Capoose on track for Silver Quest

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

“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 ten 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 grams gold per tonne, 0.34% copper, 0.03% lead and 0.21% zinc starting 19 metres downhole. Hole 97 returned 88 metres grading 40.3 grams silver, 0.2 grams gold, 0.01% copper, 0.24% lead and 0.36% zinc starting 69 metres downhole.

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

Then in the late 1990s Pan American Silver (PAA-T) produced a non-NI-43-101 compliant resource estimate 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 completing 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 equal to $1.25 million.

Bearclaw retains a 2.25% net smelter royalty return (NSR) according to the 100% option agreement but Silver quest can reduce it to 1.25% if it pays Bearclaw $1.5 million.

Weicker also notes that it recently acquired a Capoose data package from Teck giving Silver Quest, among other things, reports on 54 of Teck’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,” Weicker says. Silver Quest has defined a half-dozen, 5-ppm, silver-in-soil targets 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.