Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI

Queenston Mining Inc.

February 23, 2011 06:30 ET

Queenston Drilling Extends Upper Beaver Deposit with 10.8 g/t Au, 1.2% Cu Over 4.3 m and 12.9 g/t Au Over 5.0 m Permitting Initiated for Advanced Exploration

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2011) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("Queenston" or "the Company") announces results from 9 new diamond drill holes completed on the 100% owned Upper Beaver property located in Kirkland Lake, Ontario. Significant results are summarized below and presented in the table. The location of the new holes are provided on the longitudinal section accompanying this news release and available on the Company's website (www.queenston.ca).

Highlights from the drilling program:

  • 10.8 g/t Au with 1.2% Cu over 4.3 m in hole UB10-163W6

  • 7.0 g/t Au with 0.70% Cu over 5.0 m in hole UB10-163W5

  • 10.8 g/t Au over 3.0 m and 4.9 g/t Au over 6.0 m in hole UB10-165

  • 12.9 g/t Au with 0.2% Cu over 5.0 m and 7.2 g/t Au with 0.2% Cu over 4.0 m in hole UB10-170W2

Eastern Deep Area – "drilling extends mineralization eastward"

  • New pilot hole UB10-165 intersected 4.9 g/t Au over 6.0 m and 10.8 g/t Au over 3.0 m extending the deposit a further 100 m east of previous hole UB09-139W3 (10.0 g/t Au with 0.50% Cu over 6.0 m) at the -1000 m elevation. New wedge hole UB10-163W6 intersected 10.8 g/t Au with 1.2% Cu over 4.3 m extended the deposit a further 50 m east of previous hole UB10-163 (90.1 g/t Au with 0.33% Cu over 3.0 m). Other in-fill holes in the eastern deep area of the deposit include 9.9 g/t Au with 0.1% Cu over 0.7 m (hole UB10-165W1), 14.5 g/t Au over 1.0 m (hole UB10-165W2) and 7.0 g/t Au with 0.70% Cu over 5.0 m (hole UB10-163W5). The mineralization in the eastern deep area of the deposit remains open to the east and below a depth of 1200 m.

Western Deep Area – "drilling extends mineralization westward"

  • Three new holes were completed in the western deep area of the deposit all intersected the primary Porphyry Zones with gold intervals of 7.2 g/t Au with 0.2% Cu over 4.0 m and 12.9 g/t Au with 0.2% Cu over 5.0 m in hole UB10-170W2, 3.7 g/t Au with 0.2% Cu over 2.3 m and 8.1 g/t Au over 0.5 m in hole UB10-170 and 9.7 g/t Au with 3.6% Cu over 1.0 m, 15.5 g/t Au with 0.7% Cu over 0.5 m and 8.2 g/t Au over 1.0 m in hole UB10-170W1. These holes centered at approximately 900 m below surface are approximately 50 m above and west of hole UB10-161W2 (17.3 g/t Au with 1.2% Cu over 10.5 m). The mineralization in the western deep area of the deposit remains open to the west and below a depth of 1200 m.

In 2011 the Company's budget for the Upper Beaver property is approximately $4 million. It will focus on further exploration to both expand the existing limits of the deposit as well as test new targets that display similar Upper Beaver geological and geophysical signatures. Also as part of the 2011 budget the Company has initiated base line studies, permitting and consultation in order to advance the project towards "advanced exploration" in 2012. During the advanced exploration stage development of new underground access to the deposit will be used to advance the project towards feasibility. 

Charles Page, Queenston President and CEO, said, "We are pleased with the new results from the Upper Beaver drilling that continue to confirm continuity and expand the size of the deposit. The new holes have extended the mineralization east - west and as a result, the deposit now exhibits a length approaching 500 metres. The deposit remains open along strike and to depth and drilling continues with three rigs as the Company prepares to update the first mineral resource that was announced in late 2008. Upper Beaver is growing into a significant sized gold-copper deposit that forms a cornerstone in the Company's strategy to return to producer status."

