Queenston Reports an Increase In High-Grade Mineral Resources on the South Claims JV Property
TORONTO, ONTARIO -- (Marketwire) -- 07/16/10 -- Queenston Mining Inc. (TSX: QMI)(FRANKFURT: QMI)(STUTTGART: QMI) ('Queenston' or the 'Company') announce that as a result of their 2009-10 drilling program, joint venture partner Kirkland Lake Gold Inc. ('KL Gold') has announced an update of their NI 43-101 compliant mineral reserves and resources including those on the South Claims Joint Venture ('JV') property located in Teck Township, Kirkland Lake, Ontario. The property is jointly owned by Queenston (50%) - KL Gold (50%) who are advancing underground exploration to target the South Mine Complex ('SMC'), a new gold zone that is being explored, developed and mined at the adjacent Macassa Mine.
KL Gold, operator of the JV, reports that as a result of the third phase of drilling completed on the property (5 holes, see news releases dated November 24, 2009) additional NI43-101 indicated and inferred mineral resources have been calculated for the SMC on the northern portion of the JV property. The new gold resources outlined in 2010 include 21,900 tonnes ('t') grading 60.7 g/t (1.77 oz/ton) containing 42,000 oz in the indicated category and 6,820 t grading 47.7 g/t (1.39 oz/ton) containing 11,000 oz in the inferred category. As a result, the total resource on the JV property is now 88,000 t grading 47.0 g/t (1.37 oz/ton) indicated and 120,000 t grading 42.5 g/t (1.24 oz/ton) inferred. Queenston's 50% portion of these resources is 44,000 t grading 47.0 g/t (66,000 oz) indicated and 60,000 t grading 42.5 g/t (82,500 oz) inferred.
'With only five holes the third phase of underground exploration drilling has increased the indicated resource ounces on the joint venture property by 46% and the inferred resource ounces by 7% over the 2009 calculation,' stated Charles Page, President and CEO of Queenston. 'This strong gold system remains open on the JV property to the south, west as well as further east towards the 50% - 50% HM joint venture property and Queenston's 100% owned AK property. The next phase of exploration drilling is planned to target the SMC further east on both the South Claims and HM joint venture properties.'
Table of Mineral Resources on the South Claims JV Property
----------------------------------------------------------------------------
Mineral
Resource
Category 2009 2010 (New) 2010 Total
---------------------------------------------------------------
Grade Grade Grade
Tonnes (Au g/t) Tonnes (Au g/t) Tonnes (Au g/t) Ounces
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indicated 66,100 42.5 21,900 60.7 88,000 47.0 132,000
----------------------------------------------------------------------------
Inferred 113,180 42.2 6,820 47.7 120,000 42.5 165,000
----------------------------------------------------------------------------
The following lists the criteria employed by KL Gold in calculating reserves and resources for the Macassa Mine, South Claims JV property. KL Gold does their work in feet and ounces.
1. The reserves and resources are estimated using the polygonal method.
2. All intersections are calculated out to a 5.0 foot minimum horizontal
mining width for structures dipping greater than 45 degrees. The minimum
mining height for structures dipping less than 45 degrees is 8.0 feet.
3. Dilution was not added to the resources.
4. All higher grades were cut. Based on a statistical analysis completed by
Scott Wilson Roscoe Postle Associates Inc. in 2007, the Company has
implemented a cutting factor of 7.2 oz Au/ton for the New South Zone.
The Footwall Zone high values were cut to 3.5 oz Au/ton.
5. Cut-off grades of 0.25 oz/ton Au and 0.35 oz/ton Au are used for reserve
and resource calculations, depending on the location, and economics of
the block. Generally, a cut-off of 0.31oz/ton is required on a whole-
block basis to achieve profitability. It is possible to have sub-blocks
within an ore reserve block that assay less than any cut-off which have
been incorporated for mining or geotechnical reasons.
6. A 100% tonnage recovery is used for the resources. Continuity of the
veins appears very good.
7. The assumptions used include $898.01 U.S. per ounce of gold, and an
exchange rate of $1.00 Canadian=U.S. $0.9147 ($982.66 Canadian per ounce
= 3 year average).
8. The Company is not aware of any environmental, permitting, legal, title,
taxation, socio-political, marketing or other issue that may materially
affect its estimate of mineral resources.
9. Mineral resources which are not mineral reserves have not demonstrated
economic viability.
The 2010 mineral resource is based on underground drilling that was completed from the 5300 foot level of the Macassa Mine onto the JV property. The mineral resource was calculated by KL Gold's geological staff which includes qualified person ('QP'), Stewart Carmichael P.Geo., the Company's Chief Exploration Geologist, for the purpose of NI 43-101. The resource estimate was audited and verified by independent QP, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. A report detailing the resource estimate will be filed on SEDAR (www.sedar.com) within forty five days of this news release.
The Joint Venture is completing further drilling onto the South Claims JV property from the 5300 level of the Macassa Mine. Upon completion the JV will commence a fourth phase of exploration and resource definition drilling from the underground workings of the mine to further target the SMC on both the South Claims and HM joint venture properties.
This news release was reviewed by Queenston's VP Exploration and qualified person William McGuinty, P. Geo.
About Queenston
Queenston controls a significant land package in the Kirkland Lake gold camp now containing 29 properties, totalling approximately 19,000 hectares. The Company's strategy is to return to producer status through the development of four 100% owned gold projects including the Upper Beaver, McBean, Anoki and Upper Canada. The Company is also carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims property, and on its 100% owned AK property. Queenston is well financed with $45 million in cash and has a 2010 exploration budget of $16 million, employing up to 15 diamond drill rigs on 8 properties.
Forward Looking Statements
Except for historical information this News Release may contain certain 'forward looking statements'. These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the 'Annual Information Form' filed by the Company on SEDAR at www.sedar.com.
Contacts:
Queenston Mining Inc.
Charles E. Page, P. Geo.
President and CEO
(416) 364-0001 (ext. 224)
Queenston Mining Inc.
Hugh D. Harbinson
Chairman
(416) 364-0001 (ext. 225)
Queenston Mining Inc.
Andreas Curkovic
Investor Relations
(416) 577-9927
Info@queenston.ca
www.queenston.ca