SOURCE: Quincy Energy Corp.

January 09, 2006 15:30 ET

Quincy Reviews Projects

TORONTO -- (MARKET WIRE) -- January 9, 2006 -- The Board of Directors of Quincy Energy Corp. (TSX-V: QUI) (OTC BB: QCYE) (FRANKFURT: QIY) is pleased to provide the following review of its exploration programs in the United States and Canada. Quincy is currently active on several uranium and gold projects in support of its proposed business combination with Energy Metals Corp. (TSX-V: EMC) as announced on November 16, 2005. The Board of Directors of Quincy reports that work is progressing satisfactorily towards this business combination and that a proposed structure for this arrangement is being finalized.

Arizona Strip Breccia Pipes

On December 5, 2005, Quincy announced that it had mobilized field crews and drilling equipment to the Rose pipe in Coconino County, Arizona. A total of 1,928 feet (587.8 m) was drilled in one hole and the drill rig has been released. As circulation was lost in the drill hole near the surface, the Project experienced high drilling mud and water haulage costs. Drill core recovery was initiated at 687 feet (209.5 m) and continued to the end of the vertical hole.

The entire drill hole was logged using natural gamma ray and resistivity tools by Century Geophysical Corp. of Tulsa, OK. Selective zones of high radiation response when compared to background on a handheld scintillometer were sent to ALS Chemex of Reno, NV, for geochemical analysis. Calculation of eU3O8 values from the radiometric logs, geologic interpretation and the geochemical assays, used as a check on the radiometric logging, are proceeding.

Quincy Energy entered into an Option Agreement covering the Rose pipe and seven other mineral properties, containing known or indicated breccia pipes, with Energy Metals Corp. (TSX-V: EMC) in November 2004. In order to exercise the option, Quincy Energy must incur cumulative exploration expenditures of US$1.5 million and issue 525,000 shares by December 31, 2009. The recent drilling at Rose satisfies Quincy's first year commitment under the agreement

Aurora Uranium Project

The Aurora uranium project, located near the Oregon-Nevada border in Malheur County, OR, is a significant undeveloped uranium resource that is the subject of a Technical Report dated Sept. 1, 2005. In the report by Dr. Gregory Myers, a Qualified Person as defined by National Instrument 43-101, an indicated resource of 18.3 million pounds of eU3O8 at a grade of 0.0518% eU3O8 is calculated. As Aurora was also the subject of more than $6 million of exploration expenditures by Placer Amex during the period 1977-1980, it is Quincy's opinion that a new and modern metallurgical review of the deposit is warranted. In this regard, the company has commissioned a metallurgical audit of the property. It is anticipated that this work will be completed during the first quarter of 2006.

Crownpoint In Situ Leach Project

Work is continuing on two NI43-101 Technical Reports covering the Crownpoint uranium deposit in McKinley County, NM. Historic uranium resources are being recalculated by Dr. Greg Myers, a Qualified Person as defined by NI43-101. On May 16, 2005, Quincy announced that it had signed an Option Agreement with NZ Uranium LLC to earn up to an 80% interest in the Crownpoint deposit. Crownpoint is located in the Grants uranium district which produced more than 340 million pounds of uranium. The Crownpoint deposit contains a historical resource of approximately 25 million pounds of U3O8[1].

Due to differing landowners and logistical considerations, the Crownpoint deposit is being split into two separate resource estimates and Technical Reports. The first of these is nearing completion and will be released upon receipt of the final report by the Company.

