V.GQ.....
from another board
David Prescod-- Cannacord
Prescod features GQ today.
David Pescod 780-408-1750 Debbie Lewis 780-408-1748 Fax: 780-408-1501
GREAT QUEST METALS (V-GQ)
.47 +0.01
GREAT QUEST METALS (V-GQ)
.47 +0.01
AMAZON MINING (V-AMZ) $1.96 -0.13
We first met Jed Richardson as we toured some of the
holdings of Amazon down in Brazil and we suspect that that
fertilizer story is going to be attracting a lot of interest
down the road when they get results form their scoping
study and further tests on just how effective their fertilizer
is. After all, in Brazil if you take a trip down there the first
thing you realize in the booming agriculture business, they
are not happy about having to import 90%-93% of their fertilizer.
They want a local source.
Anyways, back to Richardson, the former Sprott mining
analyst who is Vice President with Amazon and has seen
another story that looked so good he had to join. The
company is Great Quest and Richardson tells us the Cole’s
notes version of the company. Why he likes it?
“I have learned a lot in my time at Amazon, not least of
which is an appreciation for generally agriculture investments
and specifically fertilizers, where mining my specialty
and agriculture meet. Great Quest caught my attention
at first because of the similarities to Amazon. A microcap
company, with a tidy share structure, strong connections
in country (Mali, West Africa), a healthy gold portfolio
and a big fertilizer opportunity. My interest was first as a
shareholder and as I began to get to know management
things quickly developed culminating in the announcement
of my board position last week. Great Quest is in much the
same position Amazon was in this time last year, the hope
is I can help guide the company to greener pastures with
the experience I have gained.”
The Company has potentially a large phosphate resource
and located in Mali, like Brazil Mali has potentially
great demand for fertilizer, but lacks the infrastructure and
sophisticated market we enjoy in Brazil.
He points out that recently in this business; it is a good
area to be in as Vale and Mosaic have recently paid billions
of dollars for phosphate projects.
As for their Tin Hina project it contains very high quality
rock, running 26%P205…so rich that it can actually be directly
shipped and is found very effective.
A key person in the company, is Mamadou Keita a geologist
and board member who headed up the National
Geological Survey and is well connected to the people that
count in Mali.
One concern with all overseas investment is political
risk, as an analyst having nationals in position of power
in a company proved to be an effective strategy mitigating
that risk. That said, Mali is already home to a number
of international mining companies including Anglo
American, Iamgold, Randgold and a host of junior companies.
Richardson also mentioned that after the Avion gold
transaction the company is now in a good working capital
position. In January Great Quest closed a transaction
with Avion Gold (AVR:TSX) selling the Keneiba property
adjacent to AVR’s Segala operation, netting $850,000
cash and 7.6MM shares, valuing the sale approximately
$6.2MM. Yesterday, Great Quest added new claims in the
area of Keneiba that it believes show a continuation of
the mineralization.
In the coming weeks the company hopes to get permits
to begin drilling the phosphate project to see what
kind of a size it may have.
These again are Richardson’s words, but we are hoping
the ex-analyst is right as we now own a few!
AI
