NQ Exploration Inc.
TSX VENTURE : NQE

NQ Exploration Inc.

July 07, 2010 12:59 ET

NQ Exploration Options Off Its Duncan West Property to Murray Brooks Minerals

LAVAL, QUEBEC--(Marketwire - July 7, 2010) - NQ Exploration Inc. (TSX VENTURE:NQE) is pleased to announce that it has signed a letter of intent granting Murray Brooks Minerals an option to acquire a 50% interest in the Duncan West property in consideration of 300,000 shares, $45,000 in cash payments and $1,400,000 in exploration over three years. Murray Brooks Minerals will subsequently have the option of acquiring an additional 30% interest by incurring another $1,400,000 in exploration expenditures over two years and issuing 200,000 more shares.

The Duncan project consists of two claim blocks, Duncan East and Duncan West. It lies about 35 km south of Radisson, in the James Bay region of Quebec. The Duncan West project consists of 165 map-designated claims covering an area of 84.49 km2. The claims are wholly-owned by NQ Exploration Inc., with some of them subject to a 2% NSR royalty.

The property lies a few kilometres from the sheared contact between the Bienville and La Grande geological sub-provinces. The basement rocks of the project are characterized by sheared basalt flows, iron formations and varied, sometimes sheared intrusions of the La Grande geological sub-province.

Two regional lake sediment geochemical surveys carried out in the 1970s and 2007 covered the two blocks and identified numerous anomalous gold, copper and silver values.

In July 2008, NQ Exploration Inc. carried out prospecting and reconnaissance geology on the property. This work identified two new gold showings, one zinc showing and eight zones, of kilometric dimension, anomalous in gold and Cu-Zn. The following table shows the most significant grab samples:

Grab Lithology Au   Ag   Cu   Zn  
sample   (g/t ) (g/t ) (ppm ) (ppm )
69608 Serecite schist and carbonate 3.45   1.40   tr*   381  
69699 Quartz vein 3.32   0.50   15   26  
                   
69690 Felsic tuff tr   0.40   2,183   249  
69680 Graphitic argillite tr   3.40   930   11,500  
* tr = trace  

All the zones and showings lie near INPUT anomalies, and numerous zinc and copper anomalies are found in the lake bottom sediments, glacially downstream from the anomalies. In 2008, NQ Exploration Inc. carried out additional prospecting work in the areas. A total of 54 additional grab samples and 11 channel sampleswere collected. Assay results ranged from below detectable limits to 1.3 g/t Au over 1 metre. A new showing was also discovered: one grab sample on a gabbro outcrop returned a value of 4.6% Cu.

The geological, geochemical and geophysical data suggests an environment favourable to the discovery of volcanogenic copper/zinc deposits, as well as orogenic-type gold deposits.

Terms of the agreement:

Exploration and development - Murray Brooks Minerals has undertaken to spend a total of $1,400,000 on exploration and development on the property during the first option period in accordance with the following timetable:

On or before the first anniversary: $600,000
On or before the second anniversary: $400,000
On or before the third anniversary: $400,000

Murray Brooks Minerals has also undertaken to produce a 43-101 technical report on the property after Year 2. Once the Year 3 exploration work is completed, Murray Brooks Minerals will have 30 days to decide whether to exercise its option to acquire an additional 30% interest by incurring $1,400,000 in exploration expenditures over the ensuing two years ($500,000 the first year and $900,000 the second year).

Common share issue - Murray Brooks Minerals must issue a total of 300,000 common shares to NQ Exploration Inc., subject to the required regulatory approvals. These shares will be issued at a deemed price of $0.20 per share. Should Murray Brooks Minerals elect to exercise its option to acquire an additional 30% interest, it shall issue another 200,000 shares to NQ Exploration Inc. 

Payment - Murray Brooks Minerals shall pay a total of $45,000 over the next three years, as follows:

On the first anniversary: $10,000
On the second anniversary: $15,000
On the third anniversary: $20,000

Once Murray Brooks Minerals has spent a total of $1,400,000 in exploration and development on the property, issued a total of 300,000 common shares and made the required $45,000 in cash payments to NQ Exploration Inc., it will be deemed to have acquired a 50% undivided interest in the property. 

Jacquelin Gauthier, a geological engineer, Vice President, Exploration and a qualified person under Regulation 43-101 respecting standards of disclosure for mineral projects, wrote and approved the technical content of this press release.

On June 14, 2010, the Company announced that NQ would issue 86,543 common shares at $0.17 per share to Société de développement de la Baie-James ("SDBJ") in payment of $14,712.33 in interest due on the Debenture. This should have read: 87,993 common shares at $0.17 per share in payment of $14,959 in interest on the Debenture.

ABOUT NQ EXPLORATION INC.

NQ Exploration Inc. is a new mining exploration company with a solid portfolio of 16 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. 

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