Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI

Queenston Mining Inc.

May 04, 2011 14:53 ET

Queenston Announces Initial NI 43-101 Mineral Resource at Upper Canada

TORONTO, ONTARIO--(Marketwire - May 4, 2011) -QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("Queenston" or the "Company") is pleased to report an initial mineral resource estimate on the 100% owned Upper Canada property located in Gauthier township near Kirkland Lake, Ontario. The mineral resource estimate was prepared in accordance with NI 43-101 by P&E Mining Consultants Inc. of Brampton, Ontario and incorporates 206 surface diamond drill holes (66,364 m) completed from October 2009 to February 2011.

Indicated and Inferred mineral resources have been determined for both near surface mineralization to an average depth from surface of 125 m with an optimized pit shell that is considered amenable to open pit mining and mineralization below the pit shell that would be amenable to underground mining methods.

Highlights

  • Total Indicated Mineral Resources of 1,959,000 tonnes ("t") grading 2.17 grams per tonne ("g/t") gold ("Au") (137,000 ounces ("oz")). The Uncapped grade is 2.38 g/t (150,000 oz)
  • Total Inferred Mineral Resources of 4,895,000 t grading 4.02 g/t Au (633,000 oz)
    The uncapped grade is 4.55 g/t Au (787,000 oz)
  • Strong Potential for both open pit and underground resource growth

The open pit mineral resource assumes a 0.44 g/t Au cut-off and represents 1,721,000 t grading 1.88 g/t Au (104,000 oz) in the indicated category and 1,273,000 t grading 1.86 g/t Au (76,000 oz) in the inferred category. The mineral resource amenable to underground mining assuming a 2.4 g/t Au cut-off are 238,000 t grading 4.25 g/t Au (33,000 oz) in the indicated category and 3,622,000 t grading 4.78 g/t Au (557,000 oz) in the inferred category. To comply with the CIM Definition Standards requirement "reasonable prospects for economic extraction" P&E Mining Consultants Inc. prepared a preliminary Whittle pit shell to constrain the open pit Mineral Resources estimate using a gold price of $1,200. Only mineralization located within the pit shell has been reported as the open pit portion of the Mineral Resource.

Table 1: Upper Canada In-Pit and Underground Mineral Resource (1)(2)(3)(4)(5)(6)(7)
Capped ResourceINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.44 g/t)1,721,0001.88104,0001,273,0001.8676,000
UG Below Pit (2.4 g/t)238,0004.2533,0003,622,0004.78557,000
TOTAL1,959,0002.17137,0004,895,0004.02633,000
Un-Capped Resource SensitivityINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.44 g/t)1,721,0002.04113,0001,308,0001.9582,000
UG Below Pit (2.4 g/t)243,0004.7337,0004,075,0005.38705,000
TOTAL1,964,0002.38150,0005,383,0004.55787,000
(1)Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2)The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
(3)The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
(4)Grade capping of 8 g/t to 15 g/t was utilized on raw assays
(5)A bulk density of 2.68 t/m3 was used for all tonnage calculations.
(6)Open pit resources were reported within a Whittle optimized pit shell.
(7)A gold price of US$1,200/oz and an exchange rate of US$0.95US=C$1.00 was utilized in the Au cut-off grade calculations of 0.44 g/t open pit and 2.4 g/t underground. Open pit mining costs were C$3.00/t for mineralized material, C$2.75/t for waste rock and C$1.75/t for overburden while underground mining costs were C$75/t. Process costs were C$12/t and G&A was C$5/t. Process recovery used was 95%.

Charles Page, President and CEO of Queenston said, "We have achieved a significant first resource in less than 18 months of drilling with the clear potential for more. The presence of both a shallow, open pit and an underground resource demonstrates the diverse potential of this large mineralized system. We are now undertaking a further aggressive drill campaign to follow up these positive results. Currently four rigs are operating on the property with a 65,000 metre program designed to test the western, northern and depth extensions of the primary gold system. Drilling will also begin to test other targets that have recently evolved from new interpretation of the historic data base. Upper Canada provides a key contribution towards the Company's goal of advancing the Kirkland East Project to feasibility and ultimately production."

