Northquest Ltd.
TSX VENTURE : NQ

Northquest Ltd.

November 01, 2011 13:24 ET

Northquest Ltd. Reports High Gold Grades Up to 63.20 Grams Gold Per Tonne From Surface Samples and an Update on Diamond Drilling at the Pistol Bay Gold Project, Nunavut, Canada

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) - Northquest Ltd. (TSX VENTURE:NQ) ("Northquest" or "the Company") announces that it has received additional, surface sample results, and has completed 17 drill holes, totalling 2,515 metres, at the Pistol Bay Gold Project, Nunavut, Canada.

The project consists of approximately 1,100 square kilometres of mineral rights located approximately 60 kilometres south of Rankin Inlet, Nunavut, in the Rankin-Ennadai Greenstone Belt. The Pistol Bay Gold Project is within a mineralized corridor of rocks in an analogous geological setting to the Meliadine Gold Project of Agnico Eagle Mines located 80 kilometres to the north of the Pistol Bay Gold Project.

An airborne magnetometer survey of the Pistol Bay Gold Project was completed in April, 2011, and ground geological exploration work, consisting of mapping, sampling, and ground magnetometer surveying, was completed from July 1 to August 15th, 2011. The first phase of diamond drilling commenced on August 12, 2011 and was finished on September 23, 2011. The Company has retained the diamond drill on site and anticipates that the next phase of diamond drilling will commence in June, 2012.

The results of reconnaissance surface grab samples collected in August, from the Hourglass Lake Gold Occurrence have been received and the highlights of the sampling are set out below. The Hourglass Lake area consists of a 6.28 square kilometre staked claim 70 kilometres southwest of the main contiguous block of claims of the Pistol Bay project.

Hourglass Lake Gold Occurrence

During the 1980's, exploration geologists working for INCO discovered gold mineralization exceeding 1 gram gold per tonne in quartz veins and silicified basalt near Hourglass Lake. One of the gold-bearing zones was interpreted as a northeast-trending quartz vein stockwork with a strike length of 500 metres and a width of up to 1.5 metres. An aggregate assay of 49.2 grams gold per tonne was reported over 1.9 metres from a surface sample of this zone and a scout drilling program of 11 drill holes confirmed the continuity of the zone.

In the 2011 field season, Northquest Ltd. conducted sampling at Hourglass Lake in order to verify the location and grade of the surface samples reported by INCO more than 20 years ago. A total of 33 samples were collected from the largest quartz vein stockwork referred to herein as Zone 1 and from several other mineralized outcrops in the area of Zone 1.

The highlights of assay results of selected grab samples are set out below:

Sample Au g/t Description
891344 63.20 0.5 m chip sample from 1.5 metre wide pyritic Zone 1 quartz vein taken at the south end of Zone 1
891067 1.16 Pyritic gossan in silicified basalt located 150 m east of Zone 1
891069 3.24 Pyritic gossan in silicified basalt located 500 m east of Zone 1
891071 10.70 Pyritic gossan in silicified basalt with quartz veinlets located 750 m southeast of Zone 1
891073 1.75 Pyritic gossan in silicified basalt with quartz veinlets located 750 m southeast of Zone 1
891105 11.40 Chip sample from 1.5 metre wide Zone 1 quartz vein containing 1 to 2% pyrite and pyrrhotite (located 50 m northeast of sample 891344)
890950 11.95 Chip sample from 60 cm wide quartz vein located at the north end of Zone 1 (located 500 m north of sample 891344)
890947 1.02 Grab sample from 25 cm wide quartz vein located 500 m northwest of Zone 1
891410 54.60 Grab sample of gossanous basalt containing 2% combined chalcopyrite and pyrite at the interpreted location of Zone 1 (located 100 m northeast of sample 891344)
(Note: Au g/t means grams of gold per tonne).

Update on Diamond Drilling

The Company has completed 17 diamond drill holes (totalling 2,515 metres) at Pistol Bay. Six drill holes, totalling 1,053 metres, were drilled at the Pistol Porphyry gold occurrence, seven drill holes, totalling 829 metres, were drilled at the Cooey occurrence, and four drill holes, totalling 633 metres, were drilled at the Sako occurrence. It is anticipated that the Company will start to receive and verify drilling assays in November.

Jon North, President and CEO of the Company stated that "the surface sample results from Hourglass Lake include bonanza gold grades. This mineral occurrence adds to our inventory of drilling targets for 2012 which includes the new discovery of high grade gold in surface samples at the Bazooka occurrence. In addition, we are optimistic that the drilling results from the main claim block at Pistol Bay will require follow up drilling. Accordingly, we look forward to commencing our second phase of drilling on this project as soon as possible in 2012 on a mix of targets, including follow-up drilling targets and untested, high grade surface gold occurrences."

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.

Rock samples were analyzed by ALS Chemex analytical laboratory in Vancouver, Canada, by ALS method Au-GRA-21 which is fire assay with a gravimetric finish on a 30 gram sample charge. For analytical quality control, blank samples and commercially prepared and certified gold control standards with a range of grades are inserted at a frequency of one standard for every 10 samples and one blank for every 20 samples.

Information in this press release relating to exploration results is based on data collected under the supervision of Dwayne Car, P.Geo., who holds the position of Vice President, Exploration and is a Qualified Person within the meaning of National Instrument 43-101.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, metallurgical test results and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, political and country risk, and the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

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Contact Information

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

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