Queenston bulking up at Upper Beaver

Queenston Mining’s (QMI-T) flagship project in Kirkland Lake, Ont., is growing more robust. The company has results from 17 surface holes from its wholly owned Upper Beaver project, and is set to deliver more ounces in an upcoming resource-estimate update.

The latest round of drilling extended the new Footwall zone, and further defined the Porphyry, North Contact and Q zones.

But the highlight came from the Footwall zone, which returned the company’s best interval to date of 22 metres grading 18.4 grams gold with 1.1% copper. The hole intersected the zone at a vertical depth of 1,275 metres, and extended over a dip length of 100 metres, where it remains open.

Footwall is located below the deposit’s main Porphyry zone near the southeastern contact of the Beaverhouse syenite-intrusive complex.

Other stellar intercepts from the 11,000 metres drilled include: 13 metres of 21.8 grams gold, and 5 metres of 12.8 grams gold and 2.4% copper in the Porphyry zone; 2.3 metres of 7.8 grams gold and 10.8% copper in the Upper Footwall zone; and 91 metres of 2.1 grams gold, and 96 metres of 1.2 grams gold and 0.2% in the North Contact zone.

Six drills are turning at the project, and the company is pushing towards an updated mineral resource due out in late September.

Queenston says that permits for a new 1,300-metre shaft will arrive shortly, furthering its push towards completing a feasibility study and eventual production in 2016.

Its recent preliminary economic study considers a 2,000-tonne-per-day mill that would produce an average 120,000 oz. gold and 5.3 million lb. copper per year.

The study used the current resource from Upper Beaver, which outlines indicated resources of 3.07 million tonnes at 7 grams gold for 690,000 oz., with 0.5% copper for 36.6 million lb. copper; and inferred resources of 3.1 million tonnes at 6.2 grams gold for 616,000 oz. gold, with 0.4% copper for 28 million lb. copper. The estimate does not include drill results from 2011 or 2012.

During 2011, the company drilled 84 drill holes for 41,000 metres at the project.

Queenston’s assets are all in the Kirkland Lake gold camp. The company is advancing five other deposits within trucking distance of an envisioned Upper Beaver mill.

The six deposits combined hold indicated resources of 9.1 million tonnes grading 5 grams gold for 1.46 million oz., and inferred resources of 11.6 million tonnes grading 5.2 grams gold for 1.94 million oz.

Queenston has $90 million in cash and short-term investments, and no debt.