Lithoquest Resources is a paying customer of this website. This article is not intented to be used as unbiased research. I am uneducated, inexperienced, and have a high risk appetite, so this article is likely to be full of mistakes and biases and therefore should not be viewed as financial advice. This news release is for Canadians only.
Find out more about Lithoquest in this interview.
Lithoquest Resources Stock Down over 40% on Wednesday
Lithoquest Resources was halted on July 20. The stock closed the day prior at $0.11 CAD. At open, on July 20, the stock fell to a low of $0.065 CAD, representing a 40.91% drop, and closed the day at that level.
Why Did Lithoquest Resources Stock Fall?
Supposedly, the stock fell because of this news, in which the company announced three zones with gold mineralization, including 27.6 g/t Au over 0.59m starting from 115m.
Although the headline grade isn’t low, the market – possibly – thought the grades (shown in the table below) are too low and too narrow.
What Happened at Lithoquest Resources?
- Lithoquest announced assays from its spring drill program at the Miminiska project, located in Ontario, Canada.
- The spring program focused on drilling holes at areas that were untested before this program.
- Here is what they found:
- The First Nations issue remains unresolved as of yet, but the company is in the process of scheduling a community meeting to hear further direct feedback from EFN members regarding its proposed activities. The outcomes of that meeting will form the foundation of any agreement. That will be the most important news for this company’s early stages. Bruce Counts, CEO & founder, told me that he is confident in resolving those issues.
- Although this news doesn’t seem to have been well accepted by the market, this is a very early stage exploration company and they have a long way to go.
- So far, the grades are consistent with what was previously obtained at the Miminiska property. There is some gold there, and these holes prove that there is something, although not as high grade as shareholders might have hoped and/or wished for. This was also not the last of the high-priority targets and more drilling will come if the First Nations at the project are happy with the proposal.
Antonio Atanasov is not an investment advisor. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.
Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).
Readers are cautioned that this article likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.