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Press release from Marketwire

Queenston Discovers a New Gold-Copper Zone at Upper Beaver 7.5 g/t Au and 0.8% Cu Over 36.0 m

Tuesday, May 15, 2012

Queenston Discovers a New Gold-Copper Zone at Upper Beaver 7.5 g/t Au and 0.8% Cu Over 36.0 m06:30 EDT Tuesday, May 15, 2012TORONTO, ONTARIO--(Marketwire - May 15, 2012) -Editors Note: There is a figure associated with this press release.QUEENSTON MINING INC. (TSX:QMI)(OTCQX:QNMNF)(FRANKFURT:QMI) ("Queenston or the Company") is pleased to announce results from 20 surface diamond drill holes (15,623 m) from the 100% owned Upper Beaver property located in Kirkland Lake, Canada. This drilling has discovered a new deep gold-copper zone on the property and continues to show positive results from both the near surface exploration and infill drilling program. HighlightsDeep Exploration "New Footwall Zone"7.5 g/t Au with 0.8% Cu over 36.0 m (including 7.0 g/t Au with 2.0% Cu over 9.0 m and 9.8 g/t Au with 0.5% Cu over 21.0 m) (UB12-200W2)12.7 g/t Au over 4.5 m (UB12-201W1)Near Surface Exploration15.1 g/t Au with 0.4% Cu over 5.2 m and 2.7 g/t Au with 0.3% Cu over 17.0 m (UB12-216)124.7 g/t Au over 1.0 m and 9.5 g/t Au with 1.4% Cu over 2.0 m (UB12-214)2.8 g/t Au over 13.0 m (UB12-215)1.8 g/t Au with 0.3% Cu over 33.0 m (UB12-209)Infill Drilling17.9 g/t Au over 3.0 m (UB12-210W1)4.6 g/t Au with 0.1% Cu over 12.0 m (including 14.8 g/t Au over 3.0 m) (UB12-210W1)11.8 g/t Au over 2.5 m (UB12-207W1)5.9 g/t Au over 5.0 m (UB12-174W11)Charles Page, President and CEO of Queenston said, "The drilling program at Upper Beaver continues to deliver surprises. After announcing a 190 m extension of the Porphyry Zone to depth in our March 5, 2012 news release, recent drilling has discovered a new gold zone in the footwall of the deposit outside the current resource envelope. Drill hole UB12-200W2 intersected a 36 m thick zone of mineralization assaying 7.5 g/t Au with 0.8% Cu at a depth of 1450 metres. The new Footwall Zone remains open and new wedge-holes are following the mineralization upwards. Also, new drilling into the near surface Q and West Zones continue to report both high-grade, 15.1 g/t Au over 5.2 m, and wide widths of lower grade material assaying 2.7 g/t Au over 17.0 m. As a result of the strength of these new holes and the continued confirmation of deposit continuity from the infill program, an updated resource estimate will be completed in the third quarter. Drilling continues at Upper Beaver with six rigs."Details of the new drilling results are listed on in Table 1 accompanying this news release. The locations of the new Footwall Zone intercepts are highlighted on the schematic section accompanying this news release or can be found at the following link: http://media3.marketwire.com/docs/qmi0515fig1.jpg.Activity at Upper BeaverSix drill rigs are in operation on the property both upgrading and expanding the existing resources and extending the footprint of the new near surface mineralization. An updated resource estimate on the project is anticipated near the end of the third quarter of this year. In addition to the ongoing exploration activity and as a result of the positive Preliminary Economic Assessment ("PEA") prepared by P&E Mining Consultants Inc. of Brampton, Ontario (see news release dated February 16, 2012) the Company is advancing the project to feasibility and has approved the development of an exploration shaft to provide access for bulk sampling and confirmation of the mineability/continuity of the deposit. The PEA incorporated the mineral resource at Upper Beaver that was announced in May 2011 containing 3,074,000 t grading 6.98 g/t Au (690,000 ounces ("oz")) with 0.54% Cu (36.6 million pounds ("M lbs")) (Indicated) and 3,093,000 t grading 6.19 g/t Au (616,000 oz) with 0.42% Cu (28.0 M lbs) (Inferred). The mineral resource does not include drill results after December 31, 2010. During 2011 an additional 84 drill holes and wedge holes (41,019 m) were drilled on the project both upgrading and extending the footprint of the deposit. A resource update is planned for the third quarter of 2012 and will include the drilling conducted in calendar 2011 as well as the early part of 2012. Deep Footwall Zone DiscoveryThe first wedge hole (UB12-200W2) completed above our deepest hole on the property (UB12-200W1) intersected