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|  | | |  The Kenieba and Baroya concessions share a 12.5 kilometre border with the Tabakoto and Segala concessions of Avion Resources which cover the Tabakoto gold mine and Segala gold deposit. There is an old adage stating that the best place to look for a mine is in close proximity to another mine. The Kenieba gold concession covers a variety of gold occurrences. These range from gold in quartz veins associated with albitite dykes, to gold in quartz-breccia-quartz-vein zones and to gold in quartz vein systems. Thus far in the exploration of the concession, the Djambaye 2 gold zone, where a mineral resource of 324,000 ounces of gold has been established, is the primary target. Less work has been done on the Djambaye 1 gold zone, but drilling has shown some positive results. Other areas of interest include the Kabaya 1, Kabaya 2 and Kourufin zones. Great Quest currently holds the Kenieba concession where an NI 43-101 compliant, inferred mineral resource in the Djambaye 2 gold zone was upgraded by Carl Verley (P. Geo.) to 324,000 ounces of gold on January 28, 2008. This equates to 2,574,000 tonnes of 3.92 grams per tonne gold or 10.08 tonnes of gold. The concession is located in western part of Mali, West Africa and is south of and adjacent to the concession covering the Tabakoto mine and Segala deposit. In September, 2007, Nevsun Resources Ltd. suspended operations at the Tabakoto mine and put all of its holdings in Mali up for sale. The outlook in the area was considerably enhanced with the March 25, 2008 announcement by Nevsun, that Avion Resource Corp., subject to regulatory approval and financing by Avion, had agreed to pay Nevsun $20 million in addition to granting a 1% net smelter return royalty on future production for the Tabakoto mine, Segala deposit and other exploration targets. On April 17, Avion announced a private placement financing of $30 million in connection with the Malian acquisition and a drill program on the concession. According to a March 26, 2008 news release by Avion, "Avion plans to focus its efforts on a drill program that will be designed to increase the confidence levels of the previous resources at Tabakoto and Segala and aggressively pursue satellite targets that could contribute additional gold resources in the immediate project area. For Tabakoto and Segala, Avion is targeting the identification of between 1.4 million and 1.7 million ounces with a target grade of approximately 3.0 to 4.5 g/t of gold at the Mali projects. However, at this time, the target resource estimate is conceptual in nature as the information and analysis required to substantiate an estimate have not been completed. Avion can not be certain that further results and analysis will substantiate this estimate." The news release later states, "With infrastructure in place, Avion plans to restart production at the Tabakoto mine shortly after operational and economic feasibility has been determined." On October 6, 2008, "Avion Resources announced the completion of the 2008 drilling program at the Segala and Tabakoto gold projects, Mali (West Africa). In total, Avion drilled 79 holes (15,341 metres), since the acquisition of the Mali projects in May 2008. The program objective was to substantiate previous mineral resource estimates at Segala and Tabakoto, discover additional zones and to delineate a new geological model for the deposits. An updated resource estimate for the Segala gold project is expected in the fourth quarter of 2008, with planned production at Segala commencing shortly thereafter in the first quarter of 2009. An updated resource for Tabakoto is planned for the first quarter of 2009." In a December 7, 2007 news release, Randgold Resources updated developments on its Yalea underground project, also in Mali and just 26 kilometres from the Kenieba project of Great Quest. Overall, approximately 12.55 million ounces of gold have been discovered at Loulo in several deposits. Of immediate interest to Great Quest is the activity in the Yalea area. The Yalea open pit resource was 7,450,000 tons of 3.98 grams per tonne gold for 950,000 ounces. The Company is currently digging a tunnel under the open pit to access the underground portion of the Yalea deposit where underground resources amount to 8,400,000 tonnes of 6.88 grams per tonne gold for 1,860,000 ounces. The above information comes from Randgold's November, 2005 PowerPoint Presentation. In a December 7, 2007 news release, the Company states about the Yalea project, "The underground project is still relatively new and is subject to continuous enhancement and optimization. One such enhancement is the addition of the area in Yalea South, which has up until now been excluded from mine planning owing to the weathering profile that extends to depth in this area. A total of 2,664,107 t is mineable from the Yalea South extension at a grade of 4.51 g/t yielding 385,927 oz. The scheduling of this area with the rest of Yalea is currently under way. So what does this have to do with Great Quest Metals? First, the grade in the Djambaye 2 gold zone is comparable to the target grade of 3.0 to 4.5 grams per tonne of Avion at the Tabakoto mine and Segala deposit. With the exception of the Yalea underground deposit at 6.88 g/t gold, it is comparable to the Yalea open pit and Yalea South underground deposit. On the Djambaye 2 zone, the mineral resource was calculated over a length of 1.850 metres. The zone has been traced on the surface for 4,000 metres and is open in both directions and to depth. The initial target of Great Quest on the Djambaye 2 zone will be to double the current mineral resource. There are several prospective gold zones that remain to be explored on the 32 square kilometre Kenieba concession and the 8 sq km Comifa concession. Success in testing these could add to the mineral resource. The opportunities for the Company include a possible joint venture relationship with another company. Maps
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| ©2006 Great Quest Inc. All Rights Reserved. |  | |
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