Queenston Reports New Upper Beaver Drilling Results and Closing of Agnico-Eagle Investment
TORONTO, ONTARIO -- (Marketwire) -- 11/03/10 -- QUEENSTON MINING INC. (TSX: QMI)(FRANKFURT: QMI)(STUTTGART: QMI) ('Queenston' or 'the Company') announces drilling results from 6 new holes completed on the 100% owned Upper Beaver property located in Kirkland Lake, Ontario. Significant results of the drilling are summarized below and presented in Table 1 and are outlined on the longitudinal section accompanying this news release and available on the Company's website (www.queenston.ca). Also, the Company reports the closing of the $35 million private placement financing with Agnico-Eagle Mines Limited previously announced on October 28, 2010.
Drilling highlights:
- 16.4 g/t Au with 1.90% Cu over 8.5 m in hole UB10-161W7
- 14.6 g/t Au with 2.52% Cu over 4.7 m in hole UB10-163W1
- 9.4 g/t Au with 0.23% Cu over 5.5 m in hole UB10-163W3
- 9.6 g/t Au with 0.89% Cu over 3.0 m in hole UB10-163W2
- 6.5 g/t Au with 0.37% Cu over 6.2 m in hole UB10-161W5
- 12.6 g/t Au with 0.17% Cu over 1.0 m in hole UB10-164
'Eastern Deep Area' - Mineralization extended to -1300 m
- Three wedges (UB10-163W1, -163W2 and -163W3) all intersected significant
gold and copper mineralization in the Porphyry Zone west of pilot hole
UB10-163 (90.1 g/t Au with 0.33% Cu) at approximately 1150 m below surface
in the deep eastern portion of the deposit. Wedge 163W1 completed 40 m
west and 10 m below the pilot hole intersected 14.6 g/t Au with 2.52% Cu
over 4.7 m including a 1.8 m interval assaying 28.7 g/t Au with 3.88% Cu.
Wedge 163W2 drilled 70 m west of the pilot hole assayed 4.1 g/t Au with
0.69% Cu over 12.0 m including 9.6 g/t Au with 0.89% Cu over 3.0 m. Wedge
163W3 drilled 50 m west and 25 m above the pilot hole reported 6.0 g/t Au
with 0.22% Cu over 9.0 m including 9.4 g/t Au with 0.23% Cu over 5.5 m.
Hole UB10-164 intersected the Porphyry Zone at approximately -1300 m
assaying 12.6 g/t Au with 0.17% Cu over 1.0 m. This hole has extended the
Porphyry Zone a further 150 m deeper where the mineralization continues to
remain open to depth and to the east.
'Western Deep Area' - Quality intersections at -1000 m
- Two new wedge holes (UB10-161W5 and 161W7) report significant Porphyry
Zone intersections in the deep western portion of the deposit at
approximately 1000 m below surface. Wedge 161W5 intersected three separate
intervals in the Porphyry Zone including 13.9 g/t Au with 5.6% Cu over 0.5
m, 4.2 g/t Au with 0.36% Cu over 3.0 m and 6.5 g/t Au with 0.37% Cu over
6.2 m approximately 25 m east and 35 m below previous hole 161W4 (8.7 g/t
Au with 0.38% Cu over 18.0 m). Wedge 161W7 intersected the Porphyry Zone
approximately 50 m below 161W4 assaying 16.4 g/t Au and 1.9% Cu over 8.5 m
including a 2.0 m interval assaying 61.0 g/t Au with 5.9% Cu. The western
portion of the deposit continues to remain open to depth and to the west.
Charles Page, Queenston President and CEO, said, 'The deep drilling at Upper Beaver continues to encounter impressive mineralization in both the eastern and western portions of the deposit. The Porphyry Zone has now been extended to a depth of 1300 m below surface where it continues to remain open. In two of the holes reported, UB10-161W7 and UB10-163W1, in addition to high-grade gold values both holes intersected significant copper mineralization assaying 1.90% and 2.52% respectively. The copper credit adds significant value to the deposit particularly with the copper price near US$3.80 per pound. Three drills continue to operate at Upper Beaver as the Company prepares for an updated mineral resource to be completed in the first quarter in 2011.'
