Queenston Mining Inc.

Queenston Mining Inc.

July 15, 2009 14:17 ET

Queenston and Kirkland Lake Gold Increase High-Grade Mineral Resources on the South Claims JV Property

TORONTO, ONTARIO--(Marketwire - July 15, 2009) - Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) ("Queenston" or the "Company") announce that as a result of the 2008-09 drilling program, joint venture partner Kirkland Lake Gold Inc. ("KL Gold") has updated the NI 43-101 mineral resources on the South Claims Joint Venture ("JV") property located in Teck Township, Kirkland Lake, Ontario. The property is jointly owned by Queenston (50%) - KL Gold (50%) who are advancing underground exploration to target the South Mine Complex ("SMC"), a new gold zone that is being explored, developed and mined at the adjacent Macassa Mine.

KL Gold, operator of the JV, reports that as a result of the second phase of drilling completed on the property (9 holes, see news releases dated November 18, 2008 and March 18, 2009) additional NI43-101 indicated and inferred mineral resources have been calculated for the SMC on the northern portion of the JV property. The new gold resources outlined in 2009 include 27,087 tonnes ("t") grading 48.8 g/t (29,858 tons grading 1.24 oz/ton) containing 45,000 oz indicated and 46,954 t grading 41.8 g/t (51,758 tons grading 1.23 oz/ton) containing 77,000 oz inferred. As a result, the total resource on the JV property is now 66,097 t grading 42.5 g/t (72,858 tons grading 1.24 oz/ton) indicated and 113,179 t grading 42.2 g/t (124,756 tons grading 1.23 oz/ton) inferred. Queenston's 50% portion of these resources is 33,049 t grading 42.5 g/t (46,500 oz) indicated and 56,590 t grading 42.2 g/t (84,000 oz) inferred. Figure 1 attached to this news release and available on the Company's website at www.queenston.ca outlines the location of the SMC resources identified to date on the JV property.

"We are pleased that the second phase of underground exploration has increased the indicated resource ounces on the joint venture property by 88% and the inferred resource ounces by 70%," stated Charles Page, President and CEO of Queenston. "The SMC remains open on the JV property to the south, west as well as further east towards the HM joint venture property and Queenston's, 100% owned AK property. The open nature of the SMC combined with the presence of similar stacked, high-grade gold zones expands the potential for this already significant gold system located south of the historic Kirkland Lake Main Break."

Table of Mineral Resources on the South Claims JV Property

2008 2009 Total
Mineral ---------------------------------------------------------------
Resource Grade Grade Grade
Category Tonnes (Au g/t) Tonnes (Au g/t) Tonnes (Au g/t) Ounces

Indicated 39,010 38.1 27,087 48.8 66,097 42.5 90,000
Inferred 66,225 42.5 46,954 41.8 113,179 42.2 154,000

The following lists the criteria employed by KL Gold in calculating reserves and resources for the Macassa Mine, South Claims JV property. Macassa Mine does their work in feet and ounces.

1. The reserves and resources are estimated using the polygonal method.

2. All intersections are calculated out to a 5. 0 foot minimum horizontal mining width for structures dipping greater than 45 degrees. The minimum mining height for structures dipping less than 45 degrees is 6.5 feet.

3. Dilution was not added to the resources.

4. All higher grades were cut. Based on a statistical analysis completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the Company has implemented a cutting factor of 7.2 oz Au/ton for the New South Zone. The Footwall Zone high values were cut to 3.5 oz Au/ton.

5. Cut- off grades of 0.25 oz/ton Au and 0.35 oz/ton Au are used for reserve and resource calculations, depending on the location, and economics of the block. Generally, a cut-off of 0.31oz/ton is required on a whole- block basis to achieve profitability. It is possible to have sub- blocks within an ore reserve block that assay less than any cut- off which have been incorporated for mining or geotechnical reasons

6. A 100% tonnage recovery is used for the resources. Continuity of the veins appears very good.

7. The assumptions used include $761.59 U.S. per ounce of gold, and an exchange rate of $1.10 Canadian equals U.S. $1.00 ($838.95 Canadian per ounce equals 3 year average).

8. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect its estimate of mineral resources.

Mineral resources which are not mineral reserves do not have demonstrated economic viability.

The 2009 mineral resource is based on underground drilling that was completed from the 5300 foot level of the Macassa Mine onto the JV property. The mineral resource was calculated by KL Gold's geological staff which includes qualified person ("QP"), Stewart Carmichael P.Geo., the Company's Chief Exploration Geologist, for the purpose of National Instrument 43-101. The resource estimate was audited and verified by independent QP, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. A report detailing the resource estimate will be filed on SEDAR (www.sedar.com) within forty five days of this news release.

The Joint Venture has approved a $1.2 million underground and surface exploration program to further explore the SMC on both the South Claims and HM joint venture properties. Queenston's portion of the program, to maintain a 50% interest in the JV, is $433,500. The program is currently in progress and will include 186 m (612 ft) of lateral underground development with a minimum of 1,550 m (5,100 ft) of underground diamond drilling and 1,160 m (3,800 ft) of surface diamond drilling.

This news release was reviewed by Queenston's VP Exploration and qualified person William McGuinty, P. Geo.

About Queenston

Queenston has assembled significant land packages in proven Canadian mining camps and its strategy is to return to producer status. The first step is in progress through the advancement of its primary gold assets in Kirkland Lake, Ontario (Upper Beaver, McBean, Anoki and Upper Canada) towards NI 43-101 resource status. In the western portion of the Kirkland Gold camp, Queenston is 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 $30 million and maintains interests in 21 contiguous properties in the Kirkland Lake camp totaling approximately 14,000 hectares in 900 mineral claims. The Company's exploration-development budget for 2009 is $10 million employing eight diamond drill rigs.

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.

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