2012 exploration - $25 million
Exploration and development of Gold deposits - Kirkland Lake Gold camp
Message: Newstrike and Queenston Jointly Option Commodore Gold Property
| February 10, 2009 |
| Newstrike and Queenston Jointly Option Commodore Gold Property, Kirkland Lake Area, Ontario |
| TORONTO, ONTARIO--(Marketwire - Feb. 10, 2009) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") and Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:Q... ("Queenston") announce that they have entered into an option agreement with a third party to each purchase an undivided 50% interest in 36 mineral claims (12 patented claims and 24 unpatented claims) (600 ha) located in the historic Kirkland Lake gold camp. The claims form the Commodore property that covers a favourable gold horizon hosting a shallow historic mineral resource and a high grade gold showing. Under terms of the agreement, to earn a 100% interest in the property Newstrike and Queenston have each paid the vendor $5,000 cash and within 180 days will pay a further $95,000 cash each and issue 35,000 shares of Newstrike and 10,000 shares of Queenston. There are no underlying royalties on the property. The property is located north of the Larder Lake Break straddling the Lebel - Gauthier Township line covering an altered and mineralized volcanic assemblage of Timiskaming rocks that elsewhere in the camp hosts the 24 million ounce Kirkland Lake Main Break gold deposits located 12 km to the west and the 1.5 million ounce Upper Canada gold mine 3 km to the east. The most recent exploration on the property was completed by Sudbury Contact Mines Limited in 1995-96. During that period, a 23 hole, 4,625 m diamond drilling program resulted in a new gold discovery on the southern portion of the property referred to as the Commodore Zone. The zone represents a brecciated, silicified-carbonate horizon at a volcanic - tuff contact containing pyrite, chalcopyrite, magnetite and visible gold. It dips 60 degrees south and remains open below 180 m. The drilling led to the calculation of an inferred mineral resource containing 670,000 tonnes ("t") grading 2.4 grams per tonne ("g/t") gold ("Au") (51,660 oz) including a higher grade core of 278,500 t grading 3.8 g/t Au. The resource was calculated by Lorne Burden of W.A. Hubacheck Consultants Limited in a report dated January 1997 filed with the Ontario Ministry of Northern Development and Mines. This resource is not compliant to National Instrument 43-101 and should not be relied upon as it has not been verified by a qualified person. Highlights from the previous drilling on the Commodore Zone include 12.4 g/t Au over 6.8 m in hole Egg- 8, 7.1 g/t Au over 5.1 m in hole Egg-11 and 4.1 g/t Au over 6.4 m in hole Egg-13. Hole Egg-4, targeting a separate geophysical anomaly on the southwestern portion of the property intersected a high-grade gold intersection assaying 43.5 g/t over a core length of 1.5 m. This gold zone was never followed up and remains open along strike and to depth. The Commodore property is favourably located relative to major gold structures and a variety of gold deposits in the camp (see attached Property Map available on both Newstrike and Queenston websites). The property ties onto a large package of claims owned by Queenston that hosts four gold deposits, the 180 East Zone, Upper Canada, Anoki and McBean. The property also covers the same geological formation that hosts gold mineralization on Newstrike's, Kirkland Lake East property, located 0.5 km to the west, that includes the Morris Mine which historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936 to 1941. Newstrike and Queenston will form a joint venture to further explore the Commodore property and plan a first phase program comprising IP geophysics and diamond drilling targeting both the Commodore Zone and the high-grade mineralization in hole Egg-4. About Newstrike Newstrike is an early stage gold exploration company with property assets located primarily in the Kirkland Lake area of Ontario. The Company owns a 100% interest in the Kirkland Lake East property that hosts the past producing Morris Mine, is earning a 50% interest in the Commodore property and owns a 100% interest in the Swansea property. The Company's strategy is to carry out exploration on their advanced properties with the purpose of defining economic deposits. Newstrike has working capital of approximately $1.1 million. About Queenston Queenston is a mineral exploration and development company with a primary focus in the historic Kirkland Lake gold camp where the Company maintains a land package that contains approximately 14,000 hectares in 900 mineral claims. In Kirkland Lake the Company's strategy is to return to producer status through the advancement of four 100% owned gold deposits in Gauthier Township (Upper Beaver, McBean, Anoki and Upper Canada) and through a joint venture with Kirkland Lake Gold Inc. in Teck Township. The Company has four diamond drills operating in the camp. In the east, a single drill continues to explore the mineralized corridor at Upper Beaver following up on a deep, high grade intersection recently announced in drill hole UB08-137 that assayed 30.3 g/t Au with 1.0% Cu over 20.8 m. This intersection occurs some 200 m below a NI 43-101 indicated resource of 1,373,500 t grading 8.5 g/t Au with 0.43% Cu and inferred resource of 1,061,300 t grading 7.7 g/t Au with 0.39% Cu (see news release dated December 16, 2008). At McBean, two drills continue a second phase of drilling to advance the deposit to NI 43-101 status and test deeper targets. In the western portion of the camp, one drill is operating on the 100% owned AK property targeting the down-dip projection of the South Mine Complex ("SMC") that hosts significant high-grade gold mineralization on the neighboring South Claims property owned by joint venture partners Queenston and Kirkland Lake Gold. On the South Claims property, the joint venture has recently completed further drilling to expand an existing NI43-101 indicated resource of 39,000 t grading 38.1 g/t and inferred resource of 66,200 t grading 42.5 g/t (see news release dated November 18, 2008). Queenston has working capital of approximately $16 million. Charles E. Page, P. Geo. is the qualified person responsible in preparing this news release. |
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