Quest Uranium Corporation
TSX VENTURE : QUC

Quest Uranium Corporation

April 07, 2009 08:30 ET

Quest Uranium Adds Rare Earth Metals in Its Search for New Resources

- Prospecting on the Stewart Lake property in 2008 led to the discovery of a Rare Earth Element (REE) mineralized granitic body returning appreciable quantities of REE, zirconium, yttrium, niobium and uranium - This new discovery lies approximately 10 km northeast of the Strange Lake zirconium-yttrium- REE deposit - The intimate association of REE with uranium in magmatic geological environments observed in the George River property area makes them a natural exploration value opportunity - Summer prospecting programs are being planned to expand the areas of known REE mineralization in the George River area, Quebec

TORONTO, ONTARIO--(Marketwire - April 7, 2009) - Quest Uranium Corporation (TSX VENTURE:QUC) announces that it intends to expand its exploration efforts to include high-value Rare Earth Elements (REE) on the list of commodities of interest for the Corporation. Success in the identification of highly-favourable REE targets in the George River area and the recognition of their intimate association with uranium in granitic geological environments on its Quebec and Ontario projects logically supports their inclusion.

Quest previously reported (see Press Release - November 20, 2008) that prospecting crews discovered uranium (U), zirconium (Zr), yttrium (Y), niobium (Nb) and Rare Earth Element (REE) mineralization associated with a course-grained granitic body within the Stewart Lake claim block (Figure 1). The mineralized granite is associated with a large radiometric anomaly measuring 2.25 km by 1.5 km. Several grab samples from preliminary work over the target area returned combined Y oxide (Y2O3) and Total Rare Earth Element oxides (TREO) of up to 4.35%. Individual uranium (U3O8) and zirconium (ZrO2) analyses of up to 0.36% and 1.34%, respectively, were also returned from sampling of the granite. In addition, Quest holds the Quebec portion of the Strange Lake REE-Zr-Y-Nb-Beryllium (Be) deposit discovered by the Iron Ore Company of Canada in the late 1970's (historical resource estimate, pre-National Instrument 43-101; Venkatswaran, 1983 - 52 million tonnes @ 3.25% ZrO2, 0.56% Nb2O5, 0.66% Y2O3, 0.12% BeO and 1.30% TREO). Quest's new REE discovery lies approximately 10 km northeast of the Strange Lake deposit.

"Management is confident that the natural occurrence of REE in the environments that are the focus of our uranium exploration programs will provide Quest with a high-value resource opportunity," said Peter Cashin, Quest's President & CEO. "The discovery of important concentrations of rare earth metals on the Stewart Lake property underlines this point and adds a significant new dimension to the economic potential of the area and to our global exploration efforts."

Understanding the Rare Earth Metal Market - A Significant New Prospect Avenue
The discovery of significant grades of rare earth metals in the George River belt, northeastern Quebec, has driven Quest to seek understanding of this new, highly-valuable set of metallic commodities (Table 2) and to broaden its mineral asset base. Rare Earth Elements (REE) are a series of 15 metals integral to the automotive, high-tech, nanotechnology and aerospace industries. Currently, 97% of the world's rare earth metals are produced in China, whose abundant resources and low production costs have made it a key source of these metals. China has placed strict controls on REE mining, production and export in order to maximise its own use of the resources.

During the 1990s and early 2000s, significant production surpluses and coincident low REE prices led to most non-Chinese rare earth producers ceasing their operations and almost exclusive reliance on China supplies. With curbing of exports from China and continued growth demand elsewhere, the supply-demand deficit is causing great concern to major REE consuming countries (Japan, Korea, Taiwan, United States), and they are anxious to identify new sources of rare earths. With excellent prospects for growth in the hybrid auto battery manufacturing, aerospace and electronics industries, demand growth in REE of 8-11% per year is projected. There is a pressing need for new non-Chinese production capacity in the next three to five years.

