annoucement out, page-2

2nd Annoucement


MEDIA RELEASE 23 APRIL 2007
AUSQUEST COMMENCES MAJOR PILBARA NICKEL
DRILLING PROGRAM
2007 FIELD SEASON UNDERWAY WITH DRILLING TO TEST UP TO 20 NICKEL SULPHIDE TARGETS
Diversified exploration company AusQuest (ASX: AQD) today announced the commencement of a
major new nickel exploration initiative in the Pilbara region of Western Australia, with drilling already
underway within the first of four nickel project areas. The Company has outlined up to 20 priority
targets to be tested over the next 4-6 months.
The nickel exploration program will be pursued alongside AusQuest’s uranium and gold exploration
activities as part of a significant 2007 field season within its extensive Pilbara tenement holdings.
AusQuest said today (Monday) that a minimum of 6,000 metres of drilling was planned to test nickel
sulphide targets identified by airborne and/or ground electromagnetic (EM) surveys within the
Company’s four nickel project areas. A multi-purpose RC/Diamond drill rig has been contracted for the
program.
“This is a wide-ranging program which will include drill testing of a number of significant nickel sulphide
targets which have been defined using the latest airborne or ground electromagnetic techniques,
including the highly effective VTEM system,” said AusQuest’s Managing Director, Mr Graeme Drew.
“These techniques represent the cutting edge of modern exploration and, combined with more
traditional methods, have laid the foundations for a very exciting 2007 field season for AusQuest,” he
added.
Drilling has already commenced at the Bellary Project, located 20km north west of Paraburdoo, where
a minimum of eight VTEM targets have been identified close to the base of ultramafic units (the
prospective host rocks for nickel sulphide mineralization).
“Field reconnaissance and sampling has confirmed the presence of channels within the ultramafic
sequence and located a gossanous outcrop up-dip and along-strike from one of the VTEM targets,” Mr
Drew commented. “No previous drilling has been undertaken in this area.”
At the Beasley Project, located 50km west of Tom Price, drilling will test a 500 metre wide target zone
extending to the north and down-dip from previously reported wide-spaced drilling results. Previous
drilling identified a broad channel containing disseminated magmatic sulphides of high metal tenor.
Drilling will also be undertaken to test a number of EM targets within the Table Hill Project, located
200km east of Newman, where AusQuest is targeting Noril’sk-style nickel sulphide mineralization within
a feeder system to the regionally extensive Table Hill Volcanics.
“Up to 11 target areas will be surveyed using fixed-loop, time domain EM prior to finalizing a drilling
program for Table Hill,” Mr Drew said.
The final project area, Sylvania – where AusQuest is also exploring for uranium – is located 10km south
of Newman and includes two high-conductance EM targets associated with an interpreted ultramafic
sequence, indicating the potential for massive nickel sulphide mineralization.
AusQuest has a strong cash position to underpin its planned exploration activities following a successful
share placement and option conversion last year. The Company had cash reserves of $7.5 million at the
end of the March 2007 Quarter.
- ENDS -
Released by: On behalf of:
Nicholas Read Mr Graeme Drew
Read Corporate/Jan Hope & Partners Managing Director
Telephone: (+61-8) 9388 1474 AusQuest Limited
Telephone: (+61-8) 9364-3866
Background
AusQuest was founded five years ago by a team of experienced explorationists – including several ex-CRA/Rio Tinto
executives – whose joint careers attest to a substantial breadth of technical and managerial expertise. The Company,
which listed on the ASX in 2003, brings an innovative and scientifically rigorous approach to exploration targeting the
discovery of major deposits and new mineral provinces.