Northquest Ltd. stakes additional claims, commences geophysical surveys, completes reconnaissance exploration, and provides a drilling update, for the Pistol Bay Gold Project, Nunavut, Canada

TORONTO, Aug. 28, 2013 /CNW/ - Northquest Ltd. (TSX.V-NQ) (FWB-N3Q) ("Northquest" or "the Company") is pleased to provide a project update for the Pistol Bay Gold Project, Nunavut, Canada.

Summary of previous exploration results

The Pistol Bay Project is underlain by the west-trending Pistol Bay Trend which is a series of surface gold occurrences and gold zones that have been intersected by drilling in two field seasons completed by Northquest in 2011 and 2012 with expenditures of $ 4.9 million. The Pistol Bay Trend is a newly recognized trend parallel to, and 80 kilometres south of, the Meliadine Trend of gold deposits, owned by Agnico Eagle Mines, which reportedly contains 3.0 million ounces of gold reserves, plus 2.2 million ounces indicated and 2.9 million ounces inferred (www.agnico-eagle.com).

Since field operations commenced in April 2011, the Company has completed two airborne geophysical surveys and 7,097 metres of diamond drilling in 39 drill holes and has obtained economically interesting drilling intersections at the Sako, Vickers, and Bazooka targets which occur over a 20 kilometre long segment of the Pistol Bay Trend. The best drilling intersection to date from the property is in drill hole PB-12-22 from the Vickers Target which intersected 156.48 metres grading 8.23 grams gold per tonne. An all season camp facility was constructed in June, 2013, and the camp was occupied in July 2013.

Claim staking in 2013

Two additional claims comprising approximately 4,000 acres (16 square kilometres) were staked to cover prospective stratigraphy in August, 2013 such that the expanded Pistol Bay Gold Project consists of approximately 861 square kilometres of staked claims covering a 90 kilometre strike length of the Pistol Bay Trend.

Geophysical surveys in 2013

Ground HLEM geophysical surveying at the Bazooka Target has been completed. The Bazooka Target contains gold in sulphidized iron formation. The best drilling intersection to date was in PB-12-04, in 2012, which intersected 11.17 metres grading 2.10 grams gold per tonne.

Induced Polarization/Resistivity surveys are expected to commence this week at the Sako Target. The Sako Target consists of gold in silicified felsic volcanic rocks and iron formation. The best drilling intersection was in PB-12-02, in 2012, which intersected 15.53 metres averaging 1.76 grams gold per tonne.

Upon completion of the IP/Resistivity survey at the Sako Target, surveying will commence at the Vickers Target. The Vickers Target contains gold in the margin and footwall of a gabbro/diorite intrusion. The best results to date from the Vickers Target were in PB-12-22, in 2012, which intersected 156.48 metres averaging 8.23 grams gold per tonne.

The purpose of the geophysical surveys is to provide direction in the selection of future drill holes at the Bazooka, Sako, and Vickers Targets, particularly in areas covered by overburden. The results of all of the geophysical surveys will be announced and uploaded to the Company web site (www.northquest.biz) after the survey results have been processed, verified, and delivered in final form.

Reconnaissance program in 2013

The Company commenced reconnaissance mapping and prospecting in July and is within approximately two weeks of completing the current program. The reconnaissance work has covered the entire property with traverses of varying spacing with the objectives of i) discovering and sampling all mineralized outcrops and boulders on the property, and ii) sampling historical gold occurrences that are documented in government summary reports. The assay results of that work will be published and uploaded to the Northquest web site after all of the assays have been received and verified.

Drilling program in 2013

In July and August, 2013 the Company completed an additional ten drill holes, PB-13-01 to PB-13-10 (2,016 m). Nine of the drill holes intersected the V1 (Main) Zone which was intersected in 14 drill holes in 2012. One drill hole intersected the V2 Zone which is approximately 200 m south of the V1 Zone. The Company is currently cutting and sampling PB-13-10. It is anticipated that the first batch of drilling results will be announced within two weeks and that the remaining results will be announced when the assays have been received and verified. The Company has two drill rigs on the property which can re-commence drilling contingent upon the results of the work described herein.

Northquest President and CEO Jon North remarked that "The exploration that has been completed to date in 2013 has been multi-dimensional and very exciting. We look forward to publishing the results and to the continuation of drilling, and, as always it is a great pleasure to remind our shareholders, and prospective investors, that the Pistol Bay Gold Project is in Canada, one of the most richly endowed, safest, most mining friendly, and most stable countries in the world".

Potential quantity and grade is conceptual in nature.  There has been insufficient exploration to define a mineral resource at the Pistol Bay Project to date, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  Northquest is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of gold and other minerals.  Northquest has 39,782,798 shares outstanding (59,551,696 shares on a fully diluted basis).  For further information please visit www.northquest.biz.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities.  In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology.  These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, metallurgical test results and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, political and country risk, and the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.  The Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

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SOURCE: Northquest Ltd.

Jon North
President and Chief Executive Officer
Tel. [phone]
Mobile [phone]

www.northquest.biz