St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

November 08, 2010 12:52 ET

St. Eugene Announces the Filing of Its NI43-101 Compliant Resource Estimate on Tartan Lake Gold Mine

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2010) - St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces that it has filed with the regulatory authorities, the final independent NI 43-101 Technical Report (the "MineTech Resource Estimate") for the Company‟s 100% owned Tartan Lake Gold Property located in Flin Flon Manitoba. The MineTech Resource Estimate confirms that the Tartan Lake Gold Property hosts a gold resource that can support taking the next steps for development, particularly given the amount of milling and other infrastructure still in place since the mine was last in production in 1989. The MineTech Resource Estimate concludes that the underground mine workings and the concentrator can be put back into limited service, sufficient for mining and processing a 10,000 tonne bulk sample, with minimal time and capital.

The Resources are as follows:
 
          Average    
      Tonnes Above   Gold Grade    
      Cut-off   (g/tonne)   Ounces
  Indicated            
  Main Zone   830,000   4.1   110,000
  South Zone   200,000   3.7   24,000
  Total*   1,000,000   4.0   130,000
 
  Inferred            
  Main Zone   700,000   4.6   100,000
  West Zone   240,000   3.2   25,000
  South-HW Zone   70,000   4.7   11,000
  South Zone   820,000   3.6   95,000
  South-FW Zone   60,000   4.1   8,000
  Total*   1,900,000   3.9   240,000
 
  * Rounded.            
               
Notes:
   
1. Cut-off grade for mineralised zone interpretation was 1 g/tonne.
2. Block cut-off grade for defining Mineral Resources was 2.0 g/tonne.
3. Top-cut grade was 30.9 g/tonne - mean plus two times standard deviation.
4. Gold price was $US 850 per troy ounce.
5. Zones extended up to 50 metres down-dip from last intercept. Along strike, zones extended halfway to the next cross-section.
6. Minimum width was 1.5 metres.
7. Non-diluted.
8. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
9. Resource estimate prepared by Doug Roy, M.A.Sc., P.Eng.
10. A specific gravity (bulk density) value of 2.8 was applied to all blocks (typical value for basic volcanics).
11. Inverse distance weighting, power of two was used for estimating block grades.
12. Indicated resources identified where sample intercept spacing was 20-25 metres or less (based on variography).

The MineTech Resource Estimate recommends a 2 Phase program to take the Tartan Lake Gold Property closer to production.

Phase I will include dewatering the existing underground workings and taking Bulk Samples of ore for process testing as well conducting underground diamond drilling to enhance the Resource below the current mine workings.

Phase II of the recommendations will see the Tartan Lake Gold Concentrator recommissioned sufficiently to process the Bulk Sample (50 – 100 tonnes/day) followed by a detailed feasibility study on the property. In total, the MineTech Resource Estimate has estimated that it will cost approximately Cdn. $5 Million to dewater the mine, extract the bulk sample, conduct the diamond drilling process the bulk sample and conduct a full feasibility study.

The Qualified Persons of the MineTech Report are (William) Douglas Roy, M.A.Sc., P.Eng., and Patrick Hannon, M.A.Sc., P. Eng. The authors have approved the contents of this news release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This Press Release may contain statements which constitute „forward-looking‟ statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company‟s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company‟s quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

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.

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