Gold Mining News - Silver Quest Expands Mineralization on Capoose Project, BC

Silver Quest Expands Mineralization on Capoose Project, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 29, 2010) - Silver Quest Resources Ltd. (TSX VENTURE:SQI) (the "Company") is pleased to report assay results for diamond drill holes D-10-113 and D-10-115 recently completed on the Capoose Project ("Capoose") located in North Central British Columbia. Drill holes D-10-113 and D-10-115 have confirmed that precious and base metal mineralization extends to the southeast 100 metres (m) beyond the current NI 43-101 inferred mineral resource of 1.32 million ounces of gold equivalent or 53 million tonnes at a grade of 0.77 grams per tonne (g/t) gold equivalent, including 699,999 ounces of gold at a grade of 0.41 g/t and 41.1 million ounces of silver at a grade of 23.93 g/t (see news release dated March 4, 2010). Mineralization remains open in all directions and at depth.

Silver Quest has completed 26 drill holes totaling 7,400 m of drilling in 2010 and has shipped approximately 3,700 core samples to the assay lab for analysis. Under the current exploration program, the Company plans to complete 10,000 m of drilling in approximately 35 drill holes at Capoose. The property is located 185 km southwest of Prince George, British Columbia. For further details and property maps, please visit the Company's website www.silverquest.ca.

Drill holes D-10-113 and D-10-115 were designed to follow-up the results from drill hole D-09-100, which was previously the southeastern-most hole within the Capoose deposit. D-09-100 intersected 1.99 g/t gold and 23.1 g/t silver across 30 m, from 99 m to 129 m depth (see news release dated October 20, 2009). Drill holes D-10-113 and D-10-115 were drilled to the west at minus 60 degrees and were collared 50 m and 100 m, respectively, south of D-09-100.

Significant Gold and Silver Assay Intercepts from D-10-113 and D-10-115

Drill Hole	From (m)	To (m)	Interval (m)	Gold (g/t)	Silver (g/t)	Gold Equivalent (g/t)
D-10-113	144.0	146.0	2.0	0.36	3.80	0.41
D-10-113	148.0	150.0	2.0	0.23	23.90	0.59
D-10-113	172.0	176.0	4.0	0.48	8.50	0.61
D-10-113	190.0	192.0	2.0	1.17	28.80	1.60
D-10-113	216.0	246.0	30.0	1.89	12.51	2.08
including	230.0	238.0	8.0	5.67	16.98	5.93
D-10-113	274.0	284.0	10.0	0.99	11.30	1.16
D-10-113	336.0	338.0	2.0	0.13	24.40	0.50

D-10-115	55.2	56.1	0.9	2.60	490.00	9.95
D-10-115	73.5	77.0	3.5	0.32	12.00	0.50
D-10-115	140.0	148.0	8.0	0.32	8.20	0.44
D-10-115	196.0	215.0	19.0	0.49	30.36	0.95
including	197.0	201.0	4.0	1.10	58.50	1.98
and	209.0	213.0	4.0	0.87	72.45	1.95
D-10-115	260.0	275.0	15.0	0.50	4.02	0.56
D-10-115	298.0	311.0	13.0	0.34	13.25	0.54
D-10-115	325.0	335.0	10.0	1.13	9.89	1.26

*Gold Equivalent cut-off grade of 0.40 g/t. Gold equivalent (AuEq) is calculated as the sum of the gold content plus 0.015 times the silver content, based upon prices of US$1025/oz. for gold and US$15.50/oz. for silver, which approximate the average prices for these metals over the last two years. (Note: total contained AuEq values may not add exactly because of rounding). Interval values represent drill intersection length and may not represent true width.

These holes intersected rhyolite tuff mineralized with garnets and sulphides. Hole D-10-115 also intersected andesite mineralized with bands of massive sulphide stringers up to 25 centimeters wide. These sulphide stringers may indicate the presence of volcanogenic massive sulphide (VMS)-style mineralization at Capoose. Hazelton Group rocks, which underlie the eastern side of the Capoose mineral claim, host VMS-style mineralization in other parts of BC. The Company is currently evaluating deep penetrating geophysical techniques as well as other exploration techniques that will target VMS-style mineralization.

Significant Zinc Assay Intercepts from D-10-113 and D-10-115

Drill Hole	From (m)	To (m)	Interval (m)	Zinc (%)
D-10-113	No significant values

D-10-115	46.0	67.0	21.0	0.71
including	54.0	65.0	11.0	1.06
including	55.2	56.1	0.9	6.05
D-10-115	192.0	213.0	21.0	0.61
including	209.0	211.0	2.0	4.64
D-10-115	298.0	319.0	21.0	0.59

*Zinc cut-off grade of 0.50%. Interval values represent drill intersection length and may not represent true width.

Drill core analysis and assaying is being conducted by Eco Tech Laboratory in Kamloops, BC, which is an International Standard ISO 9001:2000-certified laboratory. The core samples were analyzed using a 28-element ICPMS package with a 30-gm fire assay with AA finish for over limit (plus 1.0 g/t) gold, (plus 30 g/t) silver and (plus 10,000 g/t) zinc concentrations. The Company has implemented a quality assurance and quality control program to ensure that sampling and analysis of all samples is conducted in accordance with the best possible practices.

David Pawliuk, P.Geo., Vice President Exploration for Silver Quest is the Qualified Person, as defined by National Instrument 43-101 and supervised the preparation of the technical information in this release.

SILVER QUEST RESOURCES LTD.

"Randy Turner"

Randy Turner, President

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