Table 2: Resource Estimate Sensitivity Analyses at Various Cut-Offs
CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.30 g/t)2,883,0001.56145,0002,175,0001.69118,000
UG Below Pit (2.4 g/t)146,0004.2520,0003,474,0004.81537,000
TOTAL3,029,0001.69165,0005,649,0003.61655,000
Un-CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.30 g/t)2,883,0001.69157,0002,225,0001.73124,000
UG Below Pit (2.4 g/t)148,0004.4921,0003,908,0005.41679,000
TOTAL3,031,0001.83178,0006,133,0004.07803,000
"BASE CASE" CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.44 g/t)1,721,0001.88104,0001,273,0001.8676,000
UG Below Pit (2.4 g/t)238,0004.2533,0003,622,0004.78557,000
TOTAL1,959,0002.17137,0004,895,0004.02633,000
"BASE CASE" Un-CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.44 g/t)1,721,0002.04113,0001,308,0001.9582,000
UG Below Pit (2.4 g/t)243,0004.7337,0004,075,0005.38705,000
TOTAL1,964,0002.38150,0005,383,0004.55787,000
CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.50 g/t)1,134,0002.1679,000768,0002.0851,000
UG Below Pit (2.4 g/t)311,0004.1441,0003,704,0004.78570,000
TOTAL1,445,0002.59120,0004,472,0004.32621,000
Un-CappedINDICATEDINFERRED
Cut-Off (Au g/t)TonnesAu (g/t)Au (oz)TonnesAu (g/t)Au (oz)
Pit (0.50 g/t)1,135,0002.3887,000794,0002.1254,000
UG Below Pit (2.4 g/t)318,0004.5947,0004,167,0005.38721,000
TOTAL1,453,0002.87134,0004,961,0004.86775,000

Upper Canada was an important past gold producer in the Kirkland Lake camp from 1936 to 1972. During that period the mine produced 1.5 million ounces of gold at an average grade of 11 g/t from narrow, steeply dipping 2 m wide veins. The mine closed in 1972 due to the low gold price and there remained an historic measured and indicated resource, a portion of which now forms the new NI 43-101 Mineral Resource. The remaining historical Measured and Indicated resource at Upper Canada is 774,000 t grading 7.7 g/t Au. The historic mineral resources at Upper Canada were reviewed by Roscoe Postle and Associates in a report prepared for the Company in 1995 and should not be relied upon as the resource has not been verified by a Qualified Person.

Qualified Persons

The Independent Qualified Persons for the mineral resource estimate, Eugene Puritch, P.Eng., Antoine Yassa, P.Geo. and Tracy Armstrong, P.Geo of P&E Mining Consultants Inc., are Qualified Persons under NI 43-101. The NI 43-101 technical report on the mineral resource estimate will be filed on SEDAR within 45 days of this news release.

Quality Control

Program design, management, Quality Assurance/Quality control and interpretation of results is under the control of Queenston's geological staff many of which are qualified persons as defined by NI 43-101. Overall supervision is by William McGuinty, P.Geo., Queenston's Vice President Exploration. The design of the Queenston's drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston's geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The Upper Canada project is supervised by Queenston's Senior Geologist, Frank Ploeger, P.Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2010 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, Ontario and analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to other laboratories for check assaying. This news release was reviewed by Queenston's Vice President Exploration and QP, William McGuinty, P.Geo.

About Queenston

Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp that comprises 200 km². The Company has recently entered into a strategic alliance with Agnico-Eagle Mines Limited with the objective of advancing its key, 100% owned gold projects (Upper Beaver, Upper Canada, McBean, Anoki and Bidgood) at the Kirkland East project towards feasibility and ultimately production. The Company has working capital of approximately $75 million, no debt and a fiscal 2011 exploration budget of $25 million.

Forward Looking Statements

Except for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at www.sedar.com

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)

    Queenston Mining Inc.
    Hugh D. Harbinson
    Chairman
    (416) 364-0001 (ext. 225)
    Info@queenston.ca
    www.queenston.ca

    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927