GoldQuest Mining Corporation

"While GoldQuest Mining Corp. is not a complete unknown to those following the junior mining sector, the current price, coupled with progress on the ground, now qualifies it to be included in the Stealth portfolio. GQC is a prospect generator active in the Dominican Republic...

GoldQuest began exploring in Dominican Republic in May 2001 with a regional stream-sediment survey covering an area in excess of 7,000 square kilometers. In 2003, the company entered into an exploration alliance with Gold Fields Ltd in which Gold Fields funded a regional exploration program consisting of stream sediment sampling and geological mapping. In return for fully funding the first phase of the program, Gold Fields acquired a 50% interest of the targets identified within the project area. The following year Goldfields converted their 50% stake in the project into an approximate 10% equity stake in GoldQuest and at that point all of the projects in the program reverted back to 100% ownership by GoldQuest.

In early 2006 GoldQuest entered into a new agreement with Gold Fields in which Gold Fields can earn a 60% interest in select GoldQuest projects by spending US$5M over three years with a minimum expenditure of US$1M in the first year. GoldQuest has nine targeted projects under exploration, five of which are subject to the Gold Fields agreement and four of which are not. Those excluded are Las Animas, El Toro, Santa Ana and El Tuerto. The most recent news from the company concerned one of the projects not covered in the Gold Fields agreement: the 100%-owned Las Animas project in the western Dominican Republic. It’s comprised of two fully-titled claims totaling 2,610 hectares in which GoldQuest has discovered several new zones of mineralization by stream sediment sampling and geological mapping.

Thanks to the state of the markets, GoldQuest’s shares have bounced downward from a high of C$1.24 last November to Friday’s close of C$0.31. With 61.5 million shares outstanding (68.9 fully diluted) the company has a C$19 million market cap. It also has two indicated discoveries in place, C$3.5 million in cash, C$4.8 million in properties, no debt, and all the exploration costs are being carried by Goldfields. It’s clean, well funded, with strong ties to one of the biggest mining firms in the world.

Unlike a lot of prospect generators in which investors are speculating on the basis of prospects alone, GoldQuest has two discoveries, one a volcanogenic massive sulphide deposit and the other is a more classical sulphide gold deposit, either of which might become economic. It’s of interest to recognize that both are prospects that came out of a generative campaign financed by one of the largest mining companies in the world, Gold Fields Ltd., which wouldn’t have happened if the deposits lacked the potential to be world-class in size.

Recommendation: Place a good-until-canceled limit order to buy GoldQuest Mining Corp. (GQM.V) at C$0.30 or better. This is slightly below Friday’s close, but if your order doesn’t get filled immediately, be patient and wait. The odds are that it will get filled within two or three weeks." (8/17/08)
    -   Stealth Investor

"We select companies whose management teams have a demonstrated track record. Our companies have projects with an above-average opportunity for making a new discovery. Too many junior exploration companies hang their hats on a single project, and spend too much time exploring that one project before they give it up.

One company in our portfolio that meets this criteria is Gold Quest Mining Corporation. They are focused on the Dominican Republic. This is a company with a group of geologists that are mostly ex-Anglo [ AngloGold Ashanti Limited (NYSE: AU)] people who believed that the western part of the Dominican Republic was relatively unexplored, which, indeed, it was. They conducted a very broad regional program to identify anomalies capable of supporting a portfolio of diverse properties. That program was actually quite successful, and today they have a pipeline of properties. They were able to attract Gold Fields in a joint venture to develop some of those properties, and are also exploring other properties excluded from the joint venture in which they maintain 100 percent ownership.

They made a new volcanic massive sulfide discovery on one of their earlier properties, Las Animas. We believe that there are more discoveries to be made by the company on properties that it has not yet had a chance to explore. We’re really excited about Gold Quest Mining. They’ve already made one good discovery that’s continuing to evolve. We’re hoping to see some resource calculations soon, but even if that project doesn’t measure up, they have a number of other properties with potential. This is a good example of a situation where you’re mitigating your risks through a pipeline of properties with a very good geological team in a well-financed situation." (8/12/08)
    -   NEIL MACDONALD, NOVADX, The Gold Report

"Goldquest is currently our favorite copper-gold story right now. I have recently purchased shares as I believe these levels are pretty much a slamdunk to accumulate ahead of reporting. Management is brilliant and well experienced. The company has recently contracted two groups to provide investor relations in Canada and Europe." (6/13/08)
    -   stockhouse.com

"GoldQuest made a really nice discovery in June. They even had a second discovery, and the stock price went even lower…which is really ridiculous. I expect they will release a 43-101 compliant resource and finally get recognition for their efforts." (5/30/08)
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