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!

Silver Quest announced some much anticipated drill results this afternoon, that have lived up to expectations.  These are the first of many drill results from the growing Capoose Project. This season Silver Quest has completed 26 drill holes for a total of 7,400 metres of drill core or approximately 3,700 samples that have all been shipped to the assay lab for analysis.

A new feature in this year’s core is the appearance of massive sulphide stringers up to 25 centimetres wide.  This is a very interesting added feature. These types of features are generally associated with VMS (volcanogenic massive sulphide) deposits which usually contain elevated levels of copper, lead, zinc, silver and gold.  VMS deposits typically occur as lenses of polymetallic massive sulphides that form at or near the seafloor. Metals contained in VMS deposits are typically high grade, high value and low tonnage.  Some of the world’s largest VMS deposits include the Flin Flon Belt, Kidd Creek and Noranda.

For Silver Quest, the appearance of massive sulphide stringers means a new deposit type to consider with the remainder of the exploration program.  It also means that we should be watching for significant base metals results, which will be added to the resource as credits when Silver Quest calculates a new and improved resource estimate.

The two drill holes released today extend the mineralized zone by 100 metres to the southeast.  The first drill hole D-10-113 was very similar to hole D-09-100 drill in 2009 which contained 30 metres of 1.99 g/t gold and 23.93 g/t silver.  D-09-100 is the south-eastern-most hole in the defined inferred resource of 1.32 million ounces of gold equivalent at Capoose.  D-10-113 was drilled 50 m to the south of D-09-100 and intersected its own 30 metre interval of significant gold and silver mineralization grading 1.89 g/t gold and 12.51 g/t silver.  D-10-115 was drilled another 50 m south and interested zones of significant gold and silver mineralization as well as zones of significant zinc mineralization, due to the massive sulphide strings.

With results this good, and plenty more to come from Capoose as well as the Yukon Properties (My favorite Yukon project, Prospector Mountain, hasn’t even been drilled yet), it appears gold going to a new high by years-end is what’s going to decide whether or not I have to wear (oh my God, did I actually offer to do this?) a Vancouver Canucks jersey for a day at the Vancouver Gold Show in January.

In a business where failure is the norm, it’s very rewarding to see one of our company’s grab the brass ring.

Read Press Release

Alderon Mining – See recent comments

Anooraq Resources – Management is very keen they can have a very good second quarter. Not many emerging PGMs producers to play so I think ANO can become an institutional favorite.

Crescent Resources – Awaiting word on company’s plans going forward.

Crocodile Gold – See recent comments

Crosshair Exploration – Doing all it can to more than survive. Key remains the lifting of the uranium moratorium in Labrador.

Donner Metals – So close to production decision you can taste it.

Evolving Gold – See this

Farallon Mining – Doing all the right things in a tough market.

Formation Metals – Like a Timex watch it takes a licking but keeps on ticking.

Garibaldi Resources – Nothing to write home about yet but company continues to explore.

Heatherdale Resources – What I would give for another holding of mine to op so I could get more HTR down here. Management continues to make significant insider purchases.

Northern Dynasty Minerals – Someone told me they’re fed up with me constantly noting it’s the biggest undeveloped copper-gold project in the world today and the stock appears so cheap. I answered by saying, “honey, cut me some slack.”

Oromin Explorations – This is a classic drill for ore, not investor’s type company. Yes, it can be frustrating but in the end the results from the drill bit versus the promotion bit separates the winners from the losers.

Rodinia Minerals – See recent comments

Silver Quest Resources – Again I want to note a key word from the most recent press release – staking. Stay tuned on the Yukon Gold Rush and SQI in particular.

Spanish Mountain Gold – The stock has begun to show some sense given how advanced-stage this developing multi-million ounce potential future producer is up the ladder.

Strathmore Minerals – While the uranium market gropes for a major bottom, STM is full speed ahead on its growth plan.

Sunridge Gold – Management says it’s having pretty good success on attracting institutional interest as the cloud hanging over Eretria seems to be lifting.

Taseko Mines – No one seems to be complaining anymore about the company’s success of hedging at the right time – again. The last hurdle appears to be the Federal approval to go ahead with the Prosperity Mine. With that in hand, it would not surprise me to see the share price become double-digit in the next 12-18 months.

Timmins Gold – Listen to recent comment

Alderon Resources – Hope to have a report out soon.

Anooraq Resources – A new management team has done wonders in turning the company around and appears poised to become a leading PGMs producer. Looking for a much improved 2^nd quarter.

Crescent Resources – The address play has failed to materialize. I’m to have a discussion with management in the near term to get a feel for their plans and will report back afterwards.

Crocodile Gold Corp – Hindsight is 20-20 but raising 2010 production estimates only to lower them back to the original target a few months later seems to have created unnecessary disappointment. All other matters outside of potential tax issues are doing quite well. See recent BNN interview

Crosshair Explorations – Continues to have good drill results but all eyes appear to be on when the Labrador moratorium will come to an end.

Donner Metals – All eyes waiting on feasibility study due out in weeks.

Evolving Gold – Compelling speculative buy at these levels. Two potential world class projects, one has drill results due out in next month and the other begins an aggressive drill program shortly. Looking for further changes in management structure.

Farallon Mining – In my biased eyes, it’s been overly done on the downside given the improving exploration and production success the company continues to enjoy.

Formation Metals – Never have questioned management’s hard work but at the end of the day the share price is what most people look at to judge success or not. Great project that took a very long time to get going but if one has waited this long, another reasonable period appears warranted.

Garibaldi Resources – No new news to comment on and like others, I await word.

Heatherdale Resources – Trying to bottom under a buck while we await next set of drill results. I believe we’re only in the 2^nd inning of at least a nine inning game.

Northern Dynasty Minerals – I don’t know if Donner Metals or NDM is truly the “Rodney Dangerfield” (Can’t get no respect) of my list. World’s biggest undeveloped copper-gold project and can’t even hold a double-digit share price. Cheap, cheap, cheap, but I know people are tired of hearing me say that for years now and no one more than my friends and family – but it’s true, no matter how diluted those words have become.

Oromin Explorations – No new news but has held up quite well in the sell-off. I wait just like others for news from management.

Rodinia Minerals – Drill results are due out soon and corporate-wise things are quite well. Rare metal plays have been shaken to the bone; but with my biases known, I believe RM is more than a survivor.

Silver Quest Resources – I was eyeing my daughter’s piggy bank earlier today when thinking how I could find new funds to buy SQI at this level. All we’ve waited for is now going to begin very shortly and I remain very optimistic. Our gold resource equivalent value is much more than our market cap in my biased but humble opinion.

Spanish Mountain Gold – was finally getting some well deserved traction when the sell-off hit. Development stage companies usually lag, but let’s not lose sight of the millions of ounces here and the excellent chances of them going into production.

Strathmore Minerals – It too was gaining ground when the tidal wave of general equity selling hit. I continue to believe it’s among the best uranium plays worldwide.

Sunridge Gold – Some very significant buying of late and with the worst appearing behind us country-wise, the worst appears behind us – period

Taseko Mines – Given what has taken place corporate wise, the share price is more undervalued at today’s price than when we first put it in the model portfolio (before becoming a client). Screaming buy providing world is indeed not ending at 11.

Timmins Gold – My biggest fear (if you can call it a fear) is the company gets a takeover bid before it can really get to its true value.