Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

January 18, 2010 08:30 ET

Silver Quest Provides Technical Summary of Prospector Mountain Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2010) - Silver Quest Resources (TSX VENTURE:SQI) ("Silver Quest" or "the Company") is pleased to provide a summary of the exploration activity and results completed by Tarsis Resources Ltd. ("Tarsis") on the Prospector Mountain property, located 90 kms northeast of Carmacks, Yukon. Silver Quest optioned the Prospector Mountain property from Tarsis in December (see news release dated December 15, 2009). For further information on this project please see the Tarsis news release dated November 17, 2009. For more information on Silver Quest's Yukon properties please visit the Company's website, www.silverquest.ca.

Geology
The property lies within the Dawson Range, an unglaciated portion of the Tintina Gold Belt. A high-level porphyry copper-gold system is believed to underlie the eastern part of the property with peripheral epithermal gold-silver-lead veins occurring in the western part of the property.

The claims are underlain by Late Cretaceous to early Tertiary Carmacks Suite volcanic rocks that are intruded by early Tertiary monzonite of the Prospector Mountain Suite. All rocks have been cut by northwest to northeast trending structures that appear as recessive topographic lineaments.

Exploration
Porphyry and epithermal vein style mineralization were identified within the current property boundaries during historical exploration conducted between the 1960's and the 1990's. Tarsis carried out a three phase exploration program during 2009. 

Phase I Results
Porphyry style alteration mapping and prospecting were conducted within a 4 square km area west and southwest of Prospector Mountain in Phase I. This area is centred on a 1,500 m long copper-in-soil geochemical anomaly (100 to 250 ppm) which occurs near the contact between the Carmacks Suite volcanic rocks and the Prospector Mountain Suite monzonite. Prospecting focused on vein style mineralization, which is often associated with porphyry systems.

Significant assay results from rock talus sampling are summarized in the following table.

Table I – Porphyry Target

Sample # Description Au (g/t) Ag (g/t) Cu (%) Pb (%)
H884005 Clay altered monzonite with limonite pits and grey-white glassy quartz veinlets 3.10 206 0.04 0.42
H884006 Weakly banded rusty weathering white to clear quartz vein with weak residual pyrite 1.10 217 0.04 0.31
H884011 Clear to white rusty quartz vein with goethite coatings and trace residual pyrite 18.5 31.2 0.44 0.06
H884012 Manganiferous limonitic siderite with botryoidal malachite surface coatings 27.6 182 1.37 0.13
H884035 Manganiferous and limonitic quartz-anglesite-galena vein 1.85 910 0.19 28.01

Eleven chip samples were collected across vein zones and adjacent clay altered selvages exposed in four historical (1980) trenches on the western part of the property. The following table lists selected weighted average grades for the sampled vein zones.

Table II – Vein Target

Area-Trench Width (m) Au (g/t) Ag (g/t) Pb (%)
Area C - Trench 01 0.67 2.86 506 30.7
Area C – Trench 02 0.72 0.83 7.93 0.27
Area C – Trench 03 0.83 2.99 54.89 2.27
  including 0.27 7.12 58.40 2.77
Area D – Trench 04 1.15 2.67 217 5.09
  including 0.15 17.35 557 24.49

Phase II Results
Phase II work focused on reassessing four historical vein zones sampled during Phase I. This follow-up exploration was performed within a nine square km area on the west side of the property. One hundred six chip samples were collected across vein zones exposed within twenty-one trenches in four areas, labeled A through D. These vein zones are associated with 11 topographic lineaments; more than 100 lineaments have been mapped in this part of the property. Highlights from the Phase II re-sampling include:

0.70 g/t Au, 1840 g/t Ag, 28.78% Pb across 0.72 m Area A
0.73 g/t Au, 196 g/t Ag, 7.03% Pb across 1.16 m Area C
2.02 g/t Au, 58.9 g/t Ag, 2.38% Pb across 0.54 m Area C
3.51 g/t Au, 613 g/t Ag, 28.94% Pb across 0.17 m Area D

Fifteen recessive lineaments were investigated beyond the limits of the historical bulldozer trenching by a series of auger soil sample lines. Sample results show anomalous silver-in-soil concentrations along strike from existing trenches. One soil sample contained 3.37 g/t gold. None of the 2009 auger soil sample anomalies have received follow-up work.

Phase III Results
Exploration during this final phase of 2009 work concentrated on the historical porphyry target in the eastern part of the claim block, where cursory Phase I prospecting had earlier produced one sample which assayed 27.6 g/t gold and 1.37% copper, and another sample that assayed 910 g/t silver and 28.0% lead. Twenty-seven rock samples were collected during Phase III; twenty-two of these were taken from a 1,000 by 400 m north trending corridor that is referred to as the Bonanza Zone. Highlights from sampling a series of high grade gold-silver-copper showings discovered within the Bonanza Zone include:

82.8 g/t Au, 299 g/t Ag and 1.49% Cu
14.0 g/t Au, 1340 g/t Ag and 11.65% Cu
55.7 g/t Au, 1375 g/t Ag and 7.38% Cu
82.2 g/t Au, 888 g/t Ag and 5.97% Cu

The Bonanza Zone showings occur along a north-westerly structural trend near the contact between potassic altered Prospector Mountain Suite monzonite and overlying Carmacks Suite volcanic rocks. Mineralized quartz vein and breccia material contains varying amounts of hematite, tourmaline, hematized siderite and limonite. A number of samples also contain malachite and azurite. Most samples from the Bonanza Zone contain elevated concentrations of bismuth, arsenic, antimony and lead.

The Hart Showing was also discovered during Phase III work. One sample from this showing, located one km southwest of the Bonanza Zone, contained 5.61 g/t gold, 65.8 g/t silver, 0.34% copper and greater than 1% arsenic.

A follow-up exploration program of sampling, prospecting, trenching, geophysics and drilling is being planned for the 2010 field season.

The technical information in this news release has been reviewed by the Company's Vice President-Exploration, Mr. David Pawliuk, P.Geo.

SILVER QUEST RESOURCES LTD.

"Randy Turner"

Randy Turner, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

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