Silver Quest Executes Formal Joint Venture
Agreement on Davidson Property, BC
Vancouver, BC - Silver Quest Resources (TSX.V: SQI) ("Silver
Quest" or "the Company") is pleased to announce the execution of
a formal joint venture agreement with Richfield Ventures Corp. (TSX.V: RVC)
("Richfield") on the Company's Davidson Property. The Davidson
Property is located within the northern portion of Richfield's Blackwater Gold Project, 100 km southwest of Vanderhoof in central British Columbia. For property map
and location, please visit www.silverquest.ca.
Under the terms of the joint venture, Silver Quest holds a 25% participating
interest, Richfield holds a 75% participating interest and will act as
operator. Direct expenditures on the Davidson Property are shared on this
pro-rata basis. Should dilution, by non-participation, reduce Silver Quest's
interest in the joint venture to less than 10%, such interest will
automatically convert to a 1.0% net smelter return royalty payable on
production from the Davidson Property.
The joint venture parties have approved an initial 2011 work program of $8.6
million for the Davidson Property, of which Silver Quest's contribution will be
approximately $1.8 million. This will include approximately 20,000 metres of diamond drilling and Silver Quest's share of
various studies related to the development of the overall Blackwater
Gold Project. Certain work expenditures, such as engineering, metallurgical
test work, environmental baseline studies, etc. for the benefit of the overall
project, will initially be shared 12.5% by Silver Quest and 87.5% by Richfield.
Richfield's initial NI43-101 resource calculation for entire Blackwater Gold Project contains an estimated Indicated
Resource at a cut-off grade of 0.40 grams per tonne
(g/t) gold of 53.46 million tonnes at an average
grade of 1.06 g/t gold containing 1.83 million ounces gold. A further 75.45
million tonnes at an average grade of 0.96 g/t gold
containing 2.34 million ounces gold is estimated in the Inferred category (see
RVC news release dated March 2, 2011).
At a cut-off grade of 0.40 g/t gold, the Davidson Property is estimated to
contain 331,000 tonnes at an average grade of 0.92
g/t gold, for 10,000 ounces of gold in the Indicated category and 46.27 million
tonnes at an average grade of 0.92 g/t gold, for 1.36
million ounces of gold in the Inferred category. The table below summarizes the
parties' respective interests in the Davidson Property resource estimate:
Davidson Property Resource Estimate (0.4 g/t Gold Cut-off grade)
|
Indicated
|
Inferred
|
Tonnes
000's
|
Gold
g/t
|
Contained
Gold
ounces
|
Tonnes
000's
|
Gold
g/t
|
Contained
Gold ounces
|
Richfield (75%)
|
248
|
0.92
|
7,500
|
34,702
|
0.92
|
1,020,000
|
Silver Quest (25%)
|
83
|
0.92
|
2,500
|
11,567
|
0.92
|
340,000
|
Davidson Property Total
|
331
|
0.92
|
10,000
|
46,269
|
0.92
|
1,360,000
|
As the Blackwater Gold project advances to a
Preliminary Economic Assessment (PEA), planned for completion in Q4 of 2011,
work expenditures not directly on the Davidson property but considered for the
benefit of the overall project, will be shared on a pro-rata basis as reflected
by the relative distribution of mineral resources on the respective properties
as determined by the PEA. This relative distribution of mineral resources will
continually be updated by subsequent studies. Once the project construction
capital budget is established, the joint venture operator will recommend a
formula for sharing the capital cost of project development reflecting each
partner's economic interest. A series of consultants have been contracted to
prepare the PEA, planned for completion in Q4 of 2011. This study will consider
the potential for a large-scale open pit mine and ore processing facility.
David Pawliuk, P. Geo., Vice-President Exploration for Silver Quest is the
Qualified Person, as defined by NI 43-101, for the Davidson property and has
reviewed the technical information in this release.
SILVER QUEST RESOURCES LTD.
"Randy Turner"
Randy Turner, President
For further information please contact Investor Relations at 604-687-3959 or info@silverquest.ca
Neither the
TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release used the terms measured, indicated and inferred resources as
a relative measure of the level of confidence in the resource estimate. Readers
are cautioned that the Davidson mineral resources are not economic mineral
reserves and that the economic viability of resources that are not mineral
reserves has not been demonstrated. In addition, inferred resources are
considered too geologically speculative to have any economic considerations
applied to them. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies or economic studies except for
Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to
assume that further work will lead to mineral resources that can be mined
economically.
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.
View News
Release in PDF Format: http://www.silverquest.ca/i/pdf/110329.pdf
Copyright �
2011 SILVER QUEST RESOURCES LTD. (SQI) All rights
reserved. For more information visit our website at http://www.silverquest.ca/ or send email to info@silverquest.ca ..