Strong drill results from Queenston

Queenston Mining (QMI-T) has completed nine new drill holes at its wholly owned Upper Beaver gold-copper deposit in Kirkland Lake, Ont. 

“The new holes confirm both the quality and continuity of mineralization within the known limits of the deposit,” Charles Page, Queenston’s president and CEO, said in a press release. He added the company was “surprised” by the results of the first hole in the upper portion of the project, which hit a broad gold mineralization zone that may be open to bulk-mining methods. 

That hole, no. 11-177, cut 98 metres grading 2.41 grams gold per tonne with 0.10% copper. The 98-metre interval included 26 metres of 4.97 grams gold. Farther down in that hole, Queenston hit two new zones of gold-copper mineralization with assays returning 2 metres of 9.59 grams gold with 3.49% copper, and 1 metre of 8.05 grams gold with 2.02% copper. 

Queenston drilled five holes on the eastern portion of Upper Beaver between 950 to 1,110 metres depth. All five hit the Porphyry zone, which hosts 80% of the resource. Highlights include hole 11-174W3, which hit the thickest zone of mineralization grading 13.15 grams gold and 1.14% copper over 14 metres. Wedge hole 11-175W1 returned two high-grade intervals of 122.82 grams gold over 1 metre and 21.42 grams gold with 0.54% copper over 6 metres.

 Hole 11-174W2 carried an interval of 10 metres grading 5.61 grams gold with 0.52% copper. 

On the western portion of Upper Beaver, the miner drilled three wedge holes from the previously reported pilot hole 10-170 at a minus 900-metre elevation. All three hit the Porphyry zone. 

Notable intercepts include 11 metres grading 3.53 grams gold with 0.11% copper, and a 7-metre interval of 5 grams gold with 0.10% copper; and 10.45 grams gold with trace copper over 2 metres. 

The company says drilling will continue to focus on the upper portion of the deposit where mineralization exists within and outside the limits of the old mine workings. Queenston will also start step-out drilling to the east and west to test the horizontal limits of Upper Beaver, which remains open. 

Mined irregularly from 1912 to 1972 by a handful of operators, the deposit produced a reported 141,000 oz. gold and 11.9 million lbs. copper from 526,678 tonnes grading 8.31 grams gold and 1.03% copper, to a depth of 365 metres. 

A May 2011 resource estimate put Upper Beaver’s capped gold resources at 690,000 oz. gold, based on 3.07 million tonnes at 6.98 grams gold with 0.54% copper in the indicated category. It has another inferred 616,000 oz. capped gold resources from 3.09 million tonnes at 6.19 grams gold with 0.41% copper. 

The company is toying with the idea of developing a new mine at the deposit. It has commissioned a preliminary economic assessment to determine how feasible that is. 

Queenston is also advancing the 100%-owned Upper Canada, McBean-Anoki and Bidgood projects at the historic Kirkland Lake gold camp.

Queenston says it aims to outline a 6-million-oz. gold resource at those projects, along with Upper Beaver, that would feed a central mill to be built on the Upper Canada site.

The debt-free company, which has a cash cushion of $65 million, has budgeted $25 million this year to advance eight of its projects.

Agnico-Eagle Mines (AEM-T, AEM-N) bought 9% of the junior in late 2010 for $35 million. Queenston holds claims covering 230 sq. km of the historically significant gold-producing region. 

On the drill results, Queenston gained 2.8% to close at $6.48.