Here is the NewsST ELIAS MINES LTD
St. Elias Mines Ltd. -- 157.4 Tonne Bulk Sample Returns Average Grade of 0.93 Oz/T Gold Including 4.1 Tonnes of 11.22 Oz/T Gold at Tesoro Gold Project, Peru
7/17/2007
VANCOUVER, BRITISH COLUMBIA, Jul 17, 2007 (Canada NewsWire via COMTEX News Network) --
St. Elias Mines Ltd. ("the Company") (TSX VENTURE:SLI) (ISIN CA7849211080) (FWB:EKL) announces 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 11.22 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 https://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-Ocona 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
SOURCE: St. Elias Mines Ltd.
St. Elias Mines Ltd. Lori McClenahan Telephone: 604-669-4677 Facsimile: 604-669-9626 Toll Free: 888-895-5522 Web Site: www.steliasmines.com