The Grandich Letter
Market, Economic, Social, Political and Life Commentary by Peter Grandich

I’m going to answer all the emails and calls about SQI-TSX-V -in one post.

First and foremost, I remind you of what I’ve said for years about junior resource stocks – you must be mentally and financially prepared to lose part or all of your capital. Failure is the norm in this business. Don’t try and kid yourself that these two statements are anything but the true reality.

Having said that, let me also remind you of two other important factors before I comment further on SQI:

1 – SQI is a client of Grandich Publications and my comments are highly biased

2- The bias is compounded by the fact as of this writing, I own 2.6 million shares of SQI. The fact that that can influence my comments and could change overnight must be taken into consideration.

Okay, with that, here’s my comment on SQI as of right now:

CEO Randy Turner, a highly seasoned veteran who has brought a brass ring to a previous company where upon most in this business never do, has skillfully positioned SQI to grab the brass ring in 2010. While the board  and day – to – day management was key, Randy’s assuming command last year is the single biggest factor that got us to where we are today. If ever a company needs key man life insurance, this one does!

Most juniors are a one or two act. Randy and company now have multiple projects, any and all can be a company makers. All of the projects are in very friendly areas and while most are seasonal, what’s left of the junior resource audience is already focused in these areas.

Yesterday’s news on Capoose goes much “deeper” than the drill results. An already  million plus gold equivalent resource now appears it may be just the tip of a far bigger VMS deposit. A whack of drill results are due out for several weeks and months on this project alone and we’re very optimistic about what they can add to the already significant deposit. Much of these results are due from areas that have not even been drilled.

The Capoose is in an area of British Columbia where I and others anticipate majors becoming bigger players. I think Capoose is going to be on their radar if it isn’t already. The average person is not going to grasp the overall meaning of yesterday’s results but I fully suspect many in the industry already have.

Today, joint-venture partner Richfield Ventures (RVC-TSX-V) announced it has fully optioned its 75% interest in the Davidson property. $500,000+ in cash and stock comes to SQI and the project remains very open.RVC’s share price has gone from pennies to well over a dollar, much on the back of drill results from this project. RVC continues to announce good results from this area.

I’ve spoken about an old-fashion area play in the Yukon for several months. While most have concentrated on a couple of players in the area (One of them, Kaminak Gold, has had some pretty good initial results and has grabbed the headlines for now), I’m here to tell you I believe SQI is going to become a household name in this play. First, they have quietly accumulated what I believe will be the single largest land package in this play. They noted their accumulation in a past release that most didn’t cop onto. As this play blossoms, the realization of this land position should bring SQI to the tip of most Yukon playing tongues. SQI has been drilling and sampling away and here too we should see news flow for weeks and months to come. My favorite SQI holding in this area is Prospector Mountain and it’s expected to be drilled in September.

The junior game is all about news flow and the potential sizzle generated from that. I can tell you news from SQI is going to come fast and furious for many weeks ahead. With assets I believe are already worth more than the current market cap, and a wealth of drilling on several fronts, I believe SQI is going to become one of the most talked about juniors on the circuit.

I suggest you do some serious due diligence ASAP!