Trading
Symbol:
SLI
(TSX Venture Exchange)
EKL
(Frankfurt
Exchange)
SELSF
(U.S.
Clearing Symbol)
News Release
2007-29
October 4, 2007
NEWS RELEASE
TESORO GOLD PROJECT
, PERU
- Ongoing Development Program
Lori
McClenahan, President of St. Elias Mines Ltd. (the “Company”), is
pleased to provide the following update with respect to the ongoing underground
exploration and development program at the Tesoro Gold Project (the “Property”)
in Peru.
The Property is located in
southwestern Peru within the well-known Nazca-Ocoña Gold Belt where
there are at least 70 known gold deposits comprising narrow but generally
high-grade
gold-bearing
quartz veins.
Although the veins
are narrow, the mineralized structures tend to extend along strike for
kilometres and to depths of 1,000 metres.
To date, the
Company has identified five mineralized zones 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 (ZCV#1 and A4 Vein
System.)
A map showing the location of the Zones
within the Property can be viewed at http://www.steliasmines.com/properties/PeruFig3.pdf
..
The ZCV#1 Vein has yielded
consistently high assay results for a strike length of 100 meters and for a
vertical depth of 75 meters.
Face-sample assays and bulk-sample assays have averaged approximately
1.0 oz/t gold.
In the most recent bulk
sample, representing development material from the main shaft between the 60m
and 75m levels, 17.8 tonnes assayed 1.23 oz/t gold.
The ZCV#1 Vein is only one of eight
gold-bearing quartz veins located at Zona Canchete within the northern area of
the Property.
The A4 Vein System has
completely different characteristics from the ZCV#1 Vein in that the gold
grades are moderate with pockets of multi-ounce material occurring.
Results have been sporadically
spectacular (up to 11 oz/t gold in a 4-tonne bulk sample) with gold grades
between the “Bonanza” segments generally in the 2 to 7 g/t
range.
In the most recent bulk
sample, representing development material from the main shaft (42m to 65m
levels) and parts of the 42m level, 41 tonnes assayed 0.243 oz/t gold.
The A4 Vein System is one vein
at Zona Central located within the northern area of the Property.
Zona Central is comprised of five
gold-bearing quartz veins and three additional vein swarms.
Based on information from
more than 200 meters of underground development on each of the ZCV#1 Vein and
the A4 Vein System, including geological mapping, systematic face-sample assays
at 2m intervals and assay results from bulk samples, the Company had decided to:
·
continue
with underground development on the ZCV#1 Vein in preparation for future mining
on the ZCV#1 Vein.
·
carry
out Diamond drilling at Zona Canchete.
·
extract
two high-grade pods from the A4 Vein System in order to determine the size and
grade of the “Bonanza” segments as a guide to determining optimum
spacing for a future drill program.
·
conduct
detailed surface sampling and trenching on other veins located at Zona Canchete
(C2-C8 Veins) and Zona Central (A1-A3 Veins) in order to identify additional veins
warranting underground development.
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 (formally
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.