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Press release from Marketwire

Queenston Reports More High-Grade from Upper Beaver and the Discovery of a Near Surface Gold Zone

Thursday, November 03, 2011

Queenston Reports More High-Grade from Upper Beaver and the Discovery of a Near Surface Gold Zone07:15 EDT Thursday, November 03, 2011TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) -QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI) ("Queenston" or "the Company") announces results from 12 new diamond drill holes completed on the 100% owned Upper Beaver gold-copper deposit located in Kirkland Lake, Ontario. The Company continues to define and upgrade the existing deposit at depth and discovered new, shallow gold mineralization referred to as the "Q Zone". Highlights of the results are summarized below and presented in Table 1 and do not form part of the NI 43-101 mineral resource estimate announced on May 4, 2011. The location of the new holes are provided on the longitudinal section (figure 1) and plan view (figure 2) available on the Company's website (www.queenston.ca).Highlights from the recent drilling:11.50 g/t Au with 0.40% Cu over 25.0 m in hole UB11-175W312.90 g/t Au with 0.75% Cu over 8.0 m in hole UB11-174W511.63 g/t Au with 1.60% Cu over 8.0 m in hole UB11-174W71.62 g/t Au over 56.0 m in hole UB11-181 1.00 g/t Au over 55.0 m and 2.06 g/t Au over 44.3 m in hole UB11-179Charles Page, Queenston President and CEO, said, "The new results continue to display the continuous nature of the Porphyry Zone in the deeper portion of the deposit. The resource definition drilling continues to convert inferred resources to the indicated category as required to advance the project towards feasibility. Hole UB11-175W3 intersected one of the thickest mineralized intervals in the Porphyry Zone to date assaying 11.5 g/t Au with 0.40% Cu over 25.0 m. Drilling has also begun to expand the footprint of the deposit both east and west outside the existing limits of the resource. Hole UB11-176 intersected 15.66 g/t Au over 1.0 m to the west and hole UB11-180 intersected two intervals to the east assaying 2.99 g/t Au over 10.0 m and 0.77 g/t Au with 1.64% Cu over 10.0 m. We are also pleased to report the discovery of the Q Zone located 200 m north of the Porphyry Zone. This new mineralization occurs near surface where discovery hole UB11-179 intersected three separate intervals assaying 1.00 g/t Au over 55.0 m, 1.00 g/t over 26.0 m and 2.06 g/t Au over 44.3 m. Drilling continues at Upper Beaver with four rigs focussed on further resource definition and exploration. The deposit remains open to depth, to the east, west as well as to surface. Upper Beaver is our most mature project in the Kirkland Lake Camp that we are advancing towards underground exploration, feasibility and ultimately production."Porphyry ZoneResource definition drilling continued on the East Porphyry Zone where seven holes were drilled between 800 and 1100 m below surface. From previous pilot hole UB11-174 (8.0 g/t Au with 0.71% Cu over 11.0 m) three new wedge cuts (UB11-174W5, W6 and W7) were completed. Hole UB11-174W5 intersected 12.9 g/t Au with 0.75% Cu over 8.0 m approximately 20 m above previous hole UB11-174W1 (1.69 g/t Au with 0.21% Cu over 7.0 m). Hole UB11-174W6 intersected 3.07 g/t Au with 0.31% Cu over 10.0 m approximately 40 m above UB11-174W5. Hole UB11-174W7 assayed 6.44 g/t Au with 0.84% Cu over 22.0 m approximately 30 m above previous hole UB11-174W3 (13.1 g/t Au with 1.1% Cu over 13.5 m). The intersection in UB11-174W7 included two sub zones averaging 10.4 g/t Au with 1.22% Cu over 4.0 m and 11.6 g/t Au with 1.6% Cu over 8.0 m. Hole UB11-175W3 intersected a broad mineralized zone that assayed 11.5 g/t Au with 0.4% Cu over 25.0 m (including 19.1 g/t Au with 0.49% Cu over 12.1 m) located approximately 40 m below previous hole UB11-175W1 (21.4 g/t Au with 0.54% Cu over 6.0 m).From pilot hole UB11-171 (2.79 g/t Au with trace Cu over 4.0 m) new wedge cut UB11-171W2 intersected 1.16 g/t Au with trace Cu over 14.0 m approximately 40 m above previous wedge hole UB11-171W1 (5.0 g/t Au with trace Cu over 4.0 m). Wedge hole UB11-175W4 intersected a low grade interval assaying 0.9 g/t Au with 0.15% Cu over 8.0 m approximately 25 m above previous wedge hole UB11-175W2 (1.26 g/t Au with 0.27% Cu