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TORONTO, ONTARIO--(Marketwire - April 7,
2010) - Quest Uranium Corporation (TSX VENTURE:QUC) is pleased to
announce a new National Instrument 43-101 compliant resource estimate
for its B-Zone rare earth deposit within the Strange lake project,
Quebec. The estimate was prepared by Wardrop Engineering Inc.
("Wardrop"), who has also recommended that the deposit
warrants further investigation and development. The Strange Lake
Project is located 195 km northeast of Schefferville, Quebec and 125 km
west of the giant Voisey's Bay nickel-copper-cobalt deposit, eastern
Labrador (see Figure 1).
The base-case resource was estimated using a Total Rare Earth Oxide
(TREO) cut-off grade of 0.85% TREO (Table 1). At this cut-off, the
B-Zone hosts an Inferred Resource of 114.8 million tonnes grading
0.999% TREO, 1.973% zirconium oxide, 0.208% niobium pentoxide, 0.053%
hafnium oxide and 0.082% beryllium oxide. In addition, Table 2
illustrates the grade averages for all of the Rare Earth oxides at the
various cut-offs.
It is estimated that Heavy Rare Earth Elements (HREE) represent between
43% and 51% of the TREO in the deposit.
Mineralisation within the deposit is currently open in all directions.
It is intended to expand the knowledge of this with further,
higher-density diamond drilling, planned to take place in 2010.
Drilling will also assess the resource potential of other REE
occurrences identified on the property in 2009. In addition, a program
of metallurgical testing and advanced mineralogical studies of the
deposit is currently advancing.
It is intended that the data from these studies will form the basis for
a future Preliminary Assessment (PA) of the deposit.
Table 1 Inferred Resource Estimate for the Strange Lake B Zone Deposit. ---------------------------------------------------------------------------- Proportion TREO% Tonnes of HREO(ii) Cut-off (x000 t) TREO%(i) in TREO% ZrO2% Nb2O5% HfO2% F% BeO% ---------------------------------------------------------------------------- 1.20% 11,809 1.354 51% 2.097 0.291 0.055 0.908 0.129 ---------------------------------------------------------------------------- 1.10% 21,757 1.260 50% 2.101 0.272 0.056 0.861 0.119 ---------------------------------------------------------------------------- 1.00% 40,388 1.161 47% 2.069 0.248 0.056 0.842 0.108 ---------------------------------------------------------------------------- 0.95% 54,560 1.112 46% 2.051 0.236 0.055 0.818 0.100 ---------------------------------------------------------------------------- 0.90% 82,541 1.048 44% 2.008 0.220 0.054 0.773 0.090 ---------------------------------------------------------------------------- 0.85% 114,823 0.999 43% 1.973 0.208 0.053 0.729 0.082 ---------------------------------------------------------------------------- 0.80% 133,654 0.975 43% 1.957 0.203 0.053 0.705 0.078 ---------------------------------------------------------------------------- 0.70% 137,639 0.970 43% 1.955 0.202 0.053 0.697 0.077 ---------------------------------------------------------------------------- (i) includes Y2O3 Where: HfO2 - hafnium oxide; ZrO2 - zirconium oxide; Nb2O5 - niobium pentoxide; F - fluorine; BeO - beryllium oxide Notes: 1. Total Rare Earth Oxides (TREO) includes: La2O3,Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 2. Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 3. Wardrop considers a base case cut-off grade of 0.85% TREO to be reasonable in the absence of metallurgical data and economic parameters (i.e. operating costs). 4. average specific gravity of 2.72 g/cc 5. The resource estimate has been classified as an Inferred Resource for this reason and for the relatively wide-spaced sample support within the current outlined deposit. 6. Resource Estimate is based on: - A database of 19 drill holes totalling 3,905.3m of diamond drilling where samples were composited on 2m lengths. - Specific gravity (SG) used the overall mean of 2.72 g/cc from 80 SG readings - Geological model bounded by 0.9% TREO limit above and below the deposit - Block model was estimated by Ordinary Kriging interpolation method on blocks 40m x 40m x 10m. - Resource Estimate assumes 100% recovery as metallurgical results are pending.
"The
Wardrop Resource Estimate for the B-Zone REE deposit reported today is
further confirmation of Quest's firm belief that we are in the process
of building a very important source of rare earth elements,
particularly of highly-valued Heavy REE." said Peter J. Cashin,
Quest's President and CEO. "All indications are that we will be
able to greatly enhance the volume and surface dimensions of the
mineralization for the deposit through diamond drilling in 2010. In
combination with the impending Metallurgical work by Hazen Research,
due in the latter part of Q2 2010, we intend to demonstrate the
economic viability of the current resource through a Scoping Study of
the preliminary economics of the B-Zone deposit. We also intend to
drill test new areas of mineralization within the host Strange Lake
Alkali Granite identified during 2009 exploration; these could greatly
expand the important mineral inventory that we have been building on
the property."
Understanding the Rare Earth Metal Market
The discovery of significant quantities of rare earth metals in the
Strange Lake area, northeastern Quebec, has driven Quest to seek strong
perspectives on this new, highly valuable set of metallic commodities
and to broaden its mineral asset base. Currently, 97% of the world's
rare earth metals are produced in China, whose abundant resources and
low production costs have made it a key source of these metals. China
has placed strict controls on REE mining, production and export in
order to maximise its own use of the resources. As a result, the past 4
years have brought fundamental change to the global industry, taking it
from oversupply to demand shortages. Of the total rare earths produced
by China, 98% of these are what is termed Light Rare Earth Elements
(LREE) which are the more common members of the Lanthanide series on
the Periodic Table of Elements. Most of the current applications which
use rare earths are LREE because of greater Chinese availability of
these metals. Alternatively, China produces only very small amounts of
what is termed Heavy Rare Earth Elements (HREE). A lack of an abundant
primary supply of the rarer, more valuable HREE has impeded the
expansion of the current and developing technologies which use them.
