Monday, September 03, 2012

Chasing GoldQuest in the Dominican Republic

Junior Precipitate Gold, backed by the likes of Adrian Fleming and Eric Coffin, makes a strong area play on GoldQuest Mining.

Kip Keen, writing for MineWeb begins:  “HALIFAX, NS (MINEWEB) - As hatched-out via an IPO this year, Precipitate Gold (TSX-V: PRG) was to be a Yukon-BC gold story. Given the names at its core, this came as no surprise. It is backed by some Yukon savvy directors, including Adrian Fleming as chairman, who headed up Underworld Resources in the Yukon before Kinross took it out, and Gary Freeman, of Ethos Capital, which is looking to replicate Kaminak Gold's success nearby. There were also a couple other notable names, strong Yukon proponents, that got behind Precipitate in its IPO this year, Eric and the late David Coffin of HRA.

Yes, it all smelled very Yukon with a focus on sediment-hosted gold deposits that are fueling a new wave of exploration up North. Precipitate holds some 70,000 hectares in prospective sediment-hosted ground in Yukon and the BC and initial plans were to start drilling this year.

But then, post IPO, Precipitate stepped back, saying there would be no drillholes in the Yukon in 2012. It also dropped a big hint to Mineweb in August about why it was putting a damper on Yukon drilling this year; apart from conserving cash on tempestuous markets, it was "keeping its options open" and looking at acquisitions.

Now we know there was, in fact, another iron in the fire months previous: An area play in the Dominican Republic. It goes like this. Back in late May GoldQuest Mining, operating in the western Dominican Republic, released results on a monster gold-copper drillhole. It marked an important discovery for GoldQuest, which has since pulled out several more impressive drillholes as it expands what is now known as the Romero zone.

20120903-Precipitatemap
Map courtesy of Precipitate Gold (PRG). 

GoldQuest kicked Romero off with 231 metres @ 2.42 g/t gold and 0.44 percent copper starting 33 metres downhole. Since then it drilled better, both in gold and copper mineralization, with an aim to sketch out the potential of a 500 by 300 metre target it defined by geophysics. For the visually inclined, GoldQuest lays out the latest Romero drillholes here; they include as much as 235 metres @ 7.88 g/t Au (uncut) and 1.43 percent Cu. Crucially, the post-discovery drillholes show that the maiden hit was no solo marvel, with notable drillholes in a 100 by 150 metre area, so far, in flat-lying volcanics of the Tireo formation.

Precipitate is running after that drilling success. It said last week it had applied for (and expects to get) concessions covering 15,000 hectares southeast and adjacent to GoldQuest in the Tireo gold belt that runs through Haiti and Dominican Republic. Precipitate moved on the concessions "immediately after" the monster GoldQuest drillhole came out in May, a Precipitate spokesman told Mineweb. To fund exploration there, it seems probable Precipitate will try to raise some more cash, beyond the C$2 million it has banked, in another round of financing.

This is not a random move by a junior suffering attention deficit disorder or succumbing to the whims of management looking, in the first at least, to work on their tans during the frigid Yukon winter. That GoldQuest would go after Dominican Republican ground may not be that surprising. Eric Coffin, who has touted GoldQuest as promising, also has friendly ties with GoldQuest director Bill Fischer, a Precipitate spokersperson said.

But here's an important question: Why didn't GoldQuest just go and sow up title to prospective Tireo ground following its Romero discovery in May, or earlier for that matter? Why let a competitor into the Tireo belt to the southeast? As it turns out, it might have wanted to but Dominican Republic rules wouldn't allow it. In the Dominican Republic companies are limited to holding 30,000 hectares in mineral concessions. Quite simply GoldQuest is maxed out on holdings and couldn't pick up extra ground, a fact its president and CEO Julio Espaillat brought up in answer to an emailed question about the prospectivity of the Tireo gold belt. The point being, in some area plays juniors can only pick up scraps - land first movers don't want. But in this case, the ground does not appear to be stinking leftovers, geologically speaking at least, though much remains to be seen in terms of exploration.

As GoldQuest's Espaillat said, "In terms of the prospectivity of the areas nearby or within the Tireo Formation, I think they all have some merits, but need to be very well investigated before defining their potential."

Source:  Please visit MineWeb at the link below for more…
http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=158042&sn=Detail

View the latest Precipitate Gold (PRG) corporate presentation at the link below:

http://www.precipitategold.com/i/PDF/ppt/Corporate-Presentation-August-23-2012.pdf 

View the latest GoldQuest (GQC) corporate presentation at the link below:

http://www.goldquestcorp.com/images/pdf/presentation/GQC_Presentation_Aug_2012_1.pdf  

Thanks to Vulture S.G. for bringing this story to our attention. 

Disclosure:  Precipitate Gold is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team may hold long positions in PRG.V. The editor of GGR participated in a private placement for Precipitate Gold and holds a long position at the time of publication. 

Disclosure:  GoldQuest Mining Corp. is a Vulture Bargain Candidate of Interest (VBCI).  Members of the GGR team may hold long positions in GQC.V.  


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