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April 11, 2012 Toronto, Ontario - QUEENSTON MINING INC. (QMI-TSX, Frankfurt, QNMNF-OTCQX) (“Queenston or the Company”) is pleased to announce results from 107 surface diamond drill holes (44,296 m) from the 100% owned Upper Canada property located in Kirkland Lake, Ontario. This phase of drilling has encountered high grade intersections in the Upper L Zone and the H, M & Q Zones that expand both the underground and pit potential of this large gold system.
HIGHLIGHTS:
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Upper L Zone
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H,M & Q Zones
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These and other significant assay results from the recent phase of drilling are listed in Table 1 accompanying this news release.
To view the summary list of assay results, please click on the thumbnail below:
Charles Page, President and CEO of Queenston states, “Recent drilling at Upper Canada continues to delineate the open-pit and underground bulk-mining potential of the Upper L Zone and boosts the H, M & Q Zones as well. The new results not only confirm the continuity of the mineralization but also indicate the high-grade nature of material that remains adjacent to the old mine workings. New holes at the C, K, Brock North and Northland were successful in both defining and expanding these zones. Two drills continue to operate at Upper Canada as we prepare to update the mineral resource due in the third quarter. We believe Upper Canada will be an important source of long-term feed to a future centralized milling complex that will be anchored by our high-grade Upper Beaver mine. The company maintains a strong financial position with cash and short-term investments of approximately $80 million. This includes $10 million cash recently received as a non-refundable deposit on the $60 million sale of our joint venture properties to Kirkland Lake Gold with a further $20 million cash payment due on August 30, 2012 and the $30 million balance due on December 3, 2012.”
To view Figure 1, “Surface Plan of Gold Zones”, please click on the thumbnail below:
About Upper Canada
Upper Canada was an important past gold producer in the camp from 1936 to 1972. During that period the mine produced 1.5 million ounces of gold at an average grade of 11 g/t Au from narrow, steeply dipping 2 m wide veins. The mine closed in 1972 due to the low gold price and there remains beyond the limits of the existing NI 43-101 mineral resource a historic measured and indicated resource of 774,000 t grading 7.7 g/t Au (approximately 192,000 ounces) in the deep Lower L Zone. The historic mineral resources at Upper Canada were reviewed by Roscoe Postle and Associates in a report prepared for the Company in 1995 and should not be relied upon as the report is not compliant to NI 43-101 and the resource has not been verified by a Qualified Person.
The new drilling announced in this News Release and all of the remaining 2011 drill holes are not included in the initial mineral resource that was announced on May 4, 2011. The in-pit indicated resource comprises 1,721,000 t grading 1.88 g/t Au (104,000 oz) and the in-pit inferred resource contains 1.273,000 t grading 1.86 g/t Au (76,000 oz). The initial mineral resource also contains an underground indicated resource of 238,000 t grading 4.25 g/t Au (33,000 oz) and an underground inferred resource of 3,622,000 t grading 4.78 g/t Au (557,000 oz). The mineral resource estimate was prepared in accordance with NI 43-101 by P&E Mining Consultants Inc. of Brampton, Ontario under direction of Qualified Person Eugene Puritch, P. Eng. For details of the mineral resource see Queenston news release dated May 4, 2011.
Upper L Zone
The Upper L Zone is one of seven individual zones that were mined at Upper Canada from 1936 to 1972. Previous gold production from the Upper L Zone amounted to 439,000 oz from 1.3 million tonnes grading 11 g/t Au. The material mined from the L Zone represented narrow 2-3 m wide, vertical discontinuous stopes from near surface to a depth of 500 m and along a strike length of 500 m. As part of building a mine model for Upper Canada it became evident that the historic production was focussed on a core of narrow high-grade mineralization within a 10 to 90 m wide envelope of lower grade material. This lower grade envelope has been part of the exploration focus at Upper Canada over the past two years and has resulted in the definition of initial in-pit indicated and inferred mineral resources as well as deeper inferred resources potentially accessible using underground bulk mining methods. The surface projection of the Upper L Zone forms part of these resources.
The new drilling continues to target the Upper L Zone with a goal of outlining a mineral resource amenable to both open-pit and bulk underground mining. A total of 37 new holes or extensions of holes are reported from the Upper L Zone displaying geological continuity both along strike and dip of the mineralization. High-grade intersections from the Upper L Zones include, 11.5 g/t Au over 5.5 m (UC11-393), 10.0 g/t Au over 7.0 m within 2.39 g/t Au over 48.7 m (UC12-15E) and 9.67 g/t Au over 7.1 m within 8.16 g/t Au over 11.6 m (UC11-394). Wider intersections within the Upper L Zone report 4.47 g/t Au over 37.2 m including 8.44 g/t Au over 7.3 m (UC11-372), 4.40 g/t Au over 26.2 m including 10.8 g/t Au over 3.9 m (UC11-188E), 3.89 g/t Au over 17.7 m including 9.57 g/t Au over 6.1 m (UC12-435), 3.69 g/t Au over 13.7 m including 11.5 g/t Au over 3.7 m (UC11-187E), 3.23 g/t Au over 22.9 m including 14.1 g/t Au over 3.1 m (UC11-416) and 3.13 g/t Au over 14.6 m including 16.2 g/t Au over 0.9 m (UC12-420).
