GOLDQUEST SIGNS FORMAL AGREEMENT WITH GOLD FIELDS
AND OUTLINES JOINT VENTURE EXPLORATION PLANS
VANCOUVER, BC, March
23, 2007 – GoldQuest Mining Corp.
(“GoldQuest” or the “Company”) is pleased to announce the
formal signing of the Mining Venture Agreement with Gold Fields Limited with
respect to selected projects in the Dominican Republic. �The terms of
the agreement were initially given in the press release of February 2, 2006. �Work
by the GoldQuest-Gold Fields Joint Venture has discovered a series of new gold,
and copper / gold occurrences in the western Dominican Republic including Las
Tres Palmas, Los Comios, Loma Viejo Pedro and Jengibre.
Gold Fields can earn a 60% interest in the selected projects held by
GoldQuest in the Dominican
Republic by expending US$5 million over
three years with a first year commitment of US$1.0 million which ended January
31, 2007.� This initial commitment was exceeded by Gold Fields.
Subsequent to vesting its 60%, Gold Fields may choose up to four
projects whereby it can earn an additional 15% by expending a further US$5
million on each of the projects.� GoldQuest has the right to maintain a 40%
interest in one of the designated projects of its choice by fully funding its
share of expenditures up to bankable feasibility study.� At GoldQuest’s
election upon completion of the additional 15% earn-in, Gold Fields will
arrange funding of GoldQuest’s proportionate share of subsequent
development and construction expenditures. �In return, Gold Fields will be
granted an additional 5% interest in the specific project (to 80%) and the
funding will be deemed a loan, payable out of 90% of GoldQuest’s profits
from production. �In the case of GoldQuest contributing on one project to
bankable feasibility study, Gold Fields can earn an extra 5% (i.e. to 65%) by
arranging funding of GoldQuest’s proportionate share of the subsequent
bankable feasibility study.� Development and construction expenditures and the funding
will be deemed a loan, payable out of 90% of GoldQuest’s profits from
production.
Gold Fields have budgeted US$2 million for exploration on the GoldQuest
projects in year two of the joint venture starting February 1, 2007.� Over the
next quarter exploration relating to the joint venture will focus on the
following projects:
Las Tres Palmas: – An initial 1,820 meters of diamond drilling was completed in
2006 with encouraging results. �The highlights were:
- Hondo
Valle: 20 meters grading 2.65 g/t Au from surface (Press Release May 2nd 2006);
and
- Escandalosa:
38 meters grading 3.34 g/t Au (Press Release May 30th 2006).
Subsequently in December 2006 and January 2007, a
further 16 step-out diamond drill holes totalling 2,223 meters were completed (LTP-18
to 33) with the highlights given in Table 1. �GoldQuest is encouraged by the
results that clearly indicate a large mineralized system which has been
detected over a strike length of 2,100 meters, a width of up to 280 meters and
with intersections up to 122 meters thick vertically. Mineralization forms a
tabular stratabound body with a low dip to the east.
Table 1. Length-weighted average gold grades from Las
Tres Palmas (0.1 g/t Au cut off).
HOLE
|
FROM (m)
|
TO (m)
|
INTERVAL (m)
|
GOLD (g/t)
|
ZONE
|
LTP-18
|
60.00
|
108.00
|
48.00
|
0.285
|
Escandalosa
|
LTP-19
|
78.46
|
110.56
|
32.10
|
0.369
|
Escandalosa
|
LTP-20
|
65.00
|
87.00
|
22.00
|
0.265
|
Escandalosa
|
LTP-21
|
78.00
|
104.00
|
26.00
|
0.243
|
Escandalosa
|
LTP-22
|
74.00
|
112.00
|
38.00
|
0.166
|
Escandalosa
|
LTP-23
|
62.00
|
70.00
|
8.00
|
0.177
|
Escandalosa
|
LTP-24
|
102.46
|
129.54*
|
27.08
|
0.329
|
Escandalosa
|
LTP-26
|
124.00
|
153.90
|
29.90
|
0.203
|
Escandalosa
|
LTP-27
|
115.00
|
127.00
|
12.00
|
0.107
|
Escandalosa
North
|
and
|
161.00
|
170.69*
|
9.69
|
0.148
|
|
LTP-28
|
36.00
|
49.28
|
13.28
|
0.154
|
Escandalosa
North
|
LTP-30
|
96.00
|
100.58*
|
4.58
|
0.127
|
Escandalosa
North
|
LTP-31
|
12.00
|
118.00
|
106.00
|
0.110
|
Hondo Valle
|
including
|
12.00
|
35.46
|
23.46
|
0.208
|
|
LTP-32
|
8.00
|
36.45
|
28.45
|
0.357
|
Hondo Valle
|
including
|
26.00
|
36.45
|
10.45
|
0.840
|
|
Notes: (1) * mineralization open; (2) where there are
core duplicate QC samples, the average value has been used,
The maximum gold grade of the step-out drill holes is
2.93 g/t over 1.95 m. �Gold mineralization in these holes is accompanied by anomalous
silver (maximum 36.80 g/t over 1.19 m), copper (maximum 0.49% over 1.70 m) and
zinc (maximum 1.79% over 1.19 m and 0.50% Zn over 9.69 m). �The Escandalosa
holes LTP-18, 19, 20, 21, 22, 23, 24, and 26 intercepted the same mineralized
horizon as that of LTP-07 that returned 63 meters grading 2.1 g/t Au (Press
Release May 30, 2006), although the values are considerably lower indicating
these step-out holes may be peripheral to the stronger mineralization. �Holes
LTP-27 and 28 were drilled north of Escandalosa with hole LTP-28 intercepting
the same mineralized horizon at a similar topographic level 500 meters to the
north of Escandalosa hole LTP-07.� Holes LTP-31 and 32 were step-out holes at
Hondo Valle, more than 1,200 meters to the north of Escandalosa, and intercepted
broad intervals of weakly anomalous gold suggesting they are peripheral to the
main Hondo Valle zone.