a new gold-copper zone approximately 50 m below the Porphyry Zone. This zone mineralogically resembles the Porphyry Zone, containing abundant chalcopyrite, magnetite and visible gold assaying 7.51 g/t Au with 0.79% Cu over 36.0 m including two subzones assaying 7.01 g/t Au with 1.95% Cu over 9.0 m and 9.83 g/t Au with 0.53% Cu over 21.0 m. Footwall Zone mineralization has been identified elsewhere in the drilling but never to this extent and this deep in the deposit. The Footwall Zone remains open along strike and to depth.Hole UB12-201W1 also intersected a Footwall Zone assaying 12.72 g/t Au with trace Cu over 4.5 m including 18.64 g/t Au over 3.0 m approximately 500 m above the deep intersection in UB12-200W2 both outside the existing resource envelope. Future drilling in this area of the deposit will target both the Porphyry and Footwall Zones.Near Surface ExplorationThe near surface exploration drilling continues to intersect new mineralization in the West Shallow and Q Zones. Recent highlights from the West Shallow Zone include, 2.71 g/t Au with 0.31% Cu over 17 m in hole UB121-216 followed by an intercept of 8.05 g/t Au with 0.32% Cu over 11.5 m (including 15.07 g/t Au with 0.42% Cu over 5.2 m) at approximately 80 m below surface, 124.68 g/t Au over 1.0 m and 9.45 g/t Au with 1.37% Cu over 2.0 m in UB12-214, 2.74 g/t Au over 13.0 m in UB12-215 and 1.84 g/t Au with 0.34% Cu over 33.0 m in UB12-208. Q Zone hole UB12-217 intersected multiple zones including, 1.33 g/t Au with 0.38% Cu over 16.0 m, 1.26 g/t Au with 0.57% Cu over 13.0 m, 1.80 g/t Au with 0.31% Cu over 17.0 m, 10.18 g/t Au with 0.16% Cu over 2.0 m and 18.09 g/t Au with 0.25% Cu over 1.0 m.Three drill rigs continue to targeting both the West Shallow and Q Zones.Infill DrillingTwo drill rigs are completing the infill drilling program to both upgrade and extend the existing mineral resource. New drilling results from this program include 17.71 g/t Au over 3.0 m in UB12-210W1 (Hanging Wall Zone), 4.55 g/t Au with 0.11% Cu over 12.0 m (including 14.81 g/t Au with 0.15% Cu over 3.0 m) in UB12-210W1 (Porphyry Zone), 11.82 g/t Au over 2.5 m in UB12-207W1 (Porphyry Zone), 5.88 g/t Au over 5.0 m in UB12-174W11 (Porphyry Zone) and 2.05 g/t Au with 0.17% Cu over 18.0 m including 5.37 g/t Au with 0.53% Cu over 4.0 m in UB12-200W2 (Porphyry Zone). 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 2011 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 230 km² of prime exploration lands. The Company's assets include six 100%-owned gold deposits, all with NI 43-101 compliant mineral resources and ongoing exploration and development. The objective of the Company is to advance the flagship Upper Beaver project towards feasibility and production. The Upper Beaver 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 the other five 100%-owned deposits that will provide additional feed for a central milling facility. The Company currently has cash and short-term investments of approximately $80 million, no debt and a fiscal 2012 budget for exploration of $25 million and $10 million for advanced exploration.FORWARD LOOKING STATEMENTSThis news release may contain certain statements regarding future events, results or outlooks that are considered forward looking statements within the meaning of securities regulation. These forward looking statements reflect management's best judgment based on current facts and assumptions that management considers reasonable and include the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential" and "should". Forward looking statements contain significant risks and uncertainties. A number of circumstances could cause results to differ materially from the results discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions, metal prices, political issues, permitting, environmental, exploration and development success, continued availability of capital and other risk factors. The forward looking statements contained in this document are based on what management believes to be reasonable assumptions, however, we cannot assure that the results will be compatible to the forward looking statements as management assumes no obligation to revise them to reflect new circumstances. The Corporation has no knowledge that would indicate the information is not true or incomplete and the Corporation assumes no responsibility for the