H, M & Q Zones
The H, M & Q Zones reported past production of 203,500 oz from 402,400 t grading 15.8 g/t Au. A portion of these zones form part of the pit resource on this area of the property.
The drilling tested the H, M & Q Zones with 33 holes or extensions of holes that continued to expand and define this shallow mineralization. Like the Upper L Zone the H, M & Q Zones offer the opportunity for bulk underground mining on this vertically-dipping mineralization. High-grade intersections from the H, M & Q Zones report 42.4 g/t Au over 5.5 m including 251.0 g/t Au over 0.9 m (UC11-277), 22.9 g/t Au over 6.6 m including 49.6 g/t Au over 2.2 m (UC12-415) and 13.2 g/t Au over 5.5 m (UC11-405). Wider intersections within the H, M & Q Zones include 3.53 g/t Au over 24.2 m including 10.2 g/t Au over 3.0 m (UC11-274), 2.71 g/t Au over 29.9 m including 16.8 g/t Au over 1.0 m (UC11-275), 2.45 g/t Au over 31.8 m including 26.1 g/t Au over 1.0 m (UC11-277), 3.32 g/t Au over 12.9 m including 9.86 g/t Au over 1.8 m (UC11-280), 2.09 g/t Au over 17.4 m including 9.72 g/t Au over 1.0 m (UC11-276) and 1.74 g/t Au over 18.3 m (UC11-278).
C Zone
Seven holes, including one wedged hole were completed in the C Zone that contains an initial, underground indicated mineral resource of 238,000 t grading 4.25 g/t Au (33,000 oz) and an underground inferred resource of 3,622,000 t grading 4.78 g/t Au (557,000 oz). The new drilling both continued to confirm and expand the mineralization with key intersections of 24.3 g/t Au over 0.9 m (UC11-340), 5.69 g/t Au over 3.7 m (UC11-397), 3.44 g/t Au over 7.3 m (UC12-395W1), 8.29 g/t Au over 1.9 m and 5.38 g/t Au over 2.7 m (UC11-395).
Past production from the C Zone amounts to 33,000 oz from 125,000 t grading 8.2 g/t Au. This strong multi-zone target remains open to depth and to the west and occurs along a splay structure off the main Upper Canada Break.
Northland Zone
The Northland Zone was originally discovered in 2011 and is located approximately 1,200 m northwest of #2 shaft of the Upper Canada mine. The original discovery holes intersected broad zones of low grade mineralization and five new holes have confirmed the shallow nature of this zone with intersections of 0.97 g/t Au over 36.6 m (UC11-359), 0.96 g/t Au over 14.7 m (UC11-360) and 0.50 g/t Au over 22.9 m (UC11-360).
K Zone
Follow-up drilling of the K Zone has continued to define significant mineralization associated with a zone of albitite that is similar to the alteration associated with the Upper Canada Mine located approximately 1.5 km to the east. Eleven new holes targeted this zone intersecting, 4.77 g/t Au over 11.9 m (UC11-383), 4.06 g/t Au over 7.3 m (UC11-384), 5.50 g/t Au over 5.5 m and 6.61 g/t Au over 2.7 m (UC12-426A), 1.88 g/t Au over 32.9 m (UC11-318) and 3.99 g/t Au over 6.4 m (UC11-362). The zone remains open to depth, to the west and east.
Brock North
Drilling continued to define the Brock North Zone, a shallow new discovery located approximately 640 m north of the main Upper Canada #1 production shaft. Ten holes targeted this zone reporting significant intervals of 5.91 g/t Au over 5.1 m (UC11-344), 0.88 g/t Au over 40.9 m (UC11-348), 2.01 g/t Au over 7.2 m (UC11-349) and 8.67 g/t Au over 2.1 m (UC11-374). The Brock North Zone remains open to depth and to the west.
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 Canada project is supervised by Queenston’s Senior Geologist, Frank Ploeger P.Geo. A detailed review of Queenston’s QA/QC procedures is filed in the 2011 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 Senior Geologist and QP, Frank Ploeger, P.Geo.
About Queenston
Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 230 km² of prime exploration lands. The Company’s assets include 6, 100%-owned gold deposits, all with NI 43-101 compliant mineral resources and ongoing exploration and development. The objective of the Company is to advance the flagship project towards feasibility and production. The Upper Beaver project is currently being permitted for Advanced Exploration leading to new shaft development beginning in 2012. The Company is also very active in exploring and advancing the other five 100%-owned deposits that will provide additional feed for a central milling facility. The Company currently has cash and short-term investments of approximately $80 million, no debt and a fiscal 2012 budget for exploration of $25 million and $10 million for advanced exploration.
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Charles E. Page, P. Geo. President and CEO
Phone: (416) 364-0001 (ext. 224)
E-mail: cpage@queenston.ca
Fax: (416) 364-5098
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Andreas Curkovic, Investor Relations
Phone: (416) 577-9927
Ann Gibbs, Investor Relations
Phone: (416) 627-8872
email: ann@anngibbspr.com
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FORWARD LOOKING STATEMENTS
This news release may contain certain statements reg
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