Quest Uranium Corporation announce that it has entered into a purchase and sale agreement with two prospectors for the acquisition by Quest of a 100% interest in single block of mining claims in the Strange Lake area of northeastern Quebec. The property is fully enveloped by Quest’s Stewart Lake property (Figure 1) and lies immediately north of the Strange Lake REE-zirconium (Zr)-yttrium (Y)-niobium (Nb)-beryllium (Be) deposit.
Under the terms of the agreement, Quest will acquire a 100% undivided interest in the property by issuing an aggregate of 50,000 shares to the two vendors of the property. In addition, Quest will grant a 2.0% net smelter royalty (NSR) to the vendors, which Quest can repurchase in full for $1.5 million.
“Quest now has 100% control of all of the favourable REE geology in and adjacent to our Strange Lake deposit,” said Peter Cashin, Quest’s President and CEO. “This acquisition will provide Quest with a high-value resource opportunity as it moves forward with its summer exploration plans in the area and is in keeping with our strategy of concentrating on rare earth metals.”
The acquisition by Quest is subject to regulatory approval, including that of the TSX Venture Exchange.
Quest currently holds the Quebec portion of the Strange Lake REE-Zr-Y-Nb-Be Deposit discovered by the Iron Ore Company of Canada in the late 1970′s (historical resource estimate, pre-National Instrument 43-101; Venkatswaran, 1983 – 52 million tonnes @ 3.25% ZrO2, 0.56% Nb2O5, 0.66% Y2O3, 0.12% BeO and 1.30% TREO). In addition, Quest has previously announced (see Press Release: April 7, 2009) that it had made a new discovery of high-grade REE mineralization in granite approximately 10 km northeast of Strange Lake. The mineralized granite is associated with a large radiometric anomaly measuring 2.25 km by 1.5 km. Several grab samples from preliminary work over the target area returned combined Y oxide (Y2O3) and Total Rare Earth Element oxides (TREO) of up to 4.35%. Individual uranium (U3O8) and zirconium (ZrO2) analyses of up to 0.36% and 1.34%, respectively, were also returned from sampling of the granite.
A significant exploration program consisting of reconnaissance prospecting, geological mapping, airborne geophysical surveying, rock geochemistry and diamond drilling is currently being planned for the summer and fall.