SciQuest SQI

Very intereting Grandich Post!

[doohon]

Things are sure looking GREAT!!

Grandich Client Silver Quest Resources

Very Interesting comment yesterday by Scotia Capital on SQI:

Blackwater North Half (where SQI owns 25%) Looking Better than the South Half!! 23m of 9.14g/t gold and 15m of 9.30g/t gold intercepts at Davidson – With New Gold’s agreement to acquire Richfield Ventures (RVC-CN) on April 4, 2011 – Scotia Mining Sales flagged Silver Quest (SQI-CN) as a big beneficiary (see Scoop note from April 5th below). The North Half of the deposit known as “Davidson” (75% RVC / 25% SQI) has been delivering higher grades which Scotia Mining Sales believes would incentivize NGD to “pay up” for. https://www.silverquest.ca/s/NewsReleases.asp?ReportID=456090&_Type=News-Releases&_Title=Silver-Quest-Announces-23m-of-9.14gt-gold-and-15m-of-9.30gt-gold-intercepts…

From the Scoop on April 5th….

RVC/NGD Follow On…Don’t Forget the SQI Stub: Recall that Silver Quest (SQI-CN, not covered) owns a participating 25% interest in the Davidson property (75% RVC) which comprises the northern half of the Blackwater property (see map below). This morning, New Gold announced the friendly all stock acquisition of RVC. On March 29th, SQI and RVC executed a formal joint venture agreement regarding advancement of the Davidson property (https://www.silverquest.ca/s/NewsReleases.asp?ReportID=449276&_Type=News-Releases&_Title=Silver-Quest-Executes-Formal-Joint-Venture-Agreement-on-Davidson-Property-B…) which in hindsight was clearly a hurdle that had to be overcome before New Gold would launch their bid for RVC. We see upside to the current SQI share price (~
.72/sh), and think itshould currently be valued >$1/sh, and ~$1.50/sh with drill successon either their Davidson JV property (3 drills currently turning) or their Yukon projects.

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I concur with their thoughts. The fact that the deposit appears to be getting bigger and richer on the JV side of things makes SQI interest that much more attractive.

Posted in A Grandich CompanyAll PostsBase MetalsCanadian StocksCopperExploration SharesGoldMining SharesPrecious MetalsSilverSilver Quest Resources by Peter Grandich.