Exploration NQ inc.
TSX CROISSANCE : NQE

Exploration NQ inc.

13 avr. 2010 10h07 HE

Exploration NQ optionne la propriété Brouillan au nord-ouest de Carheil et jalonne 80 nouveaux claims

LAVAL, QUEBEC--(Marketwire - April 13, 2010) - Exploration NQ Inc. (TSX VENTURE:NQE) is pleased to announce that D'Arianne Resources Inc. (TSX-V: DAN) has granted NQ Exploration Inc. both an option on a 50% interest in the Brouillan property in consideration of the issuance of 700,000 shares and $500,000 in exploration expenses to be incurred over a four-year period, and an option on an additional 30% interest in consideration of the production of a Preliminary Assessment. 

The Brouillan property lies three kilometres northwest of NQ's Carheil property, in the northern part of the Abitibi region, a dozen kilometres from the old Selbaie mine (Rio Algom Limited, historical production of 53 million tonnes grading 0.96% copper, 1.90% zinc, 40.7 g/t silver and 0.58 g/t gold). The property consists of 15 claims covering 834 hectares. NQ negotiated the option on the Brouillan property in conjunction with the staking of 80 claims (2,864.10 hectares), to cover at least eight kilometres of the favourable Nordest zone horizon (see figure on NQ's website at www.explorationnq.com). As a result, NQ'S land holdings now cover a gravity anomaly (second derivative) with a coincident magnetic anomaly of about seven kilometres. The vast majority of Abitibi base metal deposits are found above or on the flanks of such anomalies.

The Brouillan property is primarily characterized by the presence of the contact between the felsic volcanic rocks and the mafic flows that represent the beginning of another Precambrian volcanic cycle. The felsic rocks at this contact form the host horizon of the copper-zinc-silver-gold mineralization of the Carheil property (see press release dated March 8, 2010). The base metal potential is enhanced by the results of reconnaissance work carried out by D'Arianne Resources in 2008, which showed the presence of strongly-silicified rhyolite outcrop hosting a sulphide stringer zone. In addition, a 50-kilometre VTEM (Versatil Time Domain Electro Magnetic) survey conducted on a 100-metre spacing identified multiple conductive anomalies, some of which do not appear to have been drilled. Moreover, compilation of all the earlier work revealed interesting gold potential in holes drilled in the 1980s, for which the best intersections were:

  • 24.99 g/t Au over 1.10 m, Hole D-2-20, 1988 BP Canada Resources Ltd.

  • 29.89 g/t Au over 0.60 m, Hole D-2-26, 1988 BP Canada Resources Ltd.

  • 8.26 g/t Au over 0.80 m, Hole D-2-27, 1988 BP Canada Resources Ltd.

Terms of the agreement:

Exploration and development - NQ must spend a cumulative sum of $500,000 on exploration and development on the property during the first option period in accordance with the following timetable:

On or before the first anniversary: $25,000
On or before the second anniversary: $100,000
On or before the third anniversary: $250,000
On or before the fourth anniversary: $500,000

Common share issue - NQ must issue a total of 700,000 common shares to D'Arianne, as follows:

On receipt of the required regulatory approvals: 50,000 shares
On the first anniversary: 50,000 shares
On the second anniversary: 100,000 shares
On the third anniversary: 200,000 shares
On the fourth anniversary: 300,000 shares

The issuance of all 700,000 common shares is subject to receipt of the required approvals from the TSX Venture Exchange (the "Exchange").

The first 50,000 common shares shall be issued at a deemed price of $0.20 per share. The remaining 650,000 common shares shall be issued in accordance with the timetable provided for, at a deemed price equal to the closing price of the common shares of NQ on the Exchange on the day preceding the issuance.

Once NQ has spent a cumulative amount of $500,000 on exploration and development work on the property and issued a total of 700,000 common shares to D'Arianne, it will be considered to have acquired a 50% undivided interest in the property (the "first effective date"). At the first effective date, the parties will form a joint venture to carry out joint exploration and development work, and, if appropriate, put the property into production, and will sign a joint venture agreement.

In the event of and immediately following the exercise of the first option, NQ will have the option of acquiring an additional 30% interest in the property (the "second option") for an additional period of two years following the first effective date (the "second option period") through the publication of a preliminary assessment on an "Indicated Mineral Resource" on the property, as defined in the CIM Definition Standards on Mineral Resources and Mineral Reserves, approved by CIM Counsel, as amended.

The preliminary assessment must comply with the requirements of Regulation 43-101 respecting standards of disclosure for mineral projects and include an economic analysis of the potential viability of the mineral resources, prior to the completion of a preliminary feasibility study (as defined in Regulation 43-101).

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a new mining exploration company with a solid portfolio of 15 mining properties in the James Bay and Abitibi regions of Quebec. NQ Exploration Inc. is betting on Quebec's excellent mineral potential and favourable investment climate to produce new world-class gold, base metal and uranium deposits.

La Bourse de croissance TSX et son fournisseur de services de réglementation (au sens attribué à ce terme dans les politiques de la Bourse de croissance TSX) n'assument aucune responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.

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