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Monday, March 06, 2017 Derek Macpherson

AEM Buys 15% of GQC at a Premium

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GoldQuest Mining Corp. (TSXV:GQC) announced a private placement with Agnico Eagle Mines Ltd. (TSX:AEM, NYSE:AEM) for C$22.86 million to fund working capital and the exploration and development of its properties in the Dominican Republic. In our view this investment by Agnico provides technical validation for the Romero project, and highlights the exploration potential of its district scale land package. The financing consists of 38.1 million common shares priced at C$0.60/sh which represents a 27.7% premium to the prior day’s close. As a result of the transaction, Agnico would own ~15% of GoldQuest on a non-diluted basis. In conjunction with the financing, Agnico has been granted the right to nominate one director and maintain its interest in future financings. GoldQuest currently trades at 0.54x NAV and $42/oz versus peers at 0.51x NAV and $35/oz. We believe that a further premium may be warranted because of Romero’s stage of development and the exploration potential of the company’s district scale land package. We expect the combination of the ongoing de-risking at Romero (feasibility study in early 2017 & operating permits in late 2017) along with ongoing regional exploration are likely to provide positive momentum for the share price. read more


Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview

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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.  read more


Tuesday, January 10, 2017 Derek Macpherson

GQC Discovers New VMS Zone at Tireo

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GoldQuest Mining Corp. (TSXV:GQC) announced the discovery of new zone, Cachimbo along with additional results from its regional exploration program. This new VMS zone was intersected on multiple horizons and the results were highlighted by 13.8 g/t Au, 73.7 g/t Ag, 11.8 % Zn and 1.1% Cu over 4.9m (TIR-16-09) and is located 20.5km to the South of the company’s 2.5M oz AuEq (23Mt at 3.35 g/t AuEq) flagship Romero gold-copper project. These results from target 3 of 20 in the current regional exploration program highlight that Goldquest’s district-scale land package along the Tireo formation has the potential to yield multiple discoveries. In our view, GoldQuests current valuation, at 0.36x NAV and $27/oz (peers 0.48x NAV and $39/oz) does not account for the exploration upside demonstrated today. In our view, this drilling success could be the catalyst that starts to close the valuation gap to peers.  read more


Monday, October 31, 2016 Derek Macpherson

Initial GQC Exploration Results Positive; More to Follow

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GoldQuest Mining Corp. (TSXV:GQC) released the first drill results from its ongoing 10,000m drill program at its wholly owned Tireo Property in the Dominican Republic. The drill program is focused on a 15 km long undrilled section of the Tireo Belt between the company’s flagship Romero deposit and Precipitate Gold Corp’s (TSXV:PRG) Ginger Ridge discovery. Although it is early days, the company believes that the mineralization intersected at target A suggests the existence of an epithermal system similar to that of the 2.5 million oz AuEq Romero deposit. It remains early days for target A; however, the initial results are positive and follow-up drilling is warranted. As well, the company continues to test the remaining 19 targets planned for this drill campaign, including target B which is less than a kilometer from target A (Figure 1).  read more


Thursday, October 13, 2016 Derek Macpherson

New VP Corp Dev Should Help GQC’s Financing Efforts

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GoldQuest Mining Corp. (TSXV:GQC) announced the appointment of David Massola as Vice President of Corporate Development. Mr. Massola will be focusing on the financing of the Romero Project which we expect to be a combination of off-take, debt and equity financing. Previously Mr. Massola worked alongside GoldQuest’s CEO Julio Espaillat and Executive Chairman Bill Fisher at GlobeStar Mining Corp, which financed and built the Cerro de Maimon gold/copper mine in the Dominican Republic. Besides project financing, and the ongoing feasibility study for Romero, GoldQuest continues to explore its district scale land with a 40-hole program.  read more


Tuesday, October 04, 2016 Derek Macpherson

RCKS Fall Mining Showcase Presenter Preview

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On Thursday October 6th, Red Cloud Klondike Strike Inc. will be hosting its 4th Annual Fall Mining Showcase. The event, that will offer attendees the opportunity to meet with a number of companies, features presentations from 20 companies and a buy-side discussion panel comprised of three of the industry’s most influential fund managers. Visit the event page for more details on the day’s schedule. In this post we provide a brief preview on the 20 presenting companies and 8 banner sponsors that will also be in attendance.  read more


Wednesday, September 28, 2016 Derek Macpherson

GQC’s Romero PFS Yields No Surprises, De-Risks Project

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Goldquest Mining Corp. (TSXV:GQC) released the results of a Prefeasibility study (PFS) on its Romero Project in the Dominican Republic. The notable changes from the June 2015 PEA are to metal pricing (gold up 6%, copper down 14%), a modest increase in pre-production capital (up 11%) resulting in after-tax NPV and post-tax IRR decreasing 14% and 17%, respectively. Based on the increased rigor required for a PFS (vs. a PEA) we consider this study to be roughly in line with the previous one. However, with this increased rigor the PFS has essentially confirmed the project's economics while at the same time de-risking it. In our view, Goldquest’s current valuation does not reflect the ongoing de-risking of Romero or the exploration potential of the wider property. read more


Thursday, July 28, 2016 Derek Macpherson

GQC to Start Drilling in August

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GoldQuest Mining Corp. (TSXV:GQC) is commencing the planned 10,000 m drill program (40 holes) in early August at it’s 100% owned Tireo Property in the Dominican Republic. Recent geophysical and surface work has identified new targets, as we discussed in our recent post. The program is expected to focus on the 15 km long section of the Tireo Belt that has never been drilled and is located in between the company’s Romero deposit and Precipitate Gold Corp’s (TSXV:PRG) Ginger Ridge discovery. As well, GoldQuest announced that it plans to release the planned prefeasibility study in September. We expect both the ongoing de-risking of Romero (prefeasibility study) along with exploration success, should it occur, to be positive catalysts for GoldQuest’s share price.
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