Capoose On Track For Silver Quest

Vancouver — As part of its efforts to update a historical resource estimate, Silver Quest Resources (SQI-V, SQIFF-O) has confirmed silver and gold mineralization at its Capoose property, 185 km southwest of Prince George, B. C.

“The plan is to have an updated resource estimate in the first quarter of 2009,” Silver Quest president and CEO Robert Weicker says.

Silver Quest drilled 10 holes this year as part of a 1,400-metre program to verify and expand the near-surface disseminated gold and silver mineralization. So far, it has released results from two holes.

Hole 89 hit 16 metres grading 57.3 grams silver per tonne, 0.32 gram gold, 0.34% copper, 0.03% lead and 0.21% zinc starting 19 metres down-hole. Hole 97 returned 88 metres grading 40.3 grams silver, 0.2 gram gold, 0.01% copper, 0.24% lead and 0.36% zinc, starting at 69 metres.

Cominco (now Teck [TCK. B-T, TCK-n]) and Granges Inc. last drilled Capoose in the early 1980s.

Then, in the late 1990s, Pan American Silver (PAA-T, PAAS-Q) produced a resource estimate (not compliant with National Instrument 43-101) pegging Capoose at 28 million tonnes grading 36 grams silver and 0.34 grams gold. Pan American subsequently let the claims lapse.

Silver Quest optioned Capoose from Bearclaw Capital (BRL-V) in January 2008. To get a 60% interest, Silver Quest agreed to pay $240,000, issue about 1 million shares and spend $1 million on exploration over 30 months.

Within 24 months of meeting those terms, it can increase its option to 100% if it pays Bearclaw $2.5 million. Silver Quest can also elect to cover half that payment by issuing shares worth $1.25 million.

Bearclaw retains a 2.25% net smelter royalty return (NSR) under the 100% option agreement, but Silver Quest can reduce it to 1.25% with a $1.5-million payment.

Weicker also notes that his company recently acquired a Capoose data package from Teck giving Silver Quest, among other things, reports on 54 of the major’s drill holes. He says the data is helping Silver Quest define a higher-grade component to Capoose’s mineralized areas.

And Weicker likes what he sees at Silver Quest’s adjacent Silver Trend property.

“That is really the potential for expansion,” he says.

Silver Quest has identified a half-dozen targets defined by soil geochemistry of 5 parts per million silver and above within a 4.5- km anomaly at Silver Trend.

On news of the drill results, Silver Quest’s share price gained 1¢ to close at 3.5¢. It has about 33 million shares issued.