St. Eugene Mining Corporation Ltd. announces that a $1.1 million drilling and exploration campaign is underway at the Amisk Gold Project, Saskatchewan, which includes 2,300 meters of diamond drilling (completed; assays pending) in an effort to expand the existing Amisk-Laural Gold Deposit, and to evaluate the bulk mining potential of the system.
The Amisk Gold Project is host to the advanced Amisk-Laurel Gold Deposit. It has never been evaluated from a bulk perspective, and it is among the largest land positions in the prolific Flin Flon mineral district (approx. 12,000 hectares located 20 kilometres from Flin Flon, MB).
The Amisk Gold Project has seen intermittent exploration since 1910, with advanced exploration and underground bulk sampling completed in the late 1980′s by Cameco Corporation. Based on historical exploration and underground development, a 1988 prefeasibility study indicated mineable reserves in the ‘East Zone’ of 185,000 tons at 0.44 oz/ton Au and 1.75 oz/ton Ag to a depth of 130 metres. A 0.15 oz/ton cut-off grade was utilized in the calculations. These estimates are historical and were not prepared in compliance with NI 43-101 standards.
St. Eugene holds a vested 35% interest in the Amisk Gold Project (see news release dated March 29, 2010). Claude Resources operates the joint venture on the Amisk Gold Project, and it holds a 17.3% interest in St. Eugene’s issued and outstanding common shares.