With new board, and fresh capital, Nor-Quest outlines its new

Equipped with a reorganized board of directors and $2.1 million in equity capital, Nor-Quest Resources has outlined its short-term strategy after a preliminary review of operations.

After producing 460 oz gold and 1,137 oz silver from its Gladiator mine in Arizona in the three months ended Dec 31, Nor-Quest has placed the operation on a care- and-maintenance basis for the time being.

“It is evident that further additions to the mill, including carbon- in-pulp processing for improved gold recoveries, are necessary”, said President Allan Ferguson. “At the same time, underground sampling and diamond drilling will attempt to outline a target reserve of 61,700 oz,” he said.

While the company’s Salmo mill at Kootenay, B.C., is being managed on a care-and-maintenance basis, Nor-Quest and affiliate Imco Resources are negotiating to obtain additional flow-through financing to fund an exploration program close to the mill.

Nor-Quest recently raised $2.1 million from a private placement which was accompanied by warrants worth an additional $2.3 million.

Imco recently spent $495,000 in flow-through funds at its Maizerets property in Quebec. The property is located within one mile of Perron Gold Mines’ Sleeping Giant mine.

Nor-Quest’s Costa Rican subsidiary is involved in a $350,000 exploration program at its 8-sq-km gold mining concession in Costa Rica’s Juntas area where some encouraging results were obtained recently.

The company has targeted a number of stockworks alteration zones where gold-bearing sulphide and quartz minerals promise mineable gold reserves.

It is concentrating its efforts on the San Martin zone where Nor- Quest’s consulting geologist says 65,000 tons grading 0.1 oz gold per ton have been identified.