VANCOUVER, British Columbia,
May 24, 2012 /PRNewswire/
-- Lori McClenahan, President and CEO of St. Elias Mines Ltd.
(SLI - TSX:V) (OTC-PINK: SELSF) (Frankfurt: EKL) today announced
the results of drill holes TE-12 to TE-35 at the Tesoro Gold
Project, located in southwestern Peru. Forty-three diamond
drill holes, totaling 12,740 metres, have been completed to date.
Assays are pending for holes TE-36 to TE-40. Samples
from drill-holes TE-41 to TE-43 are being prepared for shipment to
the CERTIMIN analytical laboratory in Lima.
To date the drilling has tested a variety of targets
including:
- Titan 24 geophysical targets (including chargeability highs,
resistivity lows, and gradients);
- Down-dip and along- strike extensions of known gold- bearing
quartz veins;
- Coincident geophysical and geological targets.
Drilling to date has not explained the causative sources of the
geophysical anomalies reported by Quantec. The Quantec
data and interpretations are being independently examined by
Canadian geophysicists.
Despite the inconclusive results from the drill holes that
specifically targeted the geophysical anomalies reported by
Quantec, drill holes that tested geological targets intersected
gold at depths. Examples of drill holes with relatively deep
intersections include DDH TE-14 (7.08 g/t Au at a true depth of
276m) and DDH TE-29 (6.08 g/t Au at 275m true depth).
Management is currently planning and preparing a program of
underground exploration and bulk sampling of the gold-bearing
structures intersected during the surface drilling program. This
strategy is consistent with the old gold mining rule of thumb,
"drill for structure and drift for grade." This old adage is
pertinent even today, because the distribution of gold in many vein
systems is erratic, and high grade gold often occurs only in
steeply-plunging "shoots" in the plane of the vein.
The following two tables present the Tesoro drill intercepts
greater than 1.0 g/t (Table 1) and the drill intercepts grading
between 0.5 and 1.0 g/t (Table 2). Please note that the
Table 1 intercepts are distinct and separate from the intercepts
presented in Table 2.
TABLE
1: DRILL INTERCEPTS WITH GOLD GRADES GREATER THAN 1 PPM (1
g/t)
|
DDH
Number
|
DDH Length
(metres)
|
Location
(Zone)
|
From
(metres)
|
To
(metres)
|
Core
Interval (metres)
|
Au
Grade
(ppm,
g/t)
|
DDH_TE_14
|
456.85
|
Zona
Canchete
|
288.00
|
288.85
|
0.85
|
7.077
|
DDH_TE_21
|
183.00
|
Zona
Central
|
87.62
|
88.56
|
0.94
|
3.714
|
DDH_TE_21
|
|
|
103.94
|
104.44
|
0.50
|
1.272
|
DDH_TE_21
|
|
|
164.50
|
165.00
|
0.50
|
1.266
|
DDH_TE_22
|
229.80
|
Zona
Central
|
111.98
|
112.91
|
0.93
|
1.822
|
DDH_TE_26
|
253.50
|
Zona
Canchete
|
243.70
|
244.20
|
0.50
|
4.681
|
DDH_TE_27
|
308.80
|
Zona
Canchete
|
71.50
|
72.00
|
0.50
|
1.692
|
DDH_TE_27
|
|
|
248.55
|
249.05
|
0.50
|
1.47
|
DDH_TE_28
|
176.20
|
Zona
Incognito
|
71.85
|
73.13
|
1.28
|
1.116
|
DDH_TE_29
|
339.30
|
Zona
Canchete
|
96.00
|
96.50
|
0.50
|
1.785
|
DDH_TE_29
|
|
|
116.30
|
116.80
|
0.50
|
6.061
|
DDH_TE_29
|
|
|
219.24
|
219.74
|
0.50
|
1.832
|
DDH_TE_29
|
|
|
292.58
|
293.08
|
0.50
|
6.082
|
DDH_TE_35
|
302.95
|
Zona
Incognito
|
229.08
|
229.60
|
0.52
|
1.836
|
|
TABLE
2: DRILL INTERCEPTS WITH GOLD GRADES FROM 0.5 PPM to 1.0 PPM
(1g/t)
|
DDH
Number
|
DDH
Length
|
Location
(Zone)
|
From
(metres)
|
To
(metres)
|
Core
Interval (metres)
|
Au Grade
(ppm, g/t)
|
DDH_TE_17
|
148.50
|
Zona
Central
|
16.28
|
16.78
|
0.50
|
0.617
|
DDH_TE_17
|
|
|
105.00
|
106.50
|
1.50
|
0.882
|
DDH_TE_22
|
229.80
|
Zona
Central
|
204.49
|
204.99
|
0.50
|
0.541
|
DDH_TE_22
|
|
|
214.00
|
214.50
|
0.50
|
0.552
|
DDH_TE_23
|
259.40
|
Zona
Canchete
|
100.03
|
102.00
|
1.97
|
0.753
|
DDH_TE_23
|
|
|
202.94
|
203.65
|
0.71
|
0.681
|
DDH_TE_24
|
321.20
|
Zona
Canchete
|
103.00
|
103.50
|
0.50
|
0.742
|
DDH_TE_24
|
|
|
163.95
|
164.60
|
0.65
|
0.569
|
DDH_TE_24
|
|
|
266.30
|
269.35
|
3.05
|
0.857
|
DDH_TE_25
|
321.90
|
Zona
Central
|
46.00
|
46.50
|
0.50
|
0.809
|
DDH_TE_25
|
|
|
73.46
|
74.60
|
1.14
|
0.588
|
DDH_TE_25
|
|
|
93.57
|
94.07
|
0.50
|
0.565
|
DDH_TE_25
|
|
|
215.45
|
215.95
|
0.50
|
0.714
|
DDH_TE_26
|
253.50
|
Zona
Canchete
|
82.00
|
82.50
|
0.50
|
0.725
|
DDH_TE_26
|
|
|
238.13
|
240.18
|
2.05
|
0.587
|
DDH_TE_27
|
308.80
|
Zona
Canchete
|
29.47
|
29.97
|
0.50
|
0.924
|
DDH_TE_27
|
|
|
131.43
|
131.93
|
0.50
|
0.824
|
DDH_TE_27
|
|
|
290.95
|
291.45
|
0.50
|
0.579
|
DDH_TE_29
|
339.30
|
Zona
Canchete
|
40.00
|
40.50
|
0.50
|
0.775
|
DDH_TE_30
|
238.55
|
|
217.55
|
218.05
|
0.50
|
0.528
|
The gold assays in Tables 1 and 2 above are uncut, and the
stated intercept widths are apparent widths measured parallel to
the core axes. The true widths of the structures intersected
may be equal to or less than the apparent widths stated in the
Tables.
