; German Mining Networks (GMN) with a deal ending in November to create videos for QIMC and distribute to 400 press agencies.
The company has their eyes on the Houston Reuters conference on December 4th to 5th, 2024. https://events.reutersevents.com/energy-live/hydrogen/
Company Website:
September 11th news release:
https://pro.ceo.ca/@newsfile/qimc-announces-successful-exercise-of-warrants-and
September 12th news release:
https://pro.ceo.ca/@newsfile/qimc-announces-grant-of-stock-options-extends-gratitude
October 3rd news release:
https://pro.ceo.ca/@newsfile/qimc-announces-significant-natural-hydrogen-discovery
October 9th news release:
https://pro.ceo.ca/@newsfile/qimc-announces-finra-approval-for-priced-quotation
October 24th news release:
https://pro.ceo.ca/@newsfile/qimc-unveils-landmark-geophysical-survey-findings-in
ThreeD X account: https://x.com/threedcap
QIMC X account: https://x.com/QIMCSilica
QIMC Instagram account: https://www.instagram.com/qimcsilica/
A special thanks goes out to the QIMC & INRS team for the work done in the field and for their investors.
This is not financial advice, all of these are my opinions/research and compilation of news releases from the last couple of months.
