St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

April 01, 2011 10:00 ET

St Eugene Commences 2011 Exploration Program at Tartan Lake Mine Project

TORONTO, ONTARIO--(Marketwire - April 1, 2011) -

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 (TSX VENTURE:SEM) ("St. Eugene") announces that it has commenced the 2011 Exploration Program on its 100% owned Tartan Lake Gold Mine property, by flying a 333 km airborne (VTEM and magnetics) survey over the entire Tartan Lake Mine land package.

Jennifer Boyle, President and Chief Executive Officer, states: "There is good potential to find additional gold mineralization at Tartan, particularly given that the property has not been extensively explored in over 22 years, and because we have the opportunity to apply new and improved geophysical and geological techniques.

As a result of a comprehensive ongoing data compilation and interpretation of the historic data from Tartan Lake Gold Mine and the surrounding area, St. Eugene's exploration team integrated all aspects of the Tartan Lake dataset and prepared a two phase exploration and development program. Details of the Phase 1 will include:

  • ground magnetic and electromagnetic surveys over the whole property, to assist in determining perspective targets;

  • dewatering of the Tartan Lake Mine;

  • approximately 4,000 m of diamond surface and underground drilling to test the extensions of the Main zone at depth;

  • additional channel sampling and 10,000 tonnes bulk sample for mining method research and mineral process testing;

  • surface and underground surveying;

  • reprocessing of the mine tailings; and

  • ongoing care & maintenance of the site.

The company is targeting to identify further gold mineralization at the mine site, particularly associated the Main Zone and South Zone. Additionally, follow up work will be conducted on several other mineralized zones identified on the property by previous operators. 

About the Tartan Lake Mine Project:

The Tartan Lake Gold Mine Project is located 12 kilometres east of FlinFlon, Manitoba, and was operated by Granges Inc. when it produced 48,000 ounces of gold between 1987 and 1989 from portions of the Main Zone and the South Zone. The mine/mill complex operated until November 1989 when it shut down due to unfavorable economics and gold price.

When the mine started production the gold price was about $460/ounce and when production ceased in November 1989, the gold price was about $375 per ounce.

The Tartan Lake MineProject and assets consists of a 440 mt/day gold concentrator, largely intact, related infrastructure, and a 1,000 foot decline access to developed mining blocks. The Company is still evaluating the economics of re-commencing operations at the mine site and will report on the progress and details of same as they become available.

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

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.

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