Quia Resources Inc.

TSX VENTURE : QIA


Quia Resources Inc.

April 03, 2012 10:49 ET

Quia Resources Identifies 2 km Long Vein System at Historic Libertad Mine in North Block

TORONTO, ONTARIO--(Marketwire - April 3, 2012) - Quia Resources Inc. ("Quia" or the "Company") (TSX VENTURE:QIA) announced today results from a sampling and mapping program at the historic Libertad mine in the north block of its San Lucas project in Colombia and provided an update on its ongoing drilling program. Highlights include:

  • A vein system of at least 2 km in strike has been outlined through mapping and underground channel sampling in artisanal tunnels and individual quartz-vein-breccia systems have been measured in places up to 4 metres in true width;

  • Underground channel sampling returned grades as high as 39 g Au/t and 80 g Ag/t;

  • The Libertad target is a new high priority target for the Company with a well-defined structure of significant scale and carrying high grade gold mineralization;

  • The drill program is currently progressing at the Rueda South target with 300 metres drilled to date this year in two holes;

  • In light of the encouraging results from the Libertad target, the company is planning to incorporate the Libertad target into the current phase 1 drilling program.

Yannis Banks, Quia's CEO, commented: "The Libertad vein system is a unique opportunity because the historical and current artisanal mining and extensive underground development has enabled us to quickly get a solid understanding of the type of mineralization, structural control and potential size of the system. Based on the dimensions of the system that we were able to determine through this initial program, Libertad appears to hold the potential for significant scale. The Libertad target is now one of our main priorities this year and we intend to follow up this initial program with further detailed sampling and targeted drilling."

Libertad Target

The Company completed an initial reconnaissance sampling and mapping program in the north block of its San Lucas property in the area of the historic Libertad gold mine consisting of a total of 40 underground channel and rock chip samples and 90 soil samples. The north block is situated approximately 14 km north of the Colina-Rueda-Durmiente area and is geologically distinct as the mineralized systems at Libertad are hosted within Proterozoic, schistose rocks of the Caja Marca terrain, and appear to be within the Palestina fault system. The Palestina fault is a major north-south fault that, in the San Lucas area, separates the Caja Marca terrain from the younger, Norosí batholith (the San Lucas block) to the east. As such, the Libertad target is a new target-type at the San Lucas property that has yet to be tested.

The main Libertad structure is currently being mined artisanally over a strike length of approximately 2 km and artisanal mining is also taking place in an area known as Montecristo which is interpreted as a parallel structure. On the Libertad structure, the Company was able to access an area of underground development continuous along 650 metres of strike. Results of the soil sampling indicate a consistent strike length along the grid completed to this point (1 km).

Discrete quartz veins and quartz-vein-breccia systems (the latter being up to 4 metres in true width) were mapped in the Libertad tunnels. The vein and vein-breccias that were mapped host varying amounts of pyrite, sphalerite, and galena mineralization within a quartz host. Visible gold was also observed in some samples. Separate underground channel samples returned grades as high as 39 g Au/t and 100 g Ag/t.

Selected samples include:
Sample Area Structure Channel Width g Au/t g Ag/t
496611 Open Pit Pit surface - 3.70 0.57
496623 Libertad Vein 0.50 8.15 12.13
496626 Libertad Vein 0.40 39.03 80.92
496627 Libertad Vein 0.50 31.08 14.41
496628 Libertad Vein 0.30 1.87 2.72
496633 Montecristo Vein 0.20 1.01 59.06
496635 Montecristo Vein 0.20 2.18 100.00
496638 Montecristo Vein 0.20 2.63 1.51
496639 Montecristo Vein 0.35 4.70 11.18
496648 Montecristo Vein 0.35 12.79 16.62

Channel samples do not necessarily represent the true width of the quartz-vein-breccia systems. In many cases the full width of the quartz-vein-breccia systems was greater than the channel widths. The company is planning further detailed sampling to better define the extent of the mineralization at the Libertad target.

Drilling Program and Exploration Update

Drilling has re-commenced with a new drill contractor using a smaller rig-type better suited to the San Lucas project. To date, 300 metres have been completed in 2012 at the Rueda South target. Since the drilling re-started, the Company has seen a significant improvement in drill productivity. The Company is currently drilling with one drill rig.

The drilling program is currently focusing on the Rueda South target. The Rueda South target consists of two intersecting gold-in-soil anomalies, one trending north-east and the other north-west. The Rueda South target is also coincident with a cluster of artisanal mines. Recent mapping in the artisanal tunnels has identified two vein systems, one running in the north-west direction consisting of at least two veins, and traceable for some 700 metres and a second system running north-west, perpendicular to the first, and traceable over some 500 metres.

In light of the encouraging results from the Libertad target, the company is planning to incorporate the Libertad target into the current phase 1 drilling program.

An updated corporate presentation with new maps and other information will be available today from the Company's website at www.quiaresources.com.

About Quia Resources Inc.

Quia Resources is a gold exploration Company focused in Colombia and its 100%-owned San Lucas property in the San Lucas gold belt. The San Lucas gold belt is among the least explored and most prospective gold belts in Colombia. Quia is an early-mover into this belt and has established a key property position and a strong base of technical knowledge in the area.

Iain Kelso, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the terms defined by National Instrument 43-101.

Samples were submitted to ACME Analytical Laboratories Ltd. Once in the custody of ACME, sample preparation was completed at their Medellín, Colombia facility and shipped to their Vancouver laboratory for analysis by fire assay and ICP. Reference materials and blank samples were inserted into the sample stream and all data reported in this release meets Quia Resources' QA/QC standards.

Forward-Looking Statements

This press release contains or refers to forward-looking information, including statements regarding exploration results, potential mineralization, exploration plans and timing of the commencement of drilling, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

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.

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