NQ Exploration Inc. (NQE:CA)

NQ Exploration inc. is a mining exploration company incorporated in 2007.  Its main assets consist of 11 mining properties located in the Abitibi (6) and in the James Bay territory (5).  Its main exploration effort is centered on the mining districts of the former Selbaie mine (base and precious metals) and Lac Shortt mine (precious metals). NQ has assembled a highly qualified and experienced exploration team and several advanced projects demonstrating excellent short term discovery potential.

Exploration Projects

Carheil

Property Description

The Carheil property lies in Brouillan Township in the northern Abitibi region, 5 km southwest of the old Selbaie mine (Rio Algom Limited, historical production of 53 million tonnes grading 0.96% copper, 1.90% zinc, 40.7 g/t silver and 0.58 g/t gold), in very similar geological units.



The property covered a surface area of 47.64 km2 in 146 claims. The property covers a stretch of just over four kilometres of the favourable structure of the Nordest showing (not including another four kilometres on Brouillan), and the entire southern portion where other favourable felsic units have been identified but very little exploration has been done.Between 2009 and 2011, NQ discovered silver mineralization associated with a silicified rhyolite horizon. The Ag1 zone, which contains economic silver mineralization, extends from surface down to a depth of at least 600 metres, where it remains open. The Company also discovered a gold zone near the 600-metre level, in the footwall of the Ag1 zone.
Maps and geological informations

Work done

During the winter months, NQ drilled eight holes totalling 4,950 metres of drilling on the Nordest showing. The full results for the first two holes were received and compiled. The first hole, Hole CA2011-010, intercepted the zone from 408.35 metres, and intersected a 15.86-thick silver-rich zone grading 35.7 g/t Ag. Only trace amounts of the other metals are present. This intersection belongs to a new silver zone preceding the so-called Ag1 zone. A second polymetallic zone at 437.05 metres returned an average of 0.57% Cu, 1.6% Zn, 14.7 g/t Ag and 0.71 g/t Au over a length of 4.35 metres. This corresponds to the Ag1 zone, whose silver content is lower than that of the other metals.



The second hole, drilled under Hole CA2009-05 (the hole with the best results to date), intercepted the zone of interest at 441.1 metres, with an average silver grade of 17.5 g/t along with 0.57% Zn over 48.7 metres of core. This zone contains a enriched zone of 4.95 metres that returned 2.71% Zn, 89.7 g/t Ag, 0.27 g/t Au and 1.14% Pb. Another silver-rich zone 35 metres away returned 73.5 g/t Ag over 1.35 metres, along with copper, zinc and gold (see table).



Hole CA2011-12 indicated that the zone narrows to the east, as did Hole CA2011-10, 50 metres higher. Hole CA2011-013, which had the deepest pierce point on the property, revealed a gold-rich zone almost 50 metres long containing a 14-metre section grading 2.06 g/t Au, 20.3 g/t Ag and 0.3% Zn, including a higher-grade section of 3.74 g/t Au, 38.8 g/t Ag and 0.5% Zn over 6.2 metres. This intersection is associated with a strongly silicified rhyolite tuff within the hydrothermal alteration chimney containing the silver zones, but more toward the centre of the chimney. Hole CA2010-09 had already indicated gold enrichment in this area, with a grade of 2.55 g/t Au, 15.5 g/t Ag and 1.08% Zn over 2 metres.
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Brouillan

Property Description

The Brouillan property, held under option, is essentially characterized by the same felsic rocks that form the horizon hosting the copper-zinc-silver-gold mineralization of the Nordest showing on the Carheil property.  In addition, a VTEM (Versatile Time Domain Electro-Magnetic) survey conducted in 2008 identified multiple magnetic anomalies, some of which do not appear to have been drilled. A compilation of all earlier work revealed interesting gold potential in shallow holes drilled in the 1980s.

The best intersections were

• 24.99 g/t Au over 1.10 m, Hole D-2-20, 1988 BP Canada Resources Ltd. 
• 29.89 g/t Au over 0.60 m, Hole D-2-26, 1988 BP Canada Resources Ltd.
  
• 8.26 g/t Au over 0.80 m, Hole D-2-27, 1988 BP Canada Resources Ltd.

The unit formed by the Carheil property and the option on the Brouillan property now constitutes a continuous land position of approximately 3 X 13 kilometres, and together cover an area of 55.98 km2. This land position also spans about ten kilometres of the Nordest showing.



Work Completed and Planned

A gravity survey was carried out on a 1 km X 1 km grid on the boundary of the Brouillan and Carheil properties to test a VTEM anomaly detected during a survey in 2008. The results are not yet available.



The Company plans to fully integrate the data in its geoscientific database and carry out reconnaissance work in the summer of 2011, after which an exploration program will be prepared to identify drill targets for 2012.
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Lac Shortt

Property Description
Last August, the Company entered into an agreement to acquire the 100% interest held by Globex Mining Enterprises Inc. in the Lac Shortt property (press release dated August 16, 2010) in exchange for shares, cash payments and exploration work to be carried out over a five-year period. The Lac Shortt property is contiguous to NQ's wholly-owned Gand 1 property and is subject to a gross metal royalty of 1% to 2.5%. It lies about 120 kilometres southwest of Chibougamau in Gand Township. It is made up of 27 claims covering a total surface area of 9.30 km2 that includes the old Lac Shortt gold mine, which produced 2.7 million tonnes grading an average of 4.62 g/t Au between 1984 and 1992 (ref. Roy, F., Minnova Inc. - Exploration Division, 1993, GM 52755). . Lac Shortt Deposit
The deposit is Archean in age, controlled by a steeply-dipping shear zone in a mafic rock setting. The ore consists of a pyrite mylonite resulting from deformation and replacement of a magnetic, syenite-injected gabbro in the footwall of the Shortt Lake regional fault. It is characterized by its close association with an alkaline carbonatite syenite complex that caused fenitization of the rocks in the area of the mine.

South Zone

The south zone corresponds to an alteration zone 30 to 60 metres thick, striking N080°/80°S. It extends from approximately mine coordinates 5000E to 5500E (NQ grid: 1000W to 500W), from the 400 to the 600-metre level, at about 4600N (300 metres south of the mine shaft, NQ grid: 0 00N). It shows gold enrichment, but the grades intersected are subeconomic, averaging 0.35 g/t Au over 50 metres at the 500-metre level. The zone was tested at depth, at the 650 and 900-metre levels, and once again returned subeconomic grades.



West Zone

In 1986, many holes were drilled to the west of the mine (from 4350E, NQ grid: 1700W), to test the grades obtained by drilling in 1982. An exploration drift was driven on the 250 level to allow drilling at 25 and 50-metre spacings. Three mineralized zones were identified between the 100 and 500 levels, within a 0 to 150-metre thick alteration halo:

• A mylonite at the contact of the Lac Shortt green mico schist
• A mylonite 40 metres farther south
• A zone injected with quartz veins.

These zones are marked by gold enrichment, albeit weak, with grades that are difficult to correlate, particularly in the zone injected with quartz veins. A minable reserve estimate (not 43-101 compliant) indicated a total of 148,000 tonnes grading 3.3 g/t Au.



Another assemblage of quartz veins named Vein A in the north wall of the 250-level exploration drift was drilled, but then abandoned due to a lack of continuity and low grades.



Another resource estimate was done to determine the mining potential using in-situ leaching. The study area was between coordinates 4375E and 4475E (NQ grid: 1675W and 1575W), over a depth of 100 m starting from the 250 level. The resource estimate was 568,000 tonnes at 1.09 g/t Au (not 43-101 compliant), at a cutoff grade of 5 g/t.

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