TORONTO, ONTARIO--(Marketwire - Feb. 23, 2011) - QUEENSTON MINING INC. (News - Market indicators)(FRANKFURT:QMI) ("Queenston" or "the Company") announces results from 9 new diamond drill holes completed on the 100% owned Upper Beaver property located in Kirkland Lake, Ontario. Significant results are summarized below and presented in the table. The location of the new holes are provided on the longitudinal section accompanying this news release and available on the Company's website (www.queenston.ca).
Highlights from the drilling program:
10.8 g/t Au with 1.2% Cu over 4.3 m in hole UB10-163W6
7.0 g/t Au with 0.70% Cu over 5.0 m in hole UB10-163W5
10.8 g/t Au over 3.0 m and 4.9 g/t Au over 6.0 m in hole UB10-165
12.9 g/t Au with 0.2% Cu over 5.0 m and 7.2 g/t Au with 0.2% Cu over 4.0 m in hole UB10-170W2
Eastern Deep Area – "drilling extends mineralization eastward"
- New pilot hole UB10-165 intersected 4.9 g/t Au over 6.0 m and 10.8 g/t Au over 3.0 m extending the deposit a further 100 m east of previous hole UB09-139W3 (10.0 g/t Au with 0.50% Cu over 6.0 m) at the -1000 m elevation. New wedge hole UB10-163W6 intersected 10.8 g/t Au with 1.2% Cu over 4.3 m extended the deposit a further 50 m east of previous hole UB10-163 (90.1 g/t Au with 0.33% Cu over 3.0 m). Other in-fill holes in the eastern deep area of the deposit include 9.9 g/t Au with 0.1% Cu over 0.7 m (hole UB10-165W1), 14.5 g/t Au over 1.0 m (hole UB10-165W2) and 7.0 g/t Au with 0.70% Cu over 5.0 m (hole UB10-163W5). The mineralization in the eastern deep area of the deposit remains open to the east and below a depth of 1200 m.
Western Deep Area – "drilling extends mineralization westward"
- Three new holes were completed in the western deep area of the deposit all intersected the primary Porphyry Zones with gold intervals of 7.2 g/t Au with 0.2% Cu over 4.0 m and 12.9 g/t Au with 0.2% Cu over 5.0 m in hole UB10-170W2, 3.7 g/t Au with 0.2% Cu over 2.3 m and 8.1 g/t Au over 0.5 m in hole UB10-170 and 9.7 g/t Au with 3.6% Cu over 1.0 m, 15.5 g/t Au with 0.7% Cu over 0.5 m and 8.2 g/t Au over 1.0 m in hole UB10-170W1. These holes centered at approximately 900 m below surface are approximately 50 m above and west of hole UB10-161W2 (17.3 g/t Au with 1.2% Cu over 10.5 m). The mineralization in the western deep area of the deposit remains open to the west and below a depth of 1200 m.
In 2011 the Company's budget for the Upper Beaver property is approximately $4 million. It will focus on further exploration to both expand the existing limits of the deposit as well as test new targets that display similar Upper Beaver geological and geophysical signatures. Also as part of the 2011 budget the Company has initiated base line studies, permitting and consultation in order to advance the project towards "advanced exploration" in 2012. During the advanced exploration stage development of new underground access to the deposit will be used to advance the project towards feasibility.
Charles Page, Queenston President and CEO, said, "We are pleased with the new results from the Upper Beaver drilling that continue to confirm continuity and expand the size of the deposit. The new holes have extended the mineralization east - west and as a result, the deposit now exhibits a length approaching 500 metres. The deposit remains open along strike and to depth and drilling continues with three rigs as the Company prepares to update the first mineral resource that was announced in late 2008. Upper Beaver is growing into a significant sized gold-copper deposit that forms a cornerstone in the Company's strategy to return to producer status."
Table of Assay Results
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.
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.
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.
Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp that comprises 200 km². The Company has recently entered into a strategic alliance with Agnico-Eagle Mines Limited with the objective of advancing its key, 100% owned gold projects (Upper Beaver, Upper Canada, McBean, Anoki and Bidgood) at the Kirkland East project towards feasibility and ultimately production. The Company has working capital of $80 million as of December 31, 2010, no debt and a 2011 exploration budget of $25 million.
Queenston's Cautionary Note Regarding NI 43‐101 and 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