On the basis that China will adhere to the announced production and export limits, there is a real prospect that, within five to ten years, the country will produce material only sufficient to satisfy domestic consumption. To meet the estimated global demand of 180-190,000t REO in 2010, around 40,000t of new capacity will be needed to meet the unfulfilled demand from outside China. In addition, it is estimated that world demand could reach 230,000 tonnes of REE per year by 2013, up from 135,000 tonnes in 2008. Primary production is unlikely to keep pace with the increasing demand.

Stewart Lake Property REE Results

The Stewart Lake property (Figure 1) has been the object of reconnaissance exploration since discovery of extensive areas of uranium mineralization in 2006. Quest returned bedrock grab samples grading up to 0.804% U3O8 (16.1 lbs/t). It comprises numerous uraniferous outcrops, subcrops and large boulders traced by prospecting over a distance of approximately 2.5 km and over a width of up to 700 m. In 2008, systematic follow-up to known uranium mineralization led to the discovery of significant concentrations of REE (Table 1) approximately 3.5 km west of the Stewart Lake in occurrence. Mineralization is associated a large granitic body. The individual analyses, although of a preliminary nature, compare favourably with known Canadian REE resources, namely the Strange Lake REE-Zr-Y deposit in Quebec and Avalon Ventures' Thor Lake REE-Zr-Y-Be (beryllium) deposit, Northwest Territories. Re-evaluation of Quest's substantial regional exploration database (2006-2008) for the George River area has led to the identification of at least five additional REE exploration target areas in the belt requiring further exploration.

In December 2008, Quest commissioned Dr. Eva Schandl of GeoConsult Limited to complete a preliminary mineralogical study of the REE-bearing samples collected from the Stewart Lake area. The objective was to determine the mineralogy of the samples using an electron microprobe. Polished thin sections were studied under transmitted and reflected lights, and an ETEC electron microprobe at the Department of Geology, University of Toronto, Ontario. Dr. Schandl concluded that the suite of rocks was enriched in REE and high field strength elements. The following accessory minerals identified in the suite reflect the abundance of the trace and Rare Earth Elements observed in the rock samples.



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Zircon (Zr, Hf) Gittinsite (Zr) Xenotime (Y, HREE)
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Euxenite Ashanite Fergusonite
(Nb, Ta, Y, HREE) (Nb, Ta, U, LREE) (Nb, Y, REE)
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Pyrochlore (Nb, Ta) U-Nb silicate (U, Nb, LREE) Ferrithorite (Th)
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Where: Zr equals zirconium, Hf equals hafnium, Y equals yttrium, Nb equals niobium, Ta equals tantalum, U equals uranium, Th equals thorium, La equals lanthanum, Ce equals cerium, Nd equals neodymium, Sm equals samarium, Pr equals praseodymium, Eu equals europium, Gd equals gadolinium, Tb equals terbium, Dy equals dysprosium, Lu equals lutetium, Tm equals thulium, LREE equals light rare earth elements, HREE equals heavy rare earth elements

Table 1 - Significant REE Grab Sample Assays, Stewart Lake West, George River, Quebec



