Good news leaves investors unimpressed
By Greg Klein
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Impressive drill results can do wonders for an exploration company’s stock. Or they can leave people wondering. A darling of the junior resource sector, GoldQuest Mining TSXV:GQC announced more gold results on September 25. But if a share price bump was going to happen, it didn’t happen immediately.
Here are highlights from three holes at the Romero Gold-Copper Discovery of the company’s Las Tres Palmas Trend in the Dominican Republic.
- 2.64 grams per tonne gold (uncut) or 2.5 g/t gold (top cut) and 0.33% copper over 122.7 metres
- (including 6.35 g/t gold (uncut) or 5.97 g/t gold (top cut) and 0.53% copper over 44 metres)
- 0.59 g/t gold and 0.24% copper over 110 metres
- (including 1 g/t gold and 0.32% copper over 50 metres)
- 0.42 g/t gold and 0.74% copper over 146.5 metres
- (including 0.54 g/t gold and 1.47% copper over 72 metres)
- 0.53 g/t gold and 0.16% copper over 71.7 metres
An arbitrary top cut of 50 g/t gold was used pending further geostatistical data. The top cut was applied to all results, but affected only one interval. True widths were not provided. Depths extend to 476 metres.
With these results, GoldQuest has now reported assays from 10 holes at Romero. Still to come are results for five additional holes. Drilling continues.
Two years ago GoldQuest stock traded just over $0.20. Its price gradually doubled but then sunk all the way to $0.04 last May 16. But despite the market downturn, May 23 began the company’s rapid recovery. That’s when assays from the Romero Discovery first hit the market. GoldQuest shot up to an August 21 high of $2.03 before dropping back. It climbed again to $2.00 on September 20, then fell to a September 24 close of $1.83. Despite the September 25 assays, however, the stock opened the day at $1.35 before a press time close of $1.23.
GoldQuest’s closest Tres Palmas neighbour is Unigold’s TSXV:UGD 22,616-hectare flagship Candelones Project. On September 13 Unigold released assays including
- 0.71 g/t gold, 1.2 g/t silver, 0.09% copper and 0.42% zinc over 165.65 metres
- (including 1.38 g/t gold, 4.1 g/t silver, 0.06% copper and 1.25% zinc over 27.65 metres)
- 0.56 g/t gold, 1.8 g/t silver, 0.06% copper and 0.08% zinc over 89 metres
- (including 1 g/t gold, 5.1 g/t silver, 0.11% copper and 0.21% zinc over 25 metres)
- (including 1.3 g/t gold, 2.1 g/t silver and 0.22% copper over 10 metres)
- 0.49 g/t gold, 0.6 g/t silver, 0.07% copper and 0.01% zinc over 28 metres
- 0.62 g/t gold, 0.5 g/t silver, 0.09% copper and 0.06% zinc over 12 metres
The company estimates intervals to be true widths. No top cut was applied. Depths extend to 476 metres.
Unigold says the results support its belief that the Candelones Extension Zone remains open in three directions. Data from 36 holes has been released so far, with assays pending for seven more from the Candelones Extension. The company states that mineralization shows a strong correlation with IP chargeability anomalies.
On September 13 Unigold also closed a $5-million private placement of 11.2 million shares at $0.45.
The little country’s biggest mining project is Pueblo Viejo, which began pouring gold on August 14. With proven and probable reserves totalling 25.3 million gold ounces, the project is a 60%-40% JV between Barrick TSX:ABX and Goldcorp TSX:G. Barrick operates the mine, which is expected to reach commercial production in Q4 this year.
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