Queenston Mining Inc.

Queenston Mining Inc.
Newstrike Resources Ltd.

Newstrike Resources Ltd.

February 25, 2010 12:31 ET

Newstrike & Queenston JV Report Kirkland Lake Results and Expand Drilling Program

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2010) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") and Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)("Queenston") are pleased to announce results from the drilling program on the jointly held (50%-50%) Commodore property, located in Lebel Township, Kirkland Lake, Ontario.

The Commodore property contains 57 mineral claims covering seven kilometers of a favourable assemblage of Timiskaming rocks that elsewhere in the camp hosts the historic 24 million ounce Kirkland Lake Main Break gold deposits, 8 km to the west and the 1.5 million ounce Upper Canada gold mine, 3 km to the east. The property also hosts the Morris mine that historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936-1941.

Since the first news release issued on November 26, 2009 an additional 12 holes have now been completed on the project bringing the total number to 16 (3,734 m). Over the winter, exploration was focused on the southern portion of the property where drilling and geophysics has outlined a broad alteration corridor that has been traced for 2.5 km containing two gold zones, Commodore and Egg. At Commodore, 6 holes targeted the main highway zone and at the Egg Zone, 6 holes continued to test the mineralization intersected in historic drill hole Egg-04 (45.5 g/t Au over 1.5 m).

The drilling intersected wide zones of low grade mineralization at the Commodore Zone including: 1.3 g/t Au over 11.6 m (hole Com09-07), 0.8 g/t Au over 47.0 m including 3.1 g/t over 7.3 m (hole Com09-09) and 0.3 g/t over 172.2 m including 0.6 g/t over 17.0 m (hole Com09-06). At the Egg Zone, located 1 km west of Commodore, higher grade intervals were encountered including: 3.6 g/t Au over 10.6 m including 6.3 g/t Au over 5.0 m and 14.9 g/t over 1.0 m (previously reported in hole Com-09-04), 6.8 g/t Au over 1.0 m (hole Com09-14), 3.6 g/t Au over 2.6 m (hole Com09-13) and 1.1 g/t Au over 9.4 m (hole Com09-11). A complete list of assay results are presented in Table 1 and location of the drill holes is outlined on the plan accompanying this news release.

In addition to the drilling, the joint venture completed an IP geophysical survey over the southern portion of the property. The survey, in addition to outlining both the Commodore and Egg Zones, identified a series of new chargeability anomalies that occur within and along the 2.5 km long alteration corridor.

The Commodore Zone drilling was designed to test the down-plunge/dip of the mineralization discovered by Sudbury Contact Mines in 1995 that contains a shallow, historic mineral resource of 669,500 t grading 2.4 g/t Au including 278,500 t grading 3.8 g/t Au. The resource was calculated by W.A. Hubacheck Consultants Limited in a report dated January 1997 filed with the Ontario Ministry of Northern Development and Mines. This resource is not compliant to National Instrument 43-101 and should not be relied upon as it has not been verified by a qualified person under these guidelines. The new drilling encountered a strong fault zone located south of the main Commodore Zone. North of the fault several gold horizons were intersected displaying wide intervals of low-grade gold mineralization the most significant in furthest west hole Com09-09 where a 135 m section assayed 0.5 g/t Au including 0.8 g/t Au over 47.0 m and 3.1 g/t Au 7.3 m. The widest zone of mineralization was intersected in hole Com09-6 reporting 172.2 m averaging 0.3 g/t Au. The gold mineralization generally occurs in an altered and pyritic, brecciated trachyte horizon near a sediment contact along or near what is interpreted to be the Upper Canada Break.

