Upcoming Events
March 7 - 10, 2010
PDAC - Toronto ON
Booth# 2848 | |
The Company:
Within just over 3 months, Great Quest has been transformed from a junior exploration company facing a difficult financing market and accumulated payables to a company with cash and investment shares now valued at about $5.60 million. This rapid rejuvenation of the Company is the result of the sale of the Company's western Mali Kenieba gold concessions to Avion Gold Corporation. By the end of January 2010, the Company will be debt free with cash and shares valued at over $5.30 million. With the success of the Kenieba transaction and on-going participation in production from its Kenieba property immediately adjacent to the Avion Gold Corp Tabakoto mill, Great Quest is poised to acquire new projects and to entertain joint venture partnerships on its other mineral properties.
Great Quest Metals Ltd.'s business is to acquire, explore and advance selected mineral properties with economic potential, located in known producing areas. The objective now is to leverage the financial assets through other projects with resource potential. The strategy is to develop these properties to a resource potential attractive to joint venture or buy-out interests. By sharing costs and expertise with partners, the Company has and will continue to increase the value of its discoveries, while minimizing share dilution for Great Quest's shareholders.
The Company, headquartered in Vancouver, British Columbia, holds a 100% interest, subject to a 2½ % royalty, in its founding project, the Taseko copper-gold-molybdenum property, located 225 km north of Vancouver, British Columbia. Since 1998, the Company has developed a portfolio of gold projects in Mali, West Africa and expects to develop additional projects following the success of the Kenieba discovery.
The Sale of the Kenieba Concession:
On January 8, 2010, Great Quest completed the sale of the Kenieba concession (announced on December 18, 2009,) for $4,350,000 which consisted of $850,000 in cash and 7,608,696 shares of Avion priced at $0.46 per share. With the appreciation of the Avion shares to the $0.70 range, the value of the transaction to Great Quest increased by $1.83 million to $6.18 million. As Avion's share price continues to increase, it will result in a substantial benefit to the Company and its shareholders. On January 11, 2010 the Company sold 1.5 million shares of Avion at $0.70 per share for additional proceeds of $1,050,000. As a further benefit, Great Quest could receive a total of $3.50 million in stages as production approaches and exceeds 600,000 ounces of gold.
Active Projects:
Gold - Mali, West Africa:
Western Mali's prolific gold belt contains four producing mines, and over 30 million ounces of gold has been discovered to date.
Kenieba - The Company acquired the Kenieba concession within the western Mali gold belt and established an inferred mineral resource of 324,000 oz/gold. The zone is open along strike and to depth which indicates excellent potential to increase the resource. Several relatively intersected zones occur. As detailed above, Great Quest sold the concession to Avion.
Avion, in its news release dated January 6, 2010, has significantly increased its measured and inferred resource in the Segala Main Zone to 490,000 ounces and announced a $10 million exploration budget for 2010. Their professional approach to aggressive exploration programs and increased production projections should result in higher prices for Avion's shares -- an added benefit to Great Quest.
Bourdala - The Bourdala gold concessions are also located in Mali's western gold belt. Company drilling encountered significant gold intersections in 4 separate areas including 10 m of 3.92 g/t gold and 5 m of 8.63 g/t gold in the Bourdala Sud Ouest zone and 5.5 m of 2.91 g/t gold and 7 m of 4.24 g/t gold in the TD zone. Drilling and recent trenching and pitting have indicated the potential for substantial gold mineralization in metasediments. The Company holds a property permit on 64 sq km and has applied for a further drill permit. The Company is currently looking to joint venture this concession to further its development potential.
Baoule River - The 207 sq km Baoule River gold concession occurs in southwestern Mali. A recent program outlined 4 geochem gold anomalies. Drilling in only one of the gold anomalies intersected 8 m of 1.24 g/t gold, 4 m of 1.92 g/t gold, 4 m of 1.43 g/t gold and 8 m of 1.07 g/t gold in metasediments. The Company's concession is located 44 km to the southeast of the Kalana Gold Mine which has a measured, indicated and inferred gold resource totalling 1,238,000 oz/gold. The gold occurs in quartz veins and also in metasediments adjacent to intrusive rock. The objective of exploration will be to locate the source of the mineralization through drilling or bring in a joint venture partner. All permits are in place.
Phosphate - Mali, West Africa:
Tin Hina - the Company's exploration activities in Mali led to an opportunity to acquire a 417 sq km industrial phosphate concession located in the Tilemsi phosphate district of eastern Mali. In June 2009, results from a grab sampling program in the area over a distance of 6,870 metres along the southeast and south sides of the Alfatchafa hill ranged from 5.11% P2 O5 to 33.05% P2 O5 and averaged 24.50% P2 O5. Several other hills with known phosphate rock occur within the concession. The next program of drilling, pitting and sampling on the 15 metre deep Alfatchafa zone will establish a NI 43-101 compliant mineral resource and begin to outline the size of this potentially large deposit.
Gold-Copper-Molybdenum - British Columbia, Canada:
Taseko property - The 27 sq km property, located 225 km north of Vancouver, covers the copper-gold Empress deposit, the molybdenum Granite Creek zone and the copper-gold-molybdenum Buzzer zone. The Empress has a historical mineral resource of 11 million tons of 0.61% copper and 0.023 ounces/ton gold equating to 135 million lbs copper and 254,794 ounces of gold. The property is a potential joint venture project for mid to large sizes mining companies and a data set is available.
| DIRECTORS & OFFICERS |
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INVESTOR RELATIONS |
| Mr. Victor J.E. Jones, Chairman, CFO & Director |
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Mr. George Butterworth: 604-689-2882 |
| Mr. Willis W. Osborne, President, CEO & Director |
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Toll Free: 877-325-3838 |
| Mr. Mahamadou Keita, VP-Exploration & Director |
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| Mr. John A. Clarke, Director |
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| Mr. Robert Veitch, Director |
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| Ms. Jennifer Nestoruk, Corporate Secretary |
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| SHARE CAPITAL |
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LISTINGS |
| Authorized: |
Unlimited |
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TSXV: GQ |
| Issued: |
37,975,814 |
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Frankfurt: GQM |
| Options: |
3,155,000 |
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12g3-2(b) Exemption #82-3116 |
| Warrants: |
2,922,500 |
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Standard & Poor's Listed |
| Fully Diluted |
44,053,314 |
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