GoldQuest Signs Formal Agreement With Gold Fields and Outlines Joint Venture Exploration Plans

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2007) - GoldQuest Mining Corp. ("GoldQuest" or the "Company") (TSX VENTURE:GQC)(FRANKFURT:M1W) is pleased to announce the formal signing of the Mining Venture Agreement with Gold Fields Limited with respect to selected projects in the Dominican Republic. The terms of the agreement were initially given in the press release of February 2, 2006. Work by the GoldQuest-Gold Fields Joint Venture has discovered a series of new gold, and copper / gold occurrences in the western Dominican Republic including Las Tres Palmas, Los Comios, Loma Viejo Pedro and Jengibre.

Gold Fields can earn a 60% interest in the selected projects held by GoldQuest in the Dominican Republic by expending US$5 million over three years with a first year commitment of US$1.0 million which ended January 31, 2007. This initial commitment was exceeded by Gold Fields.

Subsequent to vesting its 60%, Gold Fields may choose up to four projects whereby it can earn an additional 15% by expending a further US$5 million on each of the projects. GoldQuest has the right to maintain a 40% interest in one of the designated projects of its choice by fully funding its share of expenditures up to bankable feasibility study. At GoldQuest's election upon completion of the additional 15% earn-in, Gold Fields will arrange funding of GoldQuest's proportionate share of subsequent development and construction expenditures. In return, Gold Fields will be granted an additional 5% interest in the specific project (to 80%) and the funding will be deemed a loan, payable out of 90% of GoldQuest's profits from production. In the case of GoldQuest contributing on one project to bankable feasibility study, Gold Fields can earn an extra 5% (i.e. to 65%) by arranging funding of GoldQuest's proportionate share of the subsequent bankable feasibility study. Development and construction expenditures and the funding will be deemed a loan, payable out of 90% of GoldQuest's profits from production.

Gold Fields have budgeted US$2 million for exploration on the GoldQuest projects in year two of the joint venture starting February 1, 2007. Over the next quarter exploration relating to the joint venture will focus on the following projects:

Las Tres Palmas: - An initial 1,820 meters of diamond drilling was completed in 2006 with encouraging results. The highlights were:

- Hondo Valle: 20 meters grading 2.65 g/t Au from surface (Press Release May 2nd 2006); and

- Escandalosa: 38 meters grading 3.34 g/t Au (Press Release May 30th 2006).

Subsequently in December 2006 and January 2007, a further 16 step-out diamond drill holes totalling 2,223 meters were completed (LTP-18 to 33) with the highlights given in Table 1. GoldQuest is encouraged by the results that clearly indicate a large mineralized system which has been detected over a strike length of 2,100 meters, a width of up to 280 meters and with intersections up to 122 meters thick vertically. Mineralization forms a tabular stratabound body with a low dip to the east.

Table 1. Length-weighted average gold grades from Las Tres Palmas
(0.1 g/t Au cut off).
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HOLE FROM (m) TO (m) INTERVAL (m) GOLD (g/t) ZONE
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LTP-18 60.00 108.00 48.00 0.285 Escandalosa
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LTP-19 78.46 110.56 32.10 0.369 Escandalosa
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LTP-20 65.00 87.00 22.00 0.265 Escandalosa
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LTP-21 78.00 104.00 26.00 0.243 Escandalosa
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LTP-22 74.00 112.00 38.00 0.166 Escandalosa
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LTP-23 62.00 70.00 8.00 0.177 Escandalosa
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LTP-24 102.46 129.54(i) 27.08 0.329 Escandalosa
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LTP-26 124.00 153.90 29.90 0.203 Escandalosa
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LTP-27 115.00 127.00 12.00 0.107 Escandalosa North
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and 161.00 170.69(i) 9.69 0.148
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LTP-28 36.00 49.28 13.28 0.154 Escandalosa North
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LTP-30 96.00 100.58(i) 4.58 0.127
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LTP-31 12.00 118.00 106.00 0.110 Hondo Valle
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including 12.00 35.46 23.46 0.208 Hondo Valle
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LTP-32 8.00 36.45 28.45 0.357 Hondo Valle
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including 26.00 36.45 10.45 0.840 Hondo Valle
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Notes: (1) (i) mineralization open; (2) where there are core duplicate QC
samples, the average value has been used

 

