Queenston Mining Inc.

Queenston Mining Inc.

October 01, 2009 08:00 ET

Queenston Reports Positive Initial Drill Results on a Bulk Tonnage-Open Pit Target in Kirkland Lake

(Including 2.04 g/t Au over 33.7 Meters and 1.54 g/t Au over 54.6 Meters)

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company") is pleased to announce the initial results from the 2009 drill program at the 100% owned Upper Canada mine property located in Gauthier Township, Kirkland Lake, Ontario.

A total of 14 drill holes have been completed targeting a broad alteration zone over an area of 850 m by 500 m that hosts the past producing Upper Canada mine. As highlighted by the 160.4 meter ("m") interval grading 0.57 grams per tonne gold ("g/t Au") in hole UC09-06, the drilling has intersected significant widths of gold mineralization from surface to a depth of 200 m providing potential for a bulk tonnage resource.

Other significant intersections include 2.04 g/t Au over 33.7 m (UC09-12), 1.54 g/t Au over 54.6 m (UC09-02), 1.55 g/t Au over 45.7 m (UC09-01), 1.46 g/t Au over 49.2 m (UC09-14), 1.65 g/t Au over 25.0 m (UC09-07) and 1.10 g/t Au over 33.5 m (UC09-11). A list of the drilling highlights is tabled below:

Hole #       Section (ft)         From (m)       To (m)       Interval (m)       Au (g/t)   Zone
UC09-019+70W 17.4 20.1 2.7 14.4    South Branch
    116.7 162.4 45.7 1.55    South Branch
including   118.6 125.9 7.3 4.98    South Branch
and   156.0 161.5 5.5 3.53    South Branch
UC09-029+82W 71.9 126.5 54.6 1.54    South Branch
including   98.7 100.6 1.8 17.49    South Branch
    123.4 125.1 1.7 11.5    South Branch
UC09-039+50W 115.8 132.3 16.5 0.85    Gap
    434.6 445.6 11.0 0.94    Gap
UC09-0437+50W 3.0 45.4 42.4 0.42    South Branch
UC09-0537+50W 116.1 142.9 26.8 0.54    South Branch
UC09-0637+50W 26.8 187.2 160.4 0.57    South Branch
including   26.8 38.1 11.3 1.37    North Branch
and   67.7 92.7 25.0 1.10    South Branch
and   162.8 187.2 24.4 1.71    South Branch
UC09-0737+50W 171.9 196.9 25.0 1.65    Gap
including   171.9 185.3 13.4 2.69    Gap
and   176.5 180.8 4.3 6.89    Gap
UC09-0837+50W 263.8 280.4 16.6 1.48    North Branch
UC09-0937+50W 34.5 168.6 134.1 0.42    North Branch
including   34.5 50.1 15.6 1.11    North Branch
and   80.5 89.6 9.1 1.35    North Branch
    220.9 236.7 15.8 1.22    North Branch
UC09-10b37+50W 149.7 226.8 77.1 0.50    North Branch
including   149.7 191.3 41.6 0.57    North Branch
UC09-1137+50W 232.6 266.1 33.5 1.10    North Branch
UC09-1215+00W 41.3 75.0 33.7 2.04    South Branch
including   41.3 45.5 4.2 11.2    South Branch
UC09-1315+00W 27.6 44.2 16.6 0.62    South Branch
UC09-1422+00W 289.9 403.2 113.3 0.86    Gap
including   289.9 339.1 49.2 1.46    Gap

NOTE: The mineralized intervals reported in this news release represent core lengths only, to date the true width has not been determined. All holes were drilled at an inclination of -50 degrees. Attached to this news release is a surface drill plan that is available on the Company's website at www.queenston.ca

"The preliminary indication of a bulk tonnage-open pit scenario at Upper Canada adds an exciting new dimension to our Company," stated Charles E. Page, President and CEO of Queenston. "Along with our continued success at Upper Beaver, McBean, AK and South Claims JV properties the suggestion of a new style of mineralization at Upper Canada enhances our strategy of advancing our 100% owned projects towards production". "With a recently fortified treasury we will be accelerating our exploration efforts in Kirkland Lake including adding more drill rigs to Upper Canada property".

