Quincy Energy Corp.
OTC Bulletin Board : QCYE

Quincy Energy Corp.

April 10, 2006 08:48 ET

Quincy Energy Completes NI 43-101 Report on Crownpoint Section 19 and 29; 13.672 M LBS of Indicated eU3O8 Resource Identified

TORONTO, ONTARIO--(CCNMatthews - April 10, 2006) - The Board of Directors of Quincy Energy Corp. (TSX VENTURE:QUI)(OTCBB:QCYE)(FRANKFURT:QIY) is pleased to announce that the Company has completed a National Instrument 43-101 Technical Report covering the Sections 19 and west half of 29 portions of its Crownpoint Property, located in the Grants Uranium District of McKinley County, New Mexico. The Technical Report calculates an Indicated Resource of 13.672 million pounds of eU3O8 in 7.06 million tons at a grade of 0.0880% eU3O8 for this portion of the Crownpoint Property. This new resource estimate is based on a minimum of 667,000 feet of drilling in 325 holes drilled by Conoco during the 1970s. Metallurgical testing by Hydro Resources Inc. has also demonstrated the Crownpoint deposit is amenable to in situ leach (ISL) mining.

Quincy Energy executed an Option agreement with NZ Uranium, LLC, of Phoenix, AZ (NZU) on May 12, 2005 (see News Release dated May 16, 2005), to acquire up to 80% of NZU's interest in the Crownpoint Property, which consists of approximately 1,100 acres in three sections covering approximately three miles strike length of sandstone-hosted uranium mineralization. The subject of the current Technical Report is all of Section 19 and the west half of Section 29, T17N R12W New Mexico Prime Meridian (approximately 960 acres) (the "Section 19/29 Property"), in which NZU has a 100% interest.

The remaining 140 acres under the NZU Agreement, in which NZU has a 60% interest, is located in the SE 1/4 of Section 24, T17N R13W (the "Section 24 Property") and was the subject of an earlier Technical Report (see News Release dated March 3, 2006). This earlier Technical Report calculated an Indicated Resource for the Section 24 Property of 9.966 million pounds of eU3O8 in 4.75 million tons at a grade of 0.1048% eU3O8.

The Crownpoint Section 19/29 Property Technical Report dated April 7, 2006 is authored by Dr. Greg Myers, P. Geo. (Washington State), a member and chartered professional of the AusIMM and a Qualified Person as defined by National Instrument 43-101. The Report is available for viewing on SEDAR at: www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00021197.


Measurement of the uranium concentration in drill holes was made with radiometric logging of the drill holes throughout the entire resource area. Natural gamma (counts/second, or cps), self potential (millivolts), and resistance (ohms) were recorded at 1/2 foot increments on magnetic tape and then processed by computer to graphically reproducible form. The eU3O8% conversions from the gamma log data were then calculated using the raw natural gamma counts and the sample quality is considered to be acceptable and representative of uranium values within the range of acceptable analytical error. Conoco collected the down hole geophysical survey data on the 1/2 foot intervals regardless of rock type or alteration, eliminating any sampling bias. High-grade intervals exist and extend with fairly consistent values laterally for several hundred feet; these high-grade values have not been cut or weighted for the calculation of the average grade of a bench.

The database consists of more than 33,000, 1/2 foot original gamma probe readings, which were used by Dr. Myers to calculate the resource model. Dr. Myers calculated the grade of the mineralized zone as an average, bench by bench, and did not utilize any weighting factors in the calculations. The pounds of eU3O8 for each bench were tabulated along with the area and calculated volume for each bench. The total number of tons contained in the mineralized zones and the total number of pounds of eU3O8 was summed and the average grade of the entire mineralized zone was calculated from these results. The calculated grade of 0.0880% eU3O8 is below the statistical average for the sample population above the 0.04% cutoff because of internal waste, which cannot be separated from ore in an ISL mining scenario. The calculated grade utilized the average grade of the 10-foot bench composites and includes 1/2 -foot intervals below the 0.04% cutoff grade.

2006 Crownpoint Section 19/29 Property Resource Statement using a
0.04% U3O8 Grade Cutoff

Million Tons Grade eU3O8% Contained eU3O8
(Million Pounds)
Section 19
Indicated Resource 2.80 0.0914 5.634
Section 29
Indicated Resource 4.26 0.0857 8.038

Other historic resource calculations on the Section 19/29 Property include 4.67 million tons grading 0.17% eU3O8 containing 14.53 million pounds eU3O8 by Conoco in 1979, based on underground mining, and 19.51 million pounds of eU3O8 by Hydro Resources Inc. in 1997, based on in situ mining.

