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Press release from Marketwire

Queenston Announces an Initial NI 43-101 Resource at Bidgood and New Drilling Results Including 38.8 g/t Au Over 4.0 m True Width

Monday, October 17, 2011

Queenston Announces an Initial NI 43-101 Resource at Bidgood and New Drilling Results Including 38.8 g/t Au Over 4.0 m True Width09:00 EDT Monday, October 17, 2011TORONTO, ONTARIO--(Marketwire - Oct. 17, 2011) -QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("the Company") is pleased to announce an initial National Instrument ("NI") 43-101 open-pit mineral resource estimate and new drilling results from 21 holes (5,624 m) received after completion of the initial resource estimate on the Company's 100% owned Bidgood property located in Lebel Township, Kirkland Lake, Ontario.Mineral Resource (Open Pit and Underground)• Indicated Mineral Resource of 1,464,000 t grading 1.69 g/t Au capped (79,000 oz).Uncapped grade sensitivity of 1,490,000 t grading 2.60 g/t (125,000 oz)• Inferred Mineral Resource of 318,000 t grading 2.02 g/t Au capped (21,000 oz).Uncapped grade sensitivity of 382,000 t grading 4.53 g/t (56,000 oz)•Drilling shows potential for both open pit and underground resource growth.The initial mineral resource was prepared in accordance with NI 43-101 by P&E Mining Consultants Inc., of Brampton, Ontario, incorporating 114 surface diamond drill holes (14,402 m) completed during 2010-11 and 23 historic holes (3,632 m) drilled by previous operators. Indicated and Inferred mineral resources have been delineated at the South Zone (located at the southern limit of the past-producing Bidgood Mine) and at the Boundary Zone located 1,000 m east of Bidgood.Charles Page, Queenston president and CEO, said, "We are pleased with the initial mineral resource defined to date at the Bidgood property. It has taken just over a year to delineate these at-surface deposits since acquiring the property through the merger with Vault Minerals in 2010. Only 17% of the former mine footprint has been drilled to resource status to a depth of 150 m and new drill intersections including 38.8 g/t Au over 29.85 m in hole BG11-129, 5.22 g/t Au over 11.75 m in hole BG11‐139 and 1.49 g/t Au over 21.10 m in hole BG11‐34A have been intersected outside the existing resource outline. Two diamond drill rigs continue to operate at Bidgood and drilling costs to date to outline these new resources amount to $9.01/oz cut or $5.00/oz uncut. With the addition of Bidgood, the Company's total NI 43-101 Measured and Indicated resource base has grown to 1.47 million oz and Inferred resources to 1.94 million oz."The 3,100‐acre Bidgood property hosts the past‐producing Bidgood Mine that historically produced 165,000 oz of gold from 1934‐51 at a recovered grade of 9.2 g/t Au. The current drilling program, employing two diamond drill rigs, is focused along the Bidgood Mine gold corridor which has not been effectively explored since the mine shut down. One drill is dedicated for resource definition drilling and expansion at South Zone and the other drill is targeting the numerous vein systems that remain open above, below and along trend of the mine footprint. At the North Zone, near the Bidgood #2 shaft, the drilling is targeting primarily narrow, high-grade mineralization. The South Zone located in the vicinity of the Moffat-Hall shaft, displays the potential for both high-grade and low-grade near surface mineralization that has now been developed into an initial open-pit resource.Table 1: Bidgood and Boundary In-Pit and Underground Mineral Resource EstimateCappedINDICATEDINFERREDCut-Off Au g/tTonnesAu g/tAu ozTonnesAu g/tAu ozPit 0.42 g/t1,438,0001.6676,000242,0001.6813,000UG Below Pit 2.3 g/t26,0003.283,00076,0003.098,000Total1,464,0001.6979,000318,0002.0221,000Uncapped SensitivityINDICATEDINFERREDCut-Off Au g/tTonnesAu g/tAu ozTonnesAu g/tAu ozPit 0.42 g/t1,447,0002.47115,000246,0002.8823,000UG Below Pit 2.3 g/t43,0007.0510,000136,0007.5233,000Total1,490,0002.60125,000382,0004.5356,000(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although the Company is not aware of any such issues.(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.(3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.(4) Grade capping of 7 g/t was utilized on raw assays for Boundary, 15 g/t for 20 Vein, and 22.5 g/t for the rest of Bidgood.