over 9.0 m). New pilot hole UB11-180 intersected two zones assaying 2.99 g/t Au with trace Cu over 10.0 m and 0.77 g/t Au with 1.64% Cu over 10 m at a depth of approximately 800 m below surface.On the West Porphyry Zone one single pilot hole UB11-176 targeted the zone at approximately 800 m below surface. At the location of the Porphyry Zone the hole encountered a barren porphyry dike that post-dates the mineralization. Above the dyke mineralization encountered in the hole assayed 3.08 g/t Au with 0.79% Cu over 1.5 m and below the dyke a separate zone returned 15.7 g/t Au with trace Cu over 1.0 m.Table 1. Upper Beaver Assay ResultsHole #From (m)To (m)Interval (m)Cu (%)Au (g/t)ZoneUB11-171W21047.01061.014.0Trace1.16PorphyryUB11-174W51182.01190.08.00.7512.9Porphyryincluding1184.51187.02.50.9430.1PorphyryUB11-174W61085.01087.02.0Trace11.41173.01183.010.00.313.07PorphyryUB11-174W71162.01184.022.00.846.44PorphyryIncluding1162.01166.04.01.2210.4Porphyry1172.01173.41.40.303.67Porphyryand1176.01184.08.01.6011.6PorphyryUB11-175W3971.5978.06.5Trace2.60North Contact1012.01013.01.00.356.35North Contact1037.01041.04.00.522.10Porphyry1045.01070.025.00.4011.5PorphyryIncluding1045.01050.05.00.458.79Porphyryand1057.21069.312.10.4919.1PorphyryUB11-175W4998.71006.78.00.150.90PorphyryUB11-176767.0768.01.0Trace6.23North Contact787.0791.04.0Trace2.56North Contact796.9802.05.1Trace1.37North Contact826.5828.01.50.793.08North Contact1156.01157.01.0Trace15.7Syenite BrecciaUB11-17968.0123.055.0Trace1.00Q Zoneincluding94.895.30.5Trace53.7Q Zoneand116.2118.01.8Trace2.85Q Zone138.0146.08.0Trace1.00Q Zone203.0229.026.00.241.00Q Zoneincluding217.3219.01.70.913.05Q Zoneand221.9228.06.10.642.32Q Zone276.4320.744.30.272.06Q Zoneincluding285.5286.00.53.317.49Q Zoneand302.5303.00.52.69119.6Q Zoneand316.5317.00.51.7012.0Q Zone325.0326.01.00.4616.0Q ZoneUB11-180901.0911.010.0Trace2.99Porphyry1085.01095.010.01.640.77UB11-18147.0103.056.0Trace1.62Q Zoneincluding50.057.57.5Trace2.06Q Zoneand75.777.01.3Trace6.45Q Zoneand82.984.01.1Trace27.7Q Zoneand97.0103.06.0Trace4.00Q Zone160.7185.424.7Trace0.63Q Zone191.8238.046.20.20.89Q Zoneincluding191.8198.66.8Trace3.03Q Zone207.0238.031.00.250.58Q ZoneUB11-18257.059.42.4Trace2.44Q Zone137.0142.05.00.433.49Q Zone164.0166.02.0Trace13.6Q Zone196.0212.016.0Trace1.41Q Zone227.0228.01.0Trace4.27Q Zone290.0305.015.0Trace1.30Q ZoneUB11-183108.0110.52.5Trace3.38Q Zone125.2129.03.8Trace2.26Q Zone250.0256.06.0Trace2.35Q Zoneincluding255.5256.00.5Trace13.2Q Zone434.0435.51.51.844.21Q Zone444.3445.31.01.181.96Q ZoneNOTE: True widths are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time. Holes UB11-172 and -173 were abandoned prior to reaching target due to excessive deviation.Q ZoneDuring the late summer a shallow drilling program commenced on the property targeting the potential for near surface mineralization. The area targeted for this program was 100-400 m northeast of the historic Upper Beaver Mine workings where only limited drilling was completed during the operation of the mine. To date a total of seven holes have been completed in this area intersecting narrow high-grade gold-copper mineralization often within a broader low-grade zone hosted in an altered mafic volcanic assemblage intruded by narrow feldspar porphyry and syenite dykes.The discovery hole UB11-179 intersected three broad zones of mineralization assaying 1.00 g/t Au over 55.0 m (including 53.66 g/t Au over 0.5 m), 1.00 g/t Au over 26.0 m (including 3.05 g/t Au with 0.91% Cu over 1.7 m) and 2.06 g/t Au with 0.27% Cu over 44.3 m (including 7.49 g/t Au with 3.31% Cu over 0.5 m, 119.6 g/t Au with 2.69% Cu over 0.5 m and 12.0 g/t Au with 1.7 Cu over 0.5 m). Hole UB11-181 drilled above the discovery hole intersected 1.62 g/t Au with trace Cu over 56.0 m (including 2.06 g/t Au over 7.5 m, 6.45 g/t Au over 1.3 m, 27.7 g/t Au over 1.1 m and 4.00 g/t Au over 6.0 m). Three other intervals in hole UB11-181 assayed 0.63 g/t Au over 24.7 m, 0.89 g/t Au over 46.2 m and 0.58 g/t Au over 31.0 m). Hole UB11-182 drilled 65 m south of UB11-179 and -181 intersected multiple gold zones including 3.49 g/t Au with 0.43% Cu over 5.0 m, 13.6 g/t Au over 2.0 m, 1.41 g/t Au over 16.0 m and 1.3 g/t Au over 15.0 m. Hole UB11-183 completed a further 50 m east of UB11-179 also intersected multiple gold zones including 3.38 g/t Au over 2.5 m, 