Vancouver, B.C. February 24, 2011 Lori McClenahan, President, St. Elias Mines Ltd. (SLI – TSX:V) is pleased to announce that the Company has received 3D data and images generated from results of the Stage 1 and Stage 2 Titan 24 Geophysical Surveys conducted by Quantec Geoscience Limited at the Tesoro Gold Project in Peru. The 3D Model shows two large anomalies that correlate to areas of known mineralization, particularly in the “Tesoro Structural Corridor”.
To view 3D images of these anomalies please click on http://www.steliasmines.com/storage/news_releases/surface.jpg
and http://www.steliasmines.com/storage/news_releases/subsurface.jpg
The 3D Model was derived from the results of a Titan 24 Survey which was conducted in two stages: Stage 1 of the survey consisted of nine lines covering approximately 21.6 line kilometres; and Stage 2 consisted of 18 Titan lines totalling 43.2 line kilometres infilling the area within the lines from the Stage 1 survey. The completion of the Stage 2 program resulted in the entire Tesoro Project being covered by Titan 24 survey. For further information on the Stage 2 Titan 24 survey please refer to Company news release dated September 16, 2010 or the current 43-101 report available on SEDAR.COM.
The complete 3D Model will be available on the Company’s website shortly.
Zona Central IP Anomaly
The chargeability anomaly below Zona Central measures >16 milliradians (pink). The anomaly is bowl-shaped and is approximately 1,800 metres by 1,700 metres and is 1,300 metres thick. There are northwest-southeast lineation’s (faults or structures) associated with this anomaly which are coincident with the known mineralized structural trends on the Tesoro property. Within the large IP anomaly there is an area of higher chargeability at >18.5 milliradians (red), which is oriented in a north-south trend. The centre of the southern end of the >18.5 milliradians chargeability anomaly is 600 metres below the surface.
The anomaly is located at the centre of a number of cross cutting structures and may be the source of the near-surface gold mineralization found in the Zona Canchete, Zona Este and Zona Central.
Zona Sur IP Anomaly
The chargeability anomaly below Zona Sur measures >16 milliradians (pink). The anomaly is flat in shape and measures approximately 800 metres by 1000 metres and is 300 metres thick. As with the Zona Central IP anomaly, there are northwest-southeast lineation’s associated with this anomaly.
About 3D Geological Modelling
The Titan 24 Geophysical Survey has provided a means to see deep targets in highly prospective terrain where the targets can be fully incorporated into sophisticated three-dimensional models. 3D subsurface earth models significantly increase the chances for drill success. Quantec and the Company can take Titan 24 results together with historical data and compile them into one up-to-date 3D model that allows for quick and decisive decisions about what to do next.
Advanced explorers such as Barrick Gold, Goldcorp Inc. and FNX Mining Co. Inc. are all making use of the 3D models on a regular basis. Mining companies can choose the most prospective areas by integrating all spatial data into one common shared model of the earth. Communication of subtle details in all data sets ensures that the decision-making process is optimized and better justified. One of the most significant benefits is the ability to use both historic and new data to accurately extend and predict new reserves and resources. Juniors can now explore with the sophistication of the seniors, in part thanks to the investment of seniors like Barrick and Noranda Inc. that went into developing much of the technology.
Every new advancement in technology, particularly geophysical, has aided in new discoveries. The likelihood of making new discoveries at depths of greater than 200 meters is increasing as a result of the ability of the latest geophysical subsurface imaging capabilities. James Moffett, Chairman of Freeport-McMoran Copper & Gold, was quoted at stating “the next major world-class discovery will not be found by digging a trench.”
Drilling
Quantec Geoscience Limited, through detailed analysis of their Titan 24 data, has recommended a total of 52 drill holes to test the first and second priority targets interpreted in the property. Of them, 26 drill holes are recommended to test the first priority anomalous zones and 26 drill holes are proposed to test the second priority target zones. The 3D Model generated from results of the Titan 24 Survey will assist the Company in fine tuning drill targets for the upcoming drilling program at Tesoro.
A Brief History of the Tesoro Gold Project
The Tesoro Gold Project is 100% owned by the Company with no underlying royalties. The Property covers approximately 6,974 hectares (17,436 acres) and is part of the prolific 300km X 30km Nazca-Ocoña gold belt parallel to the Pacific coast of southwestern Peru. The Nazca-Ocoña gold belt has a long mining history dating back to pre-Incan time. Gold is associated with disseminated sulphides that seeped into quartz veins and fractures within the intrusive body. The continuity of the quartz veins and fractures is very impressive in the Nazca-Ocoña belt. While the veins tend to be narrow, the grade is significant and the mineralized structures tend to extend along strike for several kilometers and to depths of up to 1,000 meters.
To date, the Company has identified five mineralized zones with more than 50 quartz veins (having a total combined length of 9km) at the Tesoro Project and has carried out underground exploration and development work on three of these veins (C1, C2 and A4 Veins.) The veins are mesothermal, indicating that the vein structures may extend to considerable depths.
The Tesoro Property has never been evaluated to depth, or to its full strike potential. This leaves a large potential for the discovery of additional mineralization.
Qualified Person
The technical content of this news release has been verified by, Paul D. Gray, P.Geo., who 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:
European Investor Relations
Nicholas Fuller
Nick Fuller & Associates
Tel: 011-44-207-256-5204
Email: nick@fullerir.com
U.S. Investor Relations
Herbert Haft
The Haft Group, Inc.
Tel: (212) 759-8865
Email: herbhaft@haftgroupinc.com
ST. ELIAS MINES LTD.
Lori McClenahan,
President
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