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Junior Miner Announces Assay Results From Newly Discovered Deposit, Stock Hits 52 Week High
By: AllPennyStocks.com News
September 23, 2009
The resource sector, which has traditionally been a strength for Canadian small-cap companies, is the focus of this piece, and one Toronto-based company that ventured into a new property and came up with a far greater variety of minerals than it bargained for.
Quest Uranium Corporation (TSX-Venture:QUC) announced in late September, some astounding new finds from the drilling project at its Strange Lake property in Quebec. What the company found were rare earth elements (REE) in the property’s B-Zone, over strike widths of 400 metres and minimum strike lengths of one kilometer; among them, high rare earth elements+yttrium (REE+Y) grade intersections of between 1.11 % and 3.47% over thicknesses of one and 14 metres. Heavy REE (HREE) represents between 33% and 60% of the Total REE (TREO) content intersected in drilling.
The variety of materials in the strike is, well, striking! Strong values of zirconium, niobium, hafnium and beryllium are also characteristic of the zone. The company adds mineralization is open to resource expansion in all directions. Zirconium is used as an alloying agent due to its high resistance to corrosion. Niobium is also used primarily in alloys, the largest part in special steel such as that used in gas pipelines. Hafnium is used in filaments, electrodes, and some semiconductor fabrication processes for integrated circuits. Large neutron capture cross-section makes hafnium a good material for neutron absorption in control rods in nuclear power plants. Lastly, beryllium is used in alloys, notably beryllium copper.
The find on Strange Lake’s B-Zone signifies that Quest is on something of a roll. An earlier find on the property’s Main Zone, announced in August, showed that a program of 30 drill holes for 1,800 metres was completed for this portion of the program. Quest drilling has confirmed the historical thicknesses of mineralization from previous work and has confirmed that the zone dips at a shallow angle northward onto Quest's 100%-owned Quebec claims. Here, too, the mineralization is open to further resource expansion towards the northeast corner of the strike.
QUC is moving on other high-potential projects besides Strange Lake; namely, near Kenora in northwestern Ontario and the Plaster Rock area of northwestern New Brunswick, and claims to be setting its gaze on other possible projects throughout North America.
The night before the announcement was made about Strange Lake, QUC’s stock price had hit a 52-week high of $2.97. The release of the find on September 23 sent the price higher still, around $3.25 at the time of writing this piece. While still a bargain, the price is head, shoulders, chest and waist better than the dungeon of 3.5 cents to which QUC fell last February. The news of this varied find in Quebec puts a special urgency on small cap investors to examine the strengths of this company as it continues its bullish run-up that began in July.
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