FLAGSTAFF, AZ, May 5 /CNW/ - Q-Gold Resources Ltd. (TSXV: QGR) ("Q-Gold") (http://www.qgoldresources.com) announced today that it has entered a Mining Option Agreement with Cavan Ventures Inc. (TSXV: CVN) ("Cavan") (http://www.cavanventures.com) whereby Cavan has obtained a 18-month option to earn a 65% participating interest in a prospective Arizona silver joint venture with Q-Gold.  The joint venture will contain Q-Gold's holdings of 3 patented historic silver mines and 22 adjoining U.S. Bureau of Land Management ("BLM") mining claims in the Peck Mining District of Yavapai County, Arizona, totalling 484 acres.  The Peck District is famous for its historic high-grade silver production, having produced an "official" 1,374,000 ounces from 1875 to 1910.

By meeting its obligations in U.S. Dollars during the 18-month Option Period, including cash payments to Q-Gold of $275,000, work expenditures of $1,000,000 and issuance of Cavan shares to Q-Gold worth $300,000, Cavan will earn a 65% participating interest in the Joint Venture.  During the Option Period, Q-Gold will be Operator for the undertaking.

As noted above, the joint venture area contains 3 high-grade historic silver mines and a number of BLM claims highly prospective for silver, yet it has never experienced modern mining exploration techniques.  Therefore, the venture will initially launch a helicopter-based VTEM / Magnetic airborne geophysical survey which will attempt to delineate anomalies which will indicate potential remaining ore bodies and possible drilling sites within the complex.

Q-Gold CEO John Campbell remarked "With silver prices at recent record highs, I look forward to initiating modern joint exploration activities this summer with Cavan at Crown King, in the historic silver-producing Peck Mining District of Arizona."

The historical references contained in this release have been examined by a qualified person under NI 43-101 but have not been verified and therefore cannot be relied on for any purpose.  Brian A. Beck, PG a qualified person under NI 43-101 has reviewed and approved the technical content of this release. 

The mining Option Agreement is subject to the approval of the TSX-Venture Exchange.

About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals on its Ontario holdings in the historic Gold Camp at Mine Centre, including 5 historic gold mines. In addition, the Corporation holds options on historic gold and silver mines in the historic Arizona gold camp of Crown King, and copper prospects in eastern and western Arizona.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

SOURCE Q-Gold Resources Ltd.

For further information:

Corporate Inquiries
Q-Gold Resources Ltd.
John Campbell, CEO and Director
1-888-779-0166 http://www.qgoldresources.com

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Q-Gold Resources Ltd.

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