Trading
Symbol:
SLI
(TSX Venture Exchange)
EKL
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Exchange)
SELSF
(U.S.
Clearing
Symbol)
News Release
2007-32
October 23, 2007
NEWS RELEASE
TESORO GOLD PROJECT
, PERU
Mineralization Continues to Depth/Gold Grades
Increase with Depth
Lori
McClenahan, President Of. St. Elias Mines Ltd. (the “Company”), is
pleased to provide the following progress report on the underground and surface
exploration activities at the Tesoro Gold Project (the “Property”)
located in southwestern Peru.
To date, the Company
has identified five mineralized zones on the Property with more than 50 quartz
veins (having a total combined length of 9km) and has carried out underground
exploration and development work on two of these veins (C1 Vein and A4 Vein
System.)
Zona
Canchete
The shaft at the C1 Vein (previously referred to as
the ZCV#1 Vein) has been deepened to the 80m level and the vein continues to be
consistent and generally high grade.
Currently, a short drift is being completed to the east of the shaft on
the 80m level in order that a manway/ventilation raise can be installed between
the 80m and 60m levels.
The
following assay results have been received for face samples taken in the C1 shaft
at 2m intervals between the 64m and 74m levels:
Sample
|
Shaft
Level
|
Width
(cm)
|
Sample
Type
|
Gold
(g)
|
Gold
(opt)
|
TV 23
|
64
|
87.00
|
channel
|
23.30
|
0.68
|
TV 24
|
66
|
30.00
|
channel
|
22.90
|
0.67
|
TV 25
|
68
|
5.00
|
panel
|
6.02
|
0.18
|
TV 26
|
70
|
14.00
|
channel
|
16.70
|
0.49
|
TV 27
|
72
|
3.33
|
panel
|
57.00
|
1.66
|
TV 28-29
|
74
|
13.50
|
panel
|
76.50
|
2.23
|
The C1 shaft will continue to be deepened to a planned
depth of 100 meters below the surface.
The shaft is currently in a transition zone from oxide facies to
sulphide facies.
Two select samples
of massive sulphides were taken from approximately the 74m level in the shaft
and assayed for gold and other elements in order to see if the gold content
increases, dimishes, or remains the same in the sulphide-rich vein material
relative to the oxide-rich material.
Assay results, listed below (both from the sulphide zone), indicate that
the gold content increases in the sulphide-rich material and that the material
is also enriched with silver, copper and tungsten.
Sample
|
Gold
(g/t)
|
Gold
(opt)
|
Silver
(g/t)
|
Silver
(opt)
|
Copper
(%)
|
Tungsten
(%)
|
TV 835
|
110
|
3.21
|
83.6
|
2.44
|
5.59
|
0.13
|
TV 836
|
127
|
3.70
|
26.1
|
0.76
|
0.31
|
0.19
|
The C1 Vein (ZCV#1) is only
one of eight gold-bearing quartz veins located at Zona Canchete.
Systematic trench sampling
of the C2 Vein at Zona Canchete is presently underway.
Additional surface sampling and trenching
on other veins located at Zona Canchete (C3-C8 Veins) is planned in order to
identify additional veins warranting underground development.
Zona
Central
The Company is in the process of
extracting two high-grade gold-bearing pods from the
A4 Vein System at Zona Central, one in the shaft between the 8m and 31m levels,
and another on the 42m level.
Results of these bulk samples will be used by the Company as a guide to determining
optimum spacing for Diamond drilling.
Additional underground development at the A4 Vein System will be carried
out after the completion of a systematic drilling program.
Zona Central is comprised of
five gold-bearing quartz veins and three additional vein swarms.
Systematic trench sampling of the A1 Vein
at Zona Central is presently underway.
Additional surface sampling and trenching on other veins located at Zona
Central (A2, A3 and A5 Veins) is planned in order to identify additional veins
warranting underground development.
Camp
Expansion
The Company has recently installed six additional prefabricated
buildings on the Property (two warehouses, one kitchen, one dormitory and two
offices.)
The buildings range in
size from 12 to 45 square meters.
The camp is being expanded to accommodate additional personnel in
preparation for future mining on the C1 Vein.
In addition, more personnel are required
for a night shift on the drill, for detailed trenching of veins, and for
possible future underground development of additional veins.
Sample preparation and
analytical work was undertaken at
ALS Chemex SA laboratory (an ISO certified 9002
facility)
in Lima
, Peru
..
The technical information contained in this news
release has been verified by, John Brophy, P.Geo., a Canadian geologist
residing in Peru
,
who is a qualified person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral
Properties.
”
The Tesoro Gold Property is 100% owned by the Company
with no underlying royalties.
The
Property is situated in a highland desert plateau
within the
prolific 300km x 30km Nazca-Ocoña gold belt of
southwestern Peru
..
To date, more than 70 gold deposits have
been exploited in this region.
The
Property is located between two gold deposits/mining camps.
Malaga Inc.
T-MLG (formerly
Dynacor Mines Ltd.), the owner of the claims located
immediately northwest of the Property, published a gold resource of +606,611 oz
at 16.4g/t (on only 3 of 10 veins discovered to date) and has subsequently
announced the discovery of additional veins carrying comparable gold grades.
For additional information on St. Elias
and its projects, please visit us at www.steliasmines.com or call
1-888-895-5522 (toll free US and Canada
).
ST. ELIAS MINES LTD.
(signed “Lori McClenahan”)
Lori McClenahan,
President
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or the accuracy of the contents of this
document.
This
news release contains forward-looking statements regarding the ongoing and
upcoming exploration work and expected geometry of geological formations and
structures.
Actual results may
differ materially from those currently anticipated in such statements.