Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI

Queenston Mining Inc.

September 23, 2010 09:00 ET

Queenston Reports 208.2 g/t Au Over 1.1 m, 184.5 g/t Au Over 1.3 m and 19.5 g/t Au Over 5.2 m From the Bidgood-Lebel Property

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company") is pleased to announce results from an additional 22 diamond drill holes (3604 m) completed on the 100% owned Lebel property located in Lebel Township, Kirkland Lake, Ontario. The property is one of the key assets Queenston acquired through the merger with Vault Minerals Inc. ("Vault") completed on April 20, 2010.

Significant assay results from the new holes are shown in Table 1 and the location of the drill holes are outlined in Figure 1 accompanying this news release and also available on the Company's website (www.queenston.ca).

Results are reported for six holes that targeted narrow, high-grade veins, ten holes drilled testing the potential for near surface open pit mineralization and six holes focussed on both styles of mineralization within the Bidgood Mine sequence. To date, 28 holes (4294 m) have been reported as part of a first phase, 23,000 m program on the property (Note: the holes have not been drilled in numerical order).

  Highlights from the recent new holes include:
  • 208.2 g/t Au over 1.1 m (with VG) in hole BG10‐48
  • 184.5 g/t Au over 1.25 m (with VG) and 2.6 g/t Au over 11.7 m in hole BG10-86
  • 19.5 g/t Au over 5.2 m (with VG-including 107.00 g/t Au over 0.8 m) in hole BG10-03
  • 49.9 g/t Au over 2.7 m (with VG) in hole BG10‐42
  • 48.7 g/t Au over 0.9 m (with VG) in hole BG10-69
  • 40.3 g/t Au over 0.7 m (with VG) in hole BG10-56
  • 5.8 g/t Au over 4.35 m (including 22.9 g/t Au over 0.85 m) in hole BG10-71
  • 2.6 g/t Au over 14.4 m (including 8.4 g/t Au over 1.45 m) in hole BG10-12
  • 1.9 g/t Au over 44.7 m (including 11.1 g/t Au over 2.75 m) in hole BG10-79
  • 1.9 g/t Au over 59.5 m in hole BG10‐58 (updated from previous press release)
  • 1.2 g/t Au over 51.5 m (including 2.6 g/t Au over 15.8 m) in hole BG10‐28
  • 1.1 g/t Au over 48.4 m (including 7.4 g/t Au over 0.9 m) in hole BG10-25

Charles E. Page, President and CEO of Queenston said, "We are very encouraged by the recent drilling results returning numerous high-grade values beyond the limits of the past producing Bidgood Mine. The multi-ounce values encountered combined with the geological environment appears similar in character to the historic Kirkland Lake Main Break located 6 km to the west in Teck Township. We are also pleased with the continued potential for a surface open-pit resource overlying previously mined portions of the property. We view the Bidgood-Lebel property as providing an additional source of feed towards the Company's goal of returning to producer status through the establishment of a central gold milling facility in Gauthier Township to process ore from the 100% owned Upper Beaver, Upper Canada, McBean and Anoki deposits."

The 3,100‐acre Lebel property hosts the past‐producing Bidgood Mine that historically produced 165,000 oz of gold from 1934‐51 at a recovered grade of 9.2 g/t. 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 neighbouring Teck Township which comprise Kirkland Lake's famous "Mile of Gold" where in excess of 24 million oz of gold have been produced at a recovered grade of 16.1 g/t Au.

The current 23,000 m drilling program that is employing two diamond drill rigs is focused along the Bidgood Mine gold corridor which 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 surface footprint of the mine.

Drilling along some of the 23 known veins has returned high grade assays with visible gold (VG) seen in the core. Significant results include 208.2 g/t Au over 1.1 m in hole BG10-48 from a newly discovered vein located 50 m north of the previously known veins. This hole also intersected 7.6 g/t Au over 1.05 m on the targeted vein 50 m below the mine workings where the mineralization remains open. Hole BG10-42 intersected 49.9 g/t Au over 2.65 m from a new vein located in a large, wedge-shaped unexplored area, between two strong structures (the Main Break and the E-W fault). Hole BG10-12 was drilled targeting the #20 vein 100 m below previous mining, it returned 8.4 g/t Au over 1.45 m, and 6.2 g/t Au over 2.4 m. Hole BG10-24 targeted the #15 vein (1.43 g/t Au over 10.0 m), and returned 12.3 g/t Au over 0.8 m on the Moffat-Hall vein 38 m east of hole BG10-58. Hole BG10-56, targeting the #12 vein (final results pending), intersected 40.25 g/t Au over 0.7 m in a new vein discovered north of mined areas. Hole BG10-03 returned 19.5 g/t Au over 5.2 m, including 107.00 g/t Au over 0.8 m from a strongly-mineralized new zone located 150 m NE of the Bidgood shaft.

