Queenston Mining Inc.

Queenston Mining Inc.

September 06, 2011 08:16 ET

Queenston Reports New Drill Results from Upper Beaver Including 13.15 g/t Au with 1.14% Cu over 13.5 m and 21.42 g/t Au with 0.54% Cu over 6.0 m

TORONTO, ONTARIO--(Marketwire - Sept. 6, 2011) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("Queenston" or "the Company") announces results from 9 new diamond drill holes completed on the 100% owned Upper Beaver gold-copper deposit located in Kirkland Lake, Ontario. The new holes continued to target both the eastern and western portions of the deposit and also began to explore the extension of the deposit towards surface. 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. The locations of the new holes are provided on the longitudinal section accompanying this news release and available on the Company's website (www.queenston.ca).

Highlights from the recent drilling:

  • 13.15 g/t Au with 1.14% Cu over 13.5 m in hole UB11-174W3
  • 21.42 g/t Au with 0.54% Cu over 6.0 m in hole UB11-175W1
  • 5.61 g/t Au with 0.52% Cu over 10.3 m in hole UB11-174W2
  • 2.41 g/t Au over 98.0 m including 4.97 g/t Au over 26.5 m in hole UB11-177
  • 9.59 g/t Au with 3.49% Cu over 2.0 m in hole UB11-177

Charles Page, Queenston President and CEO, said, "We are pleased with the drilling results, the new holes confirm both the quality and continuity of the mineralization within the known limits of the deposit and continue to convert inferred resources to the measured and indicated category. We are also surprised by the results from the first hole in the upper portion of the deposit where drilling has intersected a wide zone of gold mineralization in hole UB11-177 that may be amenable to bulk mining methods. Drilling continues with three rigs targeting the east, west and upper extensions of the deposit. One other rig is completing a pilot hole to a depth of 1200 metres at the proposed new shaft site. Application for permitting the shaft and an advanced underground exploration program at Upper Beaver is being submitted to the Ministry of Northern Development, Mines and Forests. The Company has also commissioned P&E Mining Consultants Inc. of Brampton to commence a Preliminary Economic Assessment ("PEA") to determine the economic viability of developing a new mine at Upper Beaver."

Three wedge holes UB11-170W4, -170W5 and -170W6 were drilled from previous reported pilot hole UB10-170 on the western portion of the deposit at an elevation of approximately -900 m and all successfully intersected the Porphyry Zone. Hole UB10-170 previously reported 3.66 g/t Au with 0.2% Cu over 2.3 m and 8.06 g/t Au over 0.5 m in the Porphyry Zone. Drill hole UB11-170W4 intersected an 11.2 m interval assaying 3.54 g/t Au with 0.11% Cu including 5.00 g/t Au with 0.10% Cu over 7.2 m. Hole UB11-170W5 intersected a high grade interval in the North Contact Zone assaying 25.96 g/t Au over 0.5 m and two separate intervals in the Porphyry Zone assaying 11.01 g/t Au with 0.30% Cu over 1.0 m and 10.45 g/t Au with trace Cu over 2.2 m. The highlight in hole UB11-170W6 was a high grade interval in Porphyry Zone assaying 75.45 g/t Au over 0.7 m.

On the eastern portion of the deposit 5 drill holes were completed between 950 – 1,100 m below surface all intersecting the Porphyry Zone. New pilot hole UB11-175 intersected 4.56 g/t Au with 0.70% Cu over 6.0 m including a 3.0 m interval assaying 8.00 g/t Au with 1.4% Cu. Wedge hole UB11-175W1 intersected two high-grade intervals, 122.82 g/t Au over 1.0 m and 21.42 g/t Au with 0.54% Cu over 6.0 m. Three wedge holes were completed from previously reported pilot hole UB11-174 (8.07 g/t Au with 0.71% Cu over 11.0 m). Hole UB11-174W3 intersected the thickest zone of mineralization assaying 13.15 g/t Au with 1.14% Cu over 13.5 m and included a 6.5 m high-grade interval assaying 20.50 g/t Au with 1.66% Cu. Hole UB11-174W2 intersected 5.61 g/t Au with 0.52% Cu over 10.3 m and hole UB11-174W1 reported 4.17 g/t Au with 0.22% Cu over 2.0 m.

