Eric Coffin says accumulate GQC on weakness DAVID PESCOD's STOCKTALK
LATE EDITION, August 28, 2012
GOLD $1,669.60 -$6.60)
GOLDQUEST MINING CORP (GQC-V 1.59 -0.12)
OREZONE GOLD (ORE-T 1.85 -0.04)
ECO ORO MINERALS (EOM-T .88 -1.09)
Gold has had a bit of a bounce of the last several weeks a combination of hopes by many that there might be quantitative easing out of the United States...basically meaning that they are going to be starting to print money again, making that money worth less and gold worth more so the theory goes. Heck, you even had the Republican Party talking about bringing back the Gold Standard and of course with all the other worries in the world maybe gold could do a little better?
Well those hopes are still out there. There is a long list of junior mining companies that are running out of money in a market that will be very difficult to raise one cent for exploration and a long list of decent medium cap gold companies trading at a fraction of what they use too.
Three stories in the news today and yesterday. Eric Coffin, writes up GoldQuest Mining which has been the one big winner over the last while as the latest bunch of drilling results were announced and GoldQuest had a huge day at least as far as volume on the stock (the chart shows you over the last couple of months its been the one junior experiencing any joy at all).
Coffin writes today “it’s a measure of the strength of the Romero zone that a hole containing 100 metres of roughly 1 g/t gold equivalent would be considered by some to be a “miss”. Likewise, hole97 located 73 metres north of the discovery hole is weaker than most reported so far but this “weak” hole reported 79 metres grading 2.33 g/t gold and 0.33% copper and 48 metres grading 1.41 g/t gold and 0.21% copper. Most explorers would be happy to report holes that “weak”.
Coffin continues “the most impressive aspect of yesterday’s abbreviated trading session was the volume of 21 million shares traded in an hour. 14 million shares of that was a cross engineered to purchase the shareholding of Goldfields, GQC’s former JV partner in the DR. Goldfields obtained the shares through financings and through an agreement that allowed GoldQuest to repurchase a 100% interest in the project set after Goldfields had earned into it.”
Coffin adds, “there will be other weaker holes as the geometry of this new zone is explored but Romero continues to display overall outstanding characteristics that should make it a highly sought after project. Accumulate on weakness." It looks at some north, south and east, west sections on the zone that look kinda interesting don’t you think? .