Queensland Minerals Ltd.
TSX VENTURE : QML

Queensland Minerals Ltd.

April 28, 2011 09:20 ET

QML's Tulare Copper-Gold Porphyry Mineralized 'Footprint' Expanded to Over 800m by 300m

LONGUEUIL, QUEBEC--(Marketwire - April 28, 2011) - Queensland Minerals Ltd. (TSX VENTURE:QML) (the "Company") is pleased to announce that surface trenching at the Tulare copper and gold porphyry has extended the surface mineralised 'footprint' to over 800m by 300m, following the receipt of extremely encouraging assay results.

Exploration Highlights

Recent (late 2010) surface trench sampling approximately 500m south of previous trenching and drilling has returned the following outstanding intersections (note that in oxidized surface material, copper is leached, whilst at Tulare within primary mineralization the Cu:Au ratio to date is approximately 1:1):

  • KICH054
    • 18m at 0.53g/t Au, 0.08% Cu from 0m
    • 14m at 0.78g/t Au, 0.02% Cu from 94m
  • KICH057
    • 60m at 0.80g/t Au, 0.02% Cu from 0m
  • KITR070
    • 8m at 0.60g/t Au, 0.02% Cu from 0m

(Intersections based on 0.5g/t Au cut off, 6m minimum length and 6m maximum internal dilution)

Previous trench sampling during 2007, undertaken by Dundee Precious Metals Inc. ("DPM") included the following highlights:

  • KITR005
    • 23m at 0.52g/t Au, 0.51% Cu from 4m
    • 42m at 0.67g/t Au, 0.42% Cu from 38m
    • 30m at 0.77g/t Au, 0.09% Cu from 94m
  • KITR008
    • 25m at 0.89g/t Au, 0.16% Cu from 1m
  • KITR009
    • 13m at 1.66g/t Au, 0.3% Cu from 3m
  • KITR010
    • 21m at 0.85g/t Au, 0.14% Cu from 0m
  • KITR013
    • 89m at 1.00g/t, 0.07% Cu from 0m
  • KITR016
    • 9m at 0.86g/t Au, 0.04% Cu from 3m

(Intersections based on 0.5g/t Au cut off, 6m minimum length and 6m maximum internal dilution)

Initial 'proof of concept' diamond drilling by DPM in 2007 in the northern sector of the porphyry, returned the following intersections in primary mineralization:

  • KIDD001
    • 14m at 0.51g/t Au, 0.23% Cu from 19m
    • 134m at 0.81g/t Au, 0.69% Cu from 43m
  • KIDD002
    • 22m at 0.47g/t Au, 0.63% Cu from 6m
  • KIDD004
    • 110m at 0.56g/t Au, 0.47% Cu from 11m

(Intersections based on 0.5g/t Au cut off, 6m minimum length and 6m maximum internal dilution)

Follow up diamond drilling and trench sampling is planned to begin within one month.

About the Tulare Project

The Company is entitled to acquire indirectly 100% of DPM's interest in several mineral licenses located in Serbia including the mineral license related to the Tulare copper and gold project under an option and acquisition agreement (the "Option") described in previous news releases (including the October 12, 2010 news release). The transaction is subject to a number of conditions including the approval of the Company's shareholders, minimum financing and expenditure requirements, and the TSX Venture Exchange final acceptance. There can be no assurance that the Company will be able to satisfy all the conditions and be able to exercise the Option.

More information about the Tulare Project can be found in the NI 43-101 Technical Report prepared for the Company by Coffey Mining Pty Ltd and available on SEDAR at www.sedar.com.

Project Location

The Tulare copper-gold porphyry project is located in southeast Serbia, approximately 230km from Belgrade and 70km from the regional centre of Nis. Access to the project is excellent via sealed roads. A rail heading is available some 45km from the project area at the city of Leskovac, or 25km to the northwest at the town of Kursumlija. Reticulated power passes close to the project area. Figure 1 displays the project location.

The Tulare porphyry is exposed on either side of a valley in an area of low population density and dominated by state forest.

Geology and Mineralisation

The oldest rock unit in the project area is the Precambrian metamorphic basement, which outcrops to the northeast of the Tulare copper-gold mineralisation. It is into this unit that at least two phases of diorite porphyry have been intruded which, in turn, are hosts to a stockwork of quartz-pyrite-chalcopyrite veins. To the south west of the main area of exposed mineralisation, and covering the majority of the south western part of the license, is an andesitic volcanic sequence which appears to cover additional porphyry centres exposed in valleys where limited outcrop occurs. These smaller outcrops continue to host quartz- pyrite-chalcopyrite stockwork veins and are believed to be an indication of porphyry potential beneath the andesite cover.

Exploration Results

Very encouraging trench and drill intersections have been returned from the Tulare copper-gold porphyry project to date. Figure 2 displays the location of the most recent trenching (in blue) and previous trenching and drilling (in grey). Gold grades are displayed as coloured histograms.

Table 1 summarises significant intersections returned to date from recent diamond drilling and trench sampling, using a 0.5g/t Au cut off, with a 6m minimum interval and a maximum of 6m of internal waste.

Statistical analysis of intervals within primary mineralisation has shown that the Cu:Au ratio for drilling to date at Tulare is approximately 1:1. Within the surface oxidized zone copper has been preferentially leached compared to gold.

