ONTARIO – Toronto-based QUEENSTON MINING and KIRKLAND LAKE GOLD of Vancouver have formed a 50/50 joint venture to test the Gracie West property. Under the terms of the joint venture, Queenston has converted its 20% net profits royalty on the original 13-claim Gracie West property to a 50% participating interest and contributed an additional eight contiguous claims to form the combined property. KL Gold will be operator of the joint venture and incur the first $100,000 in exploration costs. Thereafter, expenditures will be shared on an equal basis.
Gracie West is located 3 km east of KL Gold’s Macassa mine. The property covers a 2.5-km-long projection of the same gold corridor that hosts the Kirkland Lake Main Break to the east, which has historically produced approximately 24 million ounces of gold. In addition, the south portion of the property contains the west extension of the Amalgamated Break. Previous exploration on the property was limited to only shallow surface activity. New exploration on the property will target both east-west- and north-south-trending potential gold zones along the corridor employing ground geophysics, a geochemical survey, trenching and diamond drilling. These programs are scheduled to begin in early December.
Separately, Queenston has begun a $3-million exploration program on its Kirkland Lake gold project. The initial target areas will include holdings in the western portion of the Kirkland Lake gold camp adjacent to the Macassa mine, and in the eastern portion of the camp near the past-producing Upper Beaver and McBean mines. More information on this property is available at www.queenston.ca.