The first six holes drilled as part of the 2010 program (see news release June 10, 2010) targeted the southern‐most veins, mined from the 46 m to 91 m levels of the Bidgood Mine in the vicinity of the Moffat Hall shaft. Infill sampling has enhanced the grade in previous hole BG10‐58 from 1.77 g/t over 59.5 m to 1.88 g/t Au over 59.5 m including 3.47 g/t Au over 18.6 m which includes 10.32 g/t Au over 0.55 m, 6.17 g/t Au over 4.35 m, and 8.14 g/t Au over 1.65 m. Five additional holes have intersected the mineralized corridor in the west portion of the vein system, to the southwest of previous drilling. Hole BG10‐28 returned 1.15 g/t Au over 51.5 m including 2.63 g/t Au over 15.8 m approximately 40 m southwest and at the same elevation as hole BG10‐58 which returned 1.88 g/t Au over 59.5 m.

Hole BG10‐25 returned 1.06 g/t Au over 48.35 m (including 1.74 g/t Au over 14.05 m, and 1.99 g/t Au over 8.3 m) at 50 m southwest of and 30m higher in elevation as hole BG10‐58. The mineralization here remains open below and along strike of previous hole BG10‐22, that 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 intersection of 1.9 g/t over 44.7 m in hole BG10-79 is located 25 m west of hole BG10‐22. Historic hole LB07-19 completed in 2007, intersected what appears to be similar mineralization approximately 165 m deeper assaying 8.3 g/t Au over 2.6 m. Noteworthy are the higher-grade intersections of 11.1 g/t Au over 2.75 m in hole BG10-79, and of 184.5 g/t Au over 1.25 m (with VG) in hole BG10-86 that are 45 m apart and constitute the deepest intersections on a vein that is open to depth. The intersection in hole BG10‐71 is 14m west of hole BG10‐22, while that from hole BG10‐73 is 25m east of hole BG10‐22.

The series of short holes drilled across the southern portion of the Bidgood Mine area has returned significant results from multiple gold zones, including 48.72 g/t Au over 0.9 m (hole BG10-69), 2.23 g/t Au over 6.75 m (hole BG10-60), and 1.97 g/t Au over 22.3m (previously reported hole BG10-27). Follow-up drilling will begin to target the open-pit potential in this area. 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 vertical to 69°north locally.

