Oct 19 2010
Northquest Ltd. (TSX VENTURE:NQ) has acquired, through option agreements, two new gold projects in Mali.
The Banmba Project is an early stage gold exploration project in southern Mali, and the Dar Salam Project is an early stage gold exploration project, which has had a minor amount of previous drilling, in western Mali.
The Company now has a total of three gold exploration projects in Mali, viz.: the Bananko Project, consisting of 133 square km in southern Mali, the Banmba Project, consisting of 118 square km, in southern Mali, and the Dar Salam Project, consisting of 150 square km, in western Mali, for a total of 401 square km (40,000 hectares or 100,000 acres) of mineral rights in Mali. In addition, the Company has obtained an Authorization, under the Mining Act of Mali, for the Silimana Project (110 square km) in southern Mali on which the Company is currently conducting a due diligence review prior to making an application for an Exploration Permit.
Banmba Project
The Banmba Project is in southern Mali. The project is in the southern end of the Massigui Belt, which contains the well known Morila gold mine (Anglogold-Randgold) as well as numerous gold occurrences, prospects, and geochemical anomalies. The Banmba project was selected on the basis that it has gold geochemical anomalies in soil and termite mound samples and is in a geological environment permissive for gold deposits hosted within the Birimian stratigraphy of west Africa. Exploration work consisting of data compilation and interpretation and preliminary geochemical surveying will commence immediately. The terms of the option agreement between Northquest and a local Malian company are as follows:
Northquest can earn a 100% interest in the project, subject to a net smelter return royalty (an "NSR") retained by the optionor, by making the following payments (figures in US dollars):
The optionor retains 3% NSR of which 1/3 can be purchased at any time for $2 MM and 1/3 can be purchased any time for $ 5 MM such that the optionor will retain 1% NSR.
Dar Salam Project
The Dar Salam Project is in western Mali. The project is in the southern end of the Kenieba Belt, which contains the well known Sadiola and Lolou gold mines (Anglogold-Iamgold and Randgold respectively), as well as numerous other gold deposits, gold occurrences, prospects, and geochemical anomalies. The Dar Salam project was selected on the basis that it has gold geochemical anomalies in soil and termite mound samples and is in a geological environment permissive for gold deposits hosted within the Birimian stratigraphy of west Africa. In addition, in 1994, a previous owner of the permit area reportedly drilled three vertical reverse circulation (RC) holes totalling 168 metres over a probable strike length of 600 metres in an area with substantial artisanal workings. The Company intends to compile and interpret the results of the previous work on the property and, if warranted, to complete a verification reverse circulation drilling program as soon as possible. The terms of the option agreement between Northquest and a local Malian company are as follows:
Northquest can earn a 100% interest in the project, subject to an NSR retained by the optionor, by making the following payments (figures in US dollars):
The optionor retains 3% NSR of which 1/3 can be purchased at any time for $2 MM and 1/3 can be purchased any time for $ 5 MM such that the optionor will retain 1% NSR.
All technical information disclosed in this press release has been prepared under the supervision of, and verified by, Jon North. Dr. North is the President and Chief Executive Officer of Northquest and a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
Source: Northquest Ltd.