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Great Quest Completes $2.36 million Agreement on its Kenieba Concessions with Avion Gold Corporation
GREAT QUEST
METALS LTD.
Suite 515, 475 Howe Street
Vancouver, BC, Canada V6C 2B3
Tel: 604-689-2882 Website: www.greatquest.com
Fax: 604-684-5854 Email:
November 2, 2009
Great Quest Completes $2.36 million Agreement on its Kenieba Concessions
with Avion Gold Corporation
VANCOUVER, BC -- Great Quest Metals Ltd.
(TSXV: GQ; Frankfurt: GQM) (Great
Quest) and Avion Gold Corporation (AVR:TSXV) ("Avion") are pleased to
announce that they have executed a definitive agreement in relation to their
previously announced letter of intent (see Great Quest News Release dated
April 21, 2009) to acquire 75% of Great Quests interest in three mineral
concessions located adjacent to the south and west sides of the Tabakoto
property (see figure) (the "Option Agreement").
Great Quest previously spent
approximately US$3.0 million in expenditures to explore the properties.
The Great Quest properties comprise the Kenieba (Sansanto), Kenieba Est and
Comifa concessions totaling approximately 32 km2, which increases Avions
local property package by approximately 30%.
The Kenieba concession hosts a
43-101 compliant inferred resource in the Djambaye 2 gold zone of 324,000
ounces (Carl Verley (P.
Geo.), January 28, 2008 Great Quest news release).
This equates to 2,574,000 tonnes grading 3.92 grams per tonne gold.
Commenting on the proposed acquisition, Avions President and CEO, Mr.
John
Begeman stated, "As stated previously this disciplined acquisition
represents an exciting opportunity for Avion to acquire nearby prospective
gold projects that could provide additional feed for the Tabakoto mill and
support Avions stated growth and West African consolidation goals."
To acquire 75% of Great Quests interest in the three mining concessions
Avion is required to make cash payments of CDN$ 2,360,000 and complete work
commitments of CDN$ 1,890,000 both over five years, subject to terms of the
agreement.
On signing of the Option Agreement Avion made a cash payment of
CDN$ 350,000 and is required to complete at least CDN$ 150,000 of
exploration expenditures in year 1.
Great Quests interest in the properties
varies from 95% to 100% subject to a carried interest to the Government of
Mali ranging between 10% and 20%.
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Great Quest Metals Ltd.
November 2, 2009
Page Two
"Avion plans to build upon Great Quests work that has defined a series of
northerly trending intrusion-hosted gold zones and gold mineralized,
sediment- and intrusion-hosted cross-structures that are similar in
character to those on the Avion concessions.
A program of soil sampling and
magnetic surveys will be carried out in early 2010 to provide a large scale
property view prior to the selection of new and follow-up drill targets."
comments Don Dudek, Vice President Exploration for Avion.
Willis W.
Osborne, President and CEO of Great Quest, states "this is an
excellent opportunity for the Company as it could enable production from the
Great Quest concessions without the need to establish a mineral resource
large enough to support a standalone mill and mining equipment.
This could
result in earlier production from the concessions then would normally be
expected and the project will benefit from the Avion exploration success on
its adjacent Tabakota concession".
In Mali the Company will now focus on
exploration on both its Bourdala gold concessions and its recently acquired
Tin Hina phosphate concession.
ON BEHALF OF THE BOARD OF DIRECTORS
OF GREAT QUEST METALS LTD.
"Willis W.
Osborne"
Willis W.
Osborne
President
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