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Monday, August 28, 2017 Derek Macpherson

GQC Expects Delays Converting Romero to an Exploitation Concession


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Along with releasing Q2 financial results GoldQuest Mining Corp. (TSXV:GQC) provided context on the recent update from the Ministry of Energy and Mines in the Dominican Republic regarding the granting of exploitation and exploration permits in the country. The Ministry has announced that no new exploitation concessions will be granted over the next 90 days and that no new requests for exploration concessions will be accepted over the next six months. While GoldQuest has no immediate need or plans to apply for new exploration concessions, it is in the process of converting its Romero concession from exploration to exploitation. In our view, this delay is unlikely to impact the final outcome of this conversion; however, the market may view this as increased uncertainty which may negatively impact GoldQuest's share price over the short term. We highlight that this does not impact the company’s recent Cachimbo discovery (on an exploration concession) and with a reported cash balance of C$25.7 million the company is well funded to advance this discovery. GoldQuest currently trades approximately in line with peers at $30/oz (peers $29/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 future catalysts for the stock.


 
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
 
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GoldQuest Mining Corp. - TSXV:GQC - 1, 2, 4

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