RE: Opinions on drilling results
Baman, the results were really good. It was just Quantum's luck that on the day they released those results from the rare earth hole Molycorp got downgraded by JP Morgan. JP revised its target of Molycorp from over $100 a share to $66. Molycorp fell by 22% Tuesday the same day Quantum came out with their results, bringing all share related to the rare earth sector down. Quest, and Avalon fell by 15% on Tuesday as well
Quantum has .62% Niobium in the Niobium deposit at Elk Creek. The .62% should increases as Quantum drilled a hole of 131 meters over 1.02% Niobium. Molycorp barely has any Niobium and probably wont even process any Niobium.
The rare earth sell off last week is only a buying opportunity to buy more Quantum. Niobium is just as essential to the world as rare earths, and China does not have any deposits of it. Quantum's Elk Creek is the only deposit in the USA and is the richer in both tonnage and grade than the only other producing Niobium mine outside of Brazil, which is Niobec owned by IAMGOLD in Quebec. When the resource estimate is increased from the last 3 holes Quantum drilled in the Nionium zone it should be very substantial.
I noticed a map on Quantum's main page of their website showing the Niobium deposit and how the last three holes drilled into it.
20 cents is a steal for a company like Quantum. The rare earth holes drilled 2.5 km away from the Niobium zone are a very good bonus to the Niobium deposit. Quantum could have 2 mines on their property.