Grandich Client Silver Quest Resources

It would be easier to find a needle in a haystack versus when I used the word spectacular to describe results from a client of mine. Such a word would not be out of line when describing the results SQI announced today from it’s JV with New Gold on the Davidson Property. Not only should the results give New Gold some strokes on its “full price” purchase of Richfield Ventures, but it also supports my argument that SQI was a very attractive “Yukon Gold Rush” play because it had an asset that seemed to support its then total market capitalization.

The fact that the best by far results are now coming from the JV part of the Davidson, that the deposit remains open and the fact that New Gold announced it’s going to drill the crap out of it now, all make for very good days ahead for SQI in my bias opinion.

I suspect SQI’s share price could get a re-rating in the days and weeks ahead to the $1.25 – $1.50 area and with that in mind, I like to note two things:

• Don’t forget my sell half when one has a double or more in any junior
• SQI is likely going to have to do a financing to fully fund its share of the JV now that New Gold is going to drill the crap out of it.

I continue to believe that New Gold doesn’t want a JV partner by the time this project is ready to become a producer and SQI must know that. By showing its fully funded to earn its part shall put SQI in a very good bargaining position.

In a business where failure is the norm, Randy Turner has done a superb job in apparently making SQI an exception to the rule.