Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

January 10, 2011 17:54 ET

Silver Quest Acquires the Buck Claims, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2011) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to announce that it has entered into an option agreement with Paget Minerals Corp. (the "Vendor") to acquire a 100% interest in eight mineral tenures, covering approximately 3,755 hectares, known as the Buck claims (the "Property"). 

Under the terms of the agreement, the Company can acquire a 100% working interest in the Property by making a cash payment of $25,000 and issuing 200,000 common shares to the Vendor over a one year period. The Vendor has retained a 1.5% net smelter return ("NSR") royalty on the Property, with the Company having the right to buyback two-thirds of the royalty for a cash payment of $2,000,000 at any time after exercising the option. The agreement is subject to regulatory acceptance and all securities issued pursuant to the agreement will be subject to a four month hold period trading restriction from the date of issuance.

The Buck claims, located 9 km northwest of the Silver Quest/Richfield Ventures Davidson project, are contiguous on the east of, and will be incorporated into the Company's Capoose project located approximately 185 km southwest of Prince George, British Columbia. Historical records (Blackstone Resources Inc. 1996) indicate a 4 m drill intersection from 394.0 m to 398.0 m in drill hole BCK96-01 that averaged 1.29 grams per tonne (g/t) gold, 23.3 g/t silver and 0.11% copper. Mineralization is associated with chalcopyrite-pyrite-quartz-chlorite veinlets similar to those seen at Capoose.

A summer 2011 exploration program will be planned to include geological mapping, geochemistry and trenching, directed towards drill target definition and follow-up from historical work on the Property.

David Pawliuk, P.Geo., Vice President Exploration for Silver Quest is the Qualified Person, as defined by NI 43-101, for the Capoose Project and supervised the preparation of the technical information in this release.

SILVER QUEST RESOURCES LTD.

Randy Turner, President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Silver Quest Resources Ltd.
    Investor Relations
    604-687-3959
    604-687-1448 (FAX)
    info@silverquest.ca