(5) A bulk density of 2.87 t/m3 was used for all tonnage calculations.(6) A gold price of US$1,300/oz and an exchange rate of US$0.98 US=C$1.00 was utilized in the Au cut-off grade calculations of 0.42 g/t for open pit and 2.3 g/t for underground. Open pit mining costs were assumed at C$3.00/t for mineralized material, C$2.50/t for waste rock and C$1.75/t for overburden, while underground mining costs were assumed at C$75/t, with process costs of C$12/t and G&A of C$5/t. Process recovery was assumed at 95%.(7) Values in the table may differ due to rounding.(8) The area of influence of the indicated category is 20m up/down dip, 15m along strike, and 10m across dip from a known sample point (drill holes), with a minimum 2 drill holes and max of 20 samples; other blocks within the hard-wireframe/ constrain are coded as inferred.(9) The open pit resource is reported within a Whittle optimized pit shell.The initial resource estimate was compiled on 3 of the 23 sub-vertically dipping gold zones that occur at Bidgood. The South Zone resource has been delineated over length of 230 m, to a depth of 100 m and over a width of 30 -40 m and amounts to 1,175,000 t in the Indicated category grading 1.83 g/t capped (69,000 oz) or 1,200,000 t grading 2.94 g/t (114,000 oz) in the uncapped sensitivity. The Inferred resource at the South Zone is currently 289,000 t grading 2.09 g/t capped (20,000 oz) or 352,000 t grading 4.77 g/t (54,000 oz) in the uncapped sensitivity. At the Boundary Zone, the initial Indicated resource amounts to 289,000 t grading 1.11 g/t capped (10,000 oz) or 290,000 t grading 1.23 g/t (11,000 oz) in the uncapped sensitivity. The Inferred resource at Boundary is 29,000 t grading 1.31 g/t capped (1,000 oz) or 30,000 t grading 1.68 g/t (2,000 oz) in the uncapped sensitivity. Both the South and Boundary Zones remain open along strike and to depth.As provided, there is an 80% difference in the total ounces reported between capped resource estimate and uncapped resource sensitivity. Recent grade capping for the Bidgood South Zone Resource by P&E Mining Consultants Inc. applied a statistical log-normal histogram analysis on the entire constrained domain volume. The geological interpretation has identified two distinct, horizontal trending high grade populations from surface to a depth of 35 m and from 115 m to 170 m. While there are considerable high grades with associated visible gold, the higher grades appear to be spatially related to the intersections of a separate population associated to 50 to 65 degree dipping splays or intersections (conjugates) between two sets of vein systems. The high grade regions appear to display good continuity.NEW DRILL RESULTSRecent drilling has returned areas of new mineralization within and outside the estimated mineral resource envelopes. Results are reported for holes that targeted the potential for both open pit (15 holes - 2,180 m) at the South Zone and narrow high-grade mineralization (6 holes - 3,444 m) within the Bidgood Mine sequence. The new holes do not form part of the initial NI 43-101 mineral resource announced in this news release and continue to expand the deposit. Since drilling commenced in mid-2010, 130 holes (24,051 m) have been reported within the Bidgood mine area. Highlights from new drilling:38.81 g/t Au over 29.85 m (including 844.50 g/t Au over 0.65 m) in hole BG11-129 5.22 g/t Au over 11.75 m (including 34.97 g/t Au over 0.90 m) in hole BG11‐139 1.56 g/t Au over 23.70 m and 0.73 g/t Au over 33.55 m in hole BG11-119 1.59 g/t Au over 22.00 m (including 10.2 g/t Au over 1.0 m) in hole BG11‐127 1.49 g/t Au over 22.10 m (including 2.27 g/t Au over 10.50 m) in hole BG11‐34a 1.65 g/t Au over 9.65 m and 2.21 g/t Au over 6.55 m in hole BG11‐120 1.37 g/t Au over 8.70 m in hole BG11‐121 2.43 g/t Au over 8.30 m (including 10.30 g/t Au over 1.10 m) and 2.63 g/t Au over 7.75 m (including 15.98 g/t Au over 0.85 m) in hole BG11‐128 2.03 g/t Au over 7.50 m (including 9.57 g/t Au over 0.70 m) hole BG11‐130 Significant assay results from the new holes are shown in Table 1 and highlighted in the Figure 1 attached to this news release. For previous drill results from the Bidgood property see news releases dated June 10th, July 7th, September 23rd, 2010, January 13th, February 