VANCOUVER, BC--(Marketwired - January 05, 2017) - GoldQuest Mining Corp. (TSX VENTURE: GQC) (FRANKFURT: M1W) (BERLIN: M1W) ("GoldQuest" or the "Company") is pleased to announce that the Company has been granted a new 5-year exploration license on the 425 hectare Hoyitos ("Hoyitos") exploration concession. Hoyitos contains the Las Animas Volcanogenic Massive Sulfide ("VMS") deposit.
"We are pleased to have been granted a new concession license which will add to the Company's critical mass in the country," commented Bill Fisher, GoldQuest's Executive Chairman, "The government of the Dominican Republic continues to issue exploration licenses to GoldQuest and this support is encouraging as we work with the Ministry of Mines on the Mining License Application for our flagship Romero gold/copper Project."
About Las Animas (Hoyitos Conession)
All modern exploration on the concession has been carried out by GoldQuest. Previous work includes surface sampling, mapping and geophysics which lead to the drilling which defined the mineral resources. GoldQuest issued the Las Animas deposit's National Instrument ("NI") 43-101 resources on 14th August 2012 (see chart below). The VMS deposit contains resources for gold, copper, silver and zinc. There is potential to expand the mineral resources at depth and for additional zones on the property.
Las Animas is located in the Maimon Formation of the central Dominican Republic, 60 km along strike from the Cerro de Maimon mine which also hosts a copper-gold VMS deposit.
The Las Animas deposit was defined by 47 drill holes with results up to 142 Meters Grading 2.50 g/t Au, 36.58 g/t silver, 2.59% Cu and 1.91% Zn in hole LA-06 (see Release of 6th June 2007) and has a small oxide resource at surface. The intersection above in LA-06 is not true width of the mineralization. True width was estimated to be up to 23 metres in the resource estimation.
While the Company is examining its options to restart exploration at Las Animas, it is important to note that the Tireo Formation remains the focus of the Company. As such, the Company's priorities are to continue the Romero mining application and environmental studies and continue work on the current 40-hole drill minimum program in the Tireo Formation surrounding the Romero deposit.
Assay results from the current exploration program will be released in the near future. By the end of 2016 the Company had completed 13 of the planned 40 holes. The Company is currently moving the drill to the next target area and drilling is expected to recommence next week.
Mineral Resource Estimate for Las Animas Project by Micon International Limited
| Indicated | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | Zn (%) | |||||
| Sulphide | 922,000 | 2.64 | 48.16 | 2.66 | 2.86 | |||||
| Oxide | 89,000 | 4.28 | 61.95 | 0.15 | 0.04 | |||||
| Total Indicated Resources | 1,011,000 | 2.81 | 49.58 | 2.4 | 2.57 | |||||
| Contained Metal | Au (ounces) |
Ag (ounces) |
Cu (lbs) | Zn (lbs) | ||||||
| Total | 91,000 | 1,605,000 | 54,289,000 | 58,180,000 | ||||||
| Inferred | Tonnes | Au (g/t) | Ag (g/t) | Cu (%) | Zn (%) | |||||
| Sulphide | 431,000 | 1.66 | 35.99 | 2.6 | 4.76 | |||||
| Oxide | 8,000 | 2.49 | 80.98 | 0.35 | 0.22 | |||||
| Total Inferred Resources | 439,000 | 1.68 | 36.907 | 2.558 | 4.67 | |||||
| Contained Metal | Au (ounces) |
Ag (ounces) |
Cu (lbs) | Zn (lbs) | ||||||
| Total | 24,000 | 518,000 | 24,790,000 | 45,272,000 | ||||||
Notes:
- Resource estimate is based on:
- Drill core assays from GoldQuest's 2011 drill hole database.
- Average specific gravity in sulphide resources is 4.76 g/cc based upon the average of 28 core measurements by the displacement method. Average specific gravity for oxide resources is assumed to be 4.00 g/cc.
- A geological model with a cut-off grade of 0.5 g/t Au or 0.5% Cu and a minimum thickness of 2 m.
- Block model with regular-shaped blocks measuring (X) 10 m by (Y) 2m by (Z) 10 m and sub blocks measuring (X) 2.5 m by (Y) 2 m by (Z) 2.5 m estimated with Inverse Distance Cubed (ID3) method
- Micon considers a cut-off of 1.0 g/t Au or 1.5% Cu to be reasonable with potential for economic extraction in a small underground operation.
- The resource estimate has been classified as Indicated and Inferred based upon the following criteria:
- Resource blocks estimated with at least 2 drill intersection within a 60 m radius, based on at least 5 assays were assigned to the Indicated category
- All remaining resource blocks within the geological model were assigned to the Inferred category.
- There has been insufficient exploration to define the inferred resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
- Effective date of the resource estimate is 31 July 2011
Qualified Person:
Jeremy K. Niemi, P.Geo., VP Exploration of the Company, is the Qualified Person who approved the scientific and technical information in this news release.
About GoldQuest
GoldQuest is a Canadian based gold focused mining company with development and exploration projects in the Dominican Republic. GoldQuest is traded on the TSX-V under the symbol GQC and in Frankfurt/Berlin with symbol M1W.