Holes LTP-25, 29, 30 and 33 returned only weakly anomalous
intercepts of no economic interest.
Drill hole location maps and further information will
be available on the GoldQuest website shortly.
Loma Viejo Pedro: – This project
was discovered by the regional fine-fraction stream sediment sampling program south
of Las Tres Palmas with a cluster of five anomalous sediment samples up to a
maximum of 99 ppb Au.� Subsequent first-pass follow-up returned 72 rock samples
with >0.1 g/t Au including 16 returning >1 g/t Au and a maximum of 8.8
g/t Au in outcrop.� This is considered an epithermal target similar to Las Tres
Palmas and will be mapped and sampled over the coming weeks.
Jengibre: – This is a new project discovery also made during the regional
stream sediment sampling program.� Jengibre is a large coincident Au-Zn
anomaly.� Rock outcrop and float samples have returned highly anomalous values
including four samples with greater than 23% Zn up to a maximum of 30%, gold up
to 5.1 g/t, silver up to 480 g/t and copper up to 6.8%.� There are 19 samples
above 0.1 g/t Au and six above 1.0 g/t Au. �The Jengibre project is considered
to be a porphyry – skarn target and will be geologically mapped and sampled
in detail.
Los Comios: – This is a large area of highly anomalous Cu-Au
mineralization located north-west of Las Tres Palmas.� Rock float sampling
returned 66 samples with more than 1% Cu with a maximum of 34.5%, and 27 with more
than 1 g/t Au with a maximum of 17.0 g/t.� The Company has defined several Au,
Mo and Cu anomalies that will be followed up by geological mapping and
trenching.
The Los Comios, Las Tres Palmas, Loma Viejo Pedro and
Jengibre projects define a large 30 kilometer long belt of mineralization which
was discovered by the GoldQuest - Gold Fields Joint Venture.
Loma La Resbalosa and Piedra Im�n: – Subsequent to Barrick Gold relinquishing its right of first
refusal on these properties, Gold Fields has elected to incorporate the
projects into the existing Joint Venture agreement.� Gold Fields are funding a
short exploratory drill program on the Loma La Resbalosa project which has just
got underway.� Drilling will test a broad zone of anomalous soil and stream
sediment sample geochemistry in Cretaceous limestones.� Soil sampling defined
an area of anomalous soils with maximum values of 1.95 g/t Au, 4.62 g/t Ag, 559
ppm As, 12.95 ppm Cd, 5.11 ppm Hg, 15.3 ppm Mo, more than 1.0% P, 1860 ppm Pb, 36.4
ppm Sb, 12.5 ppm U and 1095 ppm Zn.
Detailed geological mapping and infill soil sampling
is currently underway on the Piedra Im�n project the details of which will be
released in the coming weeks.
The qualified person for the technical information in
this press release for the purposes of National Instrument 43-101 is Dr Stewart
D. Redwood, FIMMM, Consulting Geologist to the Company.� Preparation and
geochemical analyses of all samples were carried out by ALS Chemex, Vancouver.� Standards,
duplicates and blanks are routinely inserted into all sample batches for
quality assurance and quality control.
About GoldQuest
GoldQuest is an Exploration company focused on the Dominican Republic.� Through
regional grass-roots exploration and new geological models the Company has
built a portfolio of new gold and copper discoveries.
GoldQuest is traded on the TSX-V exchange under the symbol GQC.V and in
Frankfurt under the symbol M1W.
For more information please contact:
Mr. David
Hall������������������������������������������������������������������������ Mr.
Alistair Waddell
President & Chief Executive Officer����������������������������������������� Executive
Vice President
Tel: +353-1-661-3309 (Dublin)����������������������������������������������� Tel:
778-994 6111 (Vancouver)
www.goldquestcorp.com
investorrelations@goldquestcorp.com
On behalf of the Board of Directors
”signed” David Hall
The TSX
Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.