Queenston Mining Inc.

Queenston Mining Inc.

June 10, 2010 09:00 ET

Queenston Initiates Drilling on Newly Acquired Vault-Lebel Property

(Results Include: 12.2 g/t Au Over 11.5 m and 1.8 g/t Au Over 59.5 m)

TORONTO, ONTARIO--(Marketwire - June 10, 2010) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("the Company") is pleased to announce results from the first 6 diamond drill holes completed near the Bidgood mine on the 100% owned Lebel property located in Lebel Township, Kirkland Lake, Ontario. The Lebel property is one of the key assets Queenston acquired through the merger with Vault Minerals Inc. ("Vault") completed on April 20, 2010.

The 3,100-acre Lebel property hosts the past-producing Bidgood mine that historically produced 165,000 oz ("ounces") of gold from 1934-51 at a recovered grade of 9.2 g/t ("grams per tonne") Au ("gold") (0.27 oz/ton ("ounces per ton"). It is interpreted by Queenston geologists that the gold mineralization at Bidgood is controlled by the same structure that hosts the seven historic mines in neighboring Teck Township which comprise Kirkland Lake's famous "Mile of Gold" where in excess of 24 million ounces of gold have been produced at a recovered grade of 16.1 g/t Au (0.47 oz/ton).

Significant assay results of the drilling are presented in Table 1 and the property location is outlined on the plan accompanying this news release and also available on the Company's website (www.queenston.ca).

Highlights include:

  • 12.15 g/t Au over 11.5 m in hole BG10-22
  • 1.77 g/t Au over 59.5 m in hole BG10-58
  • 1.97 g/t Au over 22.30 m in hole BG10-27
  • 1.52 g/t Au over 29.75 m in hole BG10-59
  • 0.86 g/t Au over 74.10 m in hole BG10-21

Charles E. Page, President and CEO of Queenston said, "We are very pleased with the first results received from the recently acquired assets of Vault, where drilling has discovered the potential for both new high grade and open pit mineralization at the Bidgood mine. Historically the mine produced gold from a series of narrow, 0.5 – 2.0 m wide quartz vein zones and the new results beyond the mined areas indicate that the material between the veins is gold bearing and forms a mineralized corridor that measures up to 28 m thick. A second drill will be added to the Lebel property bringing the total number of rigs operating on Queenston properties in the Kirkland Lake camp to 13." 

The new results are part of a 23,000 m drilling program underway on the Lebel property. The primary focus is the Bidgood gold system that has not been effectively explored since the mine shut down in 1951. The current program is targeting the numerous vein systems that remain open above, below and along trend of the previously mined areas. In addition, the potential for near surface, open pit mineralization is evident within the 500 m by 350 m surface footprint of the mine. To date the drilling has intersected both narrow high-grade and wide, low-grade mineralization along two of the 23 known veins.

The first six holes targeted the southern-most veins, mined from the 46 m to 91 m levels producing 4,780 oz of gold grading 9.9 g/t. Holes BG10-26 and -27 (drilled 38 m apart) intersected the mineralized corridor above the veins towards surface returning 0.47 g/t Au over 32.3 m (including: 4.49 g/t Au over 0.9 m and 6.10 g/t Au over 1.6 m) and 1.97 g/t Au over 22.3 m (including: 6.20 g/t Au over 1.65 m and 9.52 g/t Au over 1.5 m) respectively. The 32.3 m intersection in hole BG10-26 includes non sampled intervals that were assigned zero grade. Infill sampling is in progress and results will be updated in future news releases. Hole BG10-59 intersected the mineralized corridor in the central portion of the vein system west of previous mining at a vertical depth of 50 m assaying 1.52 g/t Au over 29.8 m including 6.07 g/t Au over 2.95 m.

