The ground SGQ are acquiring has been drilled like Swiss cheese over the last 50 years. What exists there is well known, and I'm sure SGQ will drill into the best known mineralised areas first and announce it as if it's a surprise.
The other company you refer to was drilling into virgin untested ground, and made a massive new discovery of high grade low impurity Niobium.
Make sure you ask management to include the readings of Thorium and Uranium when they announce results..
However if the big holders are smart, I expect them to vote down this purchase as all it will be is years of concentrating on drilling and test work if what's in this new project, but never the funding to make it happen. SG a junior explorer with a bloated share registry will have to raise many hundreds of millions of dollars to actually mine the REE's of the Araxa project.
Remember the PEA from Itafos showed 88% of revenue came from REE, so realistically it's a REE project with a bit of Niobium as a byproduct at best. It's a total change from being an exploration company...
SGQ Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
