Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI

Queenston Mining Inc.

February 04, 2011 07:30 ET

Queenston Plans $25 Million for 2011 Exploration in Kirkland Lake

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2011) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("Queenston" or the "Company") is pleased to provide an update on planned activities for the 2011 exploration campaign on its projects located in the Kirkland Lake gold camp.

A $25 million budget is planned and will include 180,000 m of drilling on nine properties employing up to 16 diamond drill rigs. The primary focus is the Kirkland East Project where the Company is advancing five, 100% owned gold deposits towards production. In addition to the drilling, new and updated resource studies will be completed on four deposits, environmental studies and permitting will be completed in order to initiate advanced underground exploration at Upper Beaver and approximately $1 million will be allocated for new project development.

Plans for the 2011 program include:

  • 180,000 m of drilling on 9 properties
  • Updated NI 43-101 resource estimate for the Upper Beaver deposit - late Q1 2011
  • New NI 43-101 resource estimate for Upper Canada deposit – late Q1 2011
  • New NI 43-101 resource estimate for Bidgood deposit – early Q2 2011
  • New NI 43-101 resource estimate for Amalgamated Kirkland deposit – early Q2 2011
  • Extend Kirkland Lake Gold's 5300' level drift onto the AK Joint Venture property targeting the South Mine Complex
  • Base line environmental studies and permitting to initiate advanced underground development and exploration at Upper Beaver

Charles Page, President and CEO of Queenston said, "In 2010 the Company experienced exceptional growth highlighted by strong exploration success and the recognition by a major gold producer. We anticipate continued strong results in 2011 as we progress towards the development stage with historically the largest annual budget ever implemented by the Company. Our strategy is to advance the 100% owned Kirkland East Project towards production employing a central mill fed by the Upper Beaver, Upper Canada, Anoki, McBean and Bidgood gold deposits."

Kirkland East Project

In 2010 the Company completed 100,000 m of diamond drilling on the Kirkland East project primarily focussed on the Upper Beaver, Upper Canada and Bidgood gold deposits.

At Upper Beaver, three drills were successful in extending the gold-copper mineralization below the existing mineral resource to a depth of 1,300 m. Significant drill hole intersections announced in news releases dated Feb. 22/10, May 7/10, Aug. 17/10 and Nov. 3/10 include:

  • 90.1 grams per tonne gold ("g/t Au") with 0.33% copper ("Cu") over 3.0 m (hole 10-163)
  • 17.3 g/t Au with 1.2% Cu over 10.5 m (hole 10-161W3)
  • 16.4 g/t Au with 1.9% Cu over 8.5 m (hole 10-163W7)
  • 15.0 g/t Au with 1.1% Cu over 12.0 m (hole 10-148W5)
  • 15.8 g/t Au with trace Cu over 12.0 m (hole 10-156)
  • 14.6 g/t Au with 2.5% Cu over 4.7 m (hole 10-163W1)
  • 10.6 g/t Au with 0.8% Cu over 12.0 m (hole 10-148W3)

At Upper Canada, four drills extended the potential for an open pit mineral resource at this past producing mine to a length of over 1,800 m. Highlights from news releases dated Sept. 7/10 and Nov. 30/10 include:

  • 10.4 g/t Au over 17.3 m (hole 10-158)
  • 9.1 g/t Au over 9.2 m (hole 10-115)
  • 4.0 g/t Au over 19.2 m (hole 10-161)
  • 2.4 g/t Au over 68.0 m (hole 10-50W1)
  • 2.1 g/t Au over 32.0 m (hole 10-97)
  • 2.3 g/t Au over 22.9 m (hole 10-88)
  • 1.7 g/t Au over 60.4 m (hole 10-50W2)
  • 1.3 g/t Au over 55.6 m (hole 10-123)

After the merger with Vault Minerals, the Company commenced drilling at Bidgood with two drill rigs targeting both the open pit and underground potential at this past producing gold property. Highlights from shallow drilling at the Boundary Zone (see news release dated July 7/10) include: 

  • 2.1 g/t Au over 20 m (hole 09-04)
  • 1.7 g/t Au over 17.6 m (hole 09-15)
  • 1.7 g/t Au over 16.6 m (hole 10-23)
  • 1.2 g/t Au over 20.3 m (hole 10-36)

At the Bidgood - North Zone (see news release dated Sept. 23/10) high-grade intersections include:

