St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

May 05, 2011 08:30 ET

St. Eugene Expands Mineralization at Amisk Gold Joint Venture

TORONTO, ONTARIO--(Marketwire - May 5, 2011) -St. Eugene Mining Corporation Limited(TSX VENTURE:SEM) -

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 step-out and infill drill results from its 2011 winter diamond drilling program of 8 holes, 3,234 meters, on the Amisk Gold Joint Venture Project, successfully expanded the system along strike by an additional 400 meters to the southwest and 150 meters to the north of and below the conceptual open pit. Significant results include:

  • 1.02 g/t Au and 2.6 g/t Ag over 39.08 metres in hole AL-11-292; and
  • 0.92 g/t Au and 7.9 g/t Ag over 36.60 metres in hole AL-11-298

Jennifer Boyle, Chief Executive Officer states: "Over the past 12 months, the joint venture has now intercepted the mineralized system over a strike length of 1,200 meters, a width of 400 meters and depths of in excess of 600 meters. The system remains open to the southwest, to the north and at depth, providing us with the confidence to seek further growth potential."

Table 1: 2011 Winter drill results from the Amisk Gold Project.
HoleEastingNorthingAz/DipFrom
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Target
AL-11-29210011509165/-45133.00172.0839.081.022.6Infill
Incl133.00135.002.008.9819.0
And184.58263.9679.380.492.2
AL-11-2939992514665/-45123.00145.8522.850.512.0Infill
And162.57207.6045.030.501.6
And236.00247.4511.450.993.5
AL-11-29410037516865/-45105.00127.5022.500.451.6Infill
And175.13205.0029.870.552.9
AL-11-29510097519865/-4580.70105.5724.870.552.5Infill
AL-11-2969968520165/-45171.82193.5021.680.541.3Infill
And211.00266.4055.400.502.7
AL-11-29799655575180/-54162.50229.5067.000.552.9North Ext
And348.24402.3654.120.703.5
And667.14693.5026.360.402.8
And753.50779.0025.500.914.8
AL-11-2989588421545/-45166.40203.0036.600.927.9SW Ext
AL-11-29997505475171/-63272.00300.0028.000.361.6North Ext
And623.00636.0013.000.822.5
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 60 and 100 percent of drilled width. They may include internal dilution intervals of up to 10 metres. Intercepts meet a minimum criterion of 0.3 g/t and a 10 gram-metre product.

As outlined in St. Eugene's News Release dated February 17th, 2011, results from previous drilling have been incorporated into a National Instrument 43-101 prepared by SRK Consulting of Toronto in a compliant Resource and Technical Report (Indicated Resource of 921,000 Ounces at 0.95 g/tonne Au Eq and Inferred Resource of 645,000 Ounces at 0.70 g/tonne Au Eq). The winter drilling campaign was completed after the resource estimate, and accordingly, none of these 8 holes have been included in the resource estimate.

Table 2: Consolidated Mineral Resource Statement* Amisk Gold Project, Saskatchewan, February 9, 2011.
Resource ClassQuantity
(000's tonnes)
Grade (g/tonne)Contained Ounces (000's)
AuAgAu EqAuAgAu Eq
Indicated30,1500.856.170.958275,978921
Inferred28,6530.644.010.705893,692645
* Reported at a cut-off of 0.40 grams of gold equivalent (Au Eq) per tonne using a price of U.S. $1,100 per ounce of gold and U.S. $16 per ounce of silver inside a conceptual pit shell optimized using metallurgical and process recovery of eight-seven percent, overall ore mining and processing costs of U.S.$15 per tonne and overall pit slope of fifty degrees. All figures are rounded to reflect the relative accuracy of the estimates. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The Amisk Gold Joint Venture Project now comprises 15,400 hectares in northeastern Saskatchewan, Canada. The Amisk Gold Project is located 20 kilometres southwest of Flin Flon, Manitoba and is a 65:35 Joint Venture between Claude Resources Inc (TSX:CRJ) and St. Eugene Mining Corporation; Claude is the operator of the Joint Venture.

A plan map of the Amisk Gold Joint Venture Project, a detailed map showing current drill collar locations and a representative cross section through the deposit can be viewed at St Eugene's website www.steugenemining.com.

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.

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.

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