Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI
OTCQX : QNMNF

Queenston Mining Inc.

February 10, 2012 07:17 ET

Queenston Reports Shallow and Deep High-Grade at Upper Beaver (Including 42.2 g/t Au Over 10.0 m, 28.5 g/t Au Over 6.0 m and 18.7 g/t Au Over 5.0 m)

TORONTO, ONTARIO--(Marketwire - Feb. 10, 2012) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(OTCQX:QNMNF) ("Queenston or the Company") is pleased to announce new drill results from the ongoing drill program on the 100% owned Upper Beaver property located in the Kirkland Lake Gold Camp, Ontario. Results are reported from the deep Porphyry Zone and the near-surface mineralization that forms part of the new Q and Contact Zones.

Highlights:

  • 42.2 g/t Au with 0.14% Cu over 10.0 m in UB11-198 (includes 398.9 g/t Au over 1.0 m)
  • 28.5 g/t Au with 0.56% Cu over 6.0 m and 4.1 g/t Au with 0.20% Cu over 26.0 m (includes 8.9 g/t Au over 10.0 m) in UB11-204
  • 18.7 g/t Au with 0.25% Cu over 5.0 m in UB11-174W10
  • 24.2 g/t Au with 4.85% Cu over 1.0 m in UB11-196
  • 5.8 g/t Au with 0.31% Cu over 27.0 m in UB11-205
  • 2.5 g/t Au with 0.12% Cu over 56.0 m in UB11-197 (includes 10.1 g/t Au over 11.0 m)
  • 2.3 g/t Au over 53.0 m in UB11-195 (includes 11.7 g/t Au over 5.0 m)
  • 3.0 g/t Au over 17.0 m in UB11-180W4
  • 2.1 g/t Au over 48.0 m in UB11-195
  • 1.9 g/t Au over 27.0 m and 2.3 g/t Au over 14.0 m in UB11-191

Charles Page, President and CEO of Queenston said, "The new drilling results support the addition of mineral resources closer to surface and the conversion of mineralization to higher confidence levels in the deeper portion of the deposit. The recent drilling continues to intersect and extend widespread gold and copper mineralization capping the deposit with the exciting addition of a significant high-grade component.

A Preliminary Economic Assessment to build a stand-alone mine/mill complex at Upper Beaver will be reported this month based on the mineral resource completed in May 2011. A resource update to include drilling results from the entire 2011 program is scheduled in the third quarter."

During the recent phase of drilling 11 new holes were completed (6,082 m) with the significant assay results listed in Table 1 accompanying this news release. Four drill rigs continue to operate on the property both upgrading and expanding the existing resources laterally and to depth below 1200 m as well as extending the footprint of the near surface mineralization.

To view Figure 1, "Surface Drill Plan", please visit the following link: http://media3.marketwire.com/docs/queenston209.pdf

Porphyry Zone

As part of the on-going infill drilling program designed to upgrade and extend the confidence level of the deeper mineral resources, two holes were completed in the East Porphyry Zone both intersecting significant mineralization that continues to upgrade and extend the resource footprint. Hole UB11-174W10 intersected a high grade interval at approximately -1100 m below surface assaying 18.74 g/t Au with 0.25% Cu over 5.0 m extending the deposit 50 m to the east of the pilot hole UB11-174 that previously intersect 8.01 g/t Au with 0.71% Cu over 11.0 m.

Hole UB11-180W4 intersected the Porphyry Zone at the -850 m elevation assaying 3.00 g/t Au over 17.0 m including 6.88 g/t Au over 4.0 m extending the mineralization approximately 30 m below pilot hole UB11-180 that assayed 3.1 g/t Au over 10.0 m. The Porphyry Zone remains open to the east, west and to depth.

Near Surface Mineralization

Nine holes continued to target the shallow, near surface gold and copper mineralization identified in 2011. The drilling to date has outlined a 400 m long corridor that extends from surface to a depth of 300 m located north of and in the hanging-wall of the main East and West Porphyry Zones. The corridor is found to straddle the central diabase dyke and contains multiple gold-copper zones including the Q and North Contact Zones that were previously reported in news releases dated November 3, 2011 and December 20, 2011. Interpretation of these individual zones within the corridor continues.

