Quest Uranium Corporation

Quest Uranium Corporation

October 15, 2009 08:00 ET

Quest: B-Zone Drilling Expands Resource Potential, Identifies New REE Mineralization Below Previously-Reported Holes, Strange Lake Project, Quebec

Highlights: - B-Zone drilling continues to expand the resource potential of the property, including the identification of a new area of REE mineralization below the deepest levels of previously reported drillholes - Multiple, high-grade intersections of between 1.11% and 2.52% REE+Y over widths of 3.0 and 89.5 m characterize all holes drilled into the zone, within a larger, 89.5-123.0 m-thick, mineralized envelope grading between 0.9%-1.11% REE+Y - These new drillholes confirm the resource expansion potential of the B-Zone in all directions, particularly at depth and down-plunge to the northeast

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2009) - Quest Uranium Corporation (TSX VENTURE:QUC) is pleased to report that additional assay results from diamond drilling of their B-Zone rare earth element (REE) deposit (see Press Release : September 23, 2009, Figure 1) continues to firm up the significant resource potential of the zone. Quest has now received strong REE drill assay grades over a minimum strike of 700 m of the 1.0 km strike length defined in drilling for the zone. The widths of the mineralized envelope have increased to at least 450 m (see Figure 2) and the mineralized envelope is at least 123.0 m in vertical thickness (up from 101.0 m). Lab results for holes BZ-09-004 to 008 returned multiple, high rare earth elements+yttrium (REE+Y) grade intersections of between 1.11 % and 2.52% over thicknesses of 3.0 m to 89.5 m. Heavy REE (HREE) represents between 34.8% and 60.7% of the Total REE (TREO) content intersected in the new drilling. This observation appears to be consistent with the HREE contents observed from all previous work on the zone. Strong values of zirconium (Zr), niobium (Nb), hafnium (Hf) and beryllium (Be) continue to characterize the REE intercepts and have the potential to contribute important resource value to the mineralized zone. Mineralization continues to be open to resource expansion in all directions. Drilling from these subsequent drillholes stopped in mineralization and gives inference of a new area of REE mineralization below the level of previously-reported holes.

"Definition drilling on the B-Zone continues to support management's view that the B-Zone potentially represents a very-large rare earth resource which would be potentially amenable to open-pit mining and is building to be much larger than the historical IOC deposit," said Peter Cashin, Quest's President & CEO. "The B-Zone's surface area and vertical thickness profile continues to expand and, as observed in lower third of hole BZ-09-006, drilling appears to be defining new, thick sections of good grade mineralization below previously-reported drillholes. This new area of mineralization will be tested in next year's exploration program through deepening our earlier drilling and will add important supplemental resources to the project. In addition, drill results are showing an important northeast-plunge to the highest grades and thickest sections returned thus far. Our crews are truly getting a handle on the controlling structures of the best mineralization observed and will be used to guide future drilling."

B-Zone Definition Drill Program

Assays have been received from five additional vertical drillholes totaling 584.0 m. Drill results have confirmed strong REE mineralization over 700 m of the 1.0 km strike length of the B-Zone defined in drilling and over widths of at least 450 m. Hole spacing of between 100 m and 200 m (see Figure 3) was used in the definition drill program. Drilling continues to confirm mineralization to be relatively flat-dipping and is exposed at the outcrop surface. Holes herein reported continue to intersect strongly mineralized pegmatites and intensely altered and mineralized granite. The existence of a deep zone of mineralization, as defined by hole BZ-09-006 (see Figure 4, 5, appears to open up a new area of resource potential below the bottom of previously-reported drillholes BZ-09-001 and -002. The surface footprint of the B-Zone mineralization is expressed as a two km-long, northeast-trending airborne radiometric anomaly northwest of the Strange Lake Main Deposit (historical resource estimate, pre-National Instrument 43-101; Venkatswaran, 1983 - 52 million tonnes @ 3.25% ZrO2, 0.56% Nb2O5, 0.66% Y2O3, 0.12% BeO and 1.30% TREO). The radiometric anomaly abuts to the northwest against Brisson Lake and may extend further under the lake. Historical IOC drilling indicates that mineralization continues in this direction.

The best results returned from the five more holes of the program, representing 584.0 m of drilling, are:

Borehole # From (m) To (m) Length (m) TREO + Y (%) HREE (%)

BZ-09-004 21.0 23.0 2.0 1.26 46.6
32.0 40.13 8.13 1.19 37.3
including 35.0 40.13 5.13 1.30 37.6

BZ-09-005 11.0 43.76 32.76 1.14 48.3
including 25.0 43.76 18.76 1.29 49.9
and including 25.0 34.0 9.0 1.21 49.4
and including 36.0 43.76 7.76 1.52 46.6
63.0 71.0 8.0 1.21 34.8
117.0 125.0 8.0 1.13 30.5
Note: Drill was stopped in mineralization at 125.0 m.

