trading day over chk out this SLI PERUNews Release 2006-15
September 14, 2006
TESORO GOLD PROJECT, PERU
Underground Face Sample Results Include a 7m Vein Segment of 3.73 opt Au and
60m Vein Segment of 1.48 opt Au (including 16m of 2.75 oz/t)
Lori McClenahan, President of St. Elias Mines Ltd. (the “Company”), is pleased to announce the following results of channel (or face) samples taken from Zona Canchete Vein #1 (“ZCV#1 Vein”) during the ongoing underground exploration and development of the Tesoro Gold Project located in southwestern Peru. A total of 58 channel samples returned an average gold grade of 1.12 opt and included 7m of 3.73 opt and 60m of 1.48 opt (including 16m of 2.75 opt.)
During the past year, the Company has continued with its underground development and bulk sampling program at the ZCV#1 Vein, having decided that superior exploration information would result from drifting than from drilling. To date, the Company has completed a total of 282.4m (926ft) of underground development. The ZCV#1 Vein has been traced along strike for approximately 100m and to a depth approaching 60m - mineralization is consistent both along
strike and to depth.
During the course of the underground development, 58 channel samples (“face samples”), each weighing approximately 4kg, were collected from the ZCV#1 Vein. All 58 face samples were consistently well-mineralized with gold grades as high as 6.85 opt (235g/t). The average grade of all 58 face samples was 1.12 opt (38.4g/t) gold over an average vein width of 16.8cm (6.6 inches). Highlights of the face samples include:
• On the 20m level: 7m segment of 3.73 opt (127.6g/t) gold
• On the 40m level: 60m segment grading 1.48 opt (47.98g/t) gold
including a 16m segment of 2.75 opt (93.92g/t) gold
The face samples are channel samples collected using sledgehammers and chisels to obtain complete cross-width sample of the ZCV#1 Vein at a nominal spacing of 2 meters. The samples were analyzed for gold by fire assay with an atomic absorption finish, or a gravimetric finish for those samples carrying greater than 10g/t, at the ALS Laboratories (an ISO 9002 facility) in Lima.
The Company has also completed two shipments (totalling approx. 120 tonnes) of a bulk sample from the ZCV#1 Vein. The first bulk sample ( 53.7 tonnes) returned a grade of 1.56 opt gold and the second bulk sample (66.1 tonnes) returned a grade of 0.874 opt gold. The average gold grade of both samples was 1.18 opt.
Based on underground exploration results to date, the Company is convinced that the ZCV#1 Vein is sufficiently consistent in three dimensions and that a more concerted effort is warranted
for a second stage of exploration, which is to establish that, on the ZCV#1 Vein alone, the scale of operations can be upgraded to recoup all investment costs and to demonstrate profitability.
All technical work is being supervised by, and the technical information contained in this news release have been verified by, John Brophy, P.Geo., a Canadian geologist residing in Peru, who
is an independent qualified person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Projects.”
The Tesoro Gold Project is situated in a highland desert plateau in southwestern Peru.