There is an old proverb saying it is hard to achieve something but twice harder to keep it.
In the sessions that followed, SQI began to fluctuate up and down, but by a small margin and as a whole managed to keep the new trading range. Yesterday, SQI closed at $0.69 per share – exactly where it was on Mar. 2.
No doubt, the completion of NI 43-101 reports for two of the company’s projects, the Capoose property and the Davidson property, is a major success for Silver Quest. Now the company may proceed with the further development of these deposits.
In addition, we might notice that the NI-reports indicate encouraging resource estimates: at a cut-off grade of 0.40 grams per tonne (g/t) gold, the Davidson Property has an estimated Inferred resource of 46.27M tonnes at an average grade of 0.92 g/t gold for 1.36M ounces of gold.
Moreover, at the end of last November, Silver Quest reported a stable financial condition with $6.2M in cash and $6.35M in working capital.
All this should not make the company scream with joy. There are certain factors that might turn into big worries for its managers. For the quarter ended Nov. 31, 2010, Silver Quest accumulated a net loss of $1.6M.
However, it is maybe of vital importance whether the estimated resources mentioned could turn into proven reserves. For now, they are still in the inferred category and are, therefore, only probable. They have not reached the proven stage yet. Only when this happens the company will really have something to cheer about.
You can get additional credible information about Silver Quest Resources Ltd. on company’s website from the CEO himself.
