Silver Quest Resources Ltd.
TSX VENTURE : SQI

Silver Quest Resources Ltd.

October 26, 2010 08:00 ET

Silver Quest Intersects High Grade on Capoose Project, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2010) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to report assay results for diamond drill holes D-10-114, D-10-119, D-10-120 and D-10-121 recently completed on the Capoose Project ("Capoose") located in north central British Columbia, 185 km southwest of Prince George. The assay results show that precious and base metal mineralization extends the boundary of the mineralized area by approximately 90 metres (m) on the western side of the east arm of the deposit. Mineralization remains open in all directions and at depth. 

The Capoose Project has a NI 43-101 inferred mineral resource estimate of 53.45 million tonnes grading 0.41 grams per tonne (g/t) gold and 23.93 g/t silver for 699,000 ounces of gold and 41,120,000 ounces of silver (see news release dated March 4, 2010). For more information and property maps see the Company's website at www.silverquest.ca.

Gold and Silver Assay Intercepts
Drill Hole   From (m)   To (m)   Interval (m)   Gold (g/t)   Silver (g/t)   Gold Equivalent (g/t)
D-10-114   66.0   70.0   4.0   0.41   4.16   0.48
D-10-114   259.0   265.0   6.0   1.11   25.70   1.50
D-10-119   89.5   108.0   18.5   0.45   18.65   0.73
D-10-119   150.0   154.0   4.0   0.33   15.95   0.56
D-10-119   178.0   204.0   26.0   0.74   49.92   1.49
D-10-119   230.0   234.0   4.0   0.31   6.80   0.41
D-10-120   5.1   110.0   104.9   0.16   35.41   0.70
Incl.   36.0   42.0   6.0   0.42   65.73   1.41
Incl.   80.0   105.0   25.0   0.14   54.71   1.55
D-10-120   134.3   195.0   60.7   0.29   42.11   0.93
Incl.   140.5   149.8   9.3   0.18   67.23   1.18
Incl.   155.0   175.0   20.0   0.41   50.07   1.16
D-10-120   220.0   226.0   6.0   0.18   8.81   0.55
D-10-121   110.0   122.0   12.0   0.47   11.40   0.64
D-10-121   152.0   190.0   38.0   0.36   8.23   0.48
D-10-121   240.0   265.0   25.0   0.37   46.01   1.06
* 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.
Zinc Assay Intercepts
Drill Hole   From (m)   To (m)   Interval (m)   Zinc (%)
D-10-114   40.0   68.0   28.0   0.36
D-10-114   111.0   116.0   5.0   0.38
D-10-114   121.0   133.0   12.0   0.31
D-10-114   163.0   206.0   43.0   0.33
D-10-119   59.5   63.5   4.0   0.39
D-10-119   87.5   210.0   122.5   0.58
Incl.   87.5   108.0   20.5   0.99
D-10-119   230.0   240.0   10.0   0.32
D-10-120   No Significant Intercepts
D-10-121   27.0   41.0   14.0   0.54
D-10-121   54.0   240.0   174.4   0.63
Incl.   110.0   124.0   14.0   1.33
D-10-121   178.0   190.0   12.0   1.33
* 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-10-119 and D-10-120 tested the continuity and horizontal extent of mineralization along the western side of the east arm of the Capoose deposit. Drill hole D-10-121 was designed to test the continuity within the southern portion of the east arm and drill hole D-10-114 was designed to test the southern portion of the gap between the east and west arms. All of these holes intersected mainly rhyolitic volcanic rock containing disseminated pyrite and other sulphide minerals.

Drill holes D-10-114 is an inclined hole, drilled to the west to a depth of 325 m. D-10-120 is an inclined hole drilled to the east from the western limit of the east arm, to a depth of 237 m. Drill hole D-10-119 is an inclined hole drilled to the northeast and collared approximately 250 m northwest of the collar of D-09-100. D-10-119 was drilled to a depth of 256 m. Drill hole D-10-121 is an inclined hole drilled to the east, and collared approximately 150 m to the northwest of D-09-100. This hole was drilled to a depth of 265 m.

The Company completed 37 drill holes totalling 10,598.2 m at Capoose this year. Remaining drill results will be reported as they are received by the Company.

Drill core analysis and assaying is being conducted by Eco Tech Laboratory in Kamloops, British Columbia, 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.

Contact Information