Quia Resources Inc.

Quia Resources Inc.

July 20, 2011 09:34 ET

Quia Resources Provides Drilling Program and Corporate Update

TORONTO, ONTARIO--(Marketwire - July 20, 2011) - Quia Resources Inc. (TSX VENTURE:QIA) provided today an update on its current 5,000 metre drill program at its 100% owned San Lucas property in Colombia and an update with respect to its activities over the past quarter. Highlights include:

  • A total of 807 metres have been completed in four holes, two at the La Colina target and two at the La Rueda target

  • Completion of IP survey

  • Completion of additional soil surveys over other areas of interest

  • Completion of camp construction

  • Launch of new website

Drilling Update

The Phase 1 drilling campaign began June 11th with drill hole SL1102 from Platform 2. Drilling on hole SL1101 from Platform 1 began June 29th. As of July 19th, 807 metres have been completed in 4 holes. Drill-rig 1 is currently coring on SL1104 over the La Colina target. Drill-rig 2 is currently setting up on Platform 3 to test an IP chargeability anomaly between the La Colina and La Rueda targets.

Yannis Banks, Quia's CEO, said, "The drill program is now well underway and progressing smoothly. As we await assays, we can say that we are encouraged by the geology, alteration and mineralization we have been able to observe in the drill core from the first few holes. The evidence so far is consistent with our hypothesis that the San Lucas gold belt has excellent potential for disseminated systems of gold mineralization. We have started shipping core to the lab and are looking forward to releasing our initial results in approximately the next six to seven weeks."

SL1101 and SL1104 have been drilled from Platform 1 to test the 2,400 metre long by up to 500 metre wide La Colina target consisting of the gold in soil anomaly that is coincident with the contact between gneissic rocks and quartz diorite porphyry rocks to the east, a strong uranium and thorium anomaly from the airborne survey, and a strong IP chargeability anomaly.

SL1101 was drilled from the gneissic rocks at an azimuth of 110° and dip of -55° with the intention to drill into the quartz diorite porphyry. SL1104 was drilled at the same azimuth with a dip of -70°. Both holes have intersected quartz feldspar porphyry dykes with zones of disseminated pyrite mineralization. SL1104 has intersected a hydrothermal breccia with gneissic fragments and disseminated pyrite mineralization. Pyrite mineralization is also present in zones within the quartz diorite porphyry rocks.

SL1102 and SL1103 were drilled from Platform 2 to test the 3,000 metre long by up to 100 metre wide La Rueda target consisting of the gold in soil anomaly that is coincident with a granodiriote instrusive body and a trend over which several small scale mines are located. SL1102 was drilled at an azimuth of 110° and a dip of -55°. SL1103 was drilled at an azimuth of 155° and a dip of -55°.

SL1102 intersected zones of disseminated pyrite within quartz diorite and also intersected a zone of marcasite in fractures and veinlets. SL1103 also intersected zones of disseminated pyrite mineralization within quartz diorite.

Drill-rig 2 was moved to platform 3 to test a strong chargeability anomaly. Based on the IP profiles, this chargeability target appears to be a 500 to 650 m long structure trending 70° between the La Colina and La Rueda targets. With both drill-rigs now fully operational the Company expects increased production rates for the remainder of the drill program.

Corporate Update

Over the past quarter, the company's field activities have included completion of additional soil sampling over areas outside the current focus area targeting structural features and geophysical anomalies identified through its airborne survey and satellite image structural interpretation. The Company also completed a 10 line kilometre Induced polarization ("IP") and ground magnetic survey as well as the construction of a new camp.

The soil sampling has identified several additional anomalies for future detailed follow up while the IP and ground magnetic survey was conducted over the La Colina and La Rueda target areas to identify chargeability anomalies within the target areas and to provide additional structural information to further refine drill targets. During May and June, the Company completed the construction of a new camp for the drilling campaign.

In addition to the Company's field activities, the company has just launched a new re-designed website to provide expanded content to shareholders and the public.

Yannis Banks, Quia's CEO, commented, "It's been a productive quarter for the Company as we completed several milestones which collectively marked the transition from surface exploration to the first drilling campaign. We expect the next quarter to again mark an important step as the Company plans to release its first drill results which will be another major milestone in the development of the San Lucas property and the San Lucas gold belt in Colombia."

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.

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.

Contact Information

  • Quia Resources Inc.
    Yannis Banks
    Chief Executive Officer
    (416) 777-6169

    Andreas Curkovic
    Investor Relations
    (416) 577-9927