The Upper Canada mine was a significant past gold producer in the Kirkland Lake camp from 1936 to 1972. During that period the mine produced 1.5 million ounces of gold at an average grade of 11 g/t from narrow, 2m wide veins that plunge east. The mine was closed in 1972 due to the prevailing gold price and there remains an historic measured and indicated resource of 1,899,973 t grading 6.9 g/t (approximately 422,000 ounces). The mineral resources at Upper Canada were reviewed by Roscoe Postle and Associates in a report prepared for the Company dated 1995 and should not be relied upon as the report was not compliant to National Instrument 43-101 and has not been verified by a Qualified Person. As part of a recent geological compilation of the mine it was revealed that the property could host a resource of lower-grade gold mineralization that may be amenable to open pit mining. The mineralization that has been identified by the recent drilling program does not form part of the historic mineral resource at Upper Canada.

The drilling intersected mineralization on four sections across the Upper Canada Break, a 500 m wide, steeply south dipping deformation zone comprising the North and South Branches. The mineralization consisted of disseminated gold-pyrite in albite-sericite-quartz altered sedimentary, volcanic and intrusive rocks. Past production from the Upper Canada mine was completely hosted in the South Branch of the break and serviced by the #1 and #2 shafts developed to 1,930 m and 884 m respectively. The Brock Shaft located on the North Branch is 190 m deep with limited underground development and was used for exploration purposes only.

The first three holes (UC09-01, -02 and -03) were drilled south to north, on or near section 9+50 W, 250 m west of the #1 Shaft. Holes UC09-01 and -02 drilled 35 m apart both targeted the South Branch intersecting similar grades and widths of mineralization assaying 1.55 g/t Au over 45.7 m and 1.54 g/t Au over 54.6 m respectively. The third hole on this section (UC09-03) was drilled to test the gap between the South and North Branch intersecting two mineralized areas assaying 0.85 g/t Au over 16.5 m and 0.94 g/t Au over 11.0 m respectively.

On section 37+50 W a total of 8 holes (UC09-04 to -11) were drilled north to south at 35 m intervals approximately 200 m west of the #2 Shaft and 850 m west of holes UC09-01, -02 and -03. This fence of holes tested the entire 500 m width of the Upper Canada Break, including both the North and South Branches to a vertical depth of 200 m. Each hole intersected significant mineralization including 0.57 g/t Au over 160.4 m (UC09-06), 1.65 g/t Au over 25 m (UC09-07), 0.42 g/t Au over 134.1 m (UC09-09), 0.57 g/t Au over 41.6 m (UC09-10b) and 1.10 g/t Au over 33.5 m (UC09-11).

Holes UC09-12 and -13 were drilled from north to south on section 15+00 W targeting the South Branch. Hole UC09-12 intersected the highest grade interval of the program assaying 2.04 g/t Au over a width of 33.7 m.

Hole UC09-14 was drilled from north to south on section 22+00W targeting the gap between the North and South Branch and to extend the mineralization intersected in UC09-03 (380 m to the east) and UC09-07 (475 m to the west). Hole UC09- 14 intersected a thick zone of mineralization assaying 0.86 g/t Au over 113.3 m that included a higher grade interval of 1.46 g/t Au over 49.2 m. Holes UC09-03, -07 and -14 indicate that significant gold mineralization also occurs in the gap between the North and South Branches of the Upper Canada Break.

The result of the initial drilling program has outlined a large mineralized system along the Upper Canada Break measuring 850 m long, 500 m wide and extending at least to a vertical depth of 200 m. The mineralization remains open to the east, west and at depth. The Upper Canada Break can be traced in Gauthier Township on Queenston's 100% owned property for a distance of 4 km. During the next phase of drilling, to begin immediately, a program employing four drills will begin to delineate the mineralization within the dimensions outlined to date as well as begin to extend the potential along strike and to depth.

Frank Ploeger, P. Geo. supervised the Upper Canada drilling program employing a QA/QC program consistent with NI 43-101 and industry best practices. The drill core is logged and split by diamond saw 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 submit standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to a second lab for check assaying on a routine basis.

About Queenston

Queenston maintains a significant land package in the Kirkland Lake gold camp containing 21 contiguous properties totaling approximately 14,000 hectares or 942 mineral claim units. The Company's strategy is to return to producer status through the development of 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 in excess of $40 million and has an exploration budget for the balance of 2009 and all of 2010 of $17 million.

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

Queenston's Cautionary Note Regarding NI 43-101 and 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