VANCOUVER, BC -- Victor Jones, Chairman of Great Quest Metals Ltd. (TSX-V: GQ; Frankfurt: GQM), is very pleased to announce the signing of an option agreement by its wholly owned Malian subsidiary to acquire the 42 square kilometre Fambina gold concession in western Mali. This concession is partially contiguous with and east and south of its Sanoukou gold concession, which in turn is immediately south of the Company's former Kenieba concessions, sold to Avion Gold Corp. earlier this year.
Company strategy sets a focus on the potential in Mali for both its phosphate project near the Tilemsi Valley and the Kenieba, West Mali gold belt. The Company view is that the phosphate concessions, where it holds an area of 737 square kilometres prospective for phosphate (GQ News Release June 23, 2010), offer considerable scope for defining phosphate resources urgently needed by Mali. Significant existing and planned agricultural and infrastructure investment by foreign entities in Mali indicate a growing interest in the potential for Mali's agricultural sector.
The addition of the Fambina concession, which extends south to within 1.5 km of the Company's 100 sq km Dabia Ouest concession, brings the total area now held in the Kenieba district to 166 sq km and expands the opportunity to build on previous exploration success.
Initial programs on the Company's Sanoukou and Dabia Ouest concessions established drill targets on the Sanoukou concessions (GQ News Release July 29, 2010). The Company's Vice President of Exploration, Mamadou Keita (M.Sc.Geo.), is familiar with the Fambina concession and a recent property visit by the Company's Malian geologist confirmed the important presence of orpailleurs, or hand miners. The acquisition of this concession, together with the Sanoukou and the Dabia Ouest concessions provides the Company with an exceptional opportunity to take a district exploration approach for gold, linking areas of orpaillage and favourable geology along the Birimian greenstone belt of Western Mali.
Under the terms of the option agreement, the Company may earn a 95% interest in the Fambina concession by making payments totalling approximately C$99,000 over 3 years. After the initial payment of C$42,550, the second payment is due in eighteen months. On completion of the payments the Company will hold a 95% interest subject to a 5% carried net profit interest and the reserve interest of the Government of Mali. The Convention d'Etablissement permit is in place and the Arrête de la Miniere permit was granted July 7, 2009. The agreement is exempt from filing requirements of the TSX Venture Exchange. A program of geological mapping and rock and soil sampling will commence immediately.
ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST METALS LTD.
Victor J E Jones
For additional information please contact:
George Butterworth: +1 604-689-2882
Toll Free: 1 877-325-3838
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. The statements that are not historical facts and are forward-looking statements involving known and unknown risks and uncertainties could cause actual results to vary materially from the targeted results.
Great Quest is a Vancouver based exploration company with a focus on Mali, where it holds large concessions prospective for phosphate and several exploration-stage gold projects. The Company is funded this year from the proceeds of sale of its Kenieba gold project in Mali to Avion Gold Corp. and is debt free.