Queenston and Kirkland Lake Gold Report a High Grade Mineral Resource on the South Claims JV
TORONTO, ONTARIO–(Marketwire – July 16, 2008) – Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) (“Queenston” or the “Company”) is pleased to announce that joint venture partner Kirkland Lake Gold Inc. (“KL Gold”) has completed a NI 43-101 mineral resource calculation 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%) where advanced underground exploration is targeting the New South Mine Complex (“SMC”), a new gold zone that is being developed at the adjacent Macassa Mine.
KL Gold, operator of the JV, reports that an indicated mineral resource of 43,000 tons (39,010 tonnes) grading 1.11 oz/ton (38.1 g/ t) containing 48,000 oz of gold and an inferred mineral resource of 73,000 tons (66,225 tonnes) grading 1.24 oz/ton (42.5 g/t) containing 91,000 oz of gold has been outlined along the northern portion of the JV property. Queenston’s share of the resource is 50% or 24,000 oz in the indicated category and 45,500 oz in the inferred category.
The mineral resource is based on underground drilling that was completed earlier this year targeting the New South Zone of the SMC that trends onto and remains open on 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 National Instrument 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 thirty days of this press release.
“The presence of a high grade mineral resource at this very early stage of exploration is encouraging and indicates strong potential for the remainder of the property,” stated Charles Page, President and CEO of Queenston. “We are looking forward to the next stage of advanced exploration that will include further resource definition drilling.”
The Joint Venture has approved a $1,044,000 program to further explore the SMC on the JV property using the 5300′ level of the Macassa Mine as a platform. Queenston’s portion of the program, to maintain a 50% interest in the JV, is $413,000. The program is currently in progress and will include 1,100 ft (335 m) of lateral development with a minimum of 10,800 ft (3,300 m) of underground diamond drilling.
Table of Mineral Resources on the South Claims JV Property —————————————————————— Mineral Resource____ Tons____ Grade____ Tonnes____Grade____ Ounces ____________________________(oz/ton)______________ (g/t) —————————————————————— —————————————————————— Indicated__________43,000______1.11____ 39,010____ 38.1____ 48,000 —————————————————————— Inferred__________ 73,000______1.24____ 66,225____ 42.5____ 91,000 ——————————————————————
The following lists the criteria employed by KL Gold in calculating reserves and resources for the Macassa Mine and South Claims JV property:
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 6.5 feet.
3. Dilution is added to reserves at varying rates depending on mining method, and the width of the ore. The average dilution of the reserves at April 2008 is 33.7% at 0.02 ounces of gold per ton. Long hole stopes are diluted by 32-50%, mostly 50%. Cut and fill stopes 5- 7 feet wide are diluted 15-50%. Most of the narrower stopes are diluted by 50%. Cut-and-fill stopes that are greater than 7 feet wide are diluted 10-15%.
4. All higher grades are cut to 3.50 ounces of gold per ton. 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 cut- off is 0.25-0.30 ounces of gold per ton over the horizontal or vertical mining width.
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. Ore blocks that grade between 0.20 oz/ton and the cut-off have been classified as resource.
6. A 94% tonnage recovery is used. Continuity of the veins appears very good.
7. The assumptions used include $582.00 U.S. per ounce of gold, and an exchange rate of $1.13 Canadian equals U.S. $1.00 ($656.00 Canadian per ounce equals 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 do not have demonstrated economic viability.
This news release was reviewed by Queenston’s Chief Geologist and qualified person Wayne Benham, P. Geo.
Queenston is a mineral exploration and development company with a primary focus on gold in two historic mining camps, Kirkland Lake, Ontario and Cadillac, Quebec. The Company’s strategy is to return to producer status through the advancement of our primary gold assets in Kirkland Lake, Ontario (Upper Beaver, McBean, Anoki and Upper Canada) and in Cadillac, Quebec (Ironwood) towards NI 43-101 resource status. In the western portion of the Kirkland Gold camp, Queenston is 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 Amalgamated Kirkland property. Queenston is well financed with working capital of $20 million to meet its exploration activities.
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.
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