Silver Quest Acquires Additonal Properties in the White Gold Area, Yukonadmin
Friday, August 21st 2009
Silver Quest Resources Ltd. announce that the Company has signed option agreements to acquire a 100% interest in the Sizzler and VO gold properties. The properties are located in the newly recognized White Gold area, approximately 120 kilometres south of Dawson City, Yukon. The principal target on each property is a near surface, bulk tonnage gold deposit, similar to the new discoveries on Underworld Resources Inc.’s White Gold property.
Pursuant to the two option agreements, the Company can acquire a 100% working interest in each property by making cash payments of $60,000 and issuing 800,000 shares per property to the Optionor. The initial $15,000 payment and first tranche of 200,000 shares on each property will be made following acceptance by the Exchange. The Optionor has retained a 2% net smelter return (“NSR”) royalty on each property, with the Company having the right to buyback one-half of each royalty for $1,000,000 within three years of the exercise of the option. In addition, should the Company complete a National Instrument 43-101 compliant resource estimate on either property reporting in excess of 100,000 ounces of gold in an indicated category, the Company will be required to make a one-time payment of $100,000 and issue 75,000 shares to the Optionor for such property. The option agreements are subject to acceptance by the TSX Venture Exchange (“Exchange”). All shares to be issued will be subject to a four month hold period trading restriction.
The Sizzler property comprises 36 claims (750 ha) and is located approximately 65 kilometres southeast of Underworld’s Golden Saddle discovery, just north of Cripple Creek. The Sizzler property was previously explored by Kerr Addison Mines Ltd. in 1985-86. Kerr Addison discovered quartz stringers, quartz stockworks and silicified breccias over a 1.7 square kilometer area, hosted in rhyolitic quartz feldspar dykes. Limited rock and soil sampling was completed with values in rock up to 1.06 grams per tonne (g/t) gold and up to 60 parts per billion (ppb) gold in soil samples.
The VO property also consists of 36 claims (750 ha) and is located on the north side of the Yukon River, approximately 15 kilometres northwest of the Golden Saddle discovery. The property is interpreted to be underlain by the same geological setting as the White Gold property.
Silver Quest is pleased to have acquired these additional prospective properties in this emerging gold district. A fall 2009 exploration program is planned to include geological mapping, geochemistry and trenching, directed at the definition of drill targets. Robert Weicker, P.Geo., is the Qualified Person as defined by National Instrument 43-101 for these projects and has verified and supervised preparation of the scientific and technical information in this release.