VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2011) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) ("SilverQuest" or "the Company") is pleased to announce that an updatedNational Instrument 43-101 compliant resource estimate has been preparedon the Davidson Property, located 100 km south of Vanderhoof in centralBritish Columbia, Canada. The Davidson Property, which is the subjectof a joint venture with New Gold Inc. ("New Gold") (TSX:NGD), covers thenorthern portion of New Gold's Blackwater Gold Project. New Gold has a75% interest in the Davidson Property and acts as operator of theDavidson joint venture.
New Gold today reported the results of an independentresource estimate for the Blackwater Gold Project, including informationon the resource estimate for the Davidson Property. (see New Gold NewsRelease dated September 19, 2011) At a cut-off grade of 0.40 grams pertonne (g/t) gold, the Davidson Property is estimated to contain77,929,000 tonnes at an average grade of 0.89 g/t gold, for 2.2 millionounces of gold in the Indicated category. The Property also contains29,226,000 tonnes at an average grade of 0.88 g/t gold, for 0.82 millionounces of gold in the Inferred category. The table below summarizes theparties' respective interests in the Davidson Property resourceestimate:
"We are very encouraged to see that the Spring 2011 drillingprogram has led to a very large increase in the contained gold ounces inthe indicated category attributable to Silver Quest's interest,"commented Randy Turner, President of Silver Quest. "The increase of over550,000 contained ounces in the indicated category to the Company'sinterest is a combination of identifying additional ounces and movingapproximately 135,000 ounces from the inferred category into theindicated category, as compared to the results reported in the initialresource estimate prepared in March 2011."
The updated resource estimate incorporates drilling completedthrough July 2011. The deposit remains open in all directions and atdepth. Six drill rigs are currently working on the Davidson Property.These rigs are executing a 26,250 metre diamond drill program comprisedof 75 drill holes that are designed to expand the resources on theDavidson Property. This drilling is anticipated to be completed byyear-end.
Grade estimation for the September 2011 resource estimate forthe Blackwater Gold Project was carried out by the inverse distancecubed method using 5 metre downhole drill composites. Gold grades werecapped prior to compositing at 11 g/t within a low grade outer gradeshell domain and at 17 g/t within an inner higher grade domain based on a0.5 g/t grade shell. All silver grades were capped at 50 g/t.Classified blocks were constrained by an optimized pit shell using agold price of $1,200 per ounce. Block dimensions were 10 by 10 by 10metres. Density values assigned to the principal lithologies are basedon 7,705 bulk density measurements of drill core.
The resource estimate and other scientific and technicalinformation contained in this news release were prepared by Mr. RonaldSimpson, P. Geo., President of Geosim Services Inc., an independent"Qualified Person" under National Instrument 43-101 Standards ofDisclosure for Mineral Projects ("NI 43-101"). The NI 43-101 technicalreport in respect of the mineral resource estimate disclosed herein willbe filed on SEDAR within 45 days of the date of this news release.
David Pawliuk, P. Geo., Vice President-Exploration for SilverQuest, and a "Qualified Person" as defined by NI 43-101, has reviewedand approved the contents of this news release.
SILVER QUEST RESOURCES LTD.
Randy Turner, President
Neither the TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies of theTSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.