GREAT QUEST
METALS LTD.
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Suite
515, 475 Howe Street
Vancouver,
BC, Canada V6C 2B3
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Tel: 604-689-2882 Website: www.greatquest.com
Fax: 604-684-5854 Email: info@greatquest.com
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April 21, 2009
Great Quest Signs a Letter
of Intent for the Acquisition of a 75% Interest in its Kenieba Area Concessions
for $2,500,000
VANCOUVER, BC -- Great Quest Metals Ltd. (TSXV: GQ; Frankfurt: GQM), is
pleased to announce that it has executed a letter of intent which gives Avion
Resources Corp. (Avion) the right to acquire 75% of its interest in four
mineral concessions (the Property)
located adjacent to the south and west sides of the Tabakoto property (see
figure). Great Quest previously spent approximately US$3.0 million in
expenditures to explore the Property.
The Property
comprises the Kenieba, Kenieba Est, Comifa and Baroya concessions
totalling approximately 50 km2 (The Concessions), which, subject to
concession renewals, is expected to increase Avion’s local property
package by up to 50%. The Kenieba
concession hosts a NI 43-101 compliant inferred resource in the Djambaye 2 gold
zone of 324,000 ounces (Carl Verley (P. Geo.), January 28, 2008 Great Quest
news release). This equates to 2,574,000 tonnes grading 3.92 grams per tonne
gold. The Baroya concession lies west of the various mineralized Segala zones,
which are still open along strike to the east and west.
Commenting on the
proposed acquisition, Avion’s President and CEO, Mr. John Begeman stated,
This disciplined acquisition represents an exciting opportunity for Avion to
acquire nearby prospective gold projects that could provide additional feed for
the Tabakoto mill and support Avion’s stated growth and West African
consolidation goals.
Subject to
confirmatory due diligence, including without limitation, Avion receiving a
satisfactory title opinion with respect to the Property, Avion and Great Quest
shall enter into a definitive agreement with respect to the Property. This agreement will be subject to the
approval of the TSX Venture Exchange.
To acquire 75% of Great Quest’s interest in the four mining
concessions Avion is required to make cash payments of CDN$ 2,500,000 and work
commitments of CDN$ 2,000,000, both over five years. Upon signing a definitive
agreement, Avion is required to make a cash payment of CDN$400,000 and complete
at least CDN$150,000 of exploration expenditures during the first year. Great
Quest’s interest in the concessions varies from 95% to 100% subject to a
carried interest to the Government of Mali ranging between 10% and 20%.
Avion plans
to build upon Great Quest’s work that has defined a series of northerly
trending gold zones and gold mineralized cross-structures that are similar in
character to those on the Avion concessions. Once the Great Quest data has been
incorporated into the property compilation, a program of soil sampling and magnetic
surveys will be carried out prior to additional drilling. comments Don Dudek,
Vice President of Exploration for Avion.
Don Dudek,
P.Geo., the Senior Vice President, Exploration of the
Company and a qualified person under National Instrument 43-101, has reviewed
the scientific and technical information in this press release.
About Great Quest Metals Ltd.
Great
Quest is a Canadian-based company focused in Mali, West Africa and British
Columbia. In addition to the
Kenieba gold property, the Company also holds the Bourdala gold concessions in
western Mali, as well as the copper-gold-molybdenum property in BC. The Company is also in negotiations to
acquire the Tilemsi phosphate project in eastern Mali. If Great Quest is successful in
acquiring the Tilemsi project, this agreement will allow the Company to
concentrate on bringing it to production, while at the same time work continues
on the Kenieba property.
About Avion Resources Corp.
Avion is a Canadian-based gold company focused
in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects
in Mali (assuming completion of the Dynamite acquisition). Gold production at
these projects has commenced, with approximately 66,000 ounces of production
forecast for 2009 rising to 101,400 ounces in 2012. Avion has a highly skilled
management team, with a focus on growth and consolidation within West Africa.
ON BEHALF OF THE
BOARD OF DIRECTORS
OF GREAT
QUEST METALS LTD.
Willis W. Osborne
President