Slate Falls

Location

The Slate Falls property is located approximately 120 kilometres north of the community of Sioux Lookout and 30 kilometres southwest of the former producing Golden Patricia mine which produced 860,000 tons grading 0.58 oz/t (19.9 g/t) gold. Slate Falls First Nation Community, accessed by plane and winter road, is located 5 kilometres south of the property.

Size

The property consists of 3 contiguous mineral claims covering an approximate area of 768 hectares.

Ownership

Silver Quest can earn 100% interest in the Slate Falls property from a private vendor, by making cash payments totalling $100,000 and the issuing 500,000 before June 2012 (a three year period).

Target and Potential

The Slate Falls Gold property contains several known gold showings up to 25.0 oz/t (857.0 g/t) Au associated with quartz veining in shear zones similar to and contemporaneous with the stratigraphy which hosts the Golden Patricia gold mine. The Sanderson and Trail Zones are the two most explored showings.

Previous sampling of 14 trenches oriented across the Sanderson Zone returned a weighted average of 5.5 g/t Au and 164.0 g/t silver (Ag) over a width of 0.95 metres for a 170 metres strike length. Seven short diamond drill holes totalling 298.1 metres were completed over a 215 metres strike length of the Sanderson Zone in 1966 and intersected sulphide and quartz veining in shear zones containing narrow bands of gold mineralization. The best intercept was in hole 66-8 which returned 6.9 g/t Au and 101.5 g/t Ag over a width of 0.5 metres at a depth of 22.7 metres.

Four drill holes (151.8 metres) were completed on the Trail Zone in 1966 and two holes were drilled in 1984. The best intercept was in hole 66-11 which returned 861.3 g/t Au and 213.9 g/t Ag over a width of 0.21 metres at a depth of 15.1 metres.
The last exploration program on the Slate Falls Gold property was completed in 2002 and identified fourteen new gold occurrences assaying greater than 0.5 g/t Au with a peak value of 6.70 g/t Au (grab). Several of the known gold showings were extended and additional exploration work was recommended.

Geology

The property area is underlain by Archean rocks of the Williams Suite and Woman Assemblages. The area is dominated by a group of mafic volcanic units with minor clastic sediments and banded iron formations. To the south, the North Bamaji Pluton intrudes the greenstone and creates a broad transition zone characterized by volcanic xenoliths and roof pendants within the pluton and numerous dykes with the volcanic rocks. Rocks regionally display foliation, fold structures and sheering which can be seen throughout the property.

An extensive regional gold bearing system known as the Slate Falls Deformation Zone ("SFDZ") has been interpreted as the structural control of gold mineralization by previous companies and government geologists. The SFDZ has been traced for more than 10 kilometres along strike. Assessment reports filed with the Ontario government indicate that the Sanderson Zone is an east-west trending shear-vein zone (strike length of 625 metres) hosted in mafic volcanic rocks, intruded by felsic porphyritic dykes. The Trail Zone, located 1.2 kilometres southwest of the Sanderson Zone and represents a parallel shear zone that is buried by overburden along the strike. Previous exploration exposed the zone over a strike of 70 metres, trending east-west, averaging 15.1 g/t Au over 0.74 metres based on 20 chip samples.

Maps & Figures

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