Elgin Mining Inc.

Elgin Mining Inc.

March 06, 2012 07:00 ET

Elgin Mining Releases Second Set of Drill Results at the Lupin Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2012) - Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX VENTURE:ELG) is pleased to announce the second set of drill results from seven (7) holes in the shallow upper portion of the West Zone South of Shaft ("WZSOS") zone at its wholly-owned Lupin Mine in Nunavut, Canada.

The WZSOS zone was drilled by previous owners of the property but was never targeted for continuous mining operations. Elgin Mining's recent ongoing drilling has targeted gaps in previous drilling above the existing known mineralized body, in an effort to establish continuity to surface. This shallow zone could become the basis of feed for potential restart of operations due to proximity to the existing ramp, which would allow for haulage to the surface facilities and delay the capital cost of rehabilitation of the shaft and infrastructure.

We are very pleased to report that this second set of holes all intercepted this upper shallow zone and along with the first set of results (see NR 2012-03 dated February 22, 2012) indicate that the zone is continuous toward the shaft and underground infrastructure. Highlights of these recent results area as follows:

Highlights include (see Table 1 and Map 1):

  • Hole L12010, which returned 5.33 metres of 9.56 g/t Au;
  • Hole L12011, which returned 4.41 metres of 9.50 g/t Au;
  • Hole L12013 which returned 2.52 metres of 6.08 g/t Au;
  • Hole L12014, which returned 8.90 metres of 5.89 g/t Au; and
  • Hole L12016, which returned 2.08 metres of 12.23 g/t Au.

Mr. Patrick Downey, President and CEO stated, "We are extremely pleased with these most recent results. Coupled with the first set of results it is apparent that this zone extends to surface in a similar fashion to the other mineralized zones at the Lupin Mine and has significant strike extent. The grades and thicknesses have also improved as the drilling moves towards the shaft and ramp and this is consistent with the West Zone which was a significant part of the historical production. As previously stated, we now plan to proceed underground at approximately the 200 metre level to develop access, and to perform closer-spaced drilling for mine planning purposes above and below this level, as part of our expedited plan for re-start of operations. We are also in the process of completing a NI 43-101 compliant Technical Report that includes a mineral resource estimate for the WZSOS Zone, but will not include the results from this upper shallow zone."

Table 1 -Lupin Project Assays (see Table 1 and Map 1 below)

Hole # East North Azimuth
L12010 489560 7293442 208 -70 58.67 59.39 0.72 1.04
L12010 489560 7293442 208 -70 93.88 99.21 5.33 9.56
L12010 incl. 489560 7293442 208 -70 96.42 98.18 1.76 17.09
L12010 489560 7293442 208 -70 102.90 106.63 3.73 2.05
L12011 489550 7293506 224 -55 143.00 147.41 4.41 9.50
L12011 incl. 489550 7293506 224 -55 144.46 145.10 0.64 32.50
L12011 incl. 489550 7293506 224 -55 146.93 147.41 0.48 18.15
L12012 489547 7293509 224 -62 160.85 162.26 1.41 3.65
L12013 489498 7293548 223 -54 149.00 151.52 2.52 6.08
L12013 incl. 489498 7293548 223 -54 149.00 149.90 0.90 14.80
L12013 489498 7293548 223 -54 152.59 154.32 1.73 1.05
L12014 489498 7293548 223 -60 167.13 176.03 8.90 5.89
L12014 incl. 489498 7293548 223 -60 167.13 168.39 1.26 24.83
L12014 incl. 489498 7293548 223 -60 175.65 176.03 0.38 16.65
L12015 489498 7293548 223 -80 323.00 324.25 1.25 2.54
L12016 489471 7293593 223 -50 153.13 155.21 2.08 12.23
L12016 incl. 489471 7293593 223 -50 153.13 154.27 1.14 18.02
(1) true width has yet to be determined
(2) fire assay with an ICP or gravimetric finish

Qualified Person

Exploration at the Lupin Mine is being conducted under the supervision of Ms. Vivian Park, P.Geo., who is the Company's Qualified Person as defined by National Instrument 43-101. Ms. Park has also reviewed and approved the technical disclosure contained in this news release as applicable.

Quality Assurance and Quality Control ("QA/QC") Procedures for the Lupin Mine

Drill core is logged and photographed. Mineralized intervals are split in half by sawing and sampled at site. The remainder of the core is kept as a permanent record. Samples are placed into sealed bags that are delivered to the ALS Minerals preparatory facility in Yellowknife, Northwest Territories. The samples are analyzed for gold at the ALS Minerals laboratory in North Vancouver, British Columbia, using a 30 gram fire assay with an ICP or gravimetric finish. Elgin Mining has implemented an industry-standard QA/QC program that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.

Elgin Mining Inc.

Elgin Mining is a Canadian based company focused on the exploration and development of the Lupin Gold Mine and Ulu gold project, both located in Nunavut Territory, Canada. In addition, Elgin's portfolio includes a 35% interest in Auracle Resources, which is exploring the Mexican Hat property in Arizona and an exclusive right and option to earn a 60% interest in Lincoln Mining's Oro Cruz (California) and La Bufa (Mexico) gold projects. Elgin Mining will also selectively review opportunities to add advanced stage development projects to its portfolio.

For further information, please visit Elgin Mining's web site at www.elginmining.com.

Forward-Looking Statements

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Elgin's future plans and operations and are based on Elgin's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Elgin's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Elgin undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/772193_map.pdf.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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