Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

March 02, 2011 13:02 ET

Silver Quest Announces 43-101 Resource Estimate for Davidson Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) - Silver Quest Resources (TSX VENTURE:SQI) ("Silver Quest" or "the Company") is pleased to announce that a National Instrument 43-101 compliant resource estimate has been prepared on the Davidson Property, located 100 km south of Vanderhoof in central British Columbia, Canada. The Davidson property covers the northern portion of Richfield Ventures Corp.'s ("Richfield") (TSX.V:RVC) Blackwater Gold Project. Richfield has earned a 75% interest in the Davidson Property and acts as operator of the project.

Richfield has reported the results of an independent resource estimate for the Davidson Property (see Richfield News Release dated March 2, 2011). At a cut-off grade of 0.40 grams per tonne (g/t) gold, the Davidson Property is estimated to contain 331,000 tonnes at an average grade of 0.92 g/t gold, for 10,000 ounces of gold in the Indicated category. The Property also contains 46.27 million tonnes at an average grade of 0.92 g/t gold, for 1.36 million ounces of gold in the Inferred category. The table below summarizes the parties' respective interests in the Davidson Property resource estimate:

Davidson Property Resource Estimate (0.4 g/t Gold Cut-off grade)

  Indicated Inferred
Tonnes
000's
Gold
g/t
Contained
Gold ounces
Tonnes
000's
Gold
g/t
Contained
Gold ounces
Richfield (75%) 248 0.92 7,500 34,702 0.92 1,020,000
Silver Quest (25%) 83 0.92 2,500 11,567 0.92 340,000
Davidson Property Total 331 0.92 10,000 46,269 0.92 1,360,000

Richfield also reported an Indicated and Inferred resource estimate covering the entire Blackwater Gold Project which includes the Davidson property as well as Richfield's 100% owned properties to the south. The Blackwater Gold Project at a cut-off grade of 0.40 g/t gold, has an estimated Indicated resource of 53.46 million tonnes at an average grade of 1.06 g/t gold containing 1.83 million ounces gold, and an additional 75.45 million tonnes at an average grade of 0.96 g/t gold containing 2.34 million ounces gold in the Inferred category. Initial metallurgical test work on samples taken from the Davidson and adjoining properties has indicated an average of 92% gold recovery using conventional whole ore direct cyanidation (see Richfield news release dated November 22, 2010).

The Indicated and Inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 Mr. Ronald Simpson, P.Geo, President of Geosim Services Inc. Mr. Simpson acted as the Qualified Person, as defined in NI 43-101 and is independent of the Company. The NI 43-101 report will be finalized and filed on SEDAR within 45 days of the date of this news release. Mr. Simpson has reviewed and approved the technical information in this news release.

David Pawliuk, P. Geo., Vice-President Exploration for Silver Quest is the Qualified Person, as defined by NI 43-101, for the Davidson property and has reviewed the technical information in this release.

SILVER QUEST RESOURCES LTD.

"Randy Turner"

Randy Turner, President

This news release used the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that the Davidson mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work will lead to mineral resources that can be mined economically.

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the British Columbia Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the ability of the Company to continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs; inability to fund the Company's share of costs incurred under joint venture agreements to which it is a party, and reduction or elimination of its joint venture interest as a result; competition within the minerals industry to acquire properties of merit, and competition from other companies possessing greater technical and financial resources; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or other factors related to exploring in the north, such as the availability of essential supplies and services; factors beyond the capacity of the Company to anticipate and control, such as the marketability of minerals, government regulations relating to health, safety and the environment, the scale and scope of royalties and taxes on production; unusually mild winter conditions affecting or delaying the opening of the winter roads and resulting difficulties in transporting materials needed to support various exploration projects and resulting increased costs of transport by air; the availability of experienced contractors and professional staff to perform work in a competitive environment and the resulting adverse impact on costs and performance and other risks and uncertainties, including those described in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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.

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