Table of Assay Results

Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone
UB10-163W4 1157.0 1157.5 0.5 0.10 5.45 New
  1231.5 1233.0 1.5 0.30 11.80 New
  1238.5 1246.0 8.5 0.30 1.63 Porphyry Zone
including 1238.5 1239.0 0.5 0.70 10.46 Porphyry Zone
  1255.5 1256.0 0.5 0.60 6.72 New
  1266.0 1267.0 1.0 0.70 7.05 Porphyry
UB10-163W5 1232.0 1237.0 5.0 0.67 6.97 Porphyry Zone
including 1232.0 1236.0 4.0 0.67 8.52 Porphyry Zone
UB10-163W6 1252.0 1255.0 3.0 trace 3.79 New
  1260.7 1261.2 0.5 trace 7.62 Porphyry
  1268.0 1274.3 6.3 0.88 7.80 Porphyry
including 1270.0 1274.3 4.3 1.20 10.80 Porphyry
including 1273.3 1274.3 1.0 3.23 31.92 Porphyry
UB10-165 95.0 96.0 1.0 4.00 6.86 North Basalt
  100.5 101.0 0.5 4.00 17.14 North Basalt
  1115.0 1125.0 10.0 trace 3.92 Porphyry
  1115.0 1121.0 6.0 trace 4.86 Porphyry
  1135.0 1136.0 1.0 trace 5.83 Porphyry
  1196.0 1199.0 3.0 trace 10.76 New
including 1197.2 1197.7 0.5 trace 53.70 New
UN10-165W1 1131.0 1134.0 3.0 trace 0.98 Porphyry
  1143.0 1143.7 0.7 0.10 9.86 Porphyry
UB10-165W2 1086.0 1087.0 1.0 trace 14.49 Porphyry
  1092.0 1101.0 9.0 trace 2.11 Porphyry
including 1096.0 1098.0 2.0 trace 4.81 Porphyry
  1238.0 1238.5 0.5 0.35 15.63 New
  1245.5 1246.0 0.5 0.24 10.09 New
  1268.0 1269.0 1.0 0.73 8.27 New
UB10-170 942.5 943.5 1.0 trace 9.25 North Contact
  973.0 973.5 0.5 trace 7.68 North Contact
  1017.0 1019.3 2.3 0.20 3.66 Porphyry
  1040.0 1040.5 0.5 trace 8.06 Porphyry
UB10-170W1 916.0 918.0 2.0 trace 4.03 North Contact
  927.0 928.0 1.0 trace 5.07 North Contact
  985.0 986.0 1.0 3.57 9.74 Porphyry
  993.0 994.0 1.0 1.41 6.00 Porphyry
  1000.8 1001.3 0.5 0.71 15.50 Porphyry
  1041.0 1042.0 1.0 trace 8.19 Porphyry
UB10-170W2 963.0 965.0 2.0 trace 8.60 New
Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone
  1003.0 1007.0 4.0 0.17 7.17 Porphyry
  1018.0 1019.0 1.0 0.48 8.47 Porphyry
  1025.0 1030.0 5.0 0.20 12.96 Porphyry
including 1025.0 1026.0 1.0 0.10 5.04 Porphyry
  1028.0 1029.0 1.0 1.10 57.90 Porphyry

NOTE: True widths are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time.

The Upper Beaver deposit contains total indicated National Instrument ("NI") 43-101 mineral resources of 1,373,500 t grading 8.5 g/t Au (375,000 oz.) (9.7 g/t Au uncapped (427,900 oz.)) with 0.43% Cu and total inferred resources of 1,061,300 t grading 7.7 g/t Au (262,800 oz.) (8.5 g/t Au uncapped (291,300 oz.)) with 0.39% Cu. The mineral resource was completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Michael W. Kociumbas, P. Geo. The Porphyry Zone is the largest gold-copper component of the deposit containing 942,600 t grading 9.6 g/t Au (10.9 g/t uncapped) in the indicated category and 859,200 t grading 8.3 g/t Au (9.2 g/t uncapped) in the inferred category.

Quality Control

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 Beaver project is supervised by Queenston's Vice President Exploration, William McGuinty, P. Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2009 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 $80 million as of December 31, 2010, no debt and a 2011 exploration budget of $25 million.

Queenston's Cautionary Note Regarding NI 43‐101 and 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)
    or
    Queenston Mining Inc.
    Hugh D. Harbinson
    Chairman
    (416) 364-0001 (ext. 225)
    Info@queenston.ca
    www.queenston.ca
    or
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    or
    Ann Gibbs-Baines
    Investor Relations
    (416) 627-8872