TORONTO, ONTARIO, Aug. 27, 2009 (Marketwire) -- Queenston Mining Inc. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI)(BERLIN:QMI) ("Queenston") and Newstrike Resources Ltd. (NR-TSXV) ("Newstrike") announce that they have entered into an addendum to the existing joint venture agreement on the Commodore property located in Lebel and Gauthier townships in the Kirkland Lake gold camp.
Pursuant to the addendum the following property interests are to be contributed to the Newstrike - Queenston joint venture (the "Joint Venture"): (i) six patented mineral claims known as the Morris claims to be contributed by Newstrike: and (ii) seven patented mineral claims and four unpatented mineral claims, collectively the Queenston claims, to be contributed by Queenston. As additional consideration for the contribution made to the Joint Venture by Queenston, Newstrike has agreed to issue 600,000 common shares to Queenston. The transaction remains subject to the approval of the TSX Venture Exchange.
Earlier this month the Joint Venture announced the completion of purchasing the original Commodore property ("Egg claims") plus an additional four claims ("Boundary claims") (see News Release dated August 14, 2009 available on SEDAR at www.sedar.com). As a result of the addendum, the Joint Venture property now totals 57 mineral claims comprising 25 patented and 32 unpatented claims (see the Commodore Property Map attached and available on Queenston's web site at www.queenston.ca and Newstrike's website at www.newstrikeresources.com).
The Morris claims are located west of the Commodore property and hosts the Morris mine that historically produced approximately 17,000 ounces of gold and 29,300 ounces of silver from 1936-1941. The Queenston claims located both south and west connect the Commodore property to the Morris claims and protect the down-dip potential of the Commodore and HG gold zones. The combined property now covers a length totaling seven kilometers along a favourable assemblage of Timiskaming rocks that elsewhere in the camp hosts the historic 24 million ounce Kirkland Lake Main Break gold deposits 8 km to the west and the 1.5 million ounce Upper Canada gold mine 3 km to the east. Two gold structures, the Upper Canada Break and 03 Break trend across the southern and central portions of the combined Joint Venture property and host the best potential for gold mineralization.
The primary area of alteration and mineralization on the property occurs along the Upper Canada Break at a volcanic-sedimentary contact on the southwestern portion of the property where in 1995-96 exploration drilling by previous owners, Sudbury Contact Mines Limited, discovered the Commodore Zone. This gold zone hosts an historic mineral resource of 669,500 t grading 2.4 g/t Au including 278,500 t grading 3.8 g/t Au. The resource was calculated by W.A.
