Investors in Vancouver-based gold explorer GoldQuest Mining (
TSX:V.GQC,
Stock Forum) got an overdue shot in the arm Tuesday when the junior
reported a maiden resource estimate for its Romero deposit, located in the Province of San Juan, Dominican Republic.
The estimate included total indicated resources of 19.42 million tonnes grading 2.63 grams per tonne gold, 0.63% copper, 0.29% zinc and 3.7 grams per tonne silver, and saw share prices leap 28.5%, up 8c to $0.36 per share.
The company says highlights of the results include a fast-track maiden indicated resource estimation, with 75% of the contained metal occurring within the ‘higher confidence indicated’ category due to the low variability of the gold grade of the deposit and concentrated drilling density near the core of the deposit.
"High grade, long drill hole intersections from the Romero Project have translated into a high quality resource statement within 17 months of the Romero discovery," said Julio Espaillat, GoldQuest's CEO, in a company news release.
"At a $150 net smelter return cut-off, Romero includes a coherent high-grade indicated core of 6.23 million tonnes grading 6.9 g/t gold equivalent, containing 1,386,000 ounces of gold equivalent, which also encourages us to consider commencing early economic studies to advance the project towards a mining decision."
The share price of the $51m market capper had been in a long slump since October 2012, when it peaked at $1.06, dropping to $0.40 before that calendar year was out.