Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

September 08, 2010 08:00 ET

Silver Quest Intersects Gold and Silver at Depth on Capoose Property, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to report assay results for diamond drill holes D-10-125, D-10-127 and D-10-130 recently completed on the Capoose Project ("Capoose") located in north central British Columbia. These holes have confirmed that precious and base metal mineralization extends the known depths of the deposit in the west-central area by approximately 70 metres (m). The current NI 43-101 inferred mineral resource estimate at a 0.40 grams per tonne (g/t) gold equivalent cut-off is 53.45 million tonnes grading 0.41 g/t gold and 23.93 g/t silver for 699,000 contained ounces of gold and 41,120,000 contained ounces of silver (see news release dated March 4, 2010). Mineralization remains open in all directions and at depth. Drilling will resume this week to complete 10 more drill holes (2,500 m) aimed at expanding the known area of the resource. Capoose is located 185 km southwest of Prince George, British Columbia. For further details and property maps, please visit the Company's website www.silverquest.ca.

Significant Gold and Silver Assay Intercepts from D-10-125, D-10-127 and D-10-130

Drill Hole   From (m)   To (m)   Interval (m)   Gold (g/t)   Silver (g/t)   Gold Equivalent (g/t)
D-10-125   1.4   280.0   278.4   0.61   15.36   0.84
including   1.4   103.0   101.6   1.12   32.32   1.60
including   95.0   101.0   6.0   8.86   427.20   15.27
D-10-127   5.5   307.0   301.5   0.74   9.37   0.88
including   63.0   89.0   26.0   1.55   17.79   1.82
including   158.0   239.0   81.0   1.11   13.35   1.31
D-10-130   7.0   29.0   22.0   0.14   44.93   0.82
and   37.0   101.0   68.0   0.15   42.30   0.79
and   245.0   283.0   38.0   0.51   7.67   0.51

* Gold Equivalent cut-off grade of 0.40 g/t and a minimum interval length of 4 m. Gold equivalent (AuEq) is calculated as the sum of the gold content plus 0.015 times the silver content, based upon prices of US$1025/oz. for gold and US$15.50/oz. for silver. Interval values represent drill intersection lengths and may not represent true width.

Significant Zinc Assay Intercepts from D-10-125, D-10-127 and D-10-130

Drill Hole   From (m)   To (m)   Interval (m)   Zinc (%)
D-10-125   37.0   63.0   26.0   0.42
D-10-125   77.0   93.0   16.0   0.31
D-10-125   121.0   129.0   8.0   0.61
D-10-125   155.0   225.0   70.0   0.48
D-10-125   249.0   253.0   4.0   0.62
D-10-127   53.0   101.0   48.0   0.74
D-10-127   223.0   249.0   26.0   0.75
D-10-127   273.0   299.0   26.0   0.43
D-10-130   No significant intercepts

* Zinc cut-off grade of 0.30% and a minimum interval length of 4 m. Interval values represent drill intersection length and may not represent true width.

Diamond drill holes D-10-125, D-10-127 and D-10-130 tested the continuity and vertical extent of mineralization within the west-central part of the Capoose deposit. Drill holes D-10-125 and D-10-127 were designed to follow-up on the results from 2009 drill holes D-09-109 and D-09-110, which intersected 1.09 g/t gold and 4.8 g/t silver across 18 m, and 1.35 g/t gold and 5.6 g/t silver across 148 m respectively (See news release dated November 30, 2009). Drill hole D-10-130 was designed to follow-up on the results from 2009 drill holes D-09-111 and D-09-112 which intersected 0.27 g/t gold and 16.8 g/t silver across 97 m (including 15 m grading 0.81 g/t gold and 63.7 g/t silver), and 0.14 g/t gold and 33.9 g/t silver across 96 m (including 11 m grading 0.24 g/t gold and 60.8 g/t silver) respectively (See news release dated December 8, 2009). 

Drill hole D-10-125 is a vertical hole, collared 16 m south of D-09-109 and D-09-110. This hole was drilled to a depth of 280 m, and intersected mainly rhyolitic volcanic rock containing disseminated pyrite and other sulphide minerals.

Drill hole D-10-127 is a vertical hole, collared approximately 8 m to the north of D-09-109 and D-09-110. This hole was drilled to a depth of 307 m, and intersected rhyolitic volcanic rock which also contains disseminated pyrite and other sulphide minerals.

Drill hole D-10-130 is a vertical hole, collared at the same site as D-09-111 and D-09-112. This hole was drilled to a depth of 283 m, and intersected rhyolitic volcanic rock above 205.47 m depth, and mainly andesitic volcanic rock from 205.47 m depth to the bottom of the hole. All of the volcanic rocks from drill hole D-10-130 contain disseminated pyrite and other sulphide minerals. 

A total of 26 drill holes have been completed at Capoose this year. Pending assays for the remaining 19 completed drill holes will be reported as they are received by the Company. 

Drill core analysis and assaying is being conducted by Eco Tech Laboratory in Kamloops, BC, which is an International Standard ISO 9001:2000-certified laboratory. The core samples were analyzed using a 28-element ICPMS package with a 30-gm fire assay with AA finish for over limit (plus 1.0 g/t) gold, (plus 30 g/t) silver and (plus 10,000 g/t) zinc concentrations. 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 the best possible practices.

David Pawliuk, P.Geo., Vice President Exploration for Silver Quest is the Qualified Person, as defined by NI 43-101 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.

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