Newstrike-Queenston Update Commodore JV Multiple Gold Zones Intersected at the Morris Mine
TORONTO, ONTARIO -- (Marketwire) -- 07/21/10 -- Newstrike Resources Ltd. (TSX VENTURE: NR) ('Newstrike') and Queenston Mining Inc. (TSX: QMI)(FRANKFURT: QMI)(STUTTGART: QMI) ('Queenston') report results from the exploration activities completed on the jointly held (50%-50%) Commodore property located in Lebel Township, Kirkland Lake, Ontario.
The Commodore property contains 57 mineral claims covering seven kilometers (km) of a favourable assemblage of Timiskaming rocks that elsewhere in the camp hosts the historic 24 million ounce Kirkland Lake Main Break gold deposits, 8 km to the west and the 1.5 million ounce Upper Canada gold mine, 3 km to the east.
During the first phase of the program (October 2009 to February 2010) 16 drill holes were completed (4,585 m) targeting the southern portion of the property where drilling and geophysics has outlined a broad alteration corridor that has been traced for 2.5 km containing the Commodore and Egg Zones. Previous results of exploration completed by the JV on the Commodore property were reported in news releases dated November 26, 2009 and February 25, 2010 and are available on the Companies' web sites at www.newstrikeresources.com and www.queenston.ca.
The second phase of the program commenced in March and included geophysical surveys (magnetometer and IP) and 21 diamond drill holes (4,763 m). The drilling tested four targets on the property, the Morris mine, Commodore Zone, Egg Zone, Morris and new IP anomalies.
Morris Mine
During the current phase of drilling two holes were completed at the Morris Mine located on the western portion of the property. The mine historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936-1941 and is serviced by a 300 m deep shaft with limited lateral development. Since the mine closed in 1941 only limited, shallow exploration has been completed.
The purpose of the drilling was both to determine the character of the mineralization and explore the potential along strike to the southwest of the shaft. The two holes completed at Morris were drilled approximately 150 and 190 m west of the shaft. Both holes intersected multiple zones of sulphide mineralization containing gold. Hole COM-10-36 intersected four zones assaying 2.08 g/t Au over 4.8 m (including 6.93 g/t over 1.0 m), 2.16 g/t Au over 2.2 m, 1.71 g/t Au over 0.9 m and 1.37 g/t Au over 0.6 m. Hole COM-10-37 encountered six primary zones assaying 1.17 g/t Au over 1.2 m, 5.21 g/t Au over 0.5 m, 5.69 g/t Au over 1.0 m, 0.69 g/t over 9.3 m (including 2.19 g/t Au over 1.0 m), 2.47 g/t Au over 2.8 m and 1.54 g/t Au over 5.1 m. The new drill holes indicate the Morris mineralization is open to the southwest. Further drilling is recommended.
Commodore Zone
During the first phase of drilling five holes were completed on the Commodore Zone intersecting wide zones of gold mineralization including 1.3 g/t Au over 11.6 m (hole COM-09-07) and 0.8 g/t Au over 47.0 m (hole COM-09-09)(see news release dated February 25, 2010.
In the second phase of drilling two holes (COM-10-29 and -30) were completed on the zone testing the western dip and strike potential of the mineralization. Hole COM-29 intersected four intervals assaying 0.30 g/t Au over 9.0 m, 0.21 g/t Au over 16.0 m, 1.23 g/t Au over 1.0 m and 2.81 g/t Au over 0.8 m. Hole COM-10-30 intersected a 49.3 m thick interval assaying 0.52 g/t Au including 0.8 g/t Au over 20.3 m and 2.77 g/t Au over 3.0 m. The new drilling has extended the Commodore Zone to over a length of 500 m and to a vertical depth of 300 m. The zone remains open to the west and appears to be cut-off by a near vertical dipping fault to the south and at depth.
The Commodore Zone comprises a shallow, historic mineral resource of 669,500 t grading 2.4 g/t Au including 278,500 t grading 3.8 g/t Au. The resource was calculated by W.A. Hubacheck Consultants Limited in a report dated January 1997 filed with the Ontario Ministry of Northern Development and Mines. This resource is not compliant to National Instrument 43-101 and should not be relied upon as it has not been verified by a qualified person under these guidelines.
