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Re: News Release - Tuesday, April 20, 2010
Goldquest Announces Favourable Legal Ruling in Spain
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VANCOUVER, BC, APRIL 20, 2010 -- GoldQuest Mining Corp. ("GoldQuest" or
the "Company") is pleased to announce that an administrative court in
Leon, Spain, has dismissed the appeal of a losing bidder in the tender
process under which the investigation permit for the Toral property was
ultimately awarded to a subsidiary of GoldQuest. The Company owns a
100% interest in the Toral project located in northwest Spain.
In 2006, one of the losing bidders in the tender process that awarded
the Toral Investigation Permit instituted an administrative appeal of
that award, against the Territorial Service of Industry, Commerce and
Tourism of the Autonomous Community of Castile and Le�n in Spain. On
December 19, 2006, the Territorial Service of Industry, Commerce and
Tourism had by Resolution, dismissed that losing bidder's initial
appeal of the award. The administrative court's ruling has dismissed
the losing bidder's appeal of that Resolution although the Company
understands the administrative court's ruling can be appealed within
fifteen days.
Alistair Waddell, President and Chief Executive Officer of GoldQuest,
commented, "We are pleased to learn of the ruling in favour of the
Junta Castile and Le�n and we now look forward to advancing the Toral
project and the exploration programme in Spain."
About the Toral Project
GoldQuest, through a wholly owned Spanish subsidiary owns a 100%
interest in the Toral project located approximately 400 km northwest of
Madrid, near the regional city of Ponferrada. The Toral project area
was originally investigated by Pe�arroya-Espa�a and associates from
1975 to 1985 which included over 42,000 metres of
Diamond drilling.
These drill holes reportedly delineated a tabular zone of continuous,
sub-vertical, coarse-grained lead-zinc-silver sulphide mineralization
that averages 3.7 metres wide with a reported 1,100 metres strike
length and a vertical height exceeding 400 metres. Based on the
previous drilling, the historical estimate of Toral was estimated at
5.4 million tonnes grading 9 % Zn, 6 % Pb and 45 g/t Ag. The zone of
sulphide mineralization is reportedly open along strike to the
northwest towards a known lead deposit as well as along strike to the
southeast and down dip.
The historical resource estimate, dated June 1997, was calculated by
Spanish Mining Engineer Dr. Rufino Gea Javaloy on behalf of Geominera
S.A. and Pe�arroya-Espa�a and is not NI 43-101 compliant. With the
majority of historical drilling completed in one relatively small part
of the property, GoldQuest believes that the Toral Project has
significant exploration and development upside. The Pe�arroya-Espa�a
and the Lundin drill core is still available including the remaining
halved intercepts.
The Toral Project benefits from excellent infrastructure, including
access via a major regional highway, a nearby high-voltage power line
and a rail line which links to the Asturianas zinc-lead smelter via the
city of Le�n. Mining has traditionally been a significant part of the
economy of this region which is supporting the re-entry of new
exploration and mining projects. Certain exploration and mine
development expenditures are eligible for economic development grants
and interest free loans. The Toral Project covers over 6 km of strike
length of the prospective Lower Cambrian Vegadeo Limestone formation
which is regionally mineralized along more than 40 km of its extent,
and is also host to the Rubiales zinc-lead-silver deposit, located
about 30 km northwest of Toral, which was mined by Cominco from 1976 to
1991.
The historical estimate quoted in this news release was prepared prior
to the implementation of National Instrument 43-101, and the historical
estimate does not use the resource categories stipulated in Section 1.3
of National Instrument 43-101, which are "inferred mineral resource",
"indicated mineral resource" and "measured mineral resource", and
should not be relied upon. The historical resource estimate for the
"Mina de Toral," calculated and reported by Spanish Mining Engineer Dr.
Rufino Gea Javaloy on behalf of Geominera S.A. and Pe�arroya-Espa�a,
that refers to "5.4 million tonnes" is not a category stipulated in
National Instrument 43-101 and GoldQuest believes that term "resources"
is used differently from the use of that term in National Instrument
43-101. GoldQuest does not have, and is not aware of, any more recent
resource estimates or data which conform to the standards contained in
National Instrument 43-101. GoldQuest advises that it has not yet
completed sufficient detailed exploration work necessary to verify the
relevance, reliability and classification of the historical estimate as
current mineral resources or mineral reserves, and the historical
estimate has not been verified by a Qualified Person.
About GoldQuest
GoldQuest is a Vancouver based company with a portfolio of 100% owned
exploration projects in the Dominican Republic and Spain. Mr. Alistair
H. Waddell, an employee, President and Chief Executive Officer of
GoldQuest is the qualified person as defined by National Instrument
43-101 who has supervised the preparation of the information used in
this news release. GoldQuest is traded on the TSX-V under the symbol
GQC.V and in Frankfurt / Berlin with symbol M1W.
For further information please contact:
Alistair Waddell
President & Chief Executive Officer
Dan Maarsman
Investor Relations -- Vancouver, Canada
Tel: +1-604-632 4333
www.goldquestcorp.com
investorrelations@goldquestcorp.com
On behalf of the Board of Directors "signed" Alistair H. Waddell
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact, that address events or developments
that GoldQuest expects to occur, are forward looking statements.
Forward looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although GoldQuest
believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees
of future performance and actual results may differ materially from
those in forward looking statements. Factors that could cause the
actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration success,
continued availability of capital and financing and general economic,
market or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. Forward looking statements are based on
the beliefs, estimates and opinions of GoldQuest's management on the
date the statements are made. GoldQuest undertakes no obligation to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should change.
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Copyright (c) 2010 GOLDQUEST MINING CORP. (GQC) All rights reserved.
For more information visit our website at http://www.goldquestcorp.com/
or send mailto:investorrelations@goldquestcorp.com
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