St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

January 19, 2011 08:55 ET

Amisk Gold Project Continues to Grow

TORONTO, ONTARIO--(Marketwire - Jan. 19, 2011) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company") is pleased to announce gold and silver assay results from the fall 2010 drilling program at the Amisk Gold Project, Saskatchewan. Claude Resources Inc. ("Claude" or the "Operator") has provided the Company with the following results:

  • AL10-291 166.0 metres averaging 1.23 g/t gold and 5.9 g/t silver, incl.
                       33.0 metres averaging 3.89 g/t gold and 16.2 g/t silver;
  • AL10-285 105.0 metres averaging 0.84 g/t gold and 4.3 g/t silver and
  • AL10-287 116.37 metres averaging 0.86 g/t gold and 6.0 g/t silver.

Jennifer Boyle, Chief Executive Officer of St. Eugene, states "The mineralized footprint at Amisk continues to grow and these latest results not only confirm widespread presence of gold and silver mineralization, it has also expanded the previously interpreted footprint of the mineralization to the north, southwest and at depth where it is interpreted to remain open, offering an excellent exploration target for future drilling."

The Amisk Gold Project is located approximately 20 kilometres southwest of Flin Flon Manitoba in the prolific Flin Flon Greenstone Belt. Originally explored for narrow vein, high grade gold and silver potential, the Project has evolved as a large tonnage, low grade target due to the identification of widespread gold and silver over significant core lengths.

These results, combined with the results from the 11 holes previously drilled in 2010 and the sampling program reported December 16, 2010, suggest that low grade, bulk mining potential may be viable at Amisk.

Claude has indicated that an initial resource estimate, prepared by SRK Consulting, will be available during the first quarter of 2011. The estimate will include all results collected to date.

The joint venture partners plan to complete an additional 3,500 metres of drilling during the winter season, targeting further depth extension of the mineral system as well as tracing the mineralization to the north and southwest.

A summary of the results of the fall drill program is included in Table 1 below:

Table 1: 2010 fall drill results from the Amisk Gold Project.
Hole Easting Northing Az/Dip From (m) To (m) Length (m) Au (g/t) Ag (g/t) Target
AL-10-282 9812 5318 107/-45 344.00 398.00 54.00 0.84 4.4 North Ext
AL-10-283 9869 5345 180/-45 202.00 217.00 15.00 0.56 1.8 North Ext
AL-10-284 9820 5403 65/-45 Anomalous       North Ext
AL-10-285 9923 5285 180/-45 230.00 335.00 105.00 0.84 4.3 Infill
      and 400.00 447.00 47.00 0.66 3.7
AL-10-286 9641 4901 113/-45 3.60 21.00 17.40 1.09 8.3 SW Ext
      and 96.00 114.50 18.50 0.88 8.3
AL-10-287 9646 4920 107/-50 6.63 123.00 116.37 0.86 6.0 SW Ext
      incl 6.63 67.39 60.76 1.11 7.0
AL-10-288 9730 5102 190/-45 16.00 55.90 39.90 0.97 4.9 Infill
AL-10-289 9852 4804 70/-58 NSI         SE Ext
AL-10-290 9946 4774 70/-58 230.00 253.00 23.00 0.54 1.7 SE Ext
AL-10-291 9823 5251 0/-51 232.00 398.00 166.00 1.23 5.9 Infill
      incl 357.00 390.00 33.00 3.89 16.2
Note: Intervals noted are intercepted width not true width, have been calculated using a 0.3 g/tonne cut-off and are uncut. True width is variable between 70 and 100 percent of drilled width. They may include internal dilution. Anomalous indicates an intercept greater than 0.3 g/t over 10 metres. NSI indicates No Significant Intercept.

A plan map of the Amisk Gold Project, detailed map showing historic and current drill collar locations and several representative cross sections through the deposit can be viewed at St. Eugene's website www.steugenemining.ca

Claude holds a 65% interest and is the operator of the Amisk Gold Project.

Claude also holds approximately 10% of St. Eugene's issued and outstanding common shares.

Wes Hanson, P.Geo., Chairman of St. Eugene, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of St. Eugene. Brian Skanderbeg, P.Geo. and M.Sc., Claude's Vice-President Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of Claude. Drill core was halved with samples averaging 2.0 metres submitted to ALS Chemex in Vancouver, an ISO approved facility. Rigorous quality assurance and quality control procedures have been implemented including the use of blanks, standards and duplicates. Core samples were analyzed by a 30 gram gold fire assay with an atomic absorption, conventional gravimetric and/or screen fire techniques.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of St. Eugene contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause St. Eugene's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding St. Eugene's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which St. Eugene has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from St. Eugene's expectations. St. Eugene undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

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

  • St. Eugene Mining Corporation Ltd.
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer
    (647) 430-0966 (work) or 416-904-2714 (cell)
    jennifer@capexgroupinc.com