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Grandich Client Silver Quest Resources

In a business where failure is the norm, Silver Quest Resource’s CEO Randy Turner has clearly set up SQI to be one of the few exceptions to that rule. Despite being a so-called “compensated consultant”, I’ve pressed Randy on several fronts to the point he may have considered terminating our relationship. I think this is worthy of public exposure because the bottomline is Randy has done a great job on several fronts. SQI has gone from a mismanaged, floundering, run-of-the-mill junior before his arrival, to a company with real assets with all sorts of upside potential. And Randy has purchase significant amount of shares along the way.

The company announced this morning a new gold discovery in what’s now clearly becoming a new gold district in B.C. thanks in part to the news yesterday of a takeover bid for Richfield Ventures. This discovery by SQI is a brand new “find” and has extensive strike length and width – significant in the size of the anomaly, the gold values and also re-iterates the fact that there is a lot of other potential within the Capoose – Davidson projects and that other discoveries can be made! Silver Quest is the largest land holder in the Neckaho Plateau and again, I think it’s fair to say this is developing into a new gold district.

In regards to the Richfield Ventures takeover, I previously discussed my thoughts but want to drive home a point some readers seemingly didn’t comprehend. The joint venture agreement SQI had with RVC remains. The deal is not expected to close before June. In fact, they announced drilling of 65 holes at a budget of $8 million. The bulk of the new drilling will be on the jv property. As the Hard Rock Analysts noted yesterday, there’s plenty of room to expand the resource.

Given the belief is a new mining district, given New Gold will have a dominant role in the area with its acquisition of RVC, and given what SQI has in the area and elsewhere, I do not think its silly to speculate SQI could become a target of NEW Gold and/or someone else. SQI offers now two worthy deposits in B.C. and a dominant land package in the Yukon Gold Rush.

Unless the metals and/or the general stock market cave big-time, I think speculating on SQI making a new high is not foolish. Given the fact that I think as the RVC deal allows a true estimate of what’s SQI interest worth to be concluded, it should put a floor under the share price between $.50 -$.75. What I’m saying is, I think if everything else didn’t exist, the share price could be in this range just on this deal alone. When you throw in everything else, a new high seems like more of a question of when then if. But in a business where egg on my face has occurred several times, I suggest not treating my words as gospel.

Stay Tuned!

Posted in A Grandich Company by Peter Grandich.