Silver Quest Acquires WIT Gold Property, Yukon
March 22, 2011 TSX Venture: SQI-V
NEWS RELEASE
Silver Quest Acquires WIT Gold Property, Yukon
Vancouver, BC - Silver Quest Resources (TSX.V:SQI) (“Silver Quest” or “the Company”) is pleased to announce that it has entered into an option agreement with Bullrun Prospecting Incorporated, a private company controlled by Rauni Malhi and Paul Dadwal, (the "Vendors") in an arm’s length transaction to acquire a 100% interest in 304 quartz mineral claims covering approximately 6,340 hectares located in the central Yukon, approximately 30 kilometres north of Keno City, known as the WIT property (the "Property").
Under the terms of the agreement, the Company can acquire a 100% working interest in the Property by making aggregate cash payments of $75,000 and issuing an aggregate of 600,000 common shares to the Vendors over a three year period.
The Vendors have retained a 2% net smelter return (“NSR”) royalty on the Property, with the Company having the right to buy-back one-half of the royalty for a cash payment of $1,000,000 at any time after exercising the option.
The option agreement is subject to regulatory acceptance. All securities issued pursuant to the option agreement will be subject to a four month hold period trading restriction.
The WIT claims cover an area of Carboniferous age Keno Hill Quartzite underlain by granitic schist. These rock units have undergone regional-scale folding, and also have been intruded by prospective volcanic rocks. The WIT claims area is drained by five streams. Geochemical stream sediment samples from these drainages contain anomalous metal concentrations: up to 23 parts per billion (ppb) gold, 7.4 parts per million (ppm) silver, 40 ppm tungsten, 210 ppm copper and up to 640 ppm zinc.
Property-scale geological mapping and geochemical sampling are planned for the 2011 exploration program.
David Pawliuk, P. Geo., Vice-President Exploration for Silver Quest is the Qualified Person, as defined by NI 43-101, for the property and has reviewed the technical information in this release.
SILVER QUEST RESOURCES LTD.
“Randy Turner”
Randy Turner, President
For further information please contact Investor Relations at 604-687-3959 or [email protected] 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.
P.O. Box 11584, Suite 1410 - 650 West Georgia Street, Vancouver, British Columbia V6B 4N8 Telephone: 604-687-3959 Facsimile: 604-687-1448 E-Mail: [email protected]