St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

December 16, 2010 10:31 ET

St. Eugene Mining Corporation Limited: Core Sampling Program at Amisk Gold Project Demonstrates Bulk Mining Potential

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) -

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. 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.

St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company") is pleased to announce that recent assaying of the historical core at it's Amisk Gold Joint Venture Project in the Flin Flon Greenstone Belt (Saskatchewan) with Claude Resources Inc. ("Claude") has returned significant gold and silver grades over long intervals including:

  • AL8-159 53.5 metres averaging 6.86 g/t gold and 21.4 g/t silver;
  • AL5-05 50.3 metres averaging 5.64 g/t gold and 10.3 g/t silver;
  • AL96-219 241.0 metres averaging 2.16 g/t gold and 18.9 g/t silver; and
  • AL8-176 173.1 metres averaging 2.29 g/t gold and 14.1 g/t silver.

Jennifer Boyle, Chief Executive Officer of St. Eugene, states that "the success of the sampling program has materially changed the potential of the Amisk Project. Given that mineralization remains open along strike and at depth, St. Eugene believes there is excellent potential for further growth at Amisk."

The Amisk Gold Project is located approximately 20 kilometres southwest of Flin Flon Manitoba in the prolific Flin Flon Greenstone Belt of Saskatchewan. The sampling program was undertaken to evaluate the bulk mining potential of the project and included assaying of 22,780 metres of core from 278 historical drill holes. The results yielded 244 intervals exceeding a 20.0 gram metre product.

The Amisk Gold Project was originally explored with a focus on high grade, narrow vein gold potential. In early 2010, the Joint Venture completed an 11 hole program to evaluate the large tonnage bulk mining potential of the property. The results strongly suggested that low grade gold and silver mineralization was present in the previously interpreted barren intervals between the higher grade veins that were the focus of the earlier exploration efforts. As a result, the decision was made to assay (sample) the historic core to confirm the bulk mining potential.

These results, combined with the results from the 11 holes drilled in 2010, suggest that low grade, bulk mining potential may be viable at Amisk. Claude has indicated that an initial resource estimate, prepared by SRK Consulting, will be available during the first quarter of 2011. Assays from 10 holes (3,300 metres) drilled in November, 2010 to further test the extensions of the mineralized zone are pending.

A summary of significant results of the sampling program is included in Table 1 below: For the complete results of the sampling program please reference the website of St. Eugene Mining at the following link www.steugenemining.com.

Table 1: Highlights of historic drill results from the Amisk Gold deposit.

