Trading Symbol:
SLI
(TSX Venture Exchange)
EKL
(Frankfurt
Exchange)
SELSF
(U.S.
Clearing Symbol)
News Release
2007-07
February
27, 2007
NEWS
RELEASE
VILCORO GOLD PROPERTY
,
PERU
–
FORMAL AGREEMENT
Lori McClenahan, President of St. Elias
Mines Ltd. (“St. Elias” or the “Company”), is pleased
to announce that the Company has entered into a formal agreement with Geneva
Gold Corp. (“Geneva”) whereby Geneva has acquired an option to earn
a 66% interest in the Vilcoro Gold Property (the “Property”)
located in central Peru.
Geneva can earn the option to acquire the 66% interest in consideration
of making cash payments to St. Elias totalling US$350,000; issuing 50,000
shares of Geneva to St. Elias; incurring exploration expenditures of not less
than US$2,500,000; and completing a bankable feasibility study over a three
year period.
In the event that the
Option is fully exercised by Geneva, St. Elias will have a 29% carried
interest.
In addition, Geneva has
agreed to carry St. Elias to production.
Geneva is a publicly traded mineral exploration company (US and Frankfurt
listed:
OTCBB Symbol - GVGC;
Frankfurt/Berlin Symbol - R3M)
St. Elias has an option to acquire a 95% interest in the
Vilcoro Gold Property comprising 600 hectares.
The Property is primarily underlain by
Tertiary Calipuy Volcanics similar to those that host Newmont’s Yanacocha
Mine (+40 million oz gold) and Barrick’s Pierina deposit (8 million oz.
gold).
The Property is favourably located
adjacent to the claim block that covers the Lagunas
Norte
mine (+9 million oz gold) recently put into production by Barrick
Gold in the Alto Chicama mining district of central Peru
..
In addition to Lagunas Norte, there are
four important gold deposits within 14 to 24km of the Vilcoro Gold Property:
Tres Cruces (1.75 million oz); Virgen
Deposit (400,000 oz); La Arena (1.99 million oz); and Santa Rosa Mine (currently
producing approximately 80,000 oz/Au/year).
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.
”
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.