14th and June 09, 2011 available at the Company's website.Table 2. Lebel Property - Significant New Drill ResultsHOLE #AZIMUTHDIPZONEFROM (m)TO (m)INTERVAL (m)Gold (g/t)BG11-34A143-6745.8549.003.152.42INCLUDING45.8546.851.006.6958.2061.203.001.0578.3081.553.253.91INCLUDING80.7081.550.8513.00100.50121.6021.101.49INCLUDING100.50111.0010.502.27INCLUDING104.40106.702.304.83BG11-106339.06-5554.6059.304.701.51INCLUDING57.6558.550.903.60BG11-118343.97-4218.6024.305.701.34INCLUDING18.6019.550.954.1149.2050.301.101.1776.7079.903.200.61137.10140.703.600.69BG11-119163.65-6920 VEIN29.9030.550.657.2051.6052.400.801.5160.1063.553.450.6471.95105.5033.550.73INCLUDING75.5098.2022.700.29INCLUDING71.9575.503.552.72INCLUDING98.20105.507.301.10124.20147.9023.701.56INCLUDING130.30130.900.609.02INCLUDING143.15144.951.806.08161.50162.300.802.57BG11-120164.17-4521.0030.659.651.65INCLUDING21.0022.001.005.52INCLUDING23.4024.401.004.0564.4571.006.552.21BG11-121337.43-4272.9074.301.402.3386.5087.300.800.69Main Break98.90107.608.701.37INCLUDING103.10104.301.204.10134.70135.941.241.30BG11-122143-4242.9043.550.653.60141.00143.402.401.42INCLUDING141.55142.400.853.10149.40153.103.700.97BG11-123310.5-4218.0021.003.001.05BG11-125321-5017.2019.202.000.8657.2058.100.903.98119.80120.700.902.57294.50296.401.901.01309.00309.800.801.65345.60346.500.901.37357.10358.101.002.67377.00378.001.001.78505.60507.501.906.85INCLUDING505.60506.500.9013.61556.00556.700.702.68BG11-126324-5911.5012.501.001.0662.9064.902.001.59108.00109.501.502.52194.60197.603.003.23INCLUDING194.60195.601.007.71420.80421.400.607.75546.00546.600.601.47Main Break567.00571.004.000.77BG11-127339-50166.35168.001.651.35NEW ZONE179.50201.5022.001.59INCLUDING186.50187.501.0010.2INCLUDING192.50193.501.006.93INCLUDING198.60199.200.605.14SOUTH ZONE364.60373.508.900.99405.30406.551.250.96Main Break splay490.60491.250.651.34BG11-128343-5350.3551.200.851.6882.0085.003.001.37104.00105.001.003.26NEW ZONE194.75202.507.752.63INCLUDING197.35198.200.8515.98220.70229.008.302.43INCLUDING220.70221.801.1010.30403.50404.701.203.91MAIN BREAK519.60526.607.001.06543.60544.601.002.78BG11-129310.5-55NEW10.1039.9529.8538.81 VGINCLUDING10.1016.306.20170.59 VGINCLUDING12.1013.000.90237.88 VGINCLUDING13.0013.650.65844.50 VGINCLUDING14.3015.301.00154.43 VGINCLUDING36.9038.451.5556.50 VGBG11-130290-60MAIN BREAK72.5080.007.502.03INCLUDING77.5078.200.709.57116.80120.203.400.85126.10128.202.104.31INCLUDING127.20128.201.007.99185.80186.600.802.37192.30193.901.601.34BG11-131290-6516.0017.751.750.6334.3535.751.401.34MAIN BREAK84.9093.108.201.13INCLUDING92.3093.100.805.49BG11-134313.5-42MAIN BREAK38.9542.954.000.8284.6090.405.800.9199.0099.750.755.28BG11-135313.5-58MAIN BREAK52.6054.001.400.8656.5061.154.651.6573.9077.503.602.99INCLUDING76.0076.800.805.38BG11-138341-50NEW181.60182.500.902.88189.00190.001.002.98210.00211.001.004.18327.00329.002.002.35SOUTH373.85382.808.951.22BG11-139351-5047.8048.951.150.96230.40231.300.903.98NEW318.40320.552.151.64378.45381.252.801.13409.00420.7511.755.22INCLUDING409.00410.501.505.56INCLUDING415.20416.301.105.76INCLUDING417.25418.150.9034.97487.10493.606.500.67506.30514.508.201.54517.65519.001.352.33528.45529.851.401.06538.25554.5016.250.92NOTES:The mineralized intervals reported in this news release represent core lengths. True width where it has been determined in the South Zone is 50%-85% of the core lengths except for hole 130@41%, hole 131@35%, and hole 129@12%. VG means the occurrence of visible gold. Mineralization generally consists of 10‐90% coarse disseminated pyrite, 1‐20% chalcopyrite hosted in an altered, silicified, iron‐rich diorite and porphyry along the Bidgood gold structure. The mineralization mined at Bidgood generally strikes northeast – southwest. Holes BG11-107 and BG11-34 were stopped short of target (intersected mine openings). The holes have not been drilled in numerical order.SOUTH ZONEThe #1 and #2 Veins that were previously developed from the 46 to 91 m levels of the mine have been drilled at 10-20 m centres. To date, 75 holes targeting this area display excellent continuity with dimensions of 230 m horizontal by 150 m vertical with mineralization remaining open along strike and to depth.The new drilling has been successful in extending the #1 and #2 Veins to the northeast where they remain open. Hole BG11-119 is a 20 m