Holes UB11-191, 195 and 197 completed on the eastern portion of the corridor has confirmed and expanded the mineralization from previous holes UB11-177 (4.97 g/t Au over 26.5 m), UB11-185 (22.3 g/t Au over 1.0 m) and UB11-188 (2.01 g/t Au over 101.0 m). New hole UB11-191 drilled on the same section and above previous holes UB11-185 and -187 intersected three primary zones of mineralization assaying 2.25 g/t Au over 14.0 m, 1.93 g/t Au over 27.0 m and 1.66 g/t Au over 13.0 m. New hole UB11-197 drilled a further 25 m east and above previous hole UB11-177 also intersected three separate zones assaying 1.42 g/t Au over 13.4 m, 2.49 g/t over 56.0 m (including 10.1 g/t Au over 11.0 m) and 1.52 g/t Au over 15.0 m. New hole UB11-195 drilled above -197 intersected four zones assaying 2.07 g/t Au over 48.0 m, 3.81 g/t Au over 9.0 m, 3.48 g/t Au over 6.0 and 2.26 g/t Au over 53.0 m (including 11.7 g/t Au over 5.0 m). This mineralization remains open to the east.

Holes UB11-196, -198, -202, -203, -204 and -205 were all completed on the western portion of the corridor expanding the mineralization a further 50 m to the west where it remains open. Significant results include two high-grade intervals 42.2 g/t Au with 0.14% Cu over 10.0 m (including 399 g/t Au over 1.0 m) in hole UB11-198 and 28.5 g/t Au with 0.56% Cu over 6.0 m in hole UB11-204. Both these intersections form part of the Q Zone. In holes UB11-205 and -204 other Q Zone intervals include 5.78 g/t Au with 0.31% Cu over 27.0 m and 4.05 g/t Au with 0.20% Cu over 26.0 m respectively. These holes were drilled on the same section and below previous hole UB11-187 (3.41 g/t Au over 54.0 m).

About the Upper Beaver Deposit

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 NI 43-101 technical report on the mineral resource estimate was filed on SEDAR in June 18, 2011.

The majority of the mineral resources 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 1,300 m. The most prominent zones 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 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 Accurassay Laboratories Ltd. of Thunder Bay, Ontario and analyzed employing the appropriate gold fire assaying techniques. 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 comprising 235 km² of prime exploration lands. The Company's assets include 6, 100% owned gold deposits, all with NI 43-101 compliant mineral resources and ongoing exploration and development. The objective of the Company is to advance the flagship, Upper Beaver project towards feasibility and production. The project is currently being permitted for advanced exploration leading to new shaft development beginning in 2012. The Company is also very active in exploring and advancing the other five 100% owned deposits that will provide additional feed for a central milling facility. The Company has cash and short-term investments of approximately $75 million, no debt and a fiscal 2012 exploration budget of $25 million.

FORWARD LOOKING STATEMENTS

This news release may contain certain statements regarding future events, results or outlooks that are considered forward looking statements within the meaning of securities regulation. These forward looking statements reflect management's best judgment based on current facts and assumptions that management considers reasonable and include the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential" and "should". Forward looking statements contain significant risks and uncertainties. A number of circumstances could cause results to differ materially from the results discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions, metal prices, political issues, permitting, environmental, exploration and development success, continued availability of capital and other risk factors. The forward looking statements contained in this document are based on what management believes to be reasonable assumptions, however, we cannot assure that the results will be compatible to the forward looking statements as management assumes no obligation to revise them to reflect new circumstances. The Corporation has no knowledge that would indicate the information is not true or is incomplete and the Corporation assumes no responsibility for the accuracy and completeness of the information. Readers should not place reliance on forward looking statements. More information concerning risks and uncertainties that may affect the Company's business is available in Queenston's most recent Annual Information Form and other regulatory filings of the Company at www.sedar.com.

