RCKS Talk: Northern Vertex and GoldQuest Mining

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RCKS Talk commented on Northern Vertex Mining (TSXV:NEE) and GoldQuest Mining Corp. (TSXV:GQC).

As quoted in the email sent to subscribers:

Northern Vertex Mining Corp’s (TSXV:NEE) updated water report concludes that existing groundwater resources on the patented claims are sufficient to support expected mining operations at its Moss gold-silver mine in Arizona. The updated report estimates current groundwater resources to yield between 180 and 240 gpm, with an additional 120 to 160 gpm by way of pit dewatering from mining operations. Water demand at Moss will range between 170 gpm (winter) and 240 gpm (peak months, June and July), an average of 210 gpm, falling within the estimated capacity. Subsequently, a water distribution system is being designed to connect the groundwater wells. While identifying sufficient water for planned operations is critical; we believe this was already priced into Northern Vertex’s share price. Northern Vertex trades at C$103/oz a premium to peers (C$55/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs.

GoldQuest Mining Corp. (TSXV:GQC) has appointed Georges Boissé former Canadian Ambassador to the Dominican Republic (2012) as Special Advisor to the company and Robert Crowley former US Agency for International Development/US Department of Agriculture liaison as Corporate and Social Responsibility (CSR) Manager. We view the new additions to the management team positively as it supports the development of Romero, as the company continues to advance the project and moves through the permitting process. GoldQuest currently trades at 0.44x NAV and $37/oz versus peers at 0.54x NAV and $35/oz. We continue to believe that the current valuation does not fully reflect the exploration potential of GoldQuest’s wider land package. We expect continued exploration drilling, along with follow-up drilling at Cachimbo are likely to be positive catalysts for the stock

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