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St. Elias Mines Ltd.: St. Elias Mines Ltd.: Tesoro Gold Project, Peru-Bulk Sample Batches Return Average Grade of 0.92 oz/t Gol

^{Published on 2009-09-01 11:43:15 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2009) - Lori McClenahan, President of St. Elias Mines Ltd. (TSX VENTURE:SLI)(FRANKFURT:EKL)(U.S. CLEARING SYMBOL:SELSF) ("St. Elias" or the "Company"), is pleased to announce that an additional 131 tonnes of bulk sample material has been processed and has returned an average grade of 0.92 oz/t gold. The sample was obtained from the Tesoro Gold Project (the "Property") located in southwestern Peru and is part of the Company's ongoing underground exploration program.

Bulk Samples

Of the 131 tonnes of the bulk sample material, 56 tonnes with an average gold grade of 1.29 oz/t were extracted from the C1 Vein and 75 tonnes with an average gold grade of 0.64 oz/t were extracted from the A4 Vein. The bulk samples were processed at the milling facility of Dynacor Gold Mines Inc. located immediately north of the Property. Included in this material is 14 tonnes grading 1.79 oz/t gold and 14 tonnes grading 1.24 oz/t gold from the C1 Vein at Zona Canchete and 13 tonnes grading 1.04 oz/t gold from the A4 Vein System at Zona Central.

To date, a total of 1,081 tonnes of bulk sample material averaging 0.87 oz/t gold has been extracted from ongoing underground exploration development at the Tesoro Property including 438 tonnes averaging 1.01 oz/t gold from the C1 Vein and 643 tonnes averaging 0.77 oz/t gold from the A4 Vein.

The Tesoro Project

The Tesoro Gold Project is 100% owned by the Company with no underlying royalties. The Property covers 2,000 hectares (5,000 acres) and is part of the well-known gold-bearing Nazca-Ocona belt that is located in southern Peru. The continuity of the quartz veins is impressive in the Nazca-Ocona belt. While the veins tend to be narrow, the grade is significant and the mineralized structures tend to extend along strike for kilometres and to depths of up to 1,000 metres.

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 two of these veins (C1 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

All technical work is being supervised by, and the contents of this news release have been verified by, John Brophy, P.Geo., a Canadian geologist residing in Peru, 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).

ST. ELIAS MINES LTD.

Lori McClenahan, President

This News Release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this document.