St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

September 24, 2010 08:45 ET

Increased Resource Estimate at St. Eugene's 100% Owned Tartan Lake Gold Mine Project

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM) ("St. Eugene" or the "Company") is pleased to announce the completion of an independent NI 43-101 resource estimate (the "MineTech Report") for the Company's 100% owned Tartan Lake Gold Property located in Flin Flon Manitoba, resulting in an indicated mineral resource of 1,000,000 tonnes @ 4.0 g/tonne gold (130,000 ounces) and an additional inferred mineral resource of 1,900,000 tonnes @ 3.9g/tonne gold (240,000 ounces). Patrick Hannon, P. Eng., and Doug Roy, P.Eng. of Mine Tech International Limited (the report's authors) state "Several parallel mineralised zones have been identified within the broader shear zone. The Main and South Zones are the most important to be identified thus far, measuring 300-400 metres long and 400-500 metres long, respectively. Both are "open" at depth (the down-dip extents have not yet been identified). The broader shear zone is many kilometres long and there is potential to discover additional mineralized zones within the shear, both along strike and at depth."

The following is from the MineTech Report, the full version of which will be filed electronically with regulators by the Company and then be available for public viewing under the Company's profile on SEDAR at www.sedar.com within 45 days of this news release in accordance with National Instrument 43-101:

When the mine started production the gold price was about $460/ounce and when production ceased in November 1989, the gold price was about $375 per ounce. The Tartan Lake Mine was in production during the late 1980s, from May 1987 to November 1989, producing approximately 36,000 troy ounces of gold. Production between May 1987 and November 1989 was 245,000 tonnes at a head grade of approximately 6 grams/tonne (estimated from the mine recovery).

Current Mineral Resources

The MineTech Report also states that non-diluted Indicated Mineral Resources, located entirely within the Main and South Zones total 1.0 million tonnes with an average gold grade of 4.0 g/tonne for 130,000 ounces. In addition, non-diluted Inferred Mineral Resources, estimated to total 1.9 million tonnes with an average gold grade of 3.9 g/tonne for 240,000 ounces.

  Tonnes Above Cut-off Average Gold Grade (g/tonne) Ounces
Indicated      
Main Zone 830,000 4.1 110,000
South Zone 200,000 3.7 24,000
Total* 1,000,000 4.0 130,000
       
Inferred      
Main Zone 700,000 4.6 100,000
West Zone 240,000 3.2 25,000
South-HW Zone 70,000 4.7 11,000
South Zone 820,000 3.6 95,000
South-FW Zone 60,000 4.1 8,000
Total* 1,900,000 3.9 240,000
       
* Rounded.      
       
Notes:
1. Cut-off grade for mineralised zone interpretation was 1 g/tonne.
2. Block cut-off grade for defining Mineral Resources was 2.0 g/tonne.
3. Top-cut grade was 30.9 g/tonne - mean plus two times standard deviation.
4. Gold price was $US 850 per troy ounce.
5. Zones extended up to 50 metres down-dip from last intercept. Along strike, zones extended halfway to the next cross-section.
6. Minimum width was 1.5 metres.
7. Non-diluted.
8. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
9. Resource estimate prepared by Doug Roy, M.A.Sc., P.Eng.
10. A specific gravity (bulk density) value of 2.8 was applied to all blocks (typical value for basic volcanics).
11. Inverse distance weighting, power of two was used for estimating block grades.
12. Indicated resources identified where sample intercept spacing was 20-25 metres or less (based on variography).

The Mineral Resources are outlined to a depth of approximately 580 metres below surface, approximately 280 metres below the present mine development.

The Qualified Persons of the MineTech Report are (William) Douglas Roy, M.A.Sc., P.Eng., and Patrick Hannon, M.A.Sc., P. Eng. The authors have approved the contents of this news release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This Press Release may contain statements which constitute 'forward-looking' statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

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
    or
    St. Eugene Mining Corporation Ltd.
    Kevin Weston
    President
    (604) 365-4477
    kevin.weston1@gmail.com
    or
    St. Eugene Mining Corporation Ltd.
    Rolly Trenaman, P. Eng.
    COO, Chairman of the Board
    (604) 669-5775
    tms1@telus.net