NQ Exploration Inc.
TSX VENTURE : NQE

NQ Exploration Inc.

December 01, 2011 11:56 ET

Analysis of the 2011 Summer Drilling Results on the Carheil Project

LAVAL, QUEBEC--(Marketwire - Dec. 1, 2011) - NQ Exploration Inc. (TSX VENTURE:NQE) is pleased to report on the final drill results from 2011 summer drilling at its Carheil project. During the summer months, the Company drilled 5,133 metres in 15 holes (C2011-18 to CA2011-32; CA2011-23 was abandoned before reaching the target). These holes tested the silver zone between surface (CA2011-18) and the 600-metre level (CA2011-24), with most of the holes drilled above the 400-metre level.

The main target of this drilling was the Ag1 zone, but, as felsic units are typically strongly altered and mineralized in sulphides (primarily pyrite, sphalerite, chalcopyrite and galena), most of the holes traversed most or all of the zone (120 to 180 metres true width). The typical alterations are silicification and sericitization (possibly albitization) in the upper half of the unit (with zinc, galena and silver) and chloritization in the lower half (with copper, zinc and gold). The felsic unit remains open in all directions, and continues to show intense alteration.

The drilling showed that the silver mineralization is present from surface (under some 20-30 metres of overburden) down to the 600-metre maximum vertical depth reached to date. Near surface, Ag1 zone grades are lower but zinc grades and thickness are significantly higher, for a metal factor (grade X thickness) equivalent to that seen more at depth, where silver values are higher but zinc grades fall and true thickness is generally smaller.

While the Ag1 zone did not return high grades in all the holes, it is almost always identifiable by anomalous values of Ag, Zn and Pb. In this sense, the continuity of the Ag1 zone is fairly remarkable and its geometry is straightforward: it occurs as a N116°-striking panel with a steady dip of 62° south and an average thickness of about 6 metres. This average thickness can vary considerably depending on the cutoff grade used. The boundaries of the Ag1 zone are not well-defined and depend more on grade, with its hangingwall and footwall almost always mineralized. NQ has only drilled along a strike length of about 300 metres, with the highest density of holes lying within a 200-metre stretch.

While the Nordest showing generally lies in a VMS (volcanogenic massive sulphide) setting with many of the holes showing the occurrence of massive to semi-massive pyrite near the top of the felsic unit, the origin of the precious metals (Ag and Au) remains unclear, as there is no direct association between the sulphides and the precious metals, nor any shear zone associated with the mineralization. The deposition model for the Ag1 zone, which is generally tabular and subconcordant with the stratigraphy, has therefore not yet been determined.

In addition to the Ag1 zone, which was intersected about 40 metres into and near the top of the felsic unit, the holes intersected other, likely parallel zones that returned good gold, copper and silver grades. Additional drilling is needed to outline and characterize these zones.

The following table shows all the significant results obtained by NQ Exploration since 2009. The final column on the right shows the equivalent silver (eAg) grade calculated using the formula and parameters found below the table.

