LEX CORP NEWS LETTER

http://www.silverquest.ca/s/Home.asp

I first came across this stock on Agoracom.com.  Silver Quest Resources is a client of Peter Grandich and he covers this stock on his blog.  You can read his coverage on SQI at the following link: http://grandich.agoracom.com/category/grandich-companies/silver-quest-resources/page/2/

I have followed Mr. Grandich's picks for many years and when he recommends a company I usually take a position in the stock only after I do my own due diligence.  Mr. Grandich has also posted on his blog that he own aprox. 2 million shares of SQI.  At todays price of .50cent, that is a $1,000,000 investment.  This is not pocket change folks.  Now,..I wouldn't go ahead and sell your house and drop it all on SQI.  Try to remember this is a penny stock and you may lose all or most of your money when you gamble with these junior exploration stocks. 

The company has some very interesting projects and partners.  Richfield Ventures-RVC who I believe is take over target is currently working with SQI on their Black Water Gold Project.  Richfield Ventures-RVC can earn a 75% interest when it's all said and done.  The word is that if Richfield Ventures comes up with a 4mil.oz+ gold deposit at Black Water Gold Project, SQI will have a 25% interest which equals aprox. 1mil. oz of gold. 

They also have their Capoose Project which already has a 43-101 resource of 1.3mil.oz which SQI has a 60% but may purchase the remain 40% from Bearclaw Capital. see details below-

So we are still in the early stages and I believe that SQI still has alot of upside.  The ounces are growing and the stock will have a revaluation.  Their are at least 2 analyst who are already putting a $1.00 target price on SQI.  

About the Capoose Project

The Capoose property has been actively explored and drilled since the 1970s. Silver Quest completed 24 drill holes (3,212 m) in 2008 and 2009. The property has also received extensive soil geochemistry and various geophysical surveys. The Capoose deposit contains epigenetic mineralization associated with intrusive rhyolite sills and dykes of Cretaceous age. These rhyolites intruded volcanic tuffs, breccias, flows and argillite. Intrusive rhyolite units are consistently mineralized over significant widths with locally mineralized volcanic and sedimentary wallrocks. Mineralization is associated with disseminated sulphide-garnet clots and sulphide veinlets along irregular fractures. Sphalerite, galena, pyrite, chalcopyrite, pyrrhotite, arsenopyrite and tetrahedrite are the most common sulphide minerals at Capoose.

Effective October 22, 2009, Silver Quest earned a 60% interest in the mineral claim which contains the Capoose deposit. The remaining 40% interest is held by Bearclaw Capital Corp. ("Bearclaw"), which has also retained a 2.25% Net Smelter Royalty ("NSR"). Silver Quest may purchase Bearclaw's 40% interest in the project at any time until October 22, 2011 by paying Bearclaw a sum equal to $2,500,000 plus the amount of the contributions (if any) that Bearclaw may elect to make towards expenditures incurred on the project after October 22, 2009. Silver Quest has the right to elect to pay up to 50% of the $2,500,000 in Silver Quest shares based on the 30 day volume weighted average price of such shares for the 30 trading days immediately prior to such election. In addition, Silver Quest has the right exercisable at any time to reduce Bearclaw's 2.25% NSR to a 1.25% NSR by paying Bearclaw $1,500,000.

As a result of recent staking of 15,754 hectares of mineral claims and the optioning of additional mineral claims, all of which form a contiguous block, the property currently consists of 70 claims totalling more than 30,000 hectares.

March 22nd 2010 - Carpathian Gold is an up and coming gold producer.  Their RDM Project in Brazil should be in production sometime late 2011.  As you can see below in the Preliminary Economic Assessment. CPN will be producing 102,050oz /yr at a cash cost of $428oz for a mine life of 7.11yrs.  As I write this the stock is having a small pull back and is trading around .39cents.  Their other project-Rovina Valley Project located in Romania has which already has resource of 11mil.oz in three clusters and they believe that they have found a fourth cluster on their property.  By seeing what the company has going and what they have in the ground, this stock shouldn't be trading at .39cents.  Back in May 2007 the stock did reach $1.87.  From then to now, I believe the company is in much better shape.  In the most recent GMF-Global Mining Finance Magazine, there is 2 articles that I found very positive.  Dino Titaro-CEO mentioned that "the companys goal for 2010 is to convert its exploration license into a mining license, and this will come with publication of preliminary economic report, which he believes will be extremely positive."  The Ceo has mentioned many times that they have an excellent relationship with the Romanian Government.  I believe the market isn't giving any value to their Rovina Valley Project mainly due because the market believes this asset won't get developed.  Most of you might remember this or not, but Romania was home to one of Europe's worst mining related ecological diasters. A disastrous cyanide spill at Baia Mare-http://news.bbc.co.uk/2/hi/europe/1146979.stm 

This accident affected alot of mining companies in the area. It especially affected Gabriel Resources-Rosia Montana Gold Project-which could potentially be Europe's biggest gold mine.  European Goldfields also has a project in Romania.  Due to this accident alot of mining projects have been halted but, I believe things are now changing in Romania.  The Romanian Government has to start creating jobs and these mines-when in production will provide a huge amount of revenue for the country.  In the mean time Carpathian Gold will be busy getting their RDM Project into production.  Alot of info. I got was taken from the GMF Magazine and from the company website.

I am giving Carpathian Gold a $1.00 Target 12mths. 

http://www.carpathiangold.com/site06/nbspnbspHome/tabid/36/Default.aspx

http://www.globalminingfinance.com/documents/gmf-2010.pdf

RDM-Riacho Dos Machados Project -Preliminary Economic Assessment

I bought Anatolia Minerals-ANO last week and have been watching this one around $3.80.  I believe this stock is under the radar. They are an up and coming low cash cost gold producer who's project-Copler is in Turkey. This company could be a nice fit for Eldorado Gold and Alamos Gold who also has projects in Turkey. As of Dec.31st 2009 they had $83mil. in the bank. They currently have enought money to bring them into full production.  As ANO gets closer to production we should see an increase in the share price.  I believe in 12mths we can see $10.  As long as gold stays above $1000oz., I believe that price target is realistic.  ANO is a take over target. 

http://www.anatoliaminerals.com/

Anatolia Minerals is an emerging gold producer and leading minerals explorer in Turkey. The Company discovered and is developing the Çöpler Gold Project in eastern central Turkey. Çöpler hosts gold reserves and resources in excess of 6 million ounces and remains open. Çöpler is fully permitted, funded and under construction. First production is expected for fourth quarter 2010. Initial plans are to produce approximately 1.3 million ounces of gold at a cash cost of about $260 per ounce. Additional production expansion of the oxide and sulfide gold resource is expected at Çöpler by taking advantage of the inherent large resource through on-going technical activities and additional drilling. In addition, Anatolia holds a significant pipeline of prospective gold and base metal projects.

Corporate Presentation: http://www.anatoliaminerals.com/anatoliauploads/March%202010%20PDAC%20Presentation%20FINAL.pdf

If you want to compare one current gold producer to Anatolia Minerals it would be Alamos Gold. They both have similiar cash cost, outstanding shares and production.  Alamos Gold is trading at $14.45 today. When production starts at Anatolia Minerals expect the market to pay attention. I am sure ANO is on the radar of many gold producers.  Alamos Gold already stated they are looking for acquisitions. The CEO of Alamos Gold was on BNN today: http://watch.bnn.ca/#clip277148