NEWS - Silver Quest Acquires Slate Falls Gold PropMon Jun 22, 2009
Silver Quest Acquires Slate Falls Gold Property, Ontario
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Silver Quest Resources Ltd. (the "Company") is pleased to announce the acquisition of the Slate Falls Gold Property, located in the Sioux Lookout District of northwestern Ontario. Under the terms of the agreement, the Company can acquire a 100% interest in the property from a private vendor, Jerrold Williamson, for cash payments totaling $100,000 ($15,000 upon signing) and the issuance of 500,000 shares (150,000 upon signing) over a three year period. The property is comprised of three claims totaling 48 units (768 ha) and is located 120 km north of the community of Sioux Lookout and 30 kms southwest of the former producing Golden Patricia mine which produced 860,000 tons grading 0.58 ounces per ton (oz/t) (19.9 grams per tonne (g/t)) of gold (Au). Slate Falls First Nation Community, accessed by plane and winter road, is located 5 km south of the property. For further information and property maps refer to www.silverquest.ca.
The Slate Falls Gold property contains several known gold showings up to 25.0 oz/t (857.0 g/t) Au associated with quartz veining in shear zones similar to and contemporaneous with the stratigraphy which hosts the Golden Patricia gold mine. On the property, an extensive regional gold bearing system known as the Slate Falls Deformation Zone ("SFDZ") has been interpreted as the structural control of gold mineralization by previous companies and government geologists. The SFDZ has been traced for more than 10 kms along strike.
The property covers multiple gold showings including the Sanderson and Trail Zones. On the Sanderson Zone, assessment reports filed with the Ontario government indicate an east-west trending shear-vein zone (strike length of 625 m) hosted in mafic volcanic rocks, intruded by felsic porphyritic dykes. Previous sampling of 14 trenches oriented across the Sanderson Zone returned a weighted average of 5.5 g/t Au and 164.0 g/t silver (Ag) over a width of 0.95 m for a 170 m strike length. Seven short diamond drill holes totaling 298.1 m were completed over a 215 m strike length of the Sanderson Zone in 1966 and intersected sulphide and quartz veining in shear zones containing narrow bands of gold mineralization. The best intercept was in hole 66-8 which returned 6.9 g/t Au and 101.5 g/t Ag over a width of 0.5 m at a depth of 22.7 m. Further exploration is warranted.
The Trail Zone is located 1.2 km southwest of the Sanderson Zone and represents a parallel shear zone. Previous exploration has exposed the zone over a strike of 70 m, trending east-west, averaging 15.1 g/t Au over 0.74 m based on 20 chip samples. Four drill holes were completed on the Trail Zone in 1966 (151.8 m) and two holes were drilled in 1984. The best intercept was in hole 66-11 which returned 861.3 g/t Au and 213.9 g/t Ag over a width of 0.21 m at a depth of 15.1 m. The Trail Zone is buried by overburden along the strike and warrants further drilling.
The last exploration program on the Slate Falls Gold property was completed in 2002 and identified fourteen new gold occurrences assaying greater than 0.5 g/t Au with a peak value of 6.70 g/t Au (grab). Several of the known gold showings were extended and require additional exploration.
Following further compilation and review of government assessment data on the property, the Company is planning a detailed budget and exploration program, including stripping overburden and trenching, to identify potential targets prior to drilling. Robert Weicker, PGeo, is the Qualified Person as defined by National Instrument 43-101 for this project, and has verified and supervised preparation of the scientific and technical information in this release.
This agreement is subject to acceptance by the TSX Venture Exchange.
SILVER QUEST RESOURCES LTD.
"Randy Turner"
Randy Turner, Director
For further information please contact Investor Relations at 604-687-3959 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.
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the British Columbia Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the ability of the Company to continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs; inability to fund the Company's share of costs incurred under joint venture agreements to which it is a party, and reduction or elimination of its joint venture interest as a result; competition within the minerals industry to acquire properties of merit, and competition from other companies possessing greater technical and financial resources; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or other factors related to exploring in the north, such as the availability of essential supplies and services; factors beyond the capacity of the Company to anticipate and control, such as the marketability of minerals, government regulations relating to health, safety and the environment, the scale and scope of royalties and taxes on production; unusually mild winter conditions affecting or delaying the opening of the winter roads and resulting difficulties in transporting materials needed to support various exploration projects and resulting increased costs of transport by air; the availability of experienced contractors and professional staff to perform work in a competitive environment and the resulting adverse impact on costs and performance and other risks and uncertainties, including those described in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.