BZ-09-006 76.0 111.0 35.0 1.09 47.1
including 76.0 82.0 6.0 2.02 43.1
and including 94.0 97.0 3.0 1.36 49.1
and including 98.0 101.0 3.0 1.18 60.7
and including 107.0 111.0 4.0 1.13 43.0
Note: End of hole at 112.5 m, open to further exploration.

BZ-09-008 4.0 93.5 89.5 1.11 42.4
including 11.0 22.32 11.32 1.69 46.9
and including 28.93 33.0 4.07 2.52 48.9
and including 36.0 40.0 4.0 1.35 45.6
and including 55.0 58.0 4.0 1.27 53.2

Where: Be equals beryllium, Zr equals zirconium, Y equals yttrium, Nb equals niobium, La equals lanthanum, Ce equals cerium, Nd equals neodymium, Sm equals samarium, Pr equals praseodymium, Eu equals europium, Gd equals gadolinium, Tb equals terbium, Dy equals dysprosium, Lu equals lutetium, Tm equals thulium, LREE equals light rare earth elements, HREE equals heavy rare earth elements, TREE equals Total Rare Earth metals, TREO equals Total Rare Earth Oxides.

The B-Zone rocks continue to be characterized as highly hematite and specularite-altered and fluorite-mineralized Strange Lake alkali granite (see Figure 4). The principal rare earth minerals observed in the core are Zircon (Zr, Hf, silicate), Gittinsite (Zr, silicate), Xenotime (Y, HREE, phosphate), Pyrochlore (Nb, Ta, fluoride), Gadolinite (REE, Zr silicate) and Allanite (LREE silicate).

The better grades of mineralization appear to be related to the equigranular aplitic and pegmatitic phases of the host granite. The highly-altered granite hosting the aplites and pegmatites continues to carry elevated grades of REE over the entire length of the drilling. Strong bulk-grade intersections were returned from drillholes BZ-09-005 (1.0% REE+Y over 123.0 m) and BZ-09-006 (0.91% REE+Y over 108.5 m). In addition to REE, the mineralized zone has elevated concentrations of zirconium, niobium, beryllium, and hafnium which could add to the resource value of mineralization on the property. Bulk sampling of the B-Zone mineralization will be shipped soon to Hazen Research, Inc. of Golden, Colorado for pilot metallurgical testing during the winter period. It should be noted that Hazen was responsible for the successful metallurgical work completed for the Strange Lake deposit under contract to IOC in the 1980's.

43-101 Preliminary Resource Estimate

An inferred resource estimate for the B- and Main zones will be calculated once all of Quest's diamond drilling and core analysis work is completed and all exploration data from the 2009 program is compiled. The data will be handed over to Wardrop Engineering Inc., of Toronto, Ontario, in December for commencement of the work. It is anticipated that this resource estimate will be completed sometimes in the Q2 2010.

Quality Control

Mr. Peter Cashin, P. Geo., is the qualified person on the Strange Lake Project under National Instrument 43-101 and was responsible for this news release. Material for analysis has been obtained from drill core which was cut in half using a diamond saw. Half of the core was sent to the lab for analysis, with the remaining half left on-site for future reference. A strict QA/QC program is followed which includes the use of elemental standards, duplicates and blanks. Analyses were performed by Activation Laboratory Limited of Ancaster, Ontario.

The 1983 historical mineral resource estimate referred to in this press release was prepared before the introduction of National Instrument 43-101. No qualified person has undertaken sufficient work to classify this historical resource estimate as current mineral resources or mineral reserves. Accordingly, Quest is not treating the historical resource estimate as current mineral resources or mineral reserves, as defined in National Instrument 43-101, and the historical resource estimate referred to in this press release should not be relied upon.

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 Company 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 continues to pursue high-value project opportunities throughout North America.

This press release may contain "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward looking statements".

To view Figure 1 - Strange Lake Project Location Map, George River area, Quebec, please visit the following link:

To view Figure 2 - B-Zone REE Discovery Compilation and Proposed Drillhole Location Map, Strange Lake Project, Quebec, please visit the following link:

To view Figure 3 - B-Zone Drillhole Location Map, Strange Lake Project, Quebec, please visit the following link:

To view Figure 4 - B-Zone Drill Section, Strange Lake Project, Quebec, please visit the following link:

To view Figure 5 - B-Zone Drill Section, Oblique View, Strange Lake Project, Quebec, please visit the following link:

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