Northquest Ltd.
TSX VENTURE : NQ

Northquest Ltd.

June 28, 2011 09:00 ET

Northquest Ltd. Commences Exploration at the Pistol Bay Gold Project, Nunavut

TORONTO, ONTARIO--(Marketwire - June 28, 2011) - Northquest Ltd. (TSX VENTURE:NQ) ("Northquest" or "the Company") announces that it has commenced exploration at the Pistol Bay gold project, Nunavut.

The project consists of 1,100 square kilometres of mineral rights and Prospecting Permits located 80 kilometres south of the Meliadine Project of Agnico Eagle Mines which contains an estimated 5 million ounces of gold at a grade of 7.4 grams gold per tonne. The gold deposits at Meliadine are associated with banded iron formation.

At the Pistol Bay project, an airborne magnetometer survey, consisting of 3,800 kilometres of flight lines at 100 m spacing was completed in May, 2011. The results of the survey indicate that a highly contorted and faulted banded iron formation is present on the property for a strike length of over 50 kilometres.

There are at least two gold occurrences at or near the closures of folds in iron formation and there are at least two gold occurrences that are associated with altered porphyritic intrusions. Those targets are high priority targets for follow up sampling and drilling. It is anticipated that additional targets will be developed through a combination of geophysical targeting and ground follow up work in July.

This initial phase of ground exploration at the Pistol Bay Project will consist of geological mapping, sampling, and prospecting followed by target ranking and prioritization, and then approximately 2,500 metres of diamond drilling all of which is expected to be completed by the end of September, 2011. A 17 person camp on the property will provide accommodation for the exploration crew. The budget for this work is approximately 3 million dollars and the Company is fully capitalized to complete the work. Gold assay results and other relevant information will be released as it is received and verified.

Jon North, President and CEO of the Company stated that "the Company completed the first airborne magnetometer survey of this vast property in May. The survey confirms our initial interpretation that the geology of the project is the mirror image to the geology of the Meliadine Project of Agnico Eagle Mines. We are very optimistic that this first phase of ground-based exploration, including 2,500 metres of drilling, will confirm our prediction that gold will occur in these rocks in commercial concentrations".

Northquest is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of gold and other minerals. Northquest has 25,780,823 shares outstanding (38,710,034 on a fully diluted basis). For further information please visit www.northquest.biz.

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

  • Northquest Ltd.
    Dr. Jon North
    President and Chief Executive Officer
    (416) 306-0202

    Northquest Ltd.
    Tanya Mahadeo
    Investor Relations
    (416) 306-0486
    www.northquest.biz