Silver Quest Acquires Chuchi North Gold Property, BC
NEWS RELEASE
March 29, 2010 TSX Venture: SQI-V
Silver Quest Acquires Chuchi North Gold Property, BC
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 Mr. Piotr Lutynski (the “Vendor”) for the Chuchi North property (the "Property"). This property consists of 14 mining claims covering 5,200 hectares and is located approximately 200 km northwest of Prince George. Other properties in the area include Mt. Milligan Project (Terrane Metals) located approximately 50 km southeast of Chuchi North. See www.silverquest.ca for property locations and further information.
Pursuant to the option agreement, the Company can acquire a 100% interest in the Property. The Company must make cash payments totaling $270,000 and issue an aggregate of 300,000 common shares over a five year period. The Vendor shall retain a 1.5% net smelter return royalty and receive, upon earn-in, an annual advance royalty payment of $30,000. The Company will retain the right to purchase two-thirds of the NSR royalty interest for a cash payment of $1,000,000 less an amount equal to the total advance royalty payments made.
The Chuchi North property covers a 3.5 km gold-in-soil geochemical anomaly with values up to 6.1 g/t gold and was explored in the late 1980s by Rio Algom. The initial 2010 exploration program will consist of geophysics and soil sampling.
The Company’s Vice President of Exploration, Mr. David Pawliuk, P.Geo. is the qualified person as defined by National Instrument 43-101 for this project and has verified and supervised preparation of the scientific and technical information in this release.
The agreement is subject to regulatory acceptance and all securities issued pursuant to the agreement will be subject to a four month hold period trading restriction from the date of issuance.
SILVER QUEST RESOURCES LTD.
“Randy Turner”
Randy Turner, President
For further information please contact Investor Relations at 604-687-3959 or [email protected] The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news 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]