TABLE 1
TULARE COPPER-GOLD PROPHYRY PROJECT
SIGINIFICANT INTERSECTIONS
DIAMOND DRILLING RESULTS
Hole IDFrom (ft)To (ft)Interval (ft)Au (Oz/t)Cu (%)From (m)To (m)Interval (m)Au (g/t)Cu (%)
KIDD00162.3108.345.90.0160.231933140.510.23
KIDD001141.1580.7439.60.0260.69431771340.810.69
KIDD00219.791.972.20.0150.63628220.470.63
KIDD00436.1397.0360.90.0180.47111211100.560.47
TRENCH RESULTS
Trench IDFrom (ft)To (ft)Interval (ft)Au (Oz/t)Cu (%)From (m)To (m)Interval (m)Au (g/t)Cu (%)
KITR00513.188.675.50.0170.51427230.520.51
KITR005124.7262.5137.80.0210.423880420.670.42
KITR005308.4406.898.40.0250.0994124300.770.09
KITR0083.385.382.00.0290.16126250.890.16
KITR0099.852.542.70.0530.30316131.660.30
KITR0100.068.968.90.0270.14021210.850.14
KITR0130.0292.0292.00.0320.07089891.000.07
KITR0169.839.429.50.0280.0431290.860.04
KITR0220.032.832.80.0190.14010100.590.14
KITR03023.062.339.40.0190.03719120.590.03
KITR0430.038.438.40.0240.03011.711.70.750.03
KICH0540.059.159.10.0170.08018180.530.08
KICH054308.4354.345.90.0250.0294108140.780.02
KICH0570.0196.9196.90.0260.02060600.800.02
KITR0700.026.226.20.0190.020880.600.02
0.5g/t Au cut-off, 6m minimum length, 6m maximum internal dilution

Discussion

Initial exploration at Tulare has confirmed the existence of a strongly mineralized copper-gold porphyry system returning very encouraging gold and copper grades. Preliminary metallurgical test work, carried out in 2008 at SGS Lakefield in Toronto, Canada, has indicated that very high copper and gold recoveries are potentially achievable using typical grind sizes. Excellent flotation and gravity recovery characteristics were exhibited for both copper and gold, and a copper-gold concentrate with no deleterious elements was produced. Preliminary grinding tests showed a medium to soft mineralization type with a bond work index of approximately 11kwhr/t.

Recent trenching and sampling on the southern side of the valley, within a strong copper-gold soil anomaly have returned very encouraging intersections of similar tenor to the original trench sampling to the north. As a result, the surface expression of the mineralized Tulare copper-gold porphyry has been extended to at least 800m by 300m.

Further mapping, soil sampling and geophysical data interpretation suggest that the Tulare area comprises a cluster of porphyry bodies with limited exposure of porphyry penetrating through the andesite cover sequence.

Follow-up trenching is scheduled to begin within one month. A diamond drilling program is scheduled to start as soon as the Company can get the required permit to access the land. The key initial objective of the program is to demonstrate the tonnage potential of the system. The location and ease of access to the project area and proximity to transport, power and smelting facilities should enable rapid project advancement.

Sampling and Analysis

The majority of soil samples have been assayed at the ALS Chemex laboratory, Perth, Australia. More recent programs have been assayed at the SGS managed laboratory at Chelopech in Bulgaria using a combination of ICP-OES and ICP-MS whereas gold has been assayed by low level detection fire assay method with an AAS finish. Trench samples were prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and the samples have been assayed at the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed laboratory facility at Bor, Eastern Serbia. Diamond drill core from Tulare has been prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and assayed at the SGS managed laboratory at Chelopech in Bulgaria. A one metre sampling interval has been used where possible for the diamond drilling program. Following standard quality assurance procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards have been submitted with each batch of samples.

Trench sampling was carried out as channels in the wall just above the trench floor on 2m intervals. Except where extensive soil cover is encountered, trenches were sampled in their entirety. The samples were routinely weighed prior to final bagging to maintain an even sample size and to avoid sampling bias in harder rock types. An average channel sample weight was maintained at 3kg/m, which produces a consistent sample weight approximating half HQ core samples. Field duplicate samples were taken every 20 samples and known standards were inserted into the sample stream after every 20th sample. A geological and structural log was completed as for diamond drilling. All data collected in the field was routinely entered into geology and structural geology spread sheets using Field Marshal software for subsequent entry to an acQuire database and validation.

Julian Barnes is the Qualified Person under NI 43-101 who has reviewed the technical disclosure contained in this press release. Mr. Barnes is a special consultant to the Company.

This press release contains forward-looking information. In particular, this press release contains statements concerning the acquisition of mineral projects in Serbia, exploration results and geological interpretation, planned exploration programs, and the potential of the Tulare Project. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information is subject to known and unknown risks and uncertainties, and depends on assumptions and other factors, all of which may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

About the Company

Queensland Minerals is a mineral exploration company. It has entered into an option agreement to acquire mineral properties in Serbia and holds one mineral licence in the State of Queensland, Australia. Additional information about the Company is available on SEDAR at www.sedar.com and at www.queenslandminerals.com. The approval of the transaction with DPM will be submitted for approval at the shareholder meeting to be held on April 29, 2011. The Company plans to change its name to 'Dunav Resources Ltd.' shortly after the shareholders' meeting.

Figure 1: Tulare Project Location : http://file.marketwire.com/release/qml1_428.pdf

Figure 2: Trenching and Drilling Location : http://file.marketwire.com/release/qml2_428.pdf

Neither 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.

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