Northquest Ltd.
TSX VENTURE : NQ

Northquest Ltd.

August 22, 2011 13:26 ET

Northquest Ltd. Reports Surface Sampling Results and an Update on Diamond Drilling at the Pistol Bay Gold Project, Nunavut, Canada

TORONTO, ONTARIO--(Marketwire - Aug. 22, 2011) - Northquest Ltd. (TSX VENTURE:NQ) ("Northquest" or "the Company") announces that it has received partial, surface grab and channel sample results, and has completed 4 drill holes 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, ground magnetometer surveying, and drilling target selection and ranking has been ongoing since June 28, 2011. The results of some of the reconnaissance grab and channel samples collected in July, 2011, have been received and the highlights of the sampling are set out below. (Note: Au g/t means grams of gold per tonne).

Pistol Porphyry Gold Occurrence

The highlights of assay results of selected grab samples over a 700 metre strike length of the core area of the Pistol Porphyry gold occurrence are listed below. The Company is currently completing five diamond drill holes in this area.

Sample Au g/t Description
890655 3.86 Grab sample of altered feldspar porphyry with disseminated pyrite
890656 0.17 Grab sample of altered feldspar porphyry with disseminated pyrite
890657 3.25 Grab sample of altered feldspar porphyry with disseminated pyrite
890658 0.28 Grab sample of altered feldspar porphyry with disseminated pyrite
890659 4.33 Grab sample of altered feldspar porphyry with disseminated pyrite
890660 1.65 Grab sample of altered feldspar porphyry with disseminated pyrite
890661 0.40 Grab sample of altered feldspar porphyry with disseminated pyrite

Cooey Gold Occurrence

The Cooey occurrence is 8 kilometres southeast of the Pistol Porphyry occurrence. One metre long channel samples were collected from a single, small outcrop on the north limb of the 2,200 metre by 800 metre Cooey magnetic anomaly and selected grab samples were collected from outcrops of the well exposed south limb. The highlights of the assay results are listed below.

Sample Au g/t Description
890504 1.15 1 m long channel sample of iron formation with quartz veins and pyrite, north limb
890802 1.51 Grab sample of pyritic iron formation in contact with feldspar porphyry

Sako Gold Occurrence

The Sako occurrence is 4 kilometres south of the Pistol Porphyry occurrence and 4 kilometres northwest of the Cooey occurrence. Shear zone fabric indicates that the Sako and Cooey occurrence (north limb) are the same structure, however, there are few outcrops between the two gold occurrences. The Sako occurrence is in the axis of a fold nose in iron formation with a wavelength of over 2 kilometres. In the axis of the fold nose, dismembered blocks of iron formation and feldspar porphyry are crosscut by a 900 metre wide high strain zone of pyritic, sericite-carbonate schist with abundant pyritic gossan. Sampling highlights from a 200 by 300 metre area of mineralized outcrops indicate that gold is concentrated in all rock types. The sample highlights are listed below.

Sample Au g/t Description
890597 1.44 Grab sample of 0.5 m quartz-pyrite vein in sericitic shear zone
890598 5.07 Grab sample of 0.5 m quartz-pyrite vein in sericitic shear zone
890600 3.33 Grab sample of iron formation with carbonate and sericite in shear zone
890815 2.08 1 m channel sample of pyritic, sericite schist in shear zone

Bazooka Gold Occurrence

The Bazooka occurrence is a new discovery made in July, 2011. It is 20 kilometres west of the Sako and Cooey occurrences and consists of a single, small outcrop of pyritic, sulphidized iron formation cross cut by numerous, discordant, quartz-pyrite-carbonate veins. The airborne magnetic survey which was completed in April, 2011 indicates that this small outcrop is within a 4 by 9 kilometre area of intensely-folded iron formation which is not exposed in outcrop. A ground magnetometer survey and additional sampling are required to prepare the target for drilling. The sample results from the Bazooka occurrence are listed below.

Sample Au g/t Description
890870 1.58 Grab sample of iron formation with 10% secondary pyrite
890871 1.68 Grab sample of 20 cm quartz vein with 15% pyrite in iron formation
890872 8.07 Grab sample of 20 cm quartz vein with 80% pyrite in iron formation

Update on Diamond Drilling

The Company has completed 4 diamond drill holes (732 metres of drilling of an anticipated 2,500 metres of drilling since the commencement of drilling on August 12, 2011). All of the completed holes were drilled at the Pistol Porphyry gold occurrence. A siliceous breccia zone, varying in width from 20 to 30 metres (approximate true width), with disseminated grains and stringers of pyrite, hematite, and magnetite has been intersected in all of the holes. It is anticipated that a total of 5 holes, over a strike length of 150 metres, will be drilled at the Pistol Porphyry occurrence, before the drill moves to the Cooey occurrence. It is anticipated that 5 drill holes will be completed at the Cooey occurrence. Contingent upon the results of additional surface sample assays and completion of additional reconnaissance work, the Company may complete some drilling at the Sako occurrence. The Bazooka occurrence is a new discovery and the Company has not obtained the necessary permits to drill the occurrence this year, however, the Company intends to complete further reconnaissance and sampling at the Bazooka occurrence in preparation for drilling in 2012.

Jon North, President and CEO of the Company stated that "these initial results of surface sampling are an important validation of our original thinking about the nature and distribution of gold on the property. We are particularly interested in defining the grade and limits of the gold mineralization at the Pistol Porphyry, Cooey, and Sako occurrences. In addition, we are very interested in exploring and assessing the 4 kilometre long, 900 metre wide, gold-bearing shear zone corridor that connects the Cooey and Sako occurrences. Lastly, we are delighted to have made the new discovery at the Bazooka occurrence, some 20 kilometres west of the Sako/Cooey occurrence, which occurs in similar stratigraphy as the Sako/Cooey occurrence".

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.

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