lance sjogren

Why I'm Buying Queenston Mining

I got into Queenston in 2006 and have been in and out. Lots of gold, first rate management, solid cash position so long as they remain an explorer (going into production would require raising a substantial amount of cash, I think).

Their gold is in an established mining camp, a big plus. Electric power, roads, workforce, etc.

Their one weak point in my view is that some of their gold is pretty darn deep in the ground. Not sure how economic pulling out 5-6 gpt stuff is from a deep underground mine. I think the economics of their deposits is the main issue that has caused QMI stock not to be higher.

However, as the good gold deposits around the world get mined out, the next best deposits wind up being the prime candidates for production. I think QMI's are reasonably close to the top of the list as far as that goes.

Being in probably the most politically stable mining country is also a plus, although Canada no doubt has considerably higher labor costs than a place like Mexico.