Table 1. Significant Bidgood-Lebel Drilling Results
                             
HOLE #   AZIMUTH   DIP   ZONE   FROM (m)   TO (m)   Interval (m)   Gold (g/t)
BG10-03   93   -68   NEW   331.3   339.23   7.93   0.94
                341.20   346.40   5.20   19.51 VG
            including   341.20   342.00   0.80   107.00 VG
            and   344.70   346.40   1.70   5.51
BG10-12   322.1   -62       288.70   289.50   0.80   4.90
            #20 Vein   309.60   324.00   14.40   2.56
            including   309.60   312.00   2.40   6.18
            and   318.70   320.15   1.45   8.43
BG10-24   310   -62       76.55   77.90   1.35   3.43
            Moffat   141.40   142.20   0.80   12.31
            #15 Vein   214.00   224.00   10.00   1.43
                228.50   234.60   6.10   0.62
BG10-25   175.6   -64   Moffat   46.55   94.90   48.35   1.06
            including   54.00   94.90   40.90   1.13
            including   54.00   68.05   14.05   1.74
            including   67.40   68.05   0.65   6.00
                86.60   94.90   8.30   1.99
            including   94.00   94.90   0.90   7.44
BG10-28   162   -66   Moffat   67.50   119.00   51.50   1.15
            including   72.70   119.00   46.30   1.24
            including   72.70   88.50   15.80   2.63
            including   79.84   84.90   5.06   4.24
                107.94   119.00   11.06   0.93
                139.00   140.00   1.00   9.57
BG10-42   149   -56   #12-6 Veins   206.20   208.85   2.65   49.89 VG
            including   208.00   208.85   0.85   154.01 VG
BG10-48   95.7   -66   New   84.40   85.50   1.10   208.15 VG
            #1-2-3 veins   199.00   200.05   1.05   7.58
                226.65   228.15   1.50   2.46
                244.50   254.70   10.20   1.12
BG10-56   146   -66   #12 VEIN   73.70   74.40   0.70   40.25 VG
                Additional BG10-56 results pending
BG10-58*   97   -68   Moffat   72.2   131.7   59.5   1.88
            including   94.50   95.05   0.55   10.32
            and   102.45   121.05   18.60   3.47
            and   102.45   103.50   1.05   5.28
            and   107.75   112.10   4.35   6.17
            and   117.65   119.30   1.65   8.14
            and   129.70   131.70   2.00   5.16
BG10-60   161.3   -45   #11 Vein   35.00   41.75   6.75   2.23
            including   35.00   37.10   2.10   5.49
            and   35.00   35.90   0.90   9.29
BG10-69   192   -52   #6 Vein   29.55   30.45   0.90   48.72 VG
BG10-71   143.5   -75   Moffat   149.50   153.85   4.35   5.76
            including   151.25   153.85   2.60   8.76
            including   153.00   153.85   0.85   22.87
                156.40   158.30   1.20   2.23
            including   157.60   158.30   0.70   5.01
BG10-73   108   -47   Moffat   118.75   183.90   65.15   0.68
            including   159.65   160.55   0.90   5.83
            and   175.00   183.90   8.90   2.11
BG10-79   141   -56   Moffat   36.25   37.25   1.00   0.96
                136.10   180.75   44.65   1.94
            Including   136.10   152.15   16.05   3.26
            including   139.35   142.10   2.75   11.10
            including   139.35   140.25   0.90   23.86
            and   143.20   146.30   3.10   3.26
            and   159.00   164.20   5.20   2.77
            including   160.50   162.00   1.50   6.48
            and   173.25   180.75   7.50   2.32
BG10-86   110   -61   Moffat   59.30   71.00   11.70   2.62
            including   60.20   63.70   3.50   6.60
                170.40   171.65   1.25   184.53
                171.65   174.50   2.85   1.43
   
NOTE: The mineralized intervals reported in this news release represent core lengths only; to date the true width has not been determined. Holes BG10-61 to -68 (not included in the table) contain numerous low-grade intersections.

Blue Vein Drilling Results

The Blue Vein zone located 700 m south of the Bidgood Mine consists of at least 3 sub-parallel vein systems that are fault-controlled. The BV1 occurs along a syenite-porphyry-wacke contact, while BV2 is completely contained within a porphyry body. Historic drilling (2003) includes intersections of 11.8 g/t Au over 2.8 m, 30.6 g/t Au over 1.3 m, 12.3 g/t Au over 1.1 m, and 18.8 g/t Au over 0.9 m to a depth of 100 m. Trenching in November, 2009 returned 15.6 g/t Au over 1.8 m along 31 m from BV1 and 6.5 g/t Au over 3.1 m along 58 m on BV2 (Vault news release dated Dec. 18, 2009). In early 2010, 23 shallow holes were drilled, totalling 1766 m, on BV1 and BV2. Hole BV10-23 on BV1 returned 7.7 g/t Au over 2.8 m (including 31.6 g/t Au over 0.6m), located 10 m west of previously reported hole BV09-04 that intersected 27.8 g/t Au over 1.4 m. On the BV2 area, hole BV10-18 returned 1.0 g/t Au over 32.8 m (including 9.6 g/t Au over 0.95 m) approximately 21 m to 45 m below surface. This intersection is located 90 m from historic (1989) intersection of 12.3 g/t Au over 1.1 m that formed part of a wide anomalous zone where sampling was incomplete. Other Blue vein drilling results include 14.3 g/t Au over 0.5 m (hole BV10-13) and 8.4 g/t Au over 0.85 m (hole BV10-8).

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 that now contains 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 three properties, South Claims, HM and AK. Queenston is well financed with $40 million in cash and has a 2010 exploration budget of $16 million, employing up to 15 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)
    or
    Queenston Mining Inc.
    Hugh D. Harbinson
    Chairman
    (416) 364-0001 (ext. 225)
    or
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Info@queenston.ca
    www.queenston.ca