GoldQuest Mining (GQC, TSX-V), which just last Wednesday was trading around 6.5 cents when we brought it once again to our readers’ attention, exploded late in today’s session and closed at 61 cents for a 56% daily gain. More fuel was added to the fire as soon as GQC cleared the 48-cent resistance area. All of this after a 27% jump in the share price Friday and a whopping 313% initial advance Thursday.
Some heavy buying is coming into this stock, and it’s not certainly not from just retail investors. GoldQuest made a spectacular new discovery last week at its Las Tres Palmas Project in the Dominican Republic, 2.5 km north of its Escandalosa Sur deposit. This is definitely a game-changer for GoldQuest which, we’ll remind everyone, also has many other highly prospective targets in the DR including its Las Animas deposit. But right now the market is focused on the Romero discovery and rightly so. It’s safe to assume GQC will be announcing a financing soon, likely of the “bought deal” variety, in order to aggressively follow up on hole LTP-90 which intersected 241 metres grading 2.4 g/t Au.
As we pointed out last week, geologically consistent alteration and mineralization was observed from 30 metres to 261 metres in this hole. What’s different about this hole, compared to ones drilled in the Hondo Valle and Escandalosa Sur areas to the south, is the thickness of mineralization, more sulphides as well as high Gold values associated with high copper values at depth. A 12-metre section, for example, between 216 m and 228 m graded 16.95 g/t Au and 2.14% Cu. The hole was terminated in mineralization due to technical problems, so the discovery is open in all directions. Romero could turn out to be a very rich porphyry system – much more drilling will be required to determine that, but the market is clearly excited about this and could really go crazy when drilling resumes shortly.
Below is an updated GQC chart from John – expect more volatility tomorrow.
Note: Jon holds a position in GQC (John and Terry do not).
Rainbow Resources (RBW, TSX-V)
The West Kootenay region of southeast British Columbia is another area to watch closely for a potential major discovery, and the exploration leader in that district at the moment is Rainbow Resources (RBW, TSX-V) with drilling expected to begin soon at the company’s Gold Viking Property, followed by the International. Prospecting in certain areas of the 12,700-hectare Big Strike Project is already underway.
In a significant technical development, RBW’s 20-day moving average (SMA) has reversed to the upside, ending a decline that started in March. With resistance at 19 cents also taken out today, readers are advised that the next bullish phase in RBW appears to be underway. This fits well with increased activity on the ground at Big Strike, and an overall market that’s looking a lot healthier. John updates the RBW chart below.
Note: John and Jon both hold positions in RBW (Terry does not).