St. Eugene Mining Corporation Limited
TSX VENTURE : SEM

St. Eugene Mining Corporation Limited

October 11, 2011 08:00 ET

St. Eugene Announces Drill Results at the Amisk Gold Project, Saskatchewan

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company")

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

St. Eugene Mining Corporation Limited announces new diamond drilling results at the Amisk Gold Joint Venture Project (the "Amisk Gold JV") in north-eastern Saskatchewan. Highlights from the program include:

  • 1.88 grams of Au per tonne and 12.4 grams of Ag per tonne over 24.61 metres in hole AL-11-301
  • 0.51 grams of Au per tonne and 2.5 grams of Ag per tonne over 89.75 metres in AL-11-306

Jennifer Boyle, President and CEO of St. Eugene commented, "The summer/fall drill program at the Amisk Gold JV has expanded the limits of the deposit to the east and south-east, and will be key in assessing upgrades to the mineralization within the current resource model."

To date, 18 holes totalling 5,500 metres have been drilled as part of the summer/fall program at the Amisk Gold JV. Assays have been returned for 14 of the holes, and the four holes that remain pending for assays were completed to evaluate the continuity of the system to depths in excess of 600 metres.

The program tested from surface to in excess of 250 metres depth and was designed to expand the limits of the Amisk Gold JV as well as infill within the northern and eastern portion of the deposit.

Table 1: 2011 summer and fall drill results from the Amisk Gold JV.
Hole Easting Northing Az/Dip From (m) To (m) Length (m) Au (g/t) Ag (g/t)
AL-11-300 676827 6066224 80/-45 50.00 59.00 9.00 1.50 9.2
and 188.00 244.50 56.50 0.58 3.5
AL-11-301 676875 6066233 80/-45 150.00 171.00 21.00 1.15 6.7
and 205.00 229.61 24.61 1.88 12.4
AL-11-302 676910 6066380 80/-45 96.00 104.51 8.51 1.14 4.5
AL-11-303 676910 6066380 283/-45 18.00 44.00 26.00 1.02 4.3
AL-11-304 676910 6066380 0/-90 93.41 131.00 37.59 0.55 2.8
AL-11-305 676900 6066330 80/-45 175.47 183.50 8.03 1.16 6.2
AL-11-306 676885 6066283 80/-45 40.25 130.00 89.75 0.51 2.5
AL-11-307 676921 6066430 80/-45 NSI
AL-11-308 676921 6066430 285/-45 NSI
AL-11-309 676900 6066480 283/-45 18.92 19.92 1.00 5.31 13.1
AL-11-310 676900 6066480 0/-90 NSI
AL-11-311 676900 6066480 283/-60 NSI
AL-11-312 676877 6066141 70/-45 69.50 96.00 26.50 0.44 1.5
and 108.00 132.00 24.00 0.51 0.9
and 191.15 220.00 28.85 0.67 2.8
AL-11-313 676838 6066035 105/-45 37.85 54.00 16.15 1.02 7.4
and 125.00 147.00 22.00 0.54 7.6
and 185.00 204.00 19.50 0.65 2.3
and 239.47 276.00 36.53 0.61 2.9
AL-11-314 676835 6066052 90/-45 141.00 164.00 23.00 0.76 2.8
Note: Intervals noted are intercepted width not true width, have been calculated using a 0.3 g/tonne cut-off and are uncut. True width is variable between 80 and 100 percent of drilled width. They may include internal dilution intervals of up to 6 metres. NSI (No significant Intercept).

The drilling intersected sulphide mineralization, consistent with the current resource model and is hosted within a sequence of quartz porphyritic, rhyolitic lapilli tuffs and basaltic tuffs. Fourteen drill holes successfully confirmed continuity of gold mineralization within the northern and eastern portion of the deposit as well as demonstrated the potential for expansion to the east and southeast.

Drill core was halved with samples averaging 1.5 metres submitted to ALS Chemex in Vancouver, an ISO approved facility. Quality assurance and quality control procedures have been implemented including the use of blanks, standards and duplicates. Core samples were analyzed by a 30 gram gold fire assay with an atomic absorption, conventional gravimetric and/or screen fire techniques.

The Amisk Gold JV is a joint venture between Claude Resources Inc. ("Claude") and St. Eugene. St. Eugene holds a 35% participating interest in the Amisk Gold JV and Claude holds a 65% interest and is the operator of the joint venture.

Brian Skanderbeg, P.Geo., Vice President, Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of Claude.

Tania Ilieva, P.Geo., Vice President, Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of St. Eugene.

A location map of the Amisk Gold JV and a detailed plan map showing current drill results can be viewed at St. Eugene's website www.steugenemining.ca.

ABOUT ST. EUGENE

St. Eugene is a Toronto-based exploration company that is actively exploring for and developing gold properties, both in Manitoba and Saskatchewan. The Company's three main assets are the Tartan Lake Gold Mine Project ("Tartan Lake") in Manitoba (100% interest), and, in Saskatchewan, the Amisk Gold Joint Venture Project (35% interest St. Eugene – 65% interest Claude) and the Amisk North Gold Project (100% interest). All three assets are located in the prolific Flin Flon Greenstone Belt.

Tartan Lake's independent NI 43-101 resource estimate (completed by MineTech International Ltd. and released on November 8, 2010) resulted in an indicated mineral resource of 1,000,000 tonnes at 4.0g/t Au (130,000 ounces) and an additional inferred mineral resource of 1,900,000 tonnes at 3.9g/t Au (240,000 ounces).

The Amisk Gold JV's independent NI 43-101 resource estimate (completed by SRK Consulting (Canada) Inc. and released April 4, 2011) resulted in an indicated mineral resource of 921,000 ounces at 0.95 g/t AuEq and an additional inferred mineral resource of 645,000 ounces at 0.70 g/t AuEq. A total of 548,100 ounces is attributed to St. Eugene for this project.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of St. Eugene contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause St. Eugene's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding St. Eugene's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which St. Eugene has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from St. Eugene's expectations. St. Eugene undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • St. Eugene Mining Corporation Limited
    Jennifer Boyle, B.A., LL.B
    President and Chief Executive Officer
    T: (647) 344.3158 C: (416) 904.2714
    jennifer@capexgroupinc.com

    St. Eugene Mining Corporation Limited
    Wes Hanson, P. Geo.
    Chairman of the Board
    T: (647) 344.3158
    wes.hanson@me.com