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Re: News Release - Thursday, July 23, 2009
Silver Quest Acquires the Boulevard Property, Yukon
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Silver Quest Resources Ltd. (the "Company") is pleased to announce that
it has entered into an agreement with Rimfire Minerals Corporation and
Northgate Minerals Corporation (the "Vendors") to acquire a 100%
interest in the Boulevard property (the "Property") located in the
Whitehorse mining district, Yukon.
Pursuant to the Agreement, the Company can acquire a 100% interest in
the Property by making staged cash payments totaling $200,000 ($40,000
upon regulatory acceptance), the issuance of an aggregate of 1,000,000
shares (200,000 upon regulatory acceptance) and work commitments of
$3,000,000 ($200,000 in the first year) over a five year period. The
Vendors retain a 2% net smelter royalty ("NSR") on the property, with
the Company having the right to buyback 0.5% of the NSR for $750,000.
In addition, should the Company complete a National Instrument 43101
compliant resource estimate on the Property in excess of 1,000,000
ounces of gold in an indicated category, the Company will be required
to make a one-time bonus payment of an additional 1,000,000 shares of
its capital stock to the Vendors.
Under the terms of the Agreement, Silver Quest will also purchase from
the Vendors proprietary data pertaining to soil, silt and rock sampling
completed in areas around or near the Property. If the Company acquires
open ground by staking within these defined areas, it will be required
to issue additional common shares, up to a maximum of 500,000, and the
additional property, if any, will be further subject to a 2% NSR in
favor of the Vendors. The Company will be entitled to buyback 1% of the
NSR for $1,000,000.
The Boulevard property comprises 238 contiguous claims and was the site
of a significant new gold discovery by the Vendors in 2008. The
property is located approximately 135 kilometres south of Dawson City,
Yukon and approximately 35 kilometres due south of the newly discovered
Golden Saddle zone of Underworld Resources Inc. The initial Boulevard
area was selected from a much larger regional compilation and
reconnaissance silt sampling program by the Vendors that led to the
identification of anomalous gold and pathfinder elements in creeks.
Detailed soil sampling in 2007 outlined the multielement geochemical
anomaly that was the focus of a 2008 trenching program.
Gold mineralization was discovered in the first of three trenches
designed to investigate portions of the 2.0kilometreby0.4-kilometre
arsenicantimonygold soil geochemical anomaly in an area of sparse
outcrop. The discovery trench TRV0801, returned 7.04 grams per tonne
(g/t) gold over 6.0 metres. One hundred metres southeast, trench
TRBV0802 returned 6.43 g/t gold over 2.0 metres. A third trench located
200 metres northwest of trench TRBV0801 appears to have been located
off trend.
The Vendors subsequently completed an initial limited
Diamond drilling
program, comprising seven short holes (524.9 metres). Gold
mineralization was encountered in five of seven holes (totaling 524.9
metres), with hole BV0803 returning the best intersection of 0.9 g/t
gold over 18 metres, including 1.9 g/t gold over 3.5 metres,
approximately 45 metres down dip from trench TRV0801. Two holes tested
beneath a second mineralized trench (TRV0802), returned 0.8 g/t gold
over 4.2 metres and 0.5 g/t gold over 5.5 metres at approximately 20
and 30 metres down dip respectively. Two additional holes targeted
anomalous arsenic-gold-antimony geochemistry located 220 metres and
1,110 metres along trend from the discovery area. Drill hole BV0807
returned 1.0 g/t gold over 3.3 metres in a subtle style of
mineralization not observed in previous drill holes or trenches.
Gold mineralization is hosted in strongly sericite plus/minus
clayaltered schists with disseminated pyrite, arsenopyrite and
stibnite. Sulphide mineralization is finely disseminated in the wall
rock of quartz vein arrays or occurs as massive sulphide veins within
the arrays. Mineralizationhosting quartz vein arrays follow regional
northwesterly structures along major contacts between lithological
packages.
Silver Quest president, Robert Weicker indicates; "Through a change of
focus and a merger of companies, both Vendors' interests in the
Boulevard property, have become available to the Company, which
represent an exciting opportunity to expand on the 2008 gold discovery
in this emerging exploration area." To date, drilling and trenching
have focused on a relatively small portion of a large multielement
geochemical anomaly, resulting in the discovery of buried gold
mineralization, with numerous other targets to be trenched and drilled
tested.
The above scientific and technical information has previously been
reported by Rimfire Minerals Corp., and reviewed by their qualified
person Mark Baknes, MSc, PGeo, VP, exploration, a qualified person for
the purpose of National Instrument 43101. Robert Weicker, P. Geo., is
the qualified person as defined by National Instrument 43101 for Silver
Quest resources Ltd., and has verified and reviewed the inclusion of
the scientific and technical information in this release. A summer 2009
exploration program will include geological mapping, geochemistry and
trenching, directed at the definition of further drill targets.
The agreements are subject to regulatory acceptance and all securities
issued pursuant to the agreements will be subject to a four month hold
period trading restriction from the date of issuance.
SILVER QUEST RESOURCES LTD.
"Robert Weicker"
Robert Weicker, President
For further information please contact Investor Relations at 6046873959
or info@silverquest.ca
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this
news release.
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Copyright (c) 2009 SILVER QUEST RESOURCES LTD. (SQI) All rights
reserved. For more information visit our website at
http://www.silverquest.ca/ or send mailto:info@silverquest.ca
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