Hole From To Length Cu Pb Zn Au Ag eAg
# m m m % % % g/t g/t g/t
CA2009-01 186.16 189.16 3.00 0.03 0.03 1.70 0.19 34.20 76
CA2009-02 198.75 205.25 6.50 0.01 0.26 0.83 0.31 107.60 141
CA2009-04 213.00 217.5 4.50 0.01 0.08 0.32 0.08 170.70 177
CA2009-05 389.5 425.00 35.5 0.72 0.09 170.70 183
including 414.50 425.00 10.50 0.02 0.72 1.58 0.14 524.14 558
CA2009-06 511.50 513.00 1.50 0.02 0.18 0.50 0.82 85.20 138
CA2010-08 481.00 485.5 4.50 0.01 0.05 0.26 0.05 60.30 67
CA2010-09 567.00 589.00 24.00 0.01 0.22 0.47 0.18 160.00 178
including 567.00 574.25 7.25 0.64 0.15 257.90 269
CA2011-11 484.85 488.45 3.60 0.04 1.14 2.71 0.27 89.70 173
CA2011-13 583.5 585.15 1.65 0.02 0.26 0.93 1.19 204.10 282
605.0 611.2 6.2 0.46 3.74 38.80 238
CA2011-14 341.00 348.00 7.00 0.01 0.32 0.87 0.26 231.70 260
CA2011-15 484.70 491.00 6.30 0.02 0.35 0.81 0.24 281.10 307
CA2011-17 129 131.7 2.7 0.73 0.02 1.51 0.18 82.3 168
130.2 130.4 0.2 7.24 1.27 0.16 603
CA2011-18 48.00 64.00 16.00 0.00 0.23 0.68 0.00 89.8 103
CA2011-20 174.00 180.00 6.00 0.08 0.03 0.64 0.18 58.0 83
CA2011-21 310.50 319.50 9.00 0.00 0.24 0.80 0.19 210.0 232
CA2011-22 350.30 369.00 18.70 0.00 0.11 0.27 0.03 77.6 84
including 356.30 357.80 1.50 0.01 0.41 1.01 0.12 447.0 466
CA2011-24 685.80 687.80 2.00 1.38 0.21 4.43 0.30 106.9 300
including 686.80 687.80 1.00 2.71 0.32 6.89 0.49 203.0 543
CA2011-25 276.00 277.50 1.50 0.01 0.08 0.40 0.49 82.9 115
CA2011-27 204.00 207.00 3.00 0.01 0.37 3.24 0.02 99.6 164
CA2011-29 96.00 110.00 14.00 0.056 0.49 2.55 0.056 71.2 131
including 107.65 109.15 1.50 0.07 3.35 17.25 0.071 210.0 584
CA2011-30 228.20 243.20 15.00 0.016 0.24 2.52 0.023 33.1 84

1 The lengths shown are core lengths. On the basis of current information, true widths would be 75-85% of these lengths.

² The eAg designation refers to "silver equivalent", which is calculated using the following parameters: 1 oz/ton = 34.28 g/tonne; Copper = US $3.29/lb, Zinc = US $0.84/lb; Lead = US $0.86/lb, Gold = $1,646/oz, Silver = $31/oz. This value is used as a guide for exploration, and does not take into account metallurgical recovery. It shows the value of a given metal in terms of g/t Ag. Metals prices = market prices on October 18, 2011.

Silver equivalent (eAg) = (((%Cu*20*$3.29)+(%Pb*20*$0.86)+(%Zn*20*$0.84)+(g/tAg/34.28)*$31+(g/tAu/34.28)*$1,646)/$32)*34.28

The Company is now preparing for its winter 2012 drilling program, which will target the western extension of the Ag1 zone, as well as its extension at depth below the 600-metre level. The western extension appears to be enriched in zinc, while the extension at depth seems to be enriched in precious metals. The program will also test a gold zone at depth.

Assays were performed by the ALS Chemex laboratory in Val-d'Or, Quebec and AGAT Laboratories in Mississauga, Ontario. All samples are assayed using two methods: 1 - for gold, first by fire assay with an FA-AA23 finish, then for results over 1 g/t rerun by fire assay with AU-GRA21 gravity finish; 2 - for 35 elements using multi-acid ICP (ME-ICP61), then for results over 50 ppm silver rerun using fire assay Ag-GRA21, and/or over 10,000 ppm Cu/Mo/Pb/Zn rerun using the ore grade method (OG46) with aqua regia digestion and ICP-AES finish.

Pierre O'Dowd, geologist and Vice President, Exploration of NQ Exploration, has reviewed the technical content of this press release. Mr. O'Dowd is a qualified person under Regulation 43-101 respecting standards of disclosure for mineral projects.

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a mining exploration company with a solid portfolio of 11 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, silver and base metal deposits.

Neither the 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.

Contact Information