St. Elias Mines Ltd.
TSX VENTURE : SLI
Pink Sheets : SELSF

St. Elias Mines Ltd.

January 30, 2006 17:30 ET

St. Elias Mines Ltd.-Tesoro Gold Project, Peru: 1.56 oz/ton Gold-Average Gold Grade of Initial 53.7 Tonne Bulk Sample

VANCOUVER, British Columbia--(CCNMatthews - Jan 30, 2006) -

Lori McClenahan, President of St. Elias Mines Ltd. (the "Company") (TSX VENTURE:SLI) (PINK SHEETS:SELSF) is pleased to announce that 53.7-tonnes of bulk sample material has been processed and has returned a grade of 1.56 oz/t gold. The sample was obtained from the Zona Canchete Vein #1 ("ZCV#1") located on the Tesoro Gold Project in southern Peru (the "Property".)

This sample represents an initial 53.7 tonnes of the 150 - 200 tonne bulk sample as previously announced. The 53.7-tonne bulk sample has been processed by the "carbon-in-pulp" milling facility of Dynacor Mines Incorporated (TSX VENTURE:DYN) located to the north of the Property. The mill reports that the gold grade of the bulk sample is 1.56 oz/t and that gold recovery is 90%. A total of 74.4 ounces of gold has been recovered.

This grade (1.56 oz/t Au) is significantly higher than was anticipated based on systematic face sampling of 40-m level which produced an average grade of 1.36 oz/t Au.

Check assays of the bulk sample submitted to ALS Chemex SA laboratory (an ISO certified 9002 facility) in Lima, Peru returned a confirmatory grade of 1.55 oz/t gold. These samples were analyzed for gold by fire assay with gravimetric finish.

The bulk sampling program is ongoing and additional results will be released when available.

The Company is focusing initial exploration efforts on ZCV#1. The ZCV#1 is one of eight gold-bearing quartz veins located at Zona Canchete. Zona Canchete, located within the northern section of the Property, is one of five gold-bearing zones identified to date on the Property.

All technical work is being supervised by, and the contents of this news release have been verified by, John Brophy, P.Geo, a Canadian geologist residing in Peru, who is an independent qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

The Tesoro Gold Property, covering 4,250 acres (1,700ha), is 100% owned by the Company. The Property, located in the prolific 300km x 30km Nazca-Ocono gold belt of southwestern Peru, hosts multiple epithermal gold-bearing veins which have been traced for a strike length of over 6.5km. To date, more than 70 gold deposits have been exploited in this region. The Property is located between two gold deposits/mining camps. The veins located immediately northwest of the Property are being mined by Dynacor (TSX VENTURE:DYN) who published a gold resource of +606,611 oz at 16.4g/t (on only 3 of 10 veins discovered to date) and has subsequently announced the discovery of additional veins carrying comparable gold grades. The veins located southeast of the Property have produced over 700,000 ounces since the 1970's.

For additional information on St. Elias and its projects, please visit us at www.steliasmines.com or call 888-895-5522 (toll free U.S. and Canada).

ST. ELIAS MINES LTD.

Lori McClenahan,

President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document.

This news release contains forward-looking statements regarding the ongoing and upcoming exploration work and expected geometry of geological formations and structures. Actual results may differ materially from those currently anticipated in such statements.

Contact Information

  • St. Elias Mines Ltd.
    Lori McClenahan, 888-895-5522