Queenston Mining Inc.

Queenston Mining Inc.

October 26, 2006 09:39 ET

Queenston Explores New Gold Discovery Near Chibougamau, Quebec

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2006) - Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) is pleased to announce that it has entered into an agreement with two prospectors to explore a 68 claim (4,400 ha) property ("Grizzly") that hosts a new gold discovery located in northern Quebec west of the Chibougamau mining camp.

The Grizzly Property is located in Lamarck and Guettard Townships, approximately 70 km west of Chibougamau, along an east-west trending regional fault zone at a major volcanic-sedimentary rock contact. A recent logging program provided access to the area where local prospectors Messrs. Bouchard and Lamothe discovered widespread alteration (carbonatization-silicification) and mineralization (arsenopyrite, pyrite) occurring in sheared gabbro and feldspar porphyry. Grab samples from the two lithologies returned gold assays up to 2.2 g/t and 3.0 g/t respectively.

A stripping and washing program recently completed has uncovered a 4-5m wide silicified (stockwork) feldspar porphyry dyke containing disseminated, arsenopyrite, pyrite, galena and chalcopyrite cutting a gabbro body. In contact with the porphyry the gabbro is highly carbonated and silicified containing up to 10% arsenopyrite over widths of 5m on each side of the dyke. The stripping has exposed the mineralization over a length of 150 m (remains open) and a width of up to 25 m. Channel sampling of the mineralization is currently in progress. The next phase of exploration will include linecutting and geophysics prior to testing the new discovery with diamond drilling.

Under the terms of the agreement entered into with the prospectors Queenston can earn a 100% interest in the Grizzly Property by making cash payments of $150,000 and issuing 112,500 shares of the Corporation over a period of three years. The initial payment amounting to $10,000 and 7,500 shares has been made and all further payments are at the option of Queenston. There are no work commitments on the property and vendors will retain a 2% net smelter returns royalty.

Exploration on the Grizzly Property is supervised and planned by Queenston's Exploration Manager and qualified person Michel LeBlanc, P.Geo. employing a QA/QC program consistent with National Instrument 43-101 and industry best practices. Grab and channel samples are analyzed by standard fire assay with atomic absorption or gravimetric finish at Swastika Laboratories Ltd. of Swastika, Ontario.

Queenston's core exploration assets are advanced gold projects in Kirkland Lake, Ontario and Cadillac, Quebec. The Company continues to maintain a pipeline to new mineral opportunities in the Abitibi District and the Grizzly property meets our objective of exploring in and near proven mining camps where there continues to exist high potential for new discoveries. Exploration expenditures on the property qualify for Quebec resource credits that represent cash rebates amounting to 42%.

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.

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo
    President and CEO
    (416) 364-0001 (ext. 224)
    Queenston Mining Inc.
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Email: Info@queenston.ca
    Website: www.queenston.ca