Quest's Strange Lake deposits are unusually enriched in the HREE and
present themselves as some of the world's only potential primary
sources of these metals.
During the 1990s and early 2000s, significant production surpluses and
coincident low REE prices led to most non-Chinese rare earth producers
ceasing their operations and almost exclusive reliance on China
supplies. With curbing of exports from China and continued growth
demand elsewhere, the supply-demand deficit is causing great concern to
major REE consuming countries (Japan, Korea, Taiwan, Euro zone, United
States), and they are anxious to identify new sources of rare earths.
With excellent prospects for growth in the hybrid auto manufacturing,
aerospace, defence and electronics industries, demand growth in REE of
8-11% per year is projected. There is a pressing need for new
non-Chinese production capacity in the next 3 to 5 years. This has
focused attention on the re-opening of the Molycorp operation in
Mountain Pass, on probable loparite production increases from the Kola
Peninsula, Russia and Lynas Corporation's plans to process Mount Weld
ore in Australia. Other potential REE sources such as Nolans, Australia
and Hoidas Lake and Nechalacho (Thor Lake) in northern Canada are also
being considered for potential production.
On the basis that China will adhere to the announced production and
export limits, there is a real prospect that by 2012 to 2013 the
country will only produce sufficient material to satisfy domestic
consumption. To meet the estimated global demand of 200,000t REO in
2012, approximately 60,000t of new capacity will be needed to meet the
unfulfilled demand from outside China. In addition, it is estimated
that world demand could reach 250,000 tonnes of REE per year by 2015,
up from 135,000 tonnes in 2008. Primary production is unlikely to keep
pace with the increasing demand.
2010 Exploration Program
Quest intends to carry out a significant program of trenching,
geological mapping, geochemical sampling and 15,000 m of diamond
drilling with four rigs on the property.
A total of 13,000 m of diamond drilling will focus on the area that is
currently the object of Quest's Resource Estimation of the B-Zone
(drilled on approximately 150-m centres). The objective of the program
will be to upgrade and expand the deposit by drilling at either 75 m or
50 m centres across the area of mineralization defined to date. As
well, because Quest's 2009 drillholes into the Zone were all stopped in
mineralization, more powerful drill machines will be brought in so as
to allow Quest to penetrate the full vertical extent of the mineralized
system. Two drills will be used for this purpose. A third drill will be
used to explore the eastern half of the B-Zone radiometric anomaly.
This is intended to expand this part of the deposit into the Inferred
Category. Finally, a fourth drill will be used to test new areas of
surface mineralization discovered on the property in 2009. A total of
2,000 m of drilling will be required for this part of the campaign.
It is anticipated that exploration crews will arrive on the property
sometimes in June. Quest intends to establish a permanent, winterized
camp installation on the property at project start-up so as to allow
Quest to explore on the property year-round.
Qualified Persons
Peter Cashin, P. Geo. is the Qualified Person on the Strange Lake
Project. Mr. Cashin has read and approved the disclosure of the
technical information in this news release.
Tim Maunula, P.Geo., Chief Geologist with Wardrop, is the Qualified
Person responsible for the mineral resource estimate. The effective
date of the resource is April 5, 2010.
About Quest Uranium
Quest Uranium Corporation is a Canadian-based, exploration company
focused on the identification and discovery of new world-class Rare
Earth deposit opportunities. The Corporation is publicly-listed on the
TSX Venture Exchange as "QUC" and is led by a
highly-respected management and technical team with a proven
mine-finding track record. Quest is currently advancing several
high-potential projects in Canada's premier exploration areas: the
Strange Lake area of northeastern Quebec, the Kenora area of
northwestern Ontario and the Plaster Rock area of northwestern New
Brunswick. Quest's 2009 exploration led to the discovery of a
significant new Rare Earth metal deposit, the B-Zone, on its Strange
Lake property in northeastern Quebec. The Corporation is currently
completing a 43-101 Resource Estimate and Metallurgical study as part
of an on-going economic evaluation of the deposit. Quest continues to
pursue high-value project opportunities throughout North America.
This news release contains statements that constitute
"forward-looking information" or "forward-looking
statements" within the meaning of applicable securities
legislation. This forward-looking information is subject to numerous
risks and uncertainties, certain of which are beyond the control of
Quest Uranium Corporation ("Quest"). Actual results or
achievements may differ materially from those expressed in, or implied
by, this forward-looking information. No assurance can be given that
any events anticipated by the forward-looking information will
transpire or occur, or if any of them do so, what benefits that Quest
will derive therefrom. Forward-looking information is based on the
estimates and opinions of Quest's management at the time the
information is released. Quest does not undertake any obligation to
update publicly or to revise any of the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.
Figure 1 - Strange Lake Project Location Map, Quebec is available at
the following web link: http://media3.marketwire.com/docs/quc407fig1.pdf.
Figure 2 - Geology and Mineralization Compilation Map, Strange Lake
Project, Quebec is available at the following web link: http://media3.marketwire.com/docs/quc407fig2.pdf.
Table 2 - Average Metal Oxides at Various TREO Cut-off Grades, B-Zone
Deposit, Strange Lake Project, Quebec is available at the following web
link: http://media3.marketwire.com/docs/quc407tab2.pdf.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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