NQ Exploration Inc.
TSX VENTURE : NQE

NQ Exploration Inc.

January 10, 2011 10:00 ET

NQ Exploration Begins Drilling on Its Carheil Project Located to the Southwest of the Old Selbaie Mine

LAVAL, QUEBEC--(Marketwire - Jan. 10, 2011) - NQ EXPLORATION INC. (TSX VENTURE:NQE) is pleased to announce that it has started a major drilling program on the Carheil property, located 6 km southwest of the old Selbaie Mine (historical production of 53 million tonnes at 1.0% Cu, 1.9% Zn, 41 g/t Ag and 0.6 g/t Au, ref. activity report DV-2005-01). A total of 5,000 metres will be drilled on the NORDEST polymetallic showing, which returned a grade of 1.59% zinc and 524 g/t silver over a true width of 7.3 metres last winter from Hole CA2009-05.

This is the third drilling program carried out by NQ on the Nordest showing of the Carheil property. In early 2009, the Company drill-tested polymetallic mineralization associated with the top of intermediate-to felsic units lying parallel to and on top of the host rock of the old Selbaie mine. This mineralization was identified by drilling in the 1990s by the consortium of Billiton Metals Canada Inc. and James Bay Development Corporation. The best intersection was 3.67% Zn over 2.4 metres in Hole B-906. The holes drilled at that time were very shallow, and were aimed at locating a new near surface polymetallic deposit.

The mineralization intersected is similar in nature to the Selbaie mine ore, but is associated with a different volcanic cycle. Very little exploration has been done on this cycle to date. The three holes drilled by NQ in early 2009 tested this showing at a vertical depth of about 200 metres, and showed that the grades, thickness of the mineralized envelope and intensity of the alteration increase with depth.

Encouraged by these results, the Company carried out a second program in late 2009-early 2010. NQ tested the depth extensions of this copper, zinc, silver and gold mineralization and discovered that all the geological parameters favourable to a volcanogenic massive sulphide (VMS) deposit are present and improved at depth, below the 400 m level. These parameters include:

  • The presence of a felsic agglomerate (proximal volcanism)

  • The appearance of massive black chlorite alteration (proximal alteration)

  • An increase in grade and thickness of the sulphide veinlets (alteration pipe)

  • Economic grades of silver, copper, zinc or gold over significant widths.

The following table provides a summary of the best grades obtained in NQ's first two drilling programs on the NORDEST showing:

Hole # Vert. Width (m)   Zn Ag Cu Au
  Depth T.W.(1)   % g/t % g/t
    (along the hole)          
 
CA2009-01 172 73 (78.20 ) 0.78 8.9 0.08 0.04
 
CA2009-02 185 83 (111.75 ) 0.40 16.9 0.02 0.06
Including 175 8.1 (10.90 ) 0.65 74.0 0.01 0.22
 
CA2009-04 235 73 (118.50 ) 0.40 27.7 0.02 0.08
Including 228 7.1 (11.50 ) 1.29 43.4 0.02 0.28
 
CA2009-05 450 106 (147.3 ) 0.43 44.4 0.04 0.04
Including 410 7.3 (10.50 ) 1.59 524 0.02 0.14
 
CA2009-07 340 17.8 (22.2 ) 0.26 5.8 0.26 0.40
Including 340 1.0 (1.30 ) 0.26 18.5 1.78 4.78
 
CA2010-09 600 138.9 (167.6 ) 0.30 27.8 0.03 0.13
Including 545 6.0 (7.25 ) 0.64 266 0.02 0.15
  560 2.0 (2.45 ) 0.38 296 0.01 0.46
  592 1.7 (2.00 ) 1.08 15.5 0.02 2.55
(1)true width              

These new intersections from the NORDEST showing confirm the similarity with the ore at the old Selbaie mine, in terms of the style of mineralization and grades. All the grades obtained are associated with a sulphide stockwork belonging to an alteration pipe; no massive sulphide zones associated with this pipe have yet been discovered. Structurally, the showing is located in a separate volcanic cycle overlying the one related to of the old mine. NQ now controls nearly 8 km of this favourable, still relatively unexplored and poorly understood horizon. Another felsic unit favourable to the deposition of VMS-type deposits was also identified recently directly west of the properties and could extend onto both the Carheil property and the Brouillan West property, held under option from Arianne Resources (northwest of Carheil). A compilation is underway to define drill targets on the two properties (totalling 4784.6 hectares).

NQ's top priority is to continue drilling the NORDEST showing. The NQ team is therefore launching a 5,000-metre drilling program to continue outlining the polymetallic mineralization. The Company has opted for a 50-metre by 50-metre drill grid to properly delineate the mineralization around the best intersections obtained to date. The extension at depth will be prioritized as all the geological indicators point in this direction. Down-hole geophysics will be performed if necessary. Drilling will continue until March 2011, and will be supervised by geologist Guy Parent.

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a mining exploration company with a solid portfolio of 15 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, base metal and uranium deposits.

The technical content of this press release has been checked by Pierre O'Dowd, geologist and vice president of exploration for NQ Exploration Inc. Mr. O'Dowd is a qualified person under Regulation 43-101 respecting standards of disclosure for mineral projects.

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

  • NQ Exploration Inc.
    David Grondin
    President and Chief Executive Officer
    514-206-7727
    www.explorationnq.com