Table 1 - Table of Assay Results
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From To Interval Au
Hole # Section (m) (m) (m) (g/t) Zone
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COM-10-20 7+00W 72.7 85.0 12.3 0.31 Central IP
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COM-10-22 14+50W 178.0 179.0 1.0 0.96 Central IP
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COM-10-26 21+00W 29.0 32.0 3.0 0.41 South IP
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105.0 107.0 2.0 0.86 South IP
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COM-10-27 23+00W 131.9 132.7 0.8 1.17 South IP
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COM-10-29 9+00W 110.0 119.0 9.0 0.30 Commodore
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including 116.0 117.0 1.0 1.23 Commodore
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131.0 147.0 16.0 0.21 Commodore
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166.2 167.0 0.8 2.81 Commodore
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448.0 449.0 1.0 1.23 Commodore
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COM-10-30 8+00W 39.7 84.6 44.9 0.52 Commodore
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including 39.7 60.0 20.3 0.80 Commodore
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including 53.0 56.0 3.0 2.77 Commodore
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COM-10-31 24+50W 39.0 40.0 1.0 0.96 Egg
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72.0 73.0 1.0 1.10 Egg
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COM-10-32 21+50W 152.9 160.0 7.1 1.16 Egg
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222.5 225.0 2.5 0.36 Egg
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COM-10-35 20+25W 92.2 96.0 3.8 0.66 Egg
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219.0 222.0 1.0 1.17 Egg
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288.0 293.0 5.0 2.52 Egg
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including 292.0 293.0 1.0 4.46 Egg
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311.3 316.0 4.7 0.88 Egg
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COM-10-36 UTM only 27.5 32.3 4.8 2.08 Morris
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including 30.5 31.5 1.0 6.93 Morris
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136.3 138.5 2.2 2.16 Morris
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199.6 200.5 0.9 1.71 Morris
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220.0 220.6 0.6 1.37 Morris
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COM-10-37 UTM only 78.6 79.8 1.2 1.17 Morris
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99.3 99.8 0.5 5.21 Morris
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116.0 117.0 1.0 5.69 Morris
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173.7 183 9.3 0.69 Morris
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including 181.0 182.0 1.0 2.19 Morris
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199.4 202.2 2.8 2.47 Morris
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231.9 237.0 5.1 1.54 Morris
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including 232.9 234.0 1.1 3.22 Morris
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and 236.0 237.0 1.0 3.70 Morris
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Note: Holes Com-10-17, -18, -19, -21, -23, -24, -25, -28, -33 and -34
contained no significant gold values. The intervals reported are core
lengths. True widths have not been determined.
Egg Zone
At the Egg Zone located 1 km west of Commodore the first phase of drilling targeted a single historic drill hole (hole Egg-04) that intersected 45.5 g/t Au over 1.5 m. the first phase of drilling extended the zone including intersections of 6.3 g/t Au over 5.0 m (hole COM-09-04), 6.8 g/t Au over 1.0 m (hole COM-09-14) and 3.6 g/t Au over 2.6 m (hole COM-09-13) (see news release dated February 25, 2010).
During the second phase of drilling five holes continued to target the Egg Zone. Hole COM-10-31 tested an IP anomaly located west of the zone intersecting two narrow intervals assaying 0.96 g/t Au over 1.0 m and 1.0 g/t Au over 1.1 m. Hole COM-10-32 drilled on the western portion of the Egg Zone intersected 1.16 g/t Au over 7.1 m. Holes COM-10-33 and -34 were drilled to the east of the Egg Zone both intersecting no significant values. Hole COM-10-35 drilled in the central portion of the zone intersected deeper mineralization assaying 2.52 g/t Au over 5.0 m including 4.46 g/t Au over 1.0 m. As a result of the new drilling the Egg Zone has been extended over a length of 300 m and to a vertical depth of 300 m and remains open to the west and to depth.
IP Anomaly Testing
Eight holes were drilled targeting a series of previous IP anomalies in the central portion of the property with seven (COM-10-17,-18,-19,-21,-23,-24,-25) returning no significant gold values. Holes, COM-10-20 and -22, intersected a porphyry body returning low grade gold intervals of 0.31 g/t Au over 12.3 m and 0.96 g/t Au over 1.0 m, respectively. An additional four holes tested new IP geophysical anomalies on the southern portion of the property with gold values recorded in COM-10-26 (0.41 g/t Au over 3.0 m and 0.86 g/t Au over 2.0 m) and COM-10-27 (1.17 g/t Au over 0.8 m).
Drilling continues on the JV property targeting the western extension of the Commodore Zone and the Egg Zone at depth. A single hole will target a priority IP anomaly on the eastern portion of the property before the drill is moved back to the Morris mine.
As operator of the Commodore JV, the design of the program, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston's geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The program is supervised by Queenston geologist, Gerhard Meyer, P.Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2008 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Polymet Laboratories of Cobalt, Ontario and analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to other laboratories for check assaying.
About Newstrike
Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. The Company owns a 50% interest in the Commodore property and a 25% interest in the Swansea property. The Company's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits. Newstrike has working capital of approximately $500,000.
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.
Mr. William McGuinty, P. Geo., VP Exploration of Queenston is the qualified person responsible for reviewing this news release.
Newstrike's Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Queenston's 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.
Neither the TSX Venture Exchange nor its Regulations Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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
Newstrike Resources Ltd.
John A. Pollock
President and CEO
(416) 628-6556
Newstrike Resources Ltd.
Donald Rankin
Director
(416) 628-6556
www.newstrikeresources.com