Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

January 21, 2011 16:30 ET

Silver Quest Intercepts Gold Mineralization at Prospector Mountain, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2011) - Silver Quest Resources (TSX VENTURE:SQI) ("Silver Quest" or "the Company") is pleased to announce gold mineralization in drill intercepts from the Prospector Mountain Project ("Prospector Mountain"), under option from Tarsis Resources Ltd. See www.silverquest.ca for more information.

Silver Quest completed an initial eight hole diamond drill program totaling 1,463 m in late fall, 2010 at Prospector Mountain. Drilling targeted the source of high-grade gold, copper and silver samples that lie within the 1.4 km trend, known as the Bonanza Zone. The diamond drill holes were located within the central part of the Bonanza Zone and tested approximately 580 m of strike length. All holes were inclined to the east at minus 45 or 50 degrees and intersected favorable alteration and weak gold, copper and silver mineralization. Highlights are below:

Drill Hole From (m) To (m) Interval (m) Au (g/t) Cu (%) Ag (g/t)
PM10-01 77.40 81.90 4.50 2.64 - 3.1
  including 77.40 80.80 3.40 3.42 - 3.9
  including 78.75 79.32 0.57 14.15 - 15.0
PM10-02 179.40 181.40 2.00 0.21 - 0.7
PM10-03 152.00 154.00 2.00 1.23 - 0.2
PM10-04 - - - - - -
PM10-05 14.74 16.43 1.69 0.13 0.12 7.1
PM10-05 79.80 89.00 9.20 1.13 0.04 9.9
  including 79.80 82.69 2.89 2.95 0.07 25.4
  including 81.69 82.69 1.00 6.49 0.12 69.7
PM10-06 33.12 33.98 0.86 0.31 - 0.8
PM10-06 75.90 78.70 2.80 0.49 - 2.8
PM10-06 154.90 155.44 0.54 0.03 0.02 167.0
PM10-06 172.63 174.00 1.37 1.53 0.36 18.3
PM10-07 63.70 65.65 1.95 0.28 - 1.7
PM10-08 41.23 41.70 0.47 2.07 0.14 2.0
PM10-08 79.64 80.99 1.35 0.40 0.12 3.1
*Note: True widths are estimated to be 80 to 90% of the mineralized intervals.

Gold mineralization is associated with tourmaline alteration and specular hematite within planar fault corridors and the adjacent quartz monzonite wall rock. Individual mineralized zones are 0.5 to 10 m wide and appear to be parallel structures that exhibit intense sericite alteration and locally, abundant limonite and manganese in weathered rock. Silver Quest is currently planning an exploration program for 2011 which will include detailed soil geochemistry, trenching and diamond drilling.

Drill core analysis and assaying was conducted by ALS Laboratory Group in Vancouver, BC, which is an ISO/IEC 17025:2005-accredited laboratory. Core samples were analyzed using a 51 element combination ICP-MS and ICP-AES package and a 30 g fire assay for gold. Samples returning >1.0 g/t Au were reanalyzed using a 30 g fire assay with gravimetric finish. The Company has implemented a quality assurance and quality control program to ensure that the sampling and analysis of all samples is conducted in accordance with best practices.

Darcy Baker, P.Geo., President of Equity Exploration Consultants Ltd. is the Qualified Person, as defined by National Instrument 43-101, for the Prospector Mountain 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