Table 1. Upper Beaver Assay Results (February 2012)
Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone
UB11_174W10 1198.0 1203.0 5.0 0.25 18.7 Porphyry
UB11_180W4 912.0 929.0 17.0 Trace 3.00 Porphyry
Including 912.0 916.0 4.0 Trace 6.88 Porphyry
UB11-191 171.0 185.0 14.0 Trace 2.25 East Shallow
including 174.0 176.0 2.0 Trace 11.7 East Shallow
188.0 191.0 3.0 Trace 1.67 East Shallow
233.0 260.0 27.0 Trace 1.93 East Shallow
including 234.0 239.0 5.0 Trace 3.00 East Shallow
and 245.0 248.0 3.0 0.14 5.20 East Shallow
and 256.0 259.0 3.0 Trace 4.66 East Shallow
270.0 271.0 1.0 Trace 5.91 East Shallow
297.0 304.0 7.0 0.22 1.64 East Shallow
308.0 310.5 2.5 0.46 2.52 East Shallow
342.0 355.0 13.0 Trace 1.66 East Shallow
UB11-195 127.0 175.0 48.0 Trace 2.07 East Shallow
227.0 236.0 9.0 Trace 3.81 East Shallow
250.0 256.0 6.0 Trace 3.48 East Shallow
298.0 351.0 53.0 Trace 2.26 East Shallow
including 305.0 316.0 11.0 0.10 2.75 East Shallow
and 326.0 338.0 12.0 0.11 1.75 East Shallow
and 346.0 351.0 5.0 Trace 11.7 East Shallow
UB11-196 18.0 20.0 2.0 0.39 2.45 West Shallow
51.0 53.0 2.0 Trace 2.73 West Shallow
104.0 108.3 4.3 0.66 4.26 West Shallow
155.0 166.0 11.0 0.26 1.02 West Shallow
262.0 263.0 1.0 4.85 24.2 West Shallow
286.0 298.0 12.0 0.11 1.40 West Shallow
514.0 515.0 1.0 0.89 14.4 West Shallow
UB11-197 193.0 194.0 1.0 Trace 9.03 East Shallow
312.0 325.4 13.4 0.13 1.42 East Shallow
343.0 399.0 56.0 0.12 2.49 East Shallow
including 344.0 355.0 11.0 Trace 10.1 East Shallow
552.0 567.0 15.0 Trace 1.52 East Shallow
573.0 574.0 1.0 0.14 12.4 East Shallow
UB11-198 50.0 52.0 2.0 0.39 2.02 West Shallow
92.0 96.0 4.0 0.74 0.96 West Shallow
110.0 120.0 10.0 0.14 42.2 West Shallow
including 110.0 111.0 1.0 Trace 399 West Shallow
137.0 144.0 7.0 0.31 3.02 West Shallow
including 138.0 139.6 1.6 No Assay Stope
200.0 205.0 5.0 0.27 1.75 West Shallow
UB11-202 43.0 50.0 7.0 Trace 0.90 West Shallow
101.0 105.0 4.0 0.25 6.33 West Shallow
150.0 152.0 2.0 Trace 4.55 West Shallow
UB11-203 40.0 42.0 2.0 0.37 11.2 West Shallow
151.0 156.0 5.0 0.11 2.26 West Shallow
177.0 177.7 0.7 Trace 7.14 West Shallow
UB11-204 35.7 52.0 16.3 0.30 0.78 West Shallow
119.0 145.0 26.0 0.20 4.05 West Shallow
including 132.0 142.0 10.0 0.24 8.92 West Shallow
and 132.0 134 2.0 0.59 6.27 West Shallow
and 139.0 140.0 1.0 Trace 62.6 West Shallow
188.0 194.0 6.0 0.56 28.5 West Shallow
Including 190.0 194.0 4.0 0.76 42.2 West Shallow
UB11-205 94.0 112.0 18.0 0.47 1.27 West Shallow
136.0 163.0 27.0 0.31 5.78 West Shallow
including 139.0 140.0 1.0 Trace 54.7 West Shallow
including 157.0 158.0 1.0 2.15 49.7 West Shallow
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 UB11-199 was abandoned prior to reaching target and assay results are pending on holes UB11-200 and -201.

Contact Information