Queenston Mining Inc.

Queenston Mining Inc.

August 17, 2010 09:52 ET

Queenston Reports 90.1 g/t Au Over 3.0 m From Deepest Drilling to Date in the Eastern Portion of the Upper Beaver Deposit

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2010) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("Queenston" or "the Company") announces a new series of holes from the deep drilling program on the 100% owned Upper Beaver property located near Kirkland Lake, Ontario. A total of 4 holes are reported with significant results summarized below in Table 1. The new drill holes are outlined on the longitudinal and cross sections accompanying this news release (Figures 1, 2 and 3) and are available on the Company's website (www.queenston.ca).

"Eastern Deep Area" – New High grade intersection extends mineralization to 1150 m

  • New pilot hole UB10-163 has been completed in the deep eastern portion of the deposit intersecting 90.1 grams per tonne ("g/t") gold ("Au") with 0.33% copper ("Cu") over 3.0 meters ("m") (2.63 ounces per ton ("oz/ton") over 9.8 feet) including 178.7 g/t Au with 0.29% Cu over 1.0 m (5.21 oz/ton over 3.3 feet). This hole intersected the main Eastern Porphyry Zone approximately 200 m below previous holes UB08-139 (30.3 g/t Au (0.88 oz/t) with 1.0% Cu over 20.8 m (68.2 feet)) and UB10-139W2 (23.5 g/t Au (0.68 oz/t) with trace Cu over 1.9 m (6.2 feet) and 10.0 g/t Au (0.29 oz/t) with 0.50% Cu over 6.0 m (19.7 feet)). The mineralization in the eastern deep area of the deposit remains open to the east and to depth.

"Western Deep Area" - Drilling continues to fill gap between -800 m to -1200 m

  • Three new holes completed in the western portion of the deposit all intersected the primary Porphyry Zones with gold intervals (core length) of 7.5 g/t Au (0.22 oz/t) with 0.6% Cu over 4.5 m (14.8 feet) in hole UB10-148W6, 1.72 g/t Au (0.05 oz/t) with 0.28% Cu over 10.5 m (34.4 feet) in hole UB10-161W3, 8.7 g/t Au (0.25 oz/t) with 0.38% Cu over 18.0 m (59 feet) including 42.5 g/t Au (1.24 oz/t) with 1.5% Cu over 3.0 m (9.8 feet) in hole UB10-161W4. A new zone was also intersected deeper in hole UB10-161W4 assaying 24.8 g/t Au (0.72 oz/t) over 4.0 m (13.1 feet) including 94.5 g/t Au (2.76 oz/t) over 0.9 m (3.0 feet). During the deep drilling campaign 12 holes have now intersected significant gold and copper mineralization between 900 m to 1200 m below surface in the western deep area of the deposit and the mineralization continues to remain open to the west, and to depth.

Charles Page, Queenston President and CEO, said, "The deep drilling at the Upper Beaver deposit continues to return excellent results and the high-grade intersection in hole UB10-163 has opened up considerable potential on the eastern portion of the deposit both to depth below 1200 m and along strike to the east. The western portion of the deposit also remains open below 1200 m and to the west. The mineralization exhibits impressive vertical and lateral continuity with a continuous dip length approaching 1,000 m and a strike length of 600 m. Three drills will continue to operate at Upper Beaver for the balance of the year in preparation for an updated mineral resource."

Prior to the deep exploration drilling success, the Upper Beaver deposit contained total indicated National Instrument ("NI") 43-101 mineral resources of 1,373,500 t grading 8.5 g/t Au (375,000 oz.) (9.7 g/t Au uncapped (427,900 oz.) with 0.43% Cu and total inferred resources of 1,061,300 t grading 7.7 g/t Au (262,800 oz.) (8.5 g/t Au uncapped (291,300 oz.) with 0.39% Cu. The mineral resource was completed by Watts, Griffis and McOuat Limited of Toronto to a vertical depth of approximately 800 m. The Porphyry Zone is the largest gold-copper component of the deposit containing 942,600 t grading 9.6 g/t Au (10.9 g/t uncapped) in the indicated category and 859,200 t grading 8.3 g/t Au (9.2 g/t uncapped) in the inferred category. (See QMI press release Sept. 22, 2008)

Table 1 - Assay Results

Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone  
UB10-148W6 952.0 954.0 2.0 trace 14.2    
  1092.0 1093.0 1.0 trace 4.0    
  1166.0 1167.0 1.0 0.59 5.9    
  1169.0 1172.0 3.0 0.14 3.2    
  1188.0 1192.5 4.5 0.6 7.5 Porphyry Zone (west )
UB10-161W3 837.7 838.2 0.5 trace 16.5    
  1046.0 1056.5 10.5 0.28 1.72 Porphyry Zone (west )
including 1046.0 1048.0 2.0 0.21 3.7 Porphyry Zone (west )
and 1051.0 1052.0 1.0 0.4 2.11 Porphyry Zone (west )
and 1054.0 1055.0 1.0 0.6 6.5 Porphyry Zone (west )
  1214.0 1216.0 2.0 trace 3.2    
UB10-161W4 888.0 889.0 1.0 0.18 37.6    
  1000.1 1005.5 4.5 0.12 4.7    
  1071.0 1089.0 18.0 0.38 8.7 Porphyry Zone (west )
including 1085.5 1088.5 3.0 1.50 42.5 Porphyry Zone (west )
  1095.0 1098.5 3.5 0.27 2.7    
  1230.0 1234.0 4.0 trace 24.8 New  
including 1231.0 1231.9 0.9 trace 94.5 New  
UB10-163 1194.2 1194.7 0.5 0.85 4.8    
  1252.0 1255.0 3.0 0.33 90.1 Porphyry Zone (east )
including 1253.5 1254.5 1.0 0.29 178.7 Porphyry Zone (east )

NOTE: True widths are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time.

Quality Control

The design of the Queenston's drilling programs, 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 Upper Beaver project is supervised by Queenston's Vice President Exploration, William McGuinty, P. Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2009 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, 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.

This news release was reviewed by Queenston's Vice President Exploration and QP, William McGuinty, P. Geo.

About Queenston

Queenston controls a significant land package in the Kirkland Lake gold camp now containing 30 properties, totalling approximately 20,000 hectares. 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 Amalgamated Kirkland property. Queenston is well financed with $40 million in cash and has a 2010 exploration budget of $16 million, employing up to 15 diamond drill rigs on 8 individual properties.

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

    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Andreas Curkovic
    Investor Relations
    (416) 577-9927