  • 208.2 g/t Au over 1.1 m (hole 10-48)
  • 184.5 g/t Au over 1.3 m (hole 10-86)
  • 19.5 g/t Au over 5.2 m (hole 10-03)
  • 49.9 g/t Au over 2.7 m (hole 10-42)

At the Bidgood - South Zone, drilling targeted near surface mineralization and key intersections announced in news releases dated June 10/10, Sept. 23/10 and Jan. 13/11 include:

  • 12.1 g/t Au over 11.5 m (hole 10-22)
  • 5.0 g/t Au over 21.3 m (hole 10-10)
  • 4.1 g/t Au over 18.7 m (hole 10-15)
  • 2.2 g/t Au over 33.0 m (hole 10-94)
  • 1.9 g/t Au over 59.5 m (hole 10-58)
  • 1.6 g/t Au over 64.3 m (hole 10-14)

In 2011, drilling will continue on all three of the primary deposits to both expand existing mineral resources at Upper Beaver and develop new resource studies at Upper Canada and Bidgood. Also during the year drilling will continue to target new resource potential at each of these deposits. Total drilling planned on these core properties in 2011 is approximately 120,000 m.

Kirkland West Project

In 2010 the Company completed 30,000 m of diamond drilling on the Kirkland West project primarily focussed on the Amalgamated Kirkland and Kirkland Lake Gold Joint Venture properties.

On the Amalgamated Kirkland property drilling primarily targeted AK gold deposit discovered by Battle Mountain in 1989. In 1993 Cyprus Canada completed further drilling and outlined a mineral resource of 1.8 million tonnes grading 5.5 g/t Au. This historic resource calculation should not be relied upon as it was not prepared in accordance with NI 43‐101 and has not been verified by a Qualified Person ("QP") under the Instrument. The purpose of the 2010 program was to both to provide additional information to calculate a NI 43-101 mineral resource and further explore the property.

Significant drill hole intersections from the 2010 drilling (see news release dated Oct. 7/10) include:

  • 17.9 g/t Au over 11.9 m (hole 10-04)
  • 5.4 g/t Au over 14.5 m (hole 10-52C)
  • 3.0 g/t Au over 25.1 m (hole 10-13)
  • 5.8 g/t Au over 5.4 m (hole 10-12)
  • 4.6 g/t Au over 6.4 m (hole 10-11)

In 2011 the Company will complete a NI 43-101 mineral resource on the AK deposit and continue to explore the mineralization to depth. A total of 16,000 m of drilling is planned for this program.

On the Kirkland Lake Gold Joint Venture properties exploration during 2010 focussed on resource development on the South Claims property and exploration drilling on the HM property. In 2010 Kirkland Lake Gold completed an updated mineral resource of the South Mine Complex ("SMC") orebody on the South Claims property increasing the indicated resources by 21,900 t grading 60.7 g/t Au (42,000 oz) to 88,000 t grading 47.0 g/t Au (132,000 oz) and the inferred resources by 6,820 t grading 47.7 g/t (11,000 oz) to 120,000 t grading 42.5 g/t Au (165,000 oz) (see news release dated July 16, 2010). Queenston's share of the resource is 50%. Exploration drilling on the South Claims property announced in a news release dated Sept. 20/10 included intersections of:

  • 113.8 g/t Au over 3.3 m (hole 53-1634)
  • 28.1 g/t Au over 0.8 m (hole 53-1612)
  • 22.6 g/t Au over 0.8 m (hole 53-1610)

On the HM property surface drill holes intersected gold mineralization that is interpreted to form part of the SMC. Significant intersections announced in news release dated Sept. 20/10 include:

  • 51.8 g/t Au over 2.2 m (hole 10-10W3)
  • 60.2 g/t Au over 1.0 m (hole 10-10W3)
  • 22.1 g/t Au over 0.6 m (hole 10-10W2)

During 2010 strategic additions to the joint venture were announced with Queenston contributing a portion of the AK property and the Kirkland Hudson property. To compensate the Company for their contribution Kirkland Lake Gold has committed to the first $400,000 of exploration expenditures on the AK property.

In 2011, the joint venture plans to extend the 5300' level drift onto the AK property and establish a drilling station to target the SMC on the AK, South Claims and HM properties. It is anticipated Queenston's share of exploration expenditures will amount to $500,000.

The Company is also planning exploration in 2011 on the Anoki, McBean, Pawnee, Gauthier, Casan and Rand properties.

This news release was reviewed by Queenston's Vice President Exploration, 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 had 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