Trading
Symbol:�
SLI
(TSX Venture Exchange)
EKL
(Frankfurt
Exchange)
SELSF
(U.S.
Clearing Symbol)
News Release
2007-19
July 17, 2007
NEWS RELEASE
HIGH GRADE GOLD POCKETS ENCOUNTERED
AT TESORO GOLD PROJECT
, PERU
Lori McClenahan, President of St. Elias
Mines Ltd. (the "Company"), is pleased to announce that an
additional 157.4
tonnes of bulk sample material has been processed and
has returned an average grade of 0.93 oz/t gold
including 4.1 tonnes of 11.2 oz/t.�
These samples were obtained from
development material taken from the ZCV#1 Vein on Zona Canchete and the A4 Vein
System on Zona Central at
the Tesoro Gold Project (the
"Property") in southern Peru
and are part of the
Company's ongoing underground exploration and development program.
Included in this tonnage processed were an
additional 24.1 tonnes of bulk sample material which returned an average grade
of 0.84 oz/t gold from the Zona Canchete.
From Zona Central, a total of 133.3 tonnes of bulk
sample material
has been processed and has returned
a weighted arithmetic average grade of 0.95 oz/t gold including:
�
4.1 tonnes at 11.22 oz/t, 7.1
tonnes at 2.9 oz/t, 43.8 tonnes at 0.59 oz/t and 78.3 tonnes at 0.44 oz/t.
These
bulk samples were processed
by the "carbon-in-pulp" milling facility of Dynacor Mines Incorporated
(T-DYN) located to the north of the Property.�
Sample preparation and analytical work for check assays
was undertaken at
ALS Chemex SA laboratory (an ISO certified 9002 facility)
in Lima
, Peru
using standard industry practice fire assay with AA finish.
To date, St. Elias has identified five
gold-bearing zones at the Tesoro Project (Zona Canchete, Zona Central, Zona
Sur, Zona Incognito and Zona Este) with more than 50 quartz veins
(collectively) having a total combined length of approximately 9.0 kilometres.�
The Company is currently developing only
two (ZCV#1 Vein and A4 Vein) of the more than 50 known veins within two of the
five known mineralized zones identified to date.�
A map showing the location of the zones
within the Project can be viewed at
http://www.steliasmines.com/properties/PeruFig3.pdf
.
Zona
Canchete
continues to provide
consistent (width and grade) high-grade gold results from the ZCV#1 Vein. �
Gold occurs in
quartz veins but not in the adjacent wall rock units (granodiorite.)�
To date, a total of
257.4
tonnes of bulk-sample material averaging 0.96
oz/t gold has
been extracted from ongoing underground exploration and development at the
ZCV#1 Vein.�
This is from only one
of at least five gold-bearing quartz veins identified in this zone.
The A-4 Vein System at Zona Central
comprises one to three veins
and is part of eight other main veins (or vein swarms) with an aggregate length
of approximately 3,000m within an area measuring 1,000m x 1,200m.�
In the A4 Vein System, gold occurs in
quartz veins which contain
high grade pockets (3 - 4 oz/t Au) �
In
addition to gold occurring in the quartz veins, it also occurs in the adjacent
wall rock units (the andesite dyke, fault gouge and fresh granodiorite).
As previously announced, the Company recently
purchased its own diamond drill and related equipment.�
The Company's ownership of a
diamond drill will provide significant savings in drilling costs and
substantially expedite the development of the Project. �
The drill is now in Peru
and will
be on-site shortly, whereupon the Company will begin to implement its
development plan (refer to News Release 2007-17 dated May 10, 2007 for further
details.)
The objective of the Company's development
plan is to define sufficient reserves and resources to achieve a sustainable
economic production rate of 300 to 500 tonnes per month while concurrently
defining resources and reserves.�
This
is a forward-looking statement.�
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties.�
Actual results may differ materially
from those currently anticipated in such statements.�
There is no guarantee that the Company
will achieve these objectives.
Diamond drilling will guide the development
activities at both Zona Canchete and Zona Central.�
The Company has developed a drill plan
for each of the ZCV#1 Vein and the A4 Vein System.�
Initially 4 or 5 strategically placed
holes will be drilled on each system to guide shaft deepening (to 100m) and
level development (at 50m intervals).�
Subsequent systematic drilling (surface and underground) of both vein
systems will follow in order to delineate resources and reserves for
mining.�
Shallow surface drilling is
planned to test the veins with drill holes having a maximum length of 150
metres spaced at approximately 30m centres.�
Surface drilling is needed to plan mine
development which in turn will permit detailed underground drilling to be
undertaken to define stope geometries and grades for mining purposes.
The Tesoro Gold Property is 100% owned by
the Company with no underlying royalties.�
The Tesoro Gold Project is situated in a highland desert plateau in
southwestern Peru
within the well-known Nazca-Oco�a Gold Belt where there are at least 70
known gold deposits comprising narrow but generally high-grade gold-bearing
quartz veins.�
Although the veins
are narrow, the mineralized structures tend to extend along strike for
kilometres and to depths of 1,000 metres.�
Evidence indicates that the Project has the potential to host a million
ounces of gold, or more, within multiple veins traced for an aggregate strike
length of 9.0 kilometres.�
The
potential quantity and grade is conceptual in nature.�
There has been insufficient exploration
to define a mineral resource.�
It is
uncertain if further exploration will result in discovery of a mineral
resource.
The technical information contained in this news
release has been verified by, John Brophy, P.Geo., a Canadian geologist
residing in Peru
,
who is a qualified person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral
Properties.
"
The Company has granted incentive stock
options to certain of the Company's directors, officers, employees and
consultants to purchase up to 500,000 common shares under the Company's
Stock Option Plan.�
The options will
be granted for a period of two years, commencing on July 17, 2007 at a price of
$0.62 per share.
For additional information on St. Elias
and its projects, please visit us at www.steliasmines.com or call
1-888-895-5522 (toll free US and Canada
).
ST. ELIAS MINES LTD.
(signed "Lori McClenahan")
Lori McClenahan,
President
The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or the accuracy of
the contents of this document.
This
News Release may contain forward-looking statements including, but not limited
to, comments regarding the timing and content of upcoming work programs,
geological interpretations, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and therefore
involve inherent risks and uncertainties. Actual results may differ materially
from those currently anticipated in such statements