St. Eugene Mining Corporation Limited

July 07, 2011 09:28 ET

St. Eugene Suspends Transaction With Churchill Natural Resource Partners and Provides Exploration Update on Key Projects

TORONTO, ONTARIO--(Marketwire - July 7, 2011) - St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces that it has suspended the previously announced transaction with Churchill Natural Resource Partners, L.P. to investigate the potential of revised terms acceptable to key shareholders. In the meantime, the Company shall continue to conduct its business in the normal course.

The Company further announces that both the Tartan Lake Gold Mine Project and Amisk Gold Joint Venture Project have diamond drilling programs currently underway. At the Tartan Lake Gold Mine Project, 1,325 meters have been drilled to date (6 holes), primarily testing the south west extension of the "South Zone", "West Baseline Zone" and "East Baseline Zone" as well as new anomalies identified from the geophysical airborne survey. The majority of targets tested to date are proximal to the existing underground mine at Tartan.

At the Amisk Gold Joint Venture Project, operator Claude Resources is currently conducting a 6,000 meter diamond drill campaign to confirm and upgrade the established mineral resources of 921,000 Ounces at 0.95 g/tonne Au Eq (Indicated) and 645,000 Ounces at 0.70 g/tonne Au Eq (Inferred). The program also plans to evaluate potential for increased resources surrounding the pit shell that defines the existing resource. To date, 5 infill holes have been completed (980 meters).

Metallurgical test work for the Amisk Gold Joint Venture Project is in progress with results expected shortly. Environmental test work, including acid-base accounting and metal leach analyses has been contracted to an independent metallurgical consultant, with a planned start date in mid-July.

Dr. Ilieva, P. Geo., is the Qualified Person 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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