Hosta Butte In Situ Leach Project

Upon completion of both Crownpoint Technical Reports, uranium resources will be recalculated for the Hosta Butte deposit, which is located approximately three miles to the south of Crownpoint. Hosta Butte contains a historical resource of approximately 13.5 million pounds of U3O8[1] as described in Quincy's news release of March 21, 2005. Like Crownpoint, extensive exploration has been conducted at Hosta Butte, which the company hopes will be amenable to mining by in situ leaching. The new resource calculation will form the basis of a NI43-101 Technical Report on the property. Rattlesnake Hills and Lewiston Gold Projects

Quincy is pleased to announce that it has amended its Option Agreement with Bald Mountain Mining Co., dated October 14, 2004, covering the Rattlesnake Hills and Lewiston Properties in Wyoming. Under the amended agreement, all work commitment anniversary dates have been pushed back from October 14th until August 14th of the following year, thus giving Quincy an additional ten months to perform the required work. Total expenditures required to be made by Quincy on the Rattlesnake Hills and Lewiston properties by August 14, 2006, are US$150,000 and US$100,000, respectively. As consideration for this amendment, Quincy has paid Bald Mountain US$50,000.

Lantern Gold Project

Quincy is now preparing for a reverse circulation drilling program on its Lantern Project in Pershing County, NV. Field crews and drill mobilization is scheduled for the week of January 9. In late fall 2005, gradient array and dipole-dipole IP/resistivity geophysical surveys were completed by Zonge Geosciences Inc. of Reno, NV. The target of the surveys was a generally flat, alluvium covered area containing several large banded quartz vein boulders with gold mineralization, which are characteristic of the upper levels of epithermal gold systems. The surveys identified anomalous areas in the vicinity of the boulders that warrant drill testing at depth. The gradient array survey identified a significant resistivity anomaly in the survey area and subsequent dipole-dipole IP lines confirmed the resistivity feature. The surveys also identified large chargeability zones often indicative of sulfide minerals or other chargeable features such as saline fluids, carbon, or clays. The resistivity anomaly forms a shallow, gently dipping body with possible high angle features at the margins of the anomaly, possibly representing feeder structures for the silicification.

Millers Gold Project

Following completion of drilling at Lantern, field crews and drilling equipment will be moved to the Millers property in Esmeralda County, NV. The Millers property covers 58 leased unpatented mining claims and contains silicified, pyrite bearing structures and quartz-carbonate veins that have undergone limited prior exploration. In an October 2004 sampling program performed by Quincy, of 56 grab samples collected to characterize the mineralization, the assays ranged from < 0.005-4.65 ppm gold and averaged 0.30 ppm from quartz-carbonate vein material exposed on the southern portion of the claims. Drilling will test for the presence of bonanza style gold mineralization at depth beneath the surface vein outcrops. Targeting of the boiling level is based on fluid inclusion studies completed by Dr. Tommy Thompson on multiple vein samples from the surface. A budget of approximately $75,000 is allocated for this project.

The company also announces that it has terminated its investor relations agreement with Michael Baybak and Associates.

[1] National Instrument 43-101 Disclosure

The information and statements on the historical exploration were provided by Dr. Art D. Ettlinger, P. Geo., Quincy's President and Chief Operating Officer and a Qualified Person as defined by National Instrument 43-101. Readers are cautioned that while the resource estimates are considered to be reliable and relevant they do not use categories as defined in National Instrument 43-101. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators, and the reader is cautioned that none of the calculations conform to NI43-101 requirements for reporting reserves and resources. Quincy has not done the work necessary to verify the classification of the mineral resource estimates. Quincy is not treating the mineral resource estimates as a NI43-101 defined resource verified by a Qualified Person. The historical estimates should not be relied upon.

To find out more about Quincy Energy Corp. visit our website at www.quincyenergy.com.

THIS PRESS RELEASE WAS PREPARED BY QUINCY ENERGY CORP., WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 settlements involve known and unknown risks and uncertainties, which may cause Quincy'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'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.

Contact Information

  • Contact
    Daniel Farrell
    Chairman & CEO
    T: (416) 361-2830
    E: Email Contact

    Art Ettlinger
    President & COO
    T: (604) 685-1964
    E: Email Contact

    Murray Black
    Corporate Development
    T: (416) 361-2829
    E: Email Contact