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Y Zr La Nb Ce Pr Nd Sm Eu Gd Tb
Sample Area -----------------------------------------------------------
# ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
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202183 Stewart
West 16500 4520 1650 2610 4890 723 3300 933 10.7 1350 306
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202393 Stewart
West 9890 5070 618 2090 1780 231 1210 395 4.78 701 170
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202394 Stewart
West 2210 4460 805 239 2200 312 1400 371 3.4 354 59.8
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202395 Stewart
West 9470 9900 1360 1370 4020 622 2900 844 8.84 917 194
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202396 Stewart
West 6810 9400 1040 962 3130 437 2090 604 6.64 729 142
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707576 Stewart
West 249 3450 390 120 916 119 449 103 4.26 85.1 11.3
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707615 Stewart
West 119 3392 388 136 848 100 342 71.8 3.39 46.7 5.7
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707668 Stewart
West 209 10470 334 49 782 101 380 89.8 4.42 62.4 9.1
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202186 Strange
Lake 2740 23000 793 3220 1860 197 710 167 11.7 224 61.9
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202511 Strange
Lake 1870 24800 760 3430 1780 181 568 109 6.78 115 35.9
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707801 Strange
Lake 8740 28780 1160 5740 2950 321 1390 370 32.2 582 177
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362627 Strange
West 247 377 1440 155 2910 327 897 161 3.34 96.7 12.6
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Dy Ho Er Tm Yb Lu Hf Th U F
Sample Area -----------------------------------------------------
# ppm ppm ppm ppm ppm ppm ppm ppm ppm %
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202183 Stewart West 2080 411 1260 191 1310 215 307 3570 2390 0.04
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202393 Stewart West 1200 246 762 122 840 127 328 2320 1420 0.02
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202394 Stewart West 343 62.4 181 29 193 28.9 248 1220 1380 0.04
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202395 Stewart West 1270 251 769 125 844 127 586 3210 2830 0.03
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202396 Stewart West 897 172 522 87.1 578 85.4 514 2960 3070 0.02
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707576 Stewart West 58 10.5 29 3.78 22.4 3.29 101 1340 2220
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707615 Stewart West 26.7 4.6 12.4 1.72 10.9 1.74 122 716 395
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707668 Stewart West 48.6 9.5 28 4.1 27.3 4.71 397 2160 3900
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202186 Strange Lake 487 124 422 75.5 533 76.5 718 537 66.4 0.42
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202511 Strange Lake 323 89.8 351 70.7 532 78.9 747 408 69.2 0.32
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707801 Strange Lake 1480 364 1210 187 1120 148 600 1630 198
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362627 Strange West 58.4 9.1 21.6 2.76 15.5 1.91 12.2 806 259 0.52
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(1) Assays performed by Actlabs of Ancaster, Ontario using the Delayed
Neutron Count Method (DNC) and Fusion-XRF finish. A value of 10,000 ppm
is the equivalent of a concentration of 1% of the metal.


Table 2 - REE Metal Oxides, Principal Uses and Prices is available at the following web link: http://media3.marketwire.com/docs/quc0407tab2.pdf.

Quality Control

Peter Cashin, P. Geo., is the qualified person on the George River Project under National Instrument 43-101 and was responsible for this news release. Material for analysis has been obtained from grab samples from outcrop and boulders. A strict QA/QC program is followed which includes the use of elemental standards, duplicates and blanks. Analyses were performed by Activation Laboratory Limited of Ancaster, Ontario.

The 1983 historical mineral resource estimate referred to in this press release was prepared before the introduction of National Instrument 43-101. No qualified person has done sufficient work to classify this historical resource estimate as current mineral resources or mineral reserves. Accordingly, Quest is not treating the historical resource estimate as current mineral resources or mineral reserves, as defined in National Instrument 43-101, and the historical resource estimate referred to in this press release should not be relied upon.

In separate news, Quest announces that Nebu Resources Inc. has decided to terminate its Letter Agreement (see Press Release - June 12, 2008) covering Quest's George River properties, effective March 31, 2009. The decision was motivated by the difficulties in raising exploration funds in the current economic climate.

About Quest Uranium

Quest Uranium Corporation is a Canadian-based, exploration company focused on the identification and discovery of new world-class uranium and REE deposit opportunities. The company is publically-listed on the TSX Venture Exchange as "QUC" and is led by a highly-respected management and technical team with a proven mine-finding track record. Quest is currently advancing several high-potential projects in Canada's premier exploration areas: the George River Belt of northeastern Quebec, the Kenora area of northwestern Ontario and the Plaster Rock area of northwestern New Brunswick. Quest also has a clear route to 50% ownership of a large uranium property in the James Bay area, Quebec under option from Midland Exploration Inc. Quest continues to identify new, high-potential project opportunities throughout North America.

This press release may contain "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward looking statements".

Figure 1 - George River Project REE Occurrence Location Map, George River area, Quebec is available at the following web link: http://media3.marketwire.com/docs/quc0407fig1.pdf.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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