The maximum gold grade of the step-out drill holes is 2.93 g/t over 1.95 m. Gold mineralization in these holes is accompanied by anomalous silver (maximum 36.80 g/t over 1.19 m), copper (maximum 0.49% over 1.70 m) and zinc (maximum 1.79% over 1.19 m and 0.50% Zn over 9.69 m). The Escandalosa holes LTP-18, 19, 20, 21, 22, 23, 24, and 26 intercepted the same mineralized horizon as that of LTP-07 that returned 63 meters grading 2.1 g/t Au (Press Release May 30, 2006), although the values are considerably lower indicating these step-out holes may be peripheral to the stronger mineralization. Holes LTP-27 and 28 were drilled north of Escandalosa with hole LTP-28 intercepting the same mineralized horizon at a similar topographic level 500 meters to the north of Escandalosa hole LTP-07. Holes LTP-31 and 32 were step-out holes at Hondo Valle, more than 1,200 meters to the north of Escandalosa, and intercepted broad intervals of weakly anomalous gold suggesting they are peripheral to the main Hondo Valle zone.

Holes LTP-25, 29, 30 and 33 returned only weakly anomalous intercepts of no economic interest. Drill hole location maps and further information will be available on the GoldQuest website shortly.

Loma Viejo Pedro: - This project was discovered by the regional fine-fraction stream sediment sampling program south of Las Tres Palmas with a cluster of five anomalous sediment samples up to a maximum of 99 ppb Au. Subsequent first-pass follow-up returned 72 rock samples with greater than 0.1 g/t Au including 16 returning greater than 1 g/t Au and a maximum of 8.8 g/t Au in outcrop. This is considered an epithermal target similar to Las Tres Palmas and will be mapped and sampled over the coming weeks.

Jengibre: - This is a new project discovery also made during the regional stream sediment sampling program. Jengibre is a large coincident Au-Zn anomaly. Rock outcrop and float samples have returned highly anomalous values including four samples with greater than 23% Zn up to a maximum of 30%, gold up to 5.1 g/t, silver up to 480 g/t and copper up to 6.8%. There are 19 samples above 0.1 g/t Au and six above 1.0 g/t Au. The Jengibre project is considered to be a porphyry - skarn target and will be geologically mapped and sampled in detail.

Los Comios: - This is a large area of highly anomalous Cu-Au mineralization located north-west of Las Tres Palmas. Rock float sampling returned 66 samples with more than 1% Cu with a maximum of 34.5%, and 27 with more than 1 g/t Au with a maximum of 17.0 g/t. The Company has defined several Au, Mo and Cu anomalies that will be followed up by geological mapping and trenching.

The Los Comios, Las Tres Palmas, Loma Viejo Pedro and Jengibre projects define a large 30 kilometer long belt of mineralization which was discovered by the GoldQuest - Gold Fields Joint Venture.

Loma La Resbalosa and Piedra Iman: - Subsequent to Barrick Gold relinquishing its right of first refusal on these properties, Gold Fields has elected to incorporate the projects into the existing Joint Venture agreement. Gold Fields are funding a short exploratory drill program on the Loma La Resbalosa project which has just got underway. Drilling will test a broad zone of anomalous soil and stream sediment sample geochemistry in Cretaceous limestones. Soil sampling defined an area of anomalous soils with maximum values of 1.95 g/t Au, 4.62 g/t Ag, 559 ppm As, 12.95 ppm Cd, 5.11 ppm Hg, 15.3 ppm Mo, more than 1.0% P, 1860 ppm Pb, 36.4 ppm Sb, 12.5 ppm U and 1095 ppm Zn.

Detailed geological mapping and infill soil sampling is currently underway on the Piedra Iman project the details of which will be released in the coming weeks.

The qualified person for the technical information in this press release for the purposes of National Instrument 43-101 is Dr Stewart D. Redwood, FIMMM, Consulting Geologist to the Company. Preparation and geochemical analyses of all samples were carried out by ALS Chemex, Vancouver. Standards, duplicates and blanks are routinely inserted into all sample batches for quality assurance and quality control.
 

About GoldQuest

GoldQuest is an Exploration company focused on the Dominican Republic. Through regional grass-roots exploration and new geological models the Company has built a portfolio of new gold and copper discoveries.

GoldQuest is traded on the TSX-V exchange under the symbol GQC.V and in Frankfurt under the symbol M1W.

On behalf of the Board of Directors,

"Signed" David Hall

 

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact

GoldQuest Mining Corp.
Mr. David Hall
President & Chief Executive Officer
+353-1-661-3309 (Dublin)
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.goldquestcorp.com

or

GoldQuest Mining Corp.
Mr. Alistair Waddell
Executive Vice President
(778) 994 6111 (Vancouver)

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