step-out northeast from previously-released hole BG11-117 that had intersected 3.0 g/t Au over 71.05 m (including 71.8 g/t Au over 2.35 m). Hole BG11-119 returned 0.7 g/t Au over 33.55 m, 1.6 g/t Au over 23.7 m (including 9.0 g/t Au over 0.6 m, and 6.1 g/t Au over 1.8 m) and 7.2 g/t Au over 0.65 m.Hole BG11-129 intersected a new shallow zone assaying 38.8 g/t Au (1.13 oz/ton) over 29.85 m located in a gap area between the # 6 Vein and the #1/#2 Veins. The hole, interpreted to have been drilled along dip of the mineralization, intersected three high-grade intervals, 170.59 g/t Au over 6.2 m (including 844.50 g/t Au (24.6 oz/ton) over 0.65 m), 154.43 g/t Au (4.5 oz/ton) over 1.0 m and 56.50 g/t Au (1.65 oz/ton) over 1.55 m all containing visible gold throughout. Based on geological interpretation the 29.85 m interval is interpreted to represent a true width of 4 m. The intersection is located roughly 25 metres away from other areas of the known mineralization.Six holes were completed targeting the South Zone to depth. The first five holes were drilled west of the east-plunging mineralization. The most significant result was encountered in hole BG11-139 assaying 5.22 g/t Au over 11.75 m (including 34.97 g/t Au over 0.90 m) at 175 m below previous hole BG10-08 that assayed 1.0 g/t Au over 20.2 m and 9.7 g/t Au over 0.8 m. Other new intersections in this zone, some 95 metres south of the South Zone, are 1.59 g/t Au over 22.0 m (including 10.20 g/t Au over 1.0 m, 6.93 g/t Au over 1.0 m, and 5.14 g/t Au over 0.6 m) in hole BG11-127, 2.63 g/t Au over 7.75 m and 2.4 g/t Au over 8.3 m (including 10.30 g/t Au over 1.1 m) in hole BG11‐128, and 7.71 g/t Au over 1.0 m in hole BG11‐126. This new zone remains open along strike and to depth.Qualified Person and QA/QC ProgramThe design of the Queenston's drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston's geological staff including qualified persons employing a QA/QC program consistent with National Instrument ("NI") 43‐101 and industry best practices. Mr. Michael Sutton, P.Geo, Senior Geologist is the designated Qualified Person pursuant to NI 43‐101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators and is responsible for the verification and quality assurance of the technical content of this news release. The resource estimate has been prepared in accordance with NI 43-101 by Antoine Yassa, P.Geo. and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc., Brampton, Ontario.A detailed review of Queenston's QA/QC procedures is filed in the 2009 Annual Information Form on SEDAR. The drill core is logged and split with half‐core samples shipped to Polymet Labs of Cobalt, Ontario and analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits standards and blanks approximately every 25 samples and after significant samples. Approximately 5‐10% of sample rejects and/or pulps are sent to other laboratories for check assaying and quarter‐core sampling is also undertaken. As a further check in high grade zones at Bidgood some core is quartered and a sample split is sent for assay.About QueenstonQueenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp that comprises 235 km². Late in 2010 the Company entered into a strategic alliance with Agnico-Eagle Mines Limited with the objective of advancing its key, 100% owned gold projects (Upper Beaver, Upper Canada, McBean, Anoki and Bidgood) at the Kirkland East project towards feasibility and ultimately production. The Company has working capital of approximately $90 million no debt and a fiscal 2012 exploration budget of $25 million.The contents of this news release have been approved by Qualified Persons Charles E. Page, P.Geo., Queenston President and CEO and Eugene Puritch, P.Eng. President of P&E Mining Consultants Inc. A NI 43-101 technical report will be filed on SEDAR within 45 days of this press release.Queenston's Cautionary Note Regarding NI 43‐101 and Forward Looking StatementsExcept for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at FURTHER INFORMATION PLEASE CONTACT: Charles E. Page, P. Geo.Queenston Mining Inc.President and CEO(416) 364-0001 (ext. 224)ORHugh D. HarbinsonQueenston Mining Inc.Chairman(416) 364-0001 (ext. 225)ORAndreas CurkovicQueenston Mining Inc.Investor Relations(416) 577-9927ORAnn Gibbs-BainesQueenston Mining Inc.Investor Relations(416)