Table 1 – Commodore Assay Results
Hole # Section From (m) To (m) Interval (m) Au (g/t) Zone
COM-09-01 19+75W 87.5 106.6 19.9 0.6 Egg
    180.3 183.5 3.2 1.0 Egg
COM-09-02 19+25W 130.0 131.0 1.0 2.1 Egg
COM-09-03 19+75W 77.0 89.7 12.7 0.7 Egg
  including 79.0 80.0 1.0 4.8 Egg
COM-09-04 20+25W 186.2 197.0 10.8 3.6 Egg
  including 189.0 194.0 5.0 6.3 Egg
  and 190.0 191.1 1.0 14.9 Egg
    201.0 201.8 0.8 2.9 Egg
COM-09-05   46.6 49.4 2.8 2.9 Commodore
COM-09-06   98.0 270.2 172.2 0.3 Commodore
  including 98 119 21.0 0.4 Commodore
  and 147.0 163.0 17.0 0.6 Commodore
  and 179.0 187.5 8.5 0.8 Commodore
COM-09-07   27.0 84.0 57.0 0.3 Commodore
    180.3 186.0 5.7 0.9 Commodore
    218.4 230.0 11.6 1.3 Commodore
COM-09-08   176.0 183.6 7.6 0.4 Commodore
COM-09-09   192.0 327.0 135.0 0.5 Commodore
  including 280.0 327.0 47.0 0.8 Commodore
  including 319.7 327.0 7.3 3.1 Commodore
COM-09-10   84.0 105.4 21.4 0.4 Commodore
COM-09-11 20+25W 131.0 132.6 1.6 1.5 Egg
    251.6 261.0 9.4 1.1 Egg
  including 256.0 257.0 1.0 3.8 Egg
COM-09-12 20+75W 53.8 55.2 1.4 1.0 Egg
COM-09-13 20+25W 42.9 59.6 16.7 0.3 Egg
    85.3 87.9 2.6 3.6 Egg
COM-09-14 20+75W 105.0 106.0 1.0 6.8 Egg
    115.0 118.1 3.1 0.5 Egg
COM-09-15 20+75W 111.9 115.0 3.1 0.6 Egg
COM-09-16 22+00W 38.0 42.0 4.0 1.5 Egg
  including 38.0 39.0 1.0 2.5 Egg

Note: Holes Com-09-01 to -04 were previously reported in a joint venture News Release issued on November 26, 2009. Intervals reported are core lengths as true widths have not been determined.

At the Egg Zone drilling targeted high-grade gold mineralization assaying 45.5 g/t Au over 1.5 m intersected in historic hole (Egg-04) drilled by Sudbury Contact Mines in 1995. Six new holes have been completed at the Egg Zone increasing the total to ten. The drilling has traced the zone over a strike length of 275 m, to a depth of 100 m and remains open. The mineralization occurs in altered, pyritic trachyte near a sediment contact and significant values include, 6.3 g/t Au over 5.0 m including 14.9 g/t Au over 1.0 m (hole Com09-04), 6.8 g/t over 1.0 m (hole Com09-14), 3.6 g/t Au over 2.6 m (hole Com09-13), 4.8 g/t over 1.0 m (hole Com09-03) and 1.1 g/t Au over 9.4 m (hole Com09-11).

As a result of the positive results from the first phase of exploration on the property, the joint venture has approved a second program budgeted at $1,200,000 to include further geophysics and 10,000 m of drilling. As the primary target, drilling will continue to focus along the 2.5 km long alteration corridor in the southern portion of the property. Here 10 holes will test new geophysical anomalies located between, along strike and to the south of the Commodore and Egg Zones. Also, 4 deep holes will begin to test the large altered package to a depth of 800 m. As a secondary target, 9 holes are planned to test a series of geophysical anomalies in the central portion of the property along the 03 Break, an east-west trending structure that trends near the Morris mine.

As operator of the Commodore JV, the design of the program, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston's geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The program is supervised by Queenston geologist, Gerhard Meyer, P.Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2008 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Polymet Laboratories of Cobalt, Ontario and analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to other laboratories for check assaying.

About Newstrike

Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. The Company owns a 50% interest in the Commodore property and a 25% interest in the Swansea property. The Company's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits. Newstrike has working capital of approximately $1.5 million.

About Queenston

Queenston maintains a significant land package in the Kirkland Lake gold camp containing 22 contiguous properties totaling approximately 15,600 hectares or 965 mineral claim units. The Company's strategy is to return to producer status through the development of four 100% owned gold projects including the Upper Beaver, McBean, Anoki and Upper Canada. The Company is also carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims property and on its 100% owned AK property. Queenston is well financed with working capital of approximately $40 million and has an exploration budget in 2010 of $15 million employing up to 12 diamond drill rigs.

Mr. William McGuinty, P. Geo., VP Exploration of Queenston is the qualified person responsible for reviewing this news release.

Newstrike's Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future 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.

Queenston's Forward Looking Statements

Except for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulations Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)
    Queenston Mining Inc.
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Newstrike Resources Ltd.
    John A. Pollock
    President and CEO
    (416) 628-6556
    Newstrike Resources Ltd.
    Donald Rankin
    (416) 628-6556