Queenston Mining Inc.

Queenston Mining Inc.

May 19, 2011 10:14 ET

Queenston Intersects More High-Grade at Upper Beaver Including 24.6 g/t Au With 0.7% Cu Over 4.7 m

TORONTO, ONTARIO--(Marketwire - May 19, 2011) -QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("Queenston" or "the Company") announces results from 4 new diamond drill holes completed on the 100% owned Upper Beaver gold-copper deposit located in Kirkland Lake, Ontario. The new holes targeted both the eastern and western portions of the deposit and were successful in enhancing the continuity of the mineralization within the existing limits of the mineral resource. Significant results are summarized below and presented in Table 1 and do not form part of the NI 43-101 mineral resource announced on May 4, 2011.

Highlights from the drilling program:

  • 24.59 g/t Au with 0.69% Cu over 4.7 m in hole UB11-170W3

  • 11.35 g/t Au with 0.21% Cu over 4.5 m in hole UB11-170W3

  • 9.04 g/t Au with 0.79% Cu over 9.5 m in hole UB11-174

  • 5.06 g/t Au over 4.0 m including 31.95 g/t Au over 0.5 m in hole UB11-171W1

Charles Page, Queenston President and CEO, said, "The new holes enhance both the quality and continuity of the Upper Beaver deposit and drilling continues with four rigs primarily focussed on infill and step-out drilling to the east and west. The deposit remains open along strike, to depth and all indications suggest towards surface as well. During the current drilling campaign shallow targets above a depth of 300 m will be tested near the previous mine workings that were abandoned in 1972. The new mineral resource announced earlier this month combined with the continued promising drill results reinforces our decision to advance the project towards feasibility through underground evaluation. In order to accomplish this, shaft-sinking plans are being reviewed and the permitting process is underway for site preparation early in 2012."

Drill hole UB11-170W3 intersected both the North Contact and Porphyry Zones in the western portion of the deposit at approximately 850 m below surface. Significant intersections include 11.35 g/t Au with 0.21% Cu over 4.5 m (Upper Porphyry Zone) and 24.59 g/t Au with 0.69% Cu over 4.7 m (Lower Porphyry Zone) approximately 75 m up-dip from previous hole UB10-161W3 (1.7 g/t Au with 0.28% Cu over 10.5 m) and approximately 45 m east of UB10-170W2 (7.2 g/t Au with 0.20% Cu over 4.0 m).

Three new holes were completed in the eastern portion of the deposit all intersecting the Porphyry Zone. In hole UB11-174 the zone was intersected at a vertical depth of approximately 1,100 m averaging 8.07 g/t Au with 0.71% Cu over 11.0 m including 9.04 g/t Au with 0.79% Cu over 9.5 m. This hole is 100 m below previous hole UB10-139W3 (6.0 g/t Au with 0.50% Cu over 10.0 m) and 80 m west of previous hole UB10-165W5 (7.0 g/t Au with 0.7% Cu over 5 m). Holes UB11-171 and -171W1 intersected the Porphyry Zone averaging 2.79 g/t Au over 4.0 m and 5.06 g/t Au over 4.0 m respectively. There was no appreciable copper in these two holes. The two 171 series holes are located approximately 950 m below surface and 45 m east of previous hole UB08-139 (30.3 g/t Au with 1.0% Cu over 20.8 m) and 35 m above previous hole UB10-139W3 (6.0 g/t Au with 0.50% Cu over 10.0 m).

Table 1. Upper Beaver Assay Results

Hole #From (m)To (m)Interval (m)Cu (%)Au (g/t)Zone
951.0956.05.0trace3.12North Contact
981.0984.03.0trace11.00North contact
1001.01005.54.50.2011.35Porphyry Zone
1015.31020.04.70.6924.59Porphyry Zone
UB11-1711091.01095.04.0trace2.79Porphyry Zone
including1092.01093.71.7trace7.40Porphyry Zone
UB11-1741129.01129.50.5trace12.62North Contact
1138.01139.01.0trace12.45North Contact
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. Hole UB11-170W4 was dyked out and did not reach target. Assays are pending for UB11-170W5. Hole UB11-173 was abandoned due to excessive deviation.

The Upper Beaver deposit was previously explored and mined intermittently from 1912 to 1972. During that time it is reported that various operators produced approximately 141,000 ounces of gold and 11.9 million pounds of copper from 526,678 t grading 8.31 g/t Au and 1.03% Cu to a depth of 365 m. The most concentrated period of production was from 1965 to 1972 when Upper Canada Resources Limited produced approximately 102,000 ounces of gold and 10.9 million pounds of copper from 407,306 t grading 7.82 g/t Au and 1.22% Cu.

The Upper Beaver deposit contains total indicated National Instrument ("NI") 43-101 mineral resources of 3,074,000 t grading 6.98 g/t Au (690,000 oz.) (8.84 g/t Au uncapped (874,000 oz.)) with 0.54% Cu and total inferred resources of 3,093,000 t grading 6.19 g/t Au (616,000 oz.) (7.15 g/t Au uncapped (711,000 oz.)) with 0.41% Cu. The mineral resource was recently announced by the Company on May 4, 2010 and completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Kurt Breede, P. Eng. The NI 43-101 technical report on the mineral resource estimate will be filed on SEDAR by June 18, 2011.

The majority of the mineral resource occurs in a series of breccia zones that dip steeply north (75°) below the old mine workings. These zones contain chalcopyrite, magnetite, pyrite and visible gold within a mineralized corridor that extends over a horizontal length of approximately 500 m and a dip length of approximately 1,300 m. The most prominent are the Porphyry Zones that contain approximately 80% of the mineral resource with 556,000 oz. (2,219,000 t grading 7.8 g/t Au) in the indicated category and 535,000 oz. (2,528,000 t grading 6.6 g/t) 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 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 220 km². Late in 2010 the Company 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.

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

    Queenston Mining Inc.
    Ann Gibbs-Baines
    Investor Relations