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TORONTO, ONTARIO--(Marketwire - Feb. 17, 2011) -
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
St. Eugene Mining Corporation Limited (News - Market indication) ("St. Eugene" or the "Company") is pleased to announce the results of an independent mineral resource estimate for the Amisk Gold Project in northeastern Saskatchewan. Joint venture partner Claude Resources Inc. (TSX:CRJ)(NYSE Amex:CGR) has provided the Company with the following resource estimate completed by SRK Consulting Canada Inc. ("SRK"):
Jennifer Boyle, Chief Executive Officer of St. Eugene, states "This initial resource estimate is a breakthrough for the Amisk Gold Project and provides an excellent starting point. The resource is reported within a conceptual pit shell and the deposit remains open at depth and along strike, offering an excellent opportunity for continued resource growth; opportunity the Joint Venture is currently testing through our winter drill program currently underway."
A Technical Report outlining the key assumptions supporting the estimate is currently being prepared by SRK. The estimate is supported by 299 drill holes totalling 53,507 metres of which 21 holes (5,657 metres) have been completed by the joint venture partners in 2010.
Table 1 summarizes SRK's Indicated and Inferred Resource Estimate for the Amisk Gold Project:
The Amisk Gold Deposit is hosted within a rhyolite flow-dome complex and overlying pyroclastic tuffs of the Amisk Volcanic Assemblage, Flin Flon Greenstone Belt. High grade gold and silver mineralization is hosted within a series of moderately to shallowly-dipping, pyrite +/- chalcopyrite-sphalerite-tetrahedrite-galena-bearing sulphide vein systems. High grade vein systems are typically flanked by wide intervals of low grade disseminated and stringer mineralization within a broad sericite alteration envelope. A detailed plan map and representative cross sections outlining the conceptual open pit and resource model are presented on St. Eugene's website www.steugenemining.ca.
Table 2 summarizes the detailed Mineral Resource estimate at a cut-off grade of 0.4 g/t Au Eq.
The mineral resources for the Amisk Gold Project are sensitive to the selection of cut-off grade. Table 3 presents the quantity and grade estimates at a range of cut-off grades inside the conceptual pit shell considered for reporting the Mineral Resource Statement. A cut-off value of 0.4 g/t Au Eq was selected based on optimization results and benchmarking against similar deposits.
A team of personnel from Claude and SRK was involved in the preparation of the Mineral Resource Statement for the Amisk Gold Deposit, including Brian Skanderbeg (P. Geo.), Philip Ng (P. Eng), Mike Glover and Kim Litke of Claude Resources; and Glen Cole (P. Geo.), Sebastien Bernier (P. Geo.) and Goran Andric (P. Eng.) of SRK. All data considered for resource evaluation was reviewed by SRK, with Mr. Glen Cole (P. Geo.) a full time employee of SRK and independent from Claude assuming professional responsibility. Mr. Cole has reviewed the content of this News Release.
Wes Hanson, P.Geo., Chairman of St. Eugene, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of St. Eugene. Brian Skanderbeg, P.Geo., Claude's Vice-President Exploration, is the Qualified Person who has reviewed and approved the contents of this news release for and on behalf of Claude. Claude, as operator, has implemented a rigorous Quality Assurance and Quality Control program to ensure best practices in sampling and analysis of drill core. Drill core was halved and samples averaging 1.5 to 2.0 metres were submitted to TSL Laboratories in Saskatoon, Saskatchewan and/or ALS Chemex in Vancouver, British Columbia, both ISO approved facilities. Quality assurance and quality control procedures have been implemented including the use of blanks, standards and duplicates. Core samples were analyzed by a 30 gram gold fire assay with an atomic absorption, conventional gravimetric and/or screen fire techniques.
St. Eugene holds a 35% participating interest and Claude, as operator, holds a 65% interest in the Amisk Joint Venture Project.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of St. Eugene contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause St. Eugene's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding St. Eugene's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which St. Eugene has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from St. Eugene's expectations. St. Eugene undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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