QUEST MINERALS LTD - ASX: QNL

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Description

Quest Minerals Limited (QNL), formerly IC2 Global, is a company that focuses on gold, iron and other mineral resources exploration.

Victory Bore Project

Under a farm-in agreement with Mutual Holdings Pty Ltd the Company has the right to acquire a 100% interest in E57/550, known as Victory Bore, in the Mid West region of Western Australia (Figure 1). The tenement covers the northern 11 km segment of a 25 km long magnetic anomaly overlying two major magnetite rich horizons within a regional scale, layered intrusive gabbro complex. The airborne magnetics (Figure 2) completed over the project show remarkable consistency of the magnetite units along strike in the enclosing gabbro host rocks.

Drilling in 2007 comprised four RC holes, for a total of 594m. Four metre composite assays returned significant intersections and using a 0.4% V2O5 lower cut-off; the relevant intersections are as follows:

• VC0702: 52m from surface at 29.6% Fe, 0.56% V2O5, and 7.5% TiO2, (including 12m at 39% Fe, >0.7% V2O5 and >9% TiO2) for an estimated true width of 32m.
• VC0703: Two zones - 36m to 48m for 12m at 31.0% Fe, 0.58% V2O5 and 8.8% TiO2, and 96m to 150m for 54m at 27.4% Fe, 0.50% V2O5 and 7.8% TiO2, (including 8m at 43% Fe, >0.8% V2O5 and >11% TiO2) for an estimated true width of +30m

On 25 June 2009 Quest Minerals entered into an exclusive dealing and non-circumvention agreement with Chinese coal producer Donghui Group in relation to the tenement. Under the agreement Donghui Group has the exclusive right for a period of 120 days to conduct further inquiries and to determine whether to participate in the exploration and development of the tenement under a joint venture or similar arrangement. In cooperation with Quest Minerals, Black Ridge Mining Limited (ASX: BRD) has entered into the same arrangement with Donghui Group in relation to its Unaly Hill tenement (E57/420) located immediately south of Victory Bore. Donghui Group is one of the largest producers of coal and related products in the mining and industrial Shanxi Province of China. It also produces 2.7 million tonnes of metallurgical coke per year.

Nigerian Project

The Company has applied to the Nigerian Mining Cadastre Office for a total of 19 exploration licences in the Yelwa, Fokku, Birnin Gwari and Azara areas of Nigeria (Figure 4) covering 3,600 km2, which will give the Company large scale exploration targets in known gold mineralisation areas in Nigeria. The Fokku and Birnin Gwari prospects lie within known schist belts associated with gold mineralisation. All of the areas have large scale artisanal workings comprising surface excavations and underground shafts for the extraction of primary and secondary gold. As with all recent applications for exploration and mining tenements in Nigeria, the Company’s applications are waiting to be processed by the Mining Cadastre Office pending the promulgation of new mining legislation by the Nigerian Government. The Nigerian Ministry for Mines and Steel Development has advised the Company that the applications will be processed upon the introduction of the new legislation.

Mine For

iron ore, vanadium

Location of operation(s)

Western Australia, Nigeria

Address

Level 1, 47 Ord St
WEST PERTH, WA, Australia

Phone

(61 8) 9322 7822

Email

Website

http://www.questminerals.com.au/

Last Updated

02/03/2010