RESULTS
I dont think the recent results are terrible, but they are clearly FAR worse than the market was expecting, and this was not priced into the recent price decline.
I find the press release very vauge with regards to no mention of assays for all other metals, especially as a big deal was being made of this by Gordon in his recent interview......i had a bad feeling when it was mentioned that the results would not be released till monday before market open. I guess no mention means no finds??
The only thing holding this price up was the prospect of good results (by good I mean similar to the last release with a possible miss on one or two holes but with compensation by way of copper, silver etc...), these resuts will not hold this price up and in the short term the price IMO will drop below .15 this week and probably fall back to original levels.
QIT now has to use already exisiting resources to fund the next drill program or raise cash to do so......and with thses share values any PP will not come at anything near the .60 that was reported a while back.
The next drill program is to start in May at the earliest, meaning no new news to report possibly till July ( other than financing....which will mean share dilution). In the short term this share price is going back to base levels with no support levels developed, to stop this.
The good news is this will provide an excellent entry opportunity for inverstors.
I also see similar action for LOT, they need to raise finances to drill at Winchester, they have new shares on the market today, and with these results in the current TSX.V. market, I find it difficult to see any favourable finaning for them either.
The New York conference is going to be a hard sell, IMO most large investors will want to play the wait and see game at these levels....so to secure the money the share and warrants are going to have go at low levels meaning much more share dilution.
My major concern with the results is the low grades ( compared to older results in the field) at depths of 300m+ with pockets and not constant, which would raise the question of economic costs to mine at these depths for the g/t of gold reported. Hopefully the next results will prove up the grades at depth on 60% intersects...........but if not??????
I still think this is a good opportunity and I hold both QIT and LOT, alougth I have sold most at open today looking to buy back at better levels (this might prove to be a bad move....only time will tell).
This is just how I see it, I may well be wrong , GLTA.