Table 1. Upper Beaver Assay Results
Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone
UB11-170W4 964.5 965.5 1.0 trace 5.45 New
968.5 969.5 1.0 trace 5.76 New
1023.0 1034.2 11.2 0.11 3.54 Porphyry Zone
including 1025.0 1032.2 7.2 0.10 5.00 Porphyry Zone
1049.0 1052.0 3.0 trace 2.00 Porphyry Zone
UB11-170W5 818.0 822.0 4.0 trace 1.58 North Contact
970.5 971.0 0.5 trace 25.96 North Contact
1012.0 1013.0 1.0 0.30 11.01 Porphyry Zone
1020.8 1023.0 2.2 trace 10.45 Porphyry Zone
UB11-170W6 939.2 940.5 1.3 trace 5.26 North Contact
969.5 970.2 0.7 trace 75.45 Porphyry
1028.9 1030.0 1.1 trace 3.45 Porphyry
UB11-174W1 1098.0 1100.0 2.0 trace 2.83 North Contact
1195.0 1202.0 7.0 0.21 1.70 Porphyry
1209.0 1211.0 2.0 0.22 4.17 Porphyry
UB11-174W2 1182.0 1192.3 10.3 0.52 5.61 Porphyry
including 1182.0 1185.0 3.0 0.69 6.80 Porphyry
1189.0 1192.3 3.3 0.41 6.20 Porphyry
UB11-174W3 1179.5 1193.0 13.5 1.14 13.15 Porphyry
including 1179.5 1189.0 9.5 1.40 17.74 Porphyry
including 1182.5 1189.0 6.5 1.66 20.50 Porphyry
UB11-175 1036.0 1042.0 6.0 0.70 4.56 Porphyry
including 1036.0 1039.0 3.0 1.40 8.00 Porphyry
1027.0 1028.0 1.0 0.20 1.90 Porphyry
UB11-175W1 1018.0 1019.0 1.0 trace 122.82 Porphyry
1030.0 1036.0 6.0 0.54 21.42 Porphyry
including 1033.0 1035.0 2.0 1.18 61.14 Porphyry
1173.2 1173.7 0.5 0.15 11.52 New
1181.8 1182.3 0.5 trace 10.63 New
UB11-177 313.0 411.0 98.0 0.10 2.41 New
including 320.0 346.5 26.5 trace 4.97 New
and 330.1 336.0 5.9 trace 11.2 New
and 362.0 366.7 4.7 trace 8.45 New
453.7 455.8 1.1 2.02 8.05 New
616.0 618.0 2.0 3.49 9.59 New
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. Assays are pending for holes UB11-176 and -178.

Hole UB11-177 targeted the projection of the Eastern Porphyry Zone towards surface in the vicinity of the previous mine workings above the limits of the existing mineral resource. The hole intersected a wide interval of continuous mineralization assaying 2.41 g/t Au with 0.10% Cu over a length of 98.0 m. This wide intersection includes a higher grade, 26.0 m interval assaying 4.97 g/t Au including 11.2 g/t Au over 5.9 m. Deeper in the hole two new zones of gold –copper mineralization were intersected returning 8.05 g/t Au with 2.02% Cu over 1.1 m and 9.59 g/t Au with 3.49% Cu over 2.0 m.

The Upper Beaver deposit remains open to depth, to the east, west as well as to surface. Drilling will continue to target the upper portion of the deposit towards surface where it appears a significant amount of mineralization remains within and outside the limits of the old mine workings. Exploration drilling will also begin to step out to the east and west testing the horizontal limits of the deposit.

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 mine was abandoned in 1972 when gold was $35 per ounce.

The Upper Beaver deposit contains 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 in the indicated category and 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 in the inferred category. The mineral resource was announced by the Company on May 4, 2011 and completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Kurt Breede, P. Eng.

The majority of the mineral resource occur 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 1300 m. The most prominent are the Porphyry Zones that contain approximately 80% of the mineral resource.

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 2009 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 submit 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 230 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 cash of approximately $65 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
    (416) 627-8872