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QIS Update #2 2014 - January 17th 2014

Included in this update:

  • Manado Gold receives assay results from 5-hole drill program at Takla-Rainbow
  • Virtutone Networks announces initial closing of brokered private placement
  • The second tranche of the Virtutone financing at $0.30 will close soon – please contact us today if interested



Please feel free to email us anytime at or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.



Manado Gold Corp. (MDO:TSX-V)
Current Price: $0.06 (coverage commenced Dec. 6/13 - $0.065)


Manado Gold Corp. has announced that it has received the assay results for its five-hole confirmation diamond drilling program on the Takla-Rainbow Property. In November 2013, a total of 605.8 metres of NQ-core size diamond drilling was completed on four 50-metre spaced sections to confirm the known gold-bearing mineralization within the West Zone on the Takla-Rainbow Property.


The six claims comprising the 4,545-hectare Takla-Rainbow Property are located in north-central British Columbia, approximately 152 kilometres north-northwest of Fort St. James. Manado has an option to acquire a 100% interest in the Takla Property by making aggregate cash payments of $150,000, issuing an aggregate of 600,000 common shares and incurring $250,000 exploration expenditures over four years. (See Manado’s November 25, 2013 news release on SEDAR for a brief description of the exploration history and geology of the Takla-Rainbow Property.)

The assay results for significant mineralized intercepts within the five diamond drill holes have been summarized in the following table.

Results Table

Drill holes TR13-87 and -88 were collared to test the central and southeastern extension of the West Zone respectively. Both drill holes intersected several mineralized zones with strong to intense quartz flooding and pyrite mineralization with associated trace to significant precious and base metal mineralization.

Of particular interest is the intersection of 24.52 metres of sulphide mineralization at the bottom of TR13-88 which returned a weighted average grade of 2.011 gpt gold and 2.0 gpt silver. This drill hole had to be terminated in the mineralized zone prior to its planned length due to weather and logistical considerations. This drill hole intersected quite shallow mineralization between the known West and East Zones, an area of little historic drilling. Future drilling will be required to test the lateral and vertical continuity of the mineralization.

Drill holes TR13-84 (-90o) and TR13-85 (-45o) were drilled from the same site to confirm significant gold mineralization intersected by two historic drill holes (DDH-013 and -039) along the same vertical cross-section. Low grade gold- and silver-bearing sulphide mineralization was intersected by these holes but not of the same tenor as the historic drill holes. It is suspected that local faulting between the historic and recent drill holes has displaced the higher grade mineralization.

Drill hole TR13-86 was collared to test for the northwestern extension of the West Zone. This drill hole intersected several 8 to 10 metre intervals with interesting, low grade gold and silver-bearing sulphide mineralization. Further drilling with be required to better define this mineralization both along strike and to depth.

The 310 diamond drill core samples, including quality control samples, were all subject to strict quality assurance/quality control protocols including systematic insertion of certified standard reference and blank materials into each sample batch plus field duplicate sampling. Samples were securely transported to Acme Laboratories in Smithers, B.C. where all of the samples were prepared. Acme Laboratories, a member of the Bureau Veritas Group Company, is ISO 9001 and 17025 accredited. After the samples were prepared, the split sample pulps were direct shipped to Acme Laboratories in Vancouver for gold assaying (FA/AA) and multi-element ICP analyses.

Doug Blanchflower, P. Geo, is a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects and is responsible for the work program on the Takla-Rainbow Property. Mr. Blanchflower has reviewed and approved the technical information in this news release.


QIS Capital: Be sure to visit Manado’s recently updated website at There is an informative 2 minute video on the homepage highlighting the Takla-Rainbow gold property.


Virtutone Networks Inc. (VFX:TSX-V)
Current Price: $0.46 (coverage commenced Sep. 9/11 - $0.10)


Virtutone Networks Inc. has announced that it has closed the first tranche of its previously announced brokered private placement. First Republic Capital Corporation has acted as agent with respect to the Private Placement. In this first tranche, Virtutone has issued an aggregate of 8,523,632 units of the company to exempt buyers through First Republic at a price of $0.30 per Unit for approximate aggregate proceeds of $2,557,089.60.

Each Unit is comprised of: (i) one common share of the Corporation; and (ii) one half of one common share purchase warrant of the Corporation. Each whole Warrant will entitle to holder to purchase one Common Share at an exercise price of $0.40 for a period of two years from the date of the date of issuance. If, during the period commencing on the date that is four months and one day following the date of issuance and ending on the Warrant Expiry Date, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds $0.40 for each day for a period of 20 consecutive trading days, then the Corporation may, from time to time, give the holders of the Warrants written notice (the Accelerated Expiry Date Notice) of such occurrence within 30 days of such occurrence, in which case the Warrants will expire at 4:00 p.m. (Calgary time) on the 30th day following the giving of the Accelerated Expiry Date Notice.

The Corporation has paid First Republic and certain other sub-agents a cash commission of $204,567.17, representing 8% of the gross proceeds of the first tranche of the Private Placement and has issued to First Republic and certain other sub-agents 681,891 broker warrants, representing 8% of the number of Units sold in the first tranche of the Private Placement. Each whole Broker Warrant will entitle to holder to purchase one unit (Broker Unit) of the Corporation at an exercise price of $0.30 for a period of two years from the date of issuance, subject to the Accelerated Expiry. Each Broker Unit shall be comprised of: (i) one Common Share; and (ii) one half of one Warrant (Underlying Broker Warrant) of the Corporation. The Underlying Broker Warrants shall be subject to the same terms and conditions as the Warrants.

All securities issued in this first tranche of the Private Placement are subject to a four-month hold period under applicable securities laws, which hold period expires on May 17, 2014.

The proceeds from this first tranche of the Private Placement will be used for general working capital and corporate purposes.

The final tranche of the Private Placement is expected to close prior to January 31, 2014.

QIS Capital: For those interested in participating in the second tranche of this Virtutone financing, please contact us as soon as possible at or (250) 377-1182. Demand has been strong for this placement and the second tranche is expected to close early next week. Investors must meet accredited investor exemptions. QIS Capital will receive a commission from proceeds raised.


Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 115,000 shares of Manado Cold Corp. and 432,000 shares and 125,000 warrants of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2014 QIS Capital Corporation.

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