Base metal assays revive Queenston

One of five recent holes drilled by Queenston Mining (TSE) and Strike Minerals (COATS) on their 127-claim Robertson Twp. property has intersected 14.3 ft. grading 0.93% copper and 5.17% zinc. The claims are about 15 miles north of Matachewan, Ont., and were acquired from Allan Willy, a geological consultant who has worked in the area for nearly two years. Queenston holds a 60% interest in the property with the remaining interest held by Strike.

The 3,730-ft. drill program tested portions of a moderate strength electromagnetic anomaly which has been traced on surface for more than 1,000 ft. in length, the companies said.

Significant base metal assays encountered in the discovery holes are reported as follows: 0104,0005,0304,0004,0201,0005,0200,0004,0103 From-ToInterval Copper Zinc Hole (ft.) (ft.) (%) (%) 1 304.8-311.8 7.0 0.53 0.12 2 660.0-675.015.0 0.35 0.02 3 552.6-583.530.9 1.45 0.47 736.5-748.011.5 0.47 0.02 789.0-789.09.0 1.12 0.10 4 605.0-619.314.3 0.93 5.17 742.0-772.230.2 0.51 0.08

The first two holes, drilled on the same section, tested the western portion of the EM anomaly, while the other two tested the central part of the anomaly. The copper values in the last two holes came from multiple zones within a 300-ft. thick cherty sulphide horizon.

Down-hole pulse geophysical surveys are under way on the holes and indicate strong off-hole EM responses, the companies said. The fifth hole in the program will test one of those responses. It is expected that a follow-up 10,000-ft. drill program will get under way in February.

A joint venture agreement is also being formed between the two companies which will include the right for Queenston to finance Strike’s portion of the exploration expenditures through private placements. Under the deal, Queenston may acquire up to 500,000 shares of Strike at $1 per share during the first 12 months, and thereafter the financings will be priced at market less a discount.

In return, Queenston has granted Strike the right to acquire up to 250,000 treasury shares of Queenston at $2 per share during the exploration period. The joint venture agreement is subject to regulatory approval and is expected to be finalized in February.