RE: Insider selling - Apr. 13 (SQI)Never a good sign when insiders sell. I might have to rethink my hold time. Thank you for the posting.
Stu
excerpt from Grandich's newsletter.
Posted:05 Apr 2011 07:00 AM PDT
In a business where failure is the norm, Silver Quest Resource’s CEO RandyTurner has clearly set up SQI to be one of the few exceptions to that rule.Despite being a so-called “compensated consultant”, I’ve pressed Randy onseveral fronts to the point he may have considered terminating our relationship.I think this is worthy of public exposure because the bottomline is Randy hasdone a great job on several fronts. SQI has gone from a mismanaged, floundering,run-of-the-mill junior before his arrival, to a company with real assets withall sorts of upside potential. And Randy has purchase significant amount ofshares along the way.
The company announced this morning a new gold discovery inwhat’s now clearly becoming a new gold district in B.C. thanks in part to the news yesterday of a takeover bid for Richfield Ventures. Thisdiscovery by SQI is a brand new “find” and has extensive strike length and width– significant in the size of the anomaly, the gold values and also re-iteratesthe fact that there is a lot of other potential within the Capoose – Davidsonprojects and that other discoveries can be made! Silver Quest is the largestland holder in the Neckaho Plateau and again, I think it’s fair to say this isdeveloping into a new gold district.
In regards to the Richfield Ventures takeover, I previously discussed my thoughts but want to drive home apoint some readers seemingly didn’t comprehend. The joint venture agreement SQIhad with RVC remains. The deal is not expected to close before June. In fact,they announced drilling of 65 holes at a budget of $8 million. The bulk of thenew drilling will be on the jv property. As the Hard Rock Analysts notedyesterday, there’s plenty of room to expand the resource.
Given the belief is a new mining district, given New Gold will have adominant role in the area with its acquisition of RVC, and given what SQI has inthe area and elsewhere, I do not think its silly to speculate SQI could become atarget of NEW Gold and/or someone else. SQI offers now two worthy deposits inB.C. and a dominant land package in the Yukon Gold Rush.