St. Eugene Mining Corporation Limited

St. Eugene Mining Corporation Limited

July 12, 2011 10:35 ET

St. Eugene Intersects High Grade Gold at Tartan Lake and Announces Termination of Churchill Group Private Placement

TORONTO, ONTARIO--(Marketwire - July 12, 2011) - St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces that it has received initial drill assay results from its Phase 1 drilling program on its wholly-owned Tartan Lake Gold Mine project in Flin Flon, Manitoba. Drill hole TL-11-01 was collared along a surface shear structure and has encountered gold mineralization over good-sized widths. Assay results include intercepts as follows:

Hole Visible
Width (m)
From (m) To (m) Au g/t
TL-11-01 1 33 34 5.86
TL-11-01 2.15 88.55 90.7 3.38
Including 1.15 88.55 89.7 10.8
TL-11-01 1.34 92.14 93.48 1.94
TL-11-01 2.65 130.35 133.00 2.15
Including 0.65 130.35 131.00 3.40

Jennifer Boyle, President and CEO of St Eugene Mining commented, "Conducting an exploration program on a Canadian gold project that has sat dormant for decades and that has never had the benefit of modern day exploration tools, is where we are looking to see resource growth. We are very pleased that our initial results confirm the consistency and continuity of the mineralized vein structures. Additional results from Tartan Lake are in process and the Company is considering expanding the drill program."

Hole TL-11-01 is 450 meters long, collared at 334° azimuth and -55° dip, and is located in the vicinity of the South Zone of the Tartan Lake deposit identified and worked on by the previous operators, Claude Resources Inc. ("Claude") and Granges Exploration Inc.

At the Tartan Lake Gold Mine Project, approximately 1,495 meters have been drilled to date (7 holes) of a proposed 4,000 meter surface drilling campaign. Assays announced in this news release are preliminary and reflect results received up to date (first two batches which contained 200 core samples). Further assay results from the same hole are pending. The potential grade disclosed herein is conceptual in nature and there has been insufficient exploration to define an updated mineral resource on the Tartan Lake Gold Mine Project. It is uncertain if further exploration will result in the target being delineated as an updated mineral resource.

The Company further announces that it has formally terminated the previously suspended transaction with Churchill Natural Resource Partners, L.P. in light of the unsolicited proposal from Claude referenced in Claude's press release dated July 11, 2011.

The special committee of independent directors continues to consider Claude's proposal and intends to comment further following careful consideration of the terms and Claude's purported value for the proposal to St. Eugene shareholders.

The Company has implemented a rigorous Quality Assurance and Quality Control program to ensure best practices in sampling and analysis of drill core. Drill core was halved and samples averaging 0.5 to 1.5 metres were submitted to TSL Laboratories in Saskatoon, Saskatchewan, ISO approved facilities. 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.

For further information on the Tartan Gold Mine Project, please refer to the Company's NI 43-101 compliant technical report entitled "Technical Report for St. Eugene Mining Corporation on the Tartan Lake Gold mine Project, Flin Flon, Manitoba" dated September 23, 2010 and available on

Dr. Tania Ilieva, P. Geo., is the Qualified Person, as defined in NI 43-101, who has reviewed and approved the contents of this news release.


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.

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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