Data Verification

The percentage of eU3O8 contained in drill holes was calculated from the down hole gamma logs at the time of drilling and geophysical surveying under the supervision of Conoco. Original data was collected on 1/2 foot intervals and converted to eU3O8%. The data available for this analysis were the original gamma logs and grade summary tables for each drill hole. The original logs and the tabulated data were compared to verify the values and there is a reasonable correlation in values. The tabulated data was scanned and entered into an ACCESS database along with collar location data. The scanned data was checked and confirmed and the current database is estimated to be essentially error free. Further verification and correction of the data was completed during sectional interpretations. While the original down hole gamma logs have been reviewed in detail, core samples from the original drilling were not available for check assaying.

Conoco conducted three disequilibrium studies to confirm the eU3O8% values calculated from the gamma logs. Their conclusions in a 1979 summary report showed a range from a slight chemical depletion (3%) to a moderate enrichment (13%) of the eU3O8%. Conoco ultimately concluded that the gamma log values tend to underestimate the actual chemical grade.

Cutoff Grades

The mineralized zone was defined as mineralization above the selected cutoff grade of 0.04% eU3O8 over a ten foot composite. The selection of a 0.04% eU3O8 cutoff grade by the author considered ISL recovery factors, maximizing the tonnage of mineralization and maintaining strong positive value at current uranium prices. As the concentration of U in the ISL solution is a function of the grade of the body being leached and leaching is more effective in zones with a higher concentration, the highest possible cutoff grade is preferred. For the Report, it was assumed that an average grade of 0.1% U3O8 would be a reasonable lower limit for the average grade of a mineralized body being subjected to ISL mining.

Volume Determination of Mineralized Zone

Orthogonal north-south and east-west cross sections were completed on 200-foot spacings in the mineralized zone utilizing known features of the geologic controls on mineralization. Cross sections with drill hole e eU3O8% values and limited geologic information were generated in the Rockworks 2004 software program from the ACCESS database. The cross sections were then interpreted by hand on a section-by-section basis and digitized. The sectional data was transferred to bench plans, spaced every 10 feet, and the ore zones were interpreted and digitized in order to accurately measure the area of the mineralized body outline. The surveyed drill hole locations in the ore zones were used to adjust the mineralized body shapes. The measured area and volumes calculated from the benches were used to calculate the tons contained on each bench.

Conoco and Hydro Resources Inc. estimated density factors of 16 ft3/ton and 15.8 ft3/ton, respectively for use in their tonnage calculations. The lower density factor of 15.8 ft3/ton was used by the author in the Technical Report.

Grade Continuity

The continuity of grade between drill holes is good at moderate to low values of eU3O8. High grade zones are limited in lateral and horizontal extent. Resource modeling for this report calculated a simple average grade for each 10 foot bench, equally weighting each drill hole to limit biasing. Clustering of drill hole data is insignificant and does not bias the bench average.

A competitor company is currently in the permitting process to initiate ISL production in the area of the Section 19/29 Property. They have completed the permit applications and Environmental Impact Statements required and are waiting for final approval. In April 2005 the Navajo Nation imposed a moratorium on uranium development and mining on the Navajo Reservation and on "Indian Country". However the definition of "Indian Country" is not clear and the moratorium's impact on Quincy Energy's plans for further work at Crownpoint is unknown at this time. No other limitations or other negative impacts due to environmental permitting or other political issues, which will have an affect on the mineral resource, are known to exist.

Quincy Energy is now evaluating the recommendations contained in Dr. Myers' Report including the design of further work programs to further confirm the earlier drilling and metallurgical work completed by Conoco.

Quincy Energy Corp. and Energy Metals Corporation

As announced on March 13, 2006 Quincy Energy and Energy Metals Corporation (TSX-V: EMC) (www.energymetalscorp.com) have agreed to a business combination whereby Quincy Energy will become a wholly-owned subsidiary of Energy Metals, with shareholders of Quincy Energy receiving 0.20 shares of Energy Metals for each Quincy Energy share.

Energy Metals is involved in developing resources to power the 21st century. Energy Metals has adopted a corporate strategy to focus on the acquisition and development of uranium assets in politically favorable and mining-friendly jurisdictions within the United States to take advantage of the continuing growth in the U.S. and worldwide of demand for electrical energy. This increasing consumption is occurring at a time when uranium mine supplies are dwindling and inventories are being depleted.

Energy Metals is targeting advanced uranium properties in Wyoming, Texas and New Mexico that are amenable to ISL (in-situ leaching). This form of uranium mining was pioneered in Texas and Wyoming. It utilizes water wells and oxygen-fortified groundwater to mine the uranium in place. Energy Metals is also actively advancing other conventional mining and ISL opportunities for uranium properties in the States of Utah, Nevada, Oregon and Arizona.


Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions in the Private Securities Legislation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Quincy Energy's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: volatility of natural resource prices; product demand; market competition and risks inherent in Quincy Energy's operations. These and other risks are described in the Company's Annual Report or Form 10-K and other filings with the Securities and Exchange Commission.


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