The remaining three holes BG10-58, 22, and 21 are 20 – 50 m below any mining, with BG10-59 and 21 located 84 m apart, and BG10-58 and 21 located 36 m apart. Hole BG10-58 intersected a wide interval assaying 1.77 g/t Au over 59.5 m including 10.32 g/t Au over 0.6 m, 6.17 g/t Au over 4.35 m and 5.98 g/t Au over 2.75 m. Assay results are pending from infill samples on portions of the mineralized interval in BG10-58. BG10-21 assayed 0.86 g/t Au over 74.1 m including 1.95 g/t over 3.1 m and 3.12 g/t Au over 7.2 m. The deepest hole of the program, BG10-22, intersected two mineralized intervals. The upper zone assayed 0.89 g/t Au over 18.6 m and the deeper zone intersected high-grade gold mineralization assaying 12.15 g/t Au over 11.5 m including 2.0 m grading 25.8 g/t and a separate 0.60 m interval grading 120.31 g/t containing visible gold. The mineralization remains largely open below and along strike of BG10-22. One historic drill hole completed in 2007 intersected what appears to be similar mineralization approximately 165 m deeper assaying 8.3 g/t Au over 2.6 m.

The mineralization generally consists of 10-90% coarse disseminated pyrite, 1-20% chalcopyrite hosted in an altered, silicified, iron-rich diorite and porphyry along the Bidgood gold structure. The mineralization mined at Bidgood generally strikes northeast – southwest and appears to dip vertically and flattens to 69° north towards surface.

Table 1: Bidgood Assay Results

Hole # Azimuth (°) Dip (°) From (m) To (m) Interval (m) Au (g/t)
BG10-21 80 -64 73.60 147.70 74.1 0.86 *
including     73.60 80.40 6.80 1.02
and     102.00 105.10 3.10 1.95
and     126.10 127.10 1.00 4.17
and     140.50 147.70 7.20 3.12
BG10-22 87 -69 76.65 95.25 18.60 0.89
Including     76.65 82.60 5.95 1.25
and     88.50 95.25 6.75 1.27
      103.80 104.60 0.80 3.15
      111.90 113.00 1.10 2.74
      128.00 128.50 0.50 6.58
      139.50 140.90 1.40 2.02
      142.30 153.80 11.50 12.15
including     144.00 146.00 2.00 25.80
and     153.20 153.80 0.60 120.31
BG10-26 173.0 -60.0 15.00 47.25 32.25 0.46 *
including     15.70 16.60 0.90 4.49
and     45.65 47.25 1.60 6.10
including     46.50 47.25 0.75 11.93
BG10-27 132.3 -60 10.90 33.20 22.30 1.97
including     10.90 12.50 1.60 4.23
and     22.85 24.50 1.65 6.29
and     30.30 31.80 1.50 9.52
BG10-58 97 -68 72.20 131.70 59.50 1.77 *
including     94.50 95.05 0.55 10.32
and     102.45 103.50 1.05 5.28
and     107.75 112.10 4.35 6.17
and     117.65 120.40 2.75 5.98
and     129.70 131.70 2.00 5.16
BG10-59 134.2 -62 50.60 80.35 29.75 1.52
Including     54.15 56.85 2.70 2.68
and     77.40 80.35 2.95 6.07
* assay results are pending from infill sampling of this intersection, the non-sampled intervals were assignedzero grade.

NOTE: The mineralized intervals reported in this news release represent core lengths only, to date the true width has not been determined. Further drilling will allow correlation of multiple zones and splays.

As a result of the early drilling success at Bidgood a second diamond drill rig will be added to the Lebel property. The drilling will continue to define both the near surface open-pit and deeper high-grade potential of the Bidgood gold system. Elsewhere on the Lebel property, drilling has also been completed on the Boundary and Blue Vein occurrences and will be reported on shortly. 

Qualified Person and QA/QC Program

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 National Instrument ("NI") 43-101 and industry best practices. Mr. Michael Sutton, P.Geo, Senior Geologist (Vault Division) is the designated Qualified Person pursuant to NI 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators and is responsible for the verification and quality assurance of the technical content of this news release. 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 Polymet Labs of Cobalt, 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 approximately every 25 samples and after significant samples. Approximately 5-10% of sample rejects and/or pulps are sent to other laboratories for check assaying and quarter-core sampling is also undertaken.

About Queenston

Queenston controls a significant land package in the Kirkland Lake gold camp now containing 29 properties, totalling approximately 19,000 hectares. The Company's strategy is to return to producer status through the development of four 100% owned gold projects including the Upper Beaver, McBean, Anoki and Upper Canada. The Company is also carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims property, and on its 100% owned AK property. Queenston is well financed with $45 million in cash and has a 2010 exploration budget of $16 million, employing up to 13 diamond drill rigs on 8 properties.

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)
    Queenston Mining Inc.
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927