accuracy and completeness of the information. Readers should not place reliance on forward looking statements. More information concerning risks and uncertainties that may affect the Company's business is available in Queenston's most recent Annual Information Form and other regulatory filings of the Company at www.sedar.com.Table 1. Upper Beaver Assay Results (May 2012)Hole #From (m)To (m)Interval (m)Cu (%)Au (g/t)ZoneUB11-174W111198.01203.05.0trace5.88PorphyryUB11-200W21371.01372.01.0trace10.101376.01377.01.0trace5.141450.01451.01.0trace18.731476.01494.018.00.172.05Porphyryincluding1490.01494.04.00.535.37Porphyryincluding1492.01493.01.00.5911.34Porphyry1548.01584.036.00.787.51New Footwallincluding1548.01557.09.01.957.01New Footwallincluding1548.01553.05.02.8110.97New Footwallincluding1548.01550.02.07.6120.08New Footwalland1563.01584.021.00.529.83New Footwallincluding1563.01564.01.00.5110.52New Footwalland1566.01574.08.00.5613.31New Footwallincluding1570.01571.01.01.1944.50New Footwalland1578.01582.04.01.0622.97New Footwallincluding1579.91580.01.02.4975.36New FootwallUB11-201761.0763.02.0trace2.76900.0902.02.0trace3.91909.0911.02.0trace4.61UB11-201W1754.0756.02.0trace3.09836.0839.03.0trace2.91870.0873.03.0trace1.72Porphyry903.7908.24.5trace12.72New Footwallincluding903.7906.73.0trace18.64New FootwallUB11-206158.0159.01.00.205.37Q Zone187.0192.05.00.191.97Q Zoneincluding187.0188.01.0trace7.25Q Zone396.0397.01.01.975.97Q ZoneUB11-207780.0789.09.0trace4.39including784.0789.05.0trace6.48Hanging Wall815.0817.02.0trace4.02Porphyry822.0824.02.0trace3.00Porphyry837.3839.32.0trace3.90UB12-207W1793.0794.01.0trace10.73808.0809.01.0trace6.76826.5829.02.5trace11.82Porphyry893.3898.35.0trace4.26UB12-207W2708.0709.01.0trace10.93726.0728.02.0trace5.95807.0811.04.0trace2.71Porphyry818.0819.01.0trace4.46828.0834.06.0trace1.85964.0969.05.02.960.36973.0975.02.02.982.62UB12-20861.068.07.00.671.95West Shallow111.0115.04.0trace1.76West Shallow154.0159.05.0trace1.14West Shallow295.0303.08.0trace2.92West Shallow367.0371.04.00.571.37West Shallow420.0425.05.00.762.74West ShallowUB12-209123.0156.033.00.341.84West Shallowincluding123.0137.014.00.302.45West Shallowincluding123.0126.03.00.324.89West Shallow150.0156.06.00.653.16West Shallow330.0332.02.00.273.89West ShallowUB12-21030.033.03.00.443.06956.0958.02.0trace3.13PorphyryUB12-210W1881.0898.017.0trace1.53including881.0883.02.0trace7.2984.0987.03.0trace17.71Hanging Wall998.01010.012.000.114.55Porphyryincluding998.01001.03.00.1514.81PorphyryUB12-21157.058.01.0trace7.11West Shallow177.0180.03.00.302.03West Shallow202.0206.04.00.173.85West ShallowUB12-21295.097.02.00.111.71West Shallow115.0120.05.0trace2.10West Shallow155.0164.09.00.371.84West Shallowincluding159.0160.01.00.236.27West ShallowUB12-21359.060.01.0trace11.32West Shallow79.081.02.00.132.98West Shallow92.094.02.00.431.59West Shallow102.0104.02.0trace2.42West ShallowUB12-21460.064.04.0trace2.95West Shallow109.0110.01.0trace124.68West Shallow208.0210.02.01.379.45West Shallow223.0224.01.01.346.70West Shallow288.0291.03.00.343.19South Contact322.0326.04.00.142.78South Contact345.0346.01.00.134.76South ContactUB12-21511.017.06.00.142.20West Shallow113.0117.04.00.765.69West Shallowincluding116.0117.01.00.3114.32West Shallow140.0148.08.00.211.11West Shallow188.0195.07.00.341.88West Shallow241.0242.01.0trace6.27West Shallow263.0285.022.00.111.39South Contact333.0346.013.0trace2.74South ContactUB12-21618.019.01.00.154.97West Shallow63.064.01.00.1318.24West Shallow78.095.017.00.312.71West Shallowincluding92.093.01.00.7621.61West Shallow104.8116.311.50.328.05West Shallowincluding104.8110.05.20.4215.07West Shallowincluding105.3106.00.7trace32.63West Shallowand108.0110.02.01.0426.35West Shallowand113.0116.33.30.394.19West ShallowUB12-21739.041.02.00.701.9745.046.01.0trace10.6351.053.02.00.71.972.088.016.00.381.33Q Zone147.0160.013.00.571.26Q Zone198.0215.017.00.311.80Q Zoneincluding198.0200.02.00.956.84Q Zone261.0266.05.00.152.29Q1 Zone483.0485.02.00.1610.18Q1 Zoneincluding484.0485.01.00.2518.09Q1 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.FOR FURTHER INFORMATION PLEASE CONTACT: Charles E. Page, P. Geo.Queenston Mining Inc.President and CEO(416) 364-0001 (ext. 224)ORAnn Gibbs-BainesQueenston Mining Inc.Investor Relations(416) 627-8872ORAndreas CurkovicQueenston Mining Inc.Investor Relations(416) 577-9927Info@queenston.cawww.queenston.ca