QEX IS EVOLVINGQEX IS EVOLVING from being an acquirer of land, to an explorer/assessor of their land.
Based on up-to-date, comprehensive, analysis of all their existing exploration data on the Inel target, in their KSP region, QEX is taking a major step in conducting a 43-101 complaint assessment. They obviously believe there is a high probability of success – or they wouldn’t do it. They want to increase the Market Value and Share Price of the company.
The currently Market Value of QEX is about $15M, based on a Share Price in the range of $0.65. I believe our Market Value should probably be more in the range of $45-60M; that would mean a Share Price of close to $2 or more – this is founded on consideration of QEX’s various premium parcels of land, with their numerous existing exploration Targets, and more to come – I believe it should reasonable valued at this higher level prior to making any major discovery.
I’m not a Miner, my considerations are focused more on the business fundamentals. I look at QEX and see a company that has very good management and applicable exploration expertise. They have shown us that a number of times over the last few months, most recently when they needed 3D Mapping expertise they just went out and got it.
The fundamentals of their land basket are amazing. They have the rights to 7 different areas of land (KSP, Castle, North ROK, Sofia, King Pin, Heart Peaks, Hit), all but a couple are in the Golden Triangle.
Each of these areas has multiple existing exploratory targets – and here I only list some of them:
KSP – Inel, Tami, AJ, Khyber Pass
Castle – Castle West, Castle East, Moat, Castle South, CGZ
North ROK – Mabon, Edon, Coyote
plus potential targets in Heart Peaks and Hit, and Sofia’s too which are yet to come.
North ROK – Mabon already has a proven resource – which I expect will eventually be expanded and commercialized, in cooperation with the First Nations. I believe our current Share Price gives us no value for this resource.
Castle, with its multiple targets, sits right next door to GT Gold’s Saddle South and Saddle North which are currently being readied for development. The Castle area is just begging us for further exploration.
One of KSP’s targets, Inel, will this year have further serious exploration and a 43-101 compliant assessment conducted.
And we are not even speaking of the other land areas listed above and their eventual potential targets. We need to remember that to become a ‘target’ these locations must have shown the right qualities and results when appropriate electronic flight surveys, physical sampling and other exploration activities were conducted and then subsequently scientifically assessed.
As we know, the Golden Triangle has mega mineral resources – both historically and current, some previously producing, some found and currently producing (e.g. Pretium, Red Chris), others discovered but not yet producing (e.g. KSM, GT Gold, Skeena, Tudor) – there others too, not listed. My point here is that there are many already known, and will be many more to come. When you look at the Market Value of the companies that I have listed you will be amazed, and it is all based on their discoveries/resources.
I am not saying that QEX will eventually have the same Market Value as the listed companies – each commercial discovery will stand on its own merits – but I am saying that we have a great land base made up of multiple locations, with many excellent targets, in these same general areas. And that we are now just on the cusp of ‘really digging into it’.
Therefore, I believe at $15M QEX is very undervalued. I believe that, when you consider all of our many excellent target opportunities – that we have far more than a good chance to find one, or more than one, commercial mineral deposit amongst them. Then, if we compare that against what it will do to QEX’s Market Value if/when we do make that discovery, our current Market Value does not give us anywhere near the credit due for our Target opportunities. I am not saying that QEX should be given credit for a discovery not yet found – what I am saying is that we have many real, excellent targets and that hasn’t been recognized yet – QEX is not a ‘one trick pony’ like many other exploration companies – if we were to hit more than one discovery – well who knows.
That is why I am somewhat surprised at a Market Value of $15M. I understand people buy and sell shares for different reasons – some to take a profit, some for other personal reasons – but now that we are starting to define what we are going to do, and when, I expect these current buy/sell’s will put the shares into the hands of buyers that understand the potential medium term results and they will not be prepared to sell at such a steep discount. If I am right, that will result in some significant price increase over the near term, before we ‘get to digging’.
2021 is just starting to be exciting! And just think, Inel is just one of the many targets!
IMHO DYODD