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GoldQuest Mining (GQC, TSX-V) enjoyed another powerful day today, climbing above $1 a share for a brief period and closing up 9 cents at 96 cents on total volume (all exchanges) of 3.2 million shares. GoldQuest was on our “sleeper” list earlier this year and we’ve been following it closely since the news of the company’s Romero discovery in late May.  In early June, BMR was granted the first interview with GoldQuest Chairman Bill Fisher.

As we pointed out in last Thursday’s article (GoldQuest News Encouraging), posted within an hour after the company released a drilling update, the early interpretation is that the system at Romero is flat which greatly enhances tonnage possibilities.  But it’s still early in the game and while GoldQuest is probably more comfortable at the moment with the potential geometry of Romero, assay results for the first two step-out holes, 25 metres to the west and 25 metres to the east of discovery hole LTP-90, are still pending.

Step-out holes LTP-92 and LTP-93 bottomed at 399 metres and 433 metres, respectively, and were terminated only for technical reasons (a second portable rig has arrived at Romero and a third rig for deeper drilling is on the way). Romero certainly appears to have some depth to it.  How far this deposit extends laterally and the average grade of it will of course determine the significance of this discovery and whether or not GoldQuest can race to a new all-time high.

Until we learn more information, it’s best to stick with John’s chart in terms of the potential share price range for the immediate future.  It’s reasonable to expect some additional speculation to come into the stock in advance of the next assay results, so John’s Fibonacci level seems very reasonable.  Strong support exists at 85 cents.

GoldQuest has clearly demonstrated that even in a shaky market, huge potential gains exist with just one drill hole.  GQC became a 10-bagger on LTP-90.

Today, little-known Reservoir Minerals (RMC, TSX-V) jumped 75% to $1.14 on news of a 266-metre intercept (598 m to 864 m depth) grading 1.23% CuEq at a project in eastern Serbia (Freeport is earning an interest).  RMC has a tight share structure and should be watched closely.

And in southeast British Columbia, Rainbow Resources (RBW, TSX-V) – also with a favorable share structure and a market cap of only $6 million – is gearing up for a drill program at its flagship International Silver Property.  Our site visit to the International a few weeks ago re-confirmed our view that Rainbow is on track for a near-surface discovery at the International where sampling has produced some eye-popping Silver numbers.  They’ll be drilling directly into an exposed structure that includes fine-grained massive galena.  On Wednesday, we’ll explore that a little more as we post Part 2 of our interview with President David W. Johnston.

Rainbow’s current market cap gives it major upside potential over the short-term with a drill rig expected to be mobilized immediately following receipt of the International drill permit which Rainbow is anticipating any day now.

Note: Both John and Jon hold share positions in RBW with Jon adding to his position over the last week (Jon also holds a share position in GQC).