A drill hole location map is available on the following
link:
http://steliasmines.com/wordpress2/wp-content/images/SLI_Tesoro_Drill_Hole_Location_Map_May_2012.pdf
At the end of May, the Company will temporarily suspend drilling
at the Tesoro project, pending the receipt of the independent
evaluations of the existing geophysical data, completion of a
formal compilation of all available historic, geochemical,
geological and structural data, and detailed geological mapping
covering a number of historic mine areas. Planning and
preparation are underway for a program of underground
exploration and bulk sampling. One of the key objectives of
this program is to compare the grades and widths of structures
intersected by the drill holes with the much higher-quality data
obtained by bulk sampling the same structures underground.
The drilling program ran smoothly and without interruption, and
was completed within the forecast cost parameters. Management
is extremely pleased with the professional manner in which Energold
Drilling Peru S.A.C. conducted and supported the program.
The Company utilizes an industry-standard QA/QC (quality
assurance/quality control) program. The HQ and NTW-diameter
diamond drill core is sawn in half longitudinally, and one half is
shipped to the ISO-certified CERTIMIN S.A. analytical laboratory in
Lima for gold fire assay and
ICP-MS analysis. To monitor laboratory performance, blanks,
duplicates and certified reference standards are inserted at random
into the sample stream at the rate of 1 of each type per 30 to 50
core samples.
Tesoro Gold Project
The Tesoro gold project is 100 per cent owned by the Company
with no underlying royalties. The property covers
approximately 6,974 hectares (17,436 acres) and lies within the 300
km by 30 km Nazca-Ocona gold province, which trends northwest
parallel to the Pacific coastline. The Nazca-Ocona gold belt
has a long mining history dating from pre-Incan time. Gold is
associated with disseminated sulphides in quartz veins and
vein-faults within the Coast intrusive complex. The
Nazca-Ocona belt is noted for the strike continuity of many of its
quartz vein systems and associated faults. While the veins
are often narrow (less than one metre), their gold grades can be
high, especially in localized "shoots" that occur where the vein
geometries change.
The Company has identified five mineralized zones the Tesoro
project that host more than 50 quartz veins. Underground
exploration and development work has been carried out on three of
these veins (C1, C2 and A4 veins). To date, a total of 1,157
tons of bulk sample material averaging 0.93 ounce per ton gold has
been extracted from the underground exploration and development
workings at several locations including:
- 643 tons averaging 0.77 ounce per ton gold from the A4
vein;
- 451 tons averaging 0.99 ounce per ton gold from the C1
vein;
- 63 tons averaging 2.04 ounces per ton gold from the C2
vein.
Certain areas of the Tesoro property have been carefully
prospected and explored by geophysical surveys, trenches and
widely-spaced drill holes, but much of the property remains
unexplored except for reconnaissance prospecting. Most of the
north, east and south sectors have never been geologically mapped,
prospected in detail, trenched, or drilled. Further, large
areas (up to 20-30 square km) of the prospective granitic rocks in
the north-central and southeastern areas of the property are
covered by late-Tertiary ash flows and crystal tuffs. These
young, flat-lying volcanic units are several metres to tens of
metres thick and completely obscure the prospective rocks of the
Coast plutonic complex. Zones where strike extensions of
known gold-bearing structures are extrapolated to pass under the
volcanic cover are targets for geophysical exploration and
drilling.
The technical contents of this news release have been verified
by George Sivertz, P. Geo, a
Canadian geologist and a part-time resident of Peru. Mr.
Sivertz is a Qualified Person as defined in National Instrument
43-101 (Standards of Disclosure for Mineral Projects).
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) or
contact:
U.S. Investor Relations Consultant
Herbert Haft
The Haft Group, Inc.
Tel: (212) 759-8865
Email: herbhaft@haftgroupinc.com
herbhaft@aol.com
ST. ELIAS MINES LTD.
(signed "Lori
McClenahan")
Lori McClenahan,
President
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This News Release may contain forward-looking statements
including, but not limited to, comments regarding the timing and
content of upcoming work programs, geological interpretations,
potential mineral recovery processes, etc. Forward-looking
statements address future events and conditions and therefore
involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such
statement.
SOURCE St. Elias Mines Ltd.