The Upper Beaver deposit contains total indicated National Instrument ('NI') 43-101 mineral resources of 1,373,500 t grading 8.5 g/t Au (375,000 oz.) (9.7 g/t Au uncapped (427,900 oz.)) with 0.43% Cu and total inferred resources of 1,061,300 t grading 7.7 g/t Au (262,800 oz.) (8.5 g/t Au uncapped (291,300 oz.)) with 0.39% Cu. The mineral resource was completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Michael W. Kociumbas, P. Geo. The Porphyry Zone is the largest gold-copper component of the deposit containing 942,600 t grading 9.6 g/t Au (10.9 g/t uncapped) in the indicated category and 859,200 t grading 8.3 g/t Au (9.2 g/t uncapped) in the inferred category.
Table 1 - Summary of Assay Results
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Hole # From (m) To (m) Interval (m) Cu (%) Au (g/t) Zone
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UB10-161W5 1019.0 1025.0 6.0 0.18 5.0 Contact
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1080.0 1080.5 0.5 5.6 13.9 West Porphyry
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1085.5 1088.5 3.0 0.36 4.2 West Porphyry
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1108.0 1114.2 6.2 0.37 6.5 West Porphyry
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UB10-161W7 1017.0 1017.5 0.5 trace 21.9 Contact
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1096.5 1097.0 0.5 1.6 15.2 West Porphyry
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1115.5 1124.0 8.5 1.9 16.4 West Porphyry
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including 1117.0 1119.0 2.0 5.9 60.9 West Porphyry
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UB10-163W1 1258.0 1262.7 4.7 2.52 14.6 East Porphyry
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including 1260.9 1262.7 1.8 3.88 28.7 East Porphyry
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UB10-163W2 1244.0 1256.0 12.0 0.69 4.1 East Porphyry
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including 1244.0 1247.0 3.0 0.89 9.6 East Porphyry
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UB10-163W3 1241.0 1250.0 9.0 0.22 6.0 East Porphyry
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including 1244.0 1250.0 5.5 0.23 9.3 East Porphyry
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UB10-164 1491.0 1492 1.0 0.17 12.6 East Porphyry
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NOTE: True widths are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time. Hole UB10-161W6 intersected alteration associated to the Porphyry Zone with no significant mineralization.
Agnico-Eagle Mines Limited Investment
The strategic investment in the Company by Agnico-Eagle Mines Limited ('Agnico-Eagle') announced on October 28, 2010 closed yesterday. Agnico-Eagle purchased 6,603,774 Units of the Company at $5.30 per Unit for proceeds of $35 million. Each Unit consisted of one common share and one half of a share purchase warrant of Queenston. Each whole share purchase warrant entitles Agnico-Eagle to purchase one common share of Queenston at $6.45 for a period of 36 months. As a result of the private placement Agnico-Eagle owns 8.83% of Queenston's issued and outstanding shares and 11.47% on a fully diluted basis. In addition to the private placement Queenston and Agnico-Eagle will enter into a Technical Services Agreement that will provide Queenston access to Agnico-Eagle's geological and engineering mining team.
Quality Control
The design of the Queenston's drilling programs, 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 Upper Beaver project is supervised by Queenston's Vice President Exploration, William McGuinty, P. Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2009 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, 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.
This news release was reviewed by Queenston's Vice President Exploration and QP, William McGuinty, P. Geo.
About Queenston
Queenston controls a significant land package in the Kirkland Lake gold camp now containing 29 properties, totalling approximately 20,000 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 approximately $70 million in cash and is completing a 2010 exploration budget of $16 million, with 14 diamond drill rigs operating on 8 individual 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