HOLE-ID East North Az/Dip From (m) To (m) Length (m) Au g/t Ag g/t Unsampled intervals
AL96-219 9800 5175 183/-48 9.00 250.00 241.00 2.16 18.9 1.62
      incl 9.00 13.00 4.00 4.20 21.7 0.00
      incl 236.00 239.00 3.00 129.87 1081.1 0.00
AL8-176 9938 5075 158/-65 5.80 178.92 173.12 2.29 14.1 2.80
      incl 18.50 19.75 1.25 176.90 1229.9 0.00
      incl 29.80 30.80 1.00 29.90 51.0 0.00
      incl 99.00 100.00 1.00 43.92 164.6 0.00
AL8-159 9938 5075 180/-66 106.00 159.50 53.50 6.86 21.4 6.00
      incl 142.00 155.50 13.50 24.95 68.8 0.00
AL6-44 10000 5125 180/-45 30.00 227.69 197.69 1.69 15.2 5.80
      incl 142.00 160.25 18.25 11.08 101.0 0.00
AL5-05 9996 4949 180/-45 29.26 79.55 50.29 5.64 10.3 10.61
      incl 29.26 34.75 5.49 42.30 52.4 0.00
      incl 75.64 79.55 3.91 9.17 12.5 0.00
AL7-096 10002 4938 360/-55 33.61 175.97 142.36 1.81 7.9 0.00
      incl 56.63 57.13 0.50 23.35 134.1 0.00
      incl 105.80 111.06 5.26 26.60 71.4 0.00
AL97-259 10200 5075 270/-50 205.30 361.78 156.48 1.58 8.4 0.00
      incl 253.00 254.00 1.00 76.55 340.0 0.00
      incl 273.00 274.00 1.00 34.80 73.0 0.00
AL6-54 9675 4975 180/-45 10.10 83.50 73.40 3.23 19.7 0.00
      incl 15.00 17.00 2.00 10.56 79.5 0.00
      incl 59.25 60.25 1.00 50.91 329.3 0.00
      incl 73.00 74.30 1.30 44.23 139.2 0.00
AL96-243 9751 5299 183/-50 293.50 396.00 102.50 2.22 7.2 3.06
      incl 327.00 346.00 19.00 8.20 14.9 0.00
AL3-06 9607 4905 94/-45 22.36 107.00 84.64 2.55 7.0 0.00
      incl 49.06 50.50 1.44 75.79 119.1 0.00
AL7-108 9980 5174 171/-45 116.00 236.50 120.50 1.79 5.1 0.00
      incl 163.25 164.25 1.00 24.79 42.9 0.00
      incl 180.25 182.75 2.50 20.24 48.0 0.00
      incl 211.25 211.75 0.50 152.57 68.9 0.00
AL7-089 9975 5075 180/-45 10.10 161.56 151.46 1.34 6.2 2.20
      incl 109.69 111.69 2.00 12.36 58.0 0.00
      incl 144.03 145.03 1.00 81.60 181.0 0.00
AL7-123 9975 5063 180/-46 11.41 158.90 147.49 1.37 8.2 4.07
      incl 40.00 51.00 11.00 7.80 4.7 0.00
      incl 65.50 66.50 1.00 10.53 69.0 0.00
AL98-263 9825 5300 180/-50 310.00 398.40 88.40 1.94 7.3 0.00
      incl 382.30 389.30 7.00 18.33 44.3 0.00
AL8-150 10000 5150 180/-45 25.95 193.70 167.75 1.02 6.1 0.00
      incl 34.00 36.00 2.00 11.69 29.2 0.00
      incl 164.60 167.10 2.50 16.69 108.3 0.00
AL6-37 9974 5058 180/-45 30.25 149.80 119.55 1.40 4.6 2.89
      incl 78.40 79.40 1.00 49.44 56.2 0.00
AL7-124 10000 5063 180/-48 31.20 123.00 91.80 1.81 11.2 0.00
      incl 39.00 42.00 3.00 7.42 53.4 0.00
      incl 93.00 94.50 1.50 15.43 35.8 0.00
      incl 101.25 103.25 2.00 7.27 28.5 0.00
      incl 117.75 118.25 0.50 40.80 142.3 0.00
AL96-232 9771 5251 187/-48 213.00 379.00 166.00 0.98 5.9 0.00
      incl 295.95 301.80 5.85 14.02 49.4 0.00
AL7-084 10025 5088 180/-45 24.16 153.93 129.77 1.24 9.4 0.55
      incl 24.66 25.16 0.50 21.02 153.6 0.00
      incl 89.40 90.40 1.00 29.35 102.2 0.00
AL9-203 9800 5275 180/-45 236.42 380.50 144.08 1.10 10.0 1.44
      incl 376.48 377.48 1.00 48.10 223.7 0.00
AL8-151 9995 4875 58/-45 33.95 75.29 41.34 3.66 19.5 0.00
      incl 61.33 67.33 6.00 20.39 73.3 0.00
AL3-15 9922 4925 64/-45 14.40 211.00 196.60 0.75 1.6 1.13
AL7-105 9950 5075 180/-46 11.18 132.70 121.52 1.20 4.1 0.85
      incl 132.20 132.70 0.50 141.60 30.0 0.00
AL6-43 9975 5100 180/-46 6.53 168.08 161.55 0.89 4.9 0.00
      incl 161.58 162.58 1.00 11.35 9.7 0.00
AL97-255 9875 5126 182/-50 3.79 203.00 199.21 0.71 6.4 0.00
      incl 188.00 192.00 4.00 9.20 23.5 0.00
Note: Intervals noted are intercepted width not true width, have been calculated using a 0.3 g/tonne cut-off and are uncut. Subintervals are presented if greater than 10 gram-metre product with variable cut-offs. True width is variable between 50 and 100 percent of drilled width.They may include internal dilution and/or unsampled intervals.Unsampled intervals have been treated at zero grade for the purpose of composite calculation. Total width of unsampled intervals are noted. Historic assay results have been verified to the original assay certificate where possible. Quality Assurance and Quality Control procedures, inclusive of twin holes, quartered core sampling as well as insertion of blanks, standards and duplicates has been completed.

Claude holds a 65% interest and is the operator of the Amisk Gold Project.

Claude also holds 12% of St. Eugene's issued and outstanding common shares.

Brian Skanderbeg, P.Geo. and M.Sc., Claude's Vice-President Exploration, is the Qualified Person who has reviewed and approved the contents of this news release. Drill core was halved and/or quartered with samples averaging 2.0 metres submitted to ALS Chemex in Vancouver and/or TSL Laboratories in Saskatoon, Saskatchewan, both ISO approved facilities. Rigorous 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. Pamela Strand, P.Geol. M.Sc. is the Qualified Person who has reviewed and approved the contents of this news release 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.

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 Ltd.
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer
    (647) 430-0966 (work) or 416-904-2714 (cell)
    jennifer@capexgroupinc.com