Queenston Mining Inc.

Queenston Mining Inc.
Newstrike Resources Ltd.

Newstrike Resources Ltd.

August 14, 2009 12:09 ET

Queenston and Newstrike Complete Commodore Purchase and Acquire Adjoining Claims in Kirkland Lake

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2009) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") and Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) ("Queenston") announce that they have completed the joint purchase of the Commodore property and purchased four additional mineral claims in the Kirkland Lake gold camp.

Newstrike and Queenston have recently exercised the option to purchase a joint 100% interest in the Commodore property as previously announced in a news release dated February 10, 2009. To earn the interest in the property each party paid the vendor $95,000 cash with Newstrike issuing 35,000 shares and Queenston issuing 10,000 shares. There are no underlying royalties on the property and the parties have signed a formal JV agreement to explore the property with Queenston acting as operator.

On July 8, 2009 Newstrike and Queenston each purchased a 50% interest in 4 mineral additional claims adjoining the Commodore property to the east increasing the JV land package to 40 mineral claims (12 patented claims and 28 unpatented claims) (650 ha). Under terms of the purchase Newstrike and Queenston have each paid the vendor $10,000 cash for a 100% interest in the claims subject to a 2% Net Smelter Returns royalty ("NSR"). The parties retain the right to purchase half of the NSR at any time upon payment of $1,000,000.

The combined property is located north of the Larder Lake Break straddling the Lebel - Gauthier Township line covering an altered and mineralized volcanic assemblage of Timiskaming rocks that elsewhere in the camp hosts the 24 million ounce Kirkland Lake Main Break gold deposits located 12 km to the west and the 1.5 million ounce Upper Canada gold mine 3 km to the east. The Commodore property is favourably located relative to major gold structures and a variety of gold deposits in the camp. The property ties onto a large package of claims owned by Queenston that hosts four gold deposits, the 180 East Zone, Upper Canada, Anoki and McBean. The property also covers the same geological formation that hosts gold mineralization on Newstrike's, Kirkland Lake East property, located 0.5 km to the west, that includes the Morris Mine that historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936 to 1941. Two gold structures, the Upper Canada Break and 03 Break trend across the southern and central portions of the property and host the best potential for gold mineralization.

The primary area of alteration and mineralization on the property occurs along the Upper Canada Break at a volcanic-sedimentary contact on the southwestern portion of the property where in 1995-96 exploration drilling by previous owners, Sudbury Contact Mines Limited, discovered the Commodore Zone. This gold zone hosts an historic mineral resource of 669,500 t grading 2.4 g/t Au including 278,500 t grading 3.8 g/t Au. The resource was calculated by Lorne Burden of W.A. Hubacheck Consultants Limited in a report dated January 1997 filed with the Ontario Ministry of Northern Development and Mines. This resource is not compliant to National Instrument 43-101 and should not be relied upon as it has not been verified by a qualified person. West of the Commodore Zone a second, high-grade gold zone was discovered in a single drill hole by Sudbury Contact along the Upper Canada Break assaying 43.5 g/t Au over a core length of 1.5 m.

Following a review of the property, Queenston as operator of the joint venture, has identified four target areas that have potential to host significant gold mineralization. Targets 1 and 2 represent the Upper Canada Break in the vicinity of the Sudbury Contact discoveries where both shallow gold zones remain open along strike and to depth. Target area 3 is located along the 03 Break where there exists a 2 km long IP geophysical anomaly 500 m east and along trend of the past producing Morris mine owned by Newstrike. The 4th target is located in the central portion of the property where a coincident volcanic-sediment contact and IP anomaly exists adjacent to a syenite plug.

No exploration has occurred on the property since 1996 and the JV plans a first phase exploration program consisting of compilation, linecutting and diamond drilling budgeted at approximately $530,000. The program to begin in August will include a total of 18 diamond drill holes totaling 3,800 m.

About Queenston

Queenston has assembled significant land packages in proven Canadian mining camps and its strategy is to return to producer status. The first step is in progress through the advancement of its primary gold assets in Kirkland Lake, Ontario (Upper Beaver, McBean, Anoki and Upper Canada) towards NI 43-101 resource status. In the western portion of the Kirkland Gold camp, Queenston is 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 working capital of $29 million and maintains interests in 21 contiguous properties in the Kirkland Lake camp totaling approximately 14,500 hectares in 950 mineral claims. The Company's exploration-development budget for 2009 is $10 million employing eight diamond drill rigs.

Charles E. Page, P. Geo. is the qualified person responsible in preparing this news release.

About Newstrike

Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. The Company owns a 100% interest in the Kirkland Lake East property that hosts the past producing Morris mine, it also owns a 50% interest in the Commodore property and a 25% interest in the Swansea property. The Company's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits. Newstrike has working capital of approximately $1.1 million.

Queenston's 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

Newstrike's Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial know and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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
    Newstrike Resources Ltd.
    John A. Pollock
    President and CEO
    (416) 628-6556
    Newstrike Resources Ltd.
    Donald Rankin
    (416) 628-6556