St. Eugene Mining Corporation Ltd.

St. Eugene Mining Corporation Ltd.

March 29, 2010 08:40 ET

St. Eugene Mining Corporation Announces the Acquisition of a 35% Interest in the Amisk Lake Gold Project from Claude Resources Inc.

TORONTO, ONTARIO--(Marketwire - March 29, 2010) - St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM)("St. Eugene" or the "Company") is pleased to announce that it has now completed the acquisition of a 35% interest in the Amisk Lake gold Project, Saskatchewan. This acquisition completes the dual-project transaction with Claude Resources Inc. which also included the purchase of the Tartan Lake Gold mine (see News Release January 8, 2010). The Amisk Lake Gold Project is located in the Flin-Flon Snow Lake Greenstone Belt, 20 kilometres southwest of Flin Flon, Manitoba. St. Eugene is pleased to be partnered with Claude on the Amisk Lake project, as the development of the asset will benefit from Claude's decades of experience as a gold mine operator, and from Claude's in-house exploration competence.

Coincident with the acquisition of this 35% interest in the Amisk Lake Project, Claude and St. Eugene entered into a 65:35 joint venture agreement, pursuant to which St. Eugene and Claude are responsible for their pro-rata interests. 

The mineral claims comprising the Amisk Lake Project have been intermittently prospected for gold and base metals since 1910. Results from a number of programs led to the establishment of a prefeasibility study (Reddy, 1987; subsequently revised in 1988) that estimated reserves in the 'East Zone' of 185,000 tons at 0.44 oz/ton Au and 1.75 oz/ton Ag to a depth of 130 metres. A 0.15 oz/ton cut-off grade was utilized in the calculations. These estimates are historical and were not prepared in compliance with NI 43-101 standards.

In 1988 a $3.7 million exploration development program consisting of 2,080 metres of underground diamond drilling, 683 metres of primary decline to a vertical depth of 100 metres, and 200 metres of level development on each of the first and second levels was carried out on the Amisk Lake gold Project. Just over 9,000 tons of development ore at a grade of 0.20 oz/ton Au was stockpiled.

The Amisk Lake Project was tied into the dual property acquisition announced by St. Eugene on September 22, 2008, and December 2, 2008. There is a 1% net smelter royalty in favour of Claude and St. Eugene has the right to purchase this net smelter royalty by paying Claude $100,000 not later than two years from commercial production.

Claude Resources holds a 17.3% interest in St. Eugene's issued and outstanding common shares.

Roland Trenaman, B.Sc., Chief Operating Officer, is a "Qualified Person" as defined in National Instrument 43-101 and has reviewed the technical information presented in this news release.

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.

Contact Information

  • Jennifer L. Boyle, B.A., LL.B.
    President and Chief Executive Officer
    (647) 430-0966 (work) 416-904-2714 (cell)
    Rolly Trenaman
    Chairman of the Board