Trading Symbol:
SLI
(TSX Venture Exchange)
EKL
(Frankfurt
Exchange)
SELSF
(U.S.
Clearing Symbol)
News Release
2007-15
April
27, 2007
NEWS
RELEASE
ST.
ELIAS UNVEILS BUSINESS PLAN - FOCUSES ON TESORO GOLD PROJECT
Lori McClenahan, President of St. Elias Mines
Ltd. (“St. Elias” or the “Company”), announces that as
a result of the recent discovery of the A-4 Vein and consistent high-grades
received from bulk sampling at the Tesoro Gold Project in Peru, the Company has
decided to focus its exploration activities on the Tesoro Project and has
developed the following business plan with respect to the exploration and development
of its properties.
St. Elias presently owns, or has options
to acquire an interest in, the following properties of which three are
currently being advanced through option agreements,
exposing St. Elias to over
$8.3
million in exploration (funded by other parties) over the next five years:
·
Tesoro Gold
Project, Peru
(100% interest)
·
Vilcoro Gold
Property, Peru
(option to acquire
95% interest with Geneva Resources Inc. having option to earn 66%)
·
Kettle River
(“Carmi”)
Molybdenum
Property, B.C. (100% interest with Hi Ho Silver Resources Inc. having option to
earn 70%)
·
South Rim
Project, B.C.
(100% interest with
Hi Ho Silver Resources Inc. having option to earn 51%)
·
Beaverdell
Property, B.C.
(100% interest)
·
Jales / Gralheira
Gold Property, Portugal
(51% interest)
·
Goldroad Property
, Nevada
(100%
interest)
Tesoro Gold Project, Peru
St. Elias has a 100% interest in the Tesoro Gold
Project with no underlying agreements or royalties.
The Company has been focusing primarily on the ZCV#1
at Zona Canchete where high-grade bulk samples (a total of
233.3
tonnes
averaging 0.98 oz/ton gold) have
been extracted from the ongoing underground exploration and development
program.
As a result of the recent discovery of the A-4 Vein at
Zona Central and the consistent high grades received from bulk samples,
management has decided to focus its exploration efforts on the exploration and
development of the Tesoro Project and significantly expand existing operations.
A detailed plan of exploration and development
will be announced shortly.
Vilcoro Gold Property, Peru
St. Elias has an option to acquire a 95% interest in
the Vilcoro Gold Property located adjacent to Barrick’s Lagunas Norte
Property (+9 million oz gold) which was
recently put into production
..
St. Elias has granted Geneva Resources Inc. (“Geneva”) an
option to earn a 66% interest in the Property in consideration of Geneva 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 to production.
Geneva
is a publicly traded mineral exploration company trading on the OTCBB under the
symbol “GVRS” and the Frankfurt Exhchange under the symbol “R3M”.
A US$969,000 initial exploration program on the
Vilcoro Gold Property is ongoing and is being funded by Geneva
..
Kettle River
(Carmi) Molybdenum Property, B.C.
St. Elias has granted to
Hi Ho
Silver Resources Inc.
(“Hi
Ho”) an option to acquire up to a 70% interest in the Kettle River (Carmi)
Moly Property in consideration of Hi Ho making cash payments of $75,000 to St.
Elias over two years and incurring $5,000,000 in exploration expenditures and
issuing 1,500,000 shares of Hi Ho to St. Elias over six years.
Hi Ho is a publicly traded mineral
exploration company trading on the CNQ under the symbol “HIHO” and
the Frankfurt Exchange under the symbol “H9T”.
Hi Ho recently completed a very successful Phase I
drilling program on the property.
The
results of this drilling program are considered very positive with significant
molybdenum and rhenium being encountered and additional mineralized areas being
discovered.
A Phase II drilling program
is planned.
South Rim Project, B.C.
St. Elias has granted to Hi Ho an option
to earn a 51% interest in the South Rim Project
in consideration of Hi Ho making cash payments of $40,000 to St. Elias,
incurring $500,000 in exploration expenditures on the Property and issuing
200,000 common shares in the capital of Hi Ho to St. Elias over three years.
An independent geological summary has recommended an
initial two phase exploration program consisting of air photo/satellite
imagery, detailed mapping, prospecting, reconnaissance deep geochemical soil
sampling, and VLF EM surveys.
Beaverdell Gold Property, B.C.
St. Elias owns a 100% interest in the
Beaverdell Property.
A series of
shallow drill holes has been recommended to test for the down dip extensions of
high-grade gold bearing quartz veins.
St. Elias is actively seeking an option or joint venture partner to advance
the property.
Jales/Gralheira Gold Property
, Portugal
St. Elias has earned a 51% interest, and has a second
option to acquire an additional 24% interest, from Kernow Resources &
Developments Ltd. in the Jales/Gralheira Gold Property.
St. Elias has decided not to proceed
with the second option to acquire an additional 24% and will therefore retain a
51% interest in the Property.
Goldroad Property, Nevada
St. Elias owns a 100% interest in the
Goldroad property located in Nevada
..
Detailed geological research suggests the
Goldroad Property has strong geological similarities to gold deposits within
both the Carlin Trend and the Cortez Trend.
St. Elias is actively seeking an option
or joint venture partner to advance the property.
The technical content of this news release pertaining
to the Tesoro Gold Project, Peru, has been verified by, John Brophy, P.Geo, a
Canadian geologist residing in Peru, who is an independent 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.