HRA on V.SQI
posted on
Jul 12, 2010 12:40PM
Edit this title from the Fast Facts Section
Silver Quest (SQI-V; $0.40) or its JV
partners are now drilling on three projects;
one in the White Gold camp and two others
in British Columbia. SQI should be one of
the more busy reporters over the next few
months. JV partner Richfield Ventures (RVCV)
has been drilling for close to three months
at the Davidson project its earning 75% of
from Silver Quest. The relative lack of news
from this program has been hampering both
stocks. SQI is back trading in the range it
was in before RVC’s spring run up. Going
forward, Silver Quest’s value should be determined
more by its own exploration efforts
and good news from RVC would be a bonus.
SQI is completing a planned 13 hole program
at the Boulevard project located southwest of
Kaminak’s Coffee project. Boulevard has
generated some interesting trench and drill
results from limited past work; some good
drill results seem a likely outcome here. SQI
has been an aggressive property acquirer
throughout the White Gold camp. Early
stage programs will be ongoing in several
areas. It’s still early enough in the season
for SQI to either expand the Boulevard program
or to get a drill program done in another
location if it likes the look of the new
targets. We have not seen a work start announcement
from the nearby Prospector
Mountain project but expect one soon.
Drilling is also ongoing with two rigs at the
Capoose project in central BC. Capoose
hosts a low grade gold silver resource that
SQI is working to expand with the current
10,000 metre program. The project is still
not well understood and there is room for
both expansion and surprises. SQI drilled
several holes here last year with grades well
above the resource average. If it can continue
to expand Capoose with holes that pull
up the overall grades it can add a lot of potential
value here.
The disappearance of the Richfield JV premium
is making SQI available at good prices
just as it is about to start its own multiple
drill program reporting. There is potential
for good holes from all areas. This combination
is making SQI a compelling story. We
think its time to start accumulation before
drill results from Silver Quest’s own drill program
start to roll in.