2.26 g/t Au over 3.8 m, 2.35 g/t Au over 6.0 m and 4.21 g/t Au with 1.84% Cu over 1.5 m. Three other holes (UB11-184, -186 and -187) have been completed on the Q Zone and assay results are pending.About the Upper Beaver DepositThe Upper Beaver deposit was previously explored and mined intermittently from 1912 to 1972. During that time it is reported that various operators produced approximately 141,000 ounces of gold and 11.9 million pounds of copper from 526,678 t grading 8.31 g/t Au and 1.03% Cu to a depth of 365 m. The most concentrated period of production was from 1965 to 1972 when Upper Canada Resources Limited produced approximately 102,000 ounces of gold and 10.9 million pounds of copper from 407,306 t grading 7.82 g/t Au and 1.22% Cu. The mine was abandoned in 1972 when gold price was $35 per ounce.The Upper Beaver deposit contains National Instrument ("NI") 43-101 mineral resources of 3,074,000 t grading 6.98 g/t Au (690,000 oz.) (8.84 g/t Au uncapped (874,000 oz.)) with 0.54% Cu in the indicated category and 3,093,000 t grading 6.19 g/t Au (616,000 oz.) (7.15 g/t Au uncapped (711,000 oz.)) with 0.41% Cu in the inferred category. The mineral resource was announced by the Company on May 4, 2011 and completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Kurt Breede, P. Eng. The NI 43-101 technical report on the mineral resource estimate was filed on SEDAR in June 16, 2011.The majority of the mineral resources occur in a series of breccia zones that dip steeply north (75°) below the old mine workings. These zones contain chalcopyrite, magnetite, pyrite and visible gold within a mineralized corridor that extends over a horizontal length of approximately 500 m and a dip length of approximately 1,300 m. The most prominent are the Porphyry Zones that contain approximately 80% of the mineral resource. A large diameter pilot hole has been completed to a depth of 1200 m at the proposed future site of an exploration shaft. The entire hole was in massive syenite-porphyry and is currently undergoing detailed rock engineering studies. Application for permitting the shaft and an advanced underground exploration program has been submitted to the Ontario Ministry of Northern Development and Mines with a schedule to begin breaking ground in mid-2012. The Company has also commissioned P&E Mining Consultants Inc. of Brampton to commence a Preliminary Economic Assessment ("PEA") to determine the economic viability of developing a new mine at Upper Beaver and a processing plant 5 km to the south at the Upper Canada Mine location where there exists a previous tailings facility.Quality ControlThe 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 NI 43-101 and industry best practices. The Upper Beaver project is supervised by Queenston's Vice President Exploration, William McGuinty, P. Geo. A detailed review of Queenston's QA/QC procedures is filed in the 2010 Annual Information Form on SEDAR. The drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, Ontario and Accurassay Laboratories Ltd. of Thunder Bay, Ontario and analyzed employing the appropriate gold fire assaying techniques. For QA/QC purposes the Company as well as the lab submit standards and blanks every 25 samples. Approximately 5% of sample rejects and/or pulps are sent to other laboratories for check assaying. This news release was reviewed by Queenston's Vice President Exploration and QP, William McGuinty, P. Geo.About QueenstonQueenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 235 km² of prime exploration lands. The Company's assets include 6, 100% owned gold deposits that are various stages of exploration and development. The objective of the Company is to advance the flagship, Upper Beaver project towards feasibility and production. The project is currently being permitted for advanced exploration leading to new shaft development beginning in 2012. The Company is also very active in exploring and advancing five other 100% owned deposit that will provide additional feed for a central milling facility. The Company has cash and short-term investments of approximately $86 million, no debt and a fiscal 2012 exploration budget of $25 million.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 www.sedar.com.FOR 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) 627-8872Info@queenston.cawww.queenston.ca