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Great Quest Metals signs option agreement to acquire 42 sq km Fambina property in western Mali

Published: 06:49 01 Sep 2010 AEST

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Gold explorer Great Quest Metals (TSX-V: GQ; Frankfurt: GQM) has announced the signing of an option agreement by its Malian subsidiary to acquire the 42 square kilometre Fambina gold concession in western Mali, east and south of its Sanoukou gold concession.

Under the terms of the option agreement, the company could earn a 95% interest, subject to a 5% carried net profit interest and the reserve interest of the Government of Mali, in the Fambina concession by making payments totalling approximately C$99,000 over three years.  After the initial payment of $42,550, the second payment will be due in eighteen months.  

The company`s strategy is to focus on the potential in Mali for both its phosphate project near the Tilemsi Valley and the Kenieba, West Mali gold belt. 

The addition of the Fambina concession, which extends south to within 1.5 km of the company’s 100 sq km Dabia Ouest concession, brings the total area now held in the Kenieba district to 166 sq km and expands the opportunity to build on previous explorations, it said.

A recent property visit by the company’s Malian geologist confirmed the presence of orpailleurs, or hand miners, on Fambina. Great Quest has said that the acquisition of the new gold concession, together with the Sanoukou and the Dabia Ouest concessions, provides it with the opportunity to take a district exploration approach for gold, linking areas of orpaillage and favourable geology along the Birimian greenstone belt of Western Mali.

A program of geological mapping and rock and soil sampling is due to commence immediately.

The company has $4,360,000 in cash and shares and is debt free. It was up 1.54% to $1.32 on the TSX-Venture Exchange by noon today.

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