VANCOUVER, British Columbia, Oct. 31, 2012 /PRNewswire/ -- St. Elias Mines Ltd. ("St. Elias" or the "Company") (SLI - TSX.V) (Frankfurt Exchange: EKL) (U.S. Clearing Symbol: SELSF) today announced a $0.25 million Phase One exploration plan for its Gold Summit property in southwestern British Columbia. St. Elias will commence the exploration activities outlined in the plan within the month and expects to complete the field portion of the planned activities during the current fiscal year. St. Elias has obtained the required BC Government permits to commence exploration, including diamond drilling and mechanized trenching, for the Project.
"The Gold Summit Phase One exploration program consists of mapping, surface sampling and geophysical surveys and will further explore an intriguing, newly identified geophysical anomalous zone," said Lori McClenahan, President and CEO of St. Elias. "If the results are positive, we intend to then proceed to a $1.2 million second-phase program that would primarily consist of trenching and diamond drilling next summer's field season."
St. Elias will fund the first phase of the Gold Summit exploration program from existing working capital. The second phase of the program will likely require additional financing either by St. Elias or by Havilah Mines Ltd., a proposed spin-off company being established to own and explore St. Elias' British Columbian properties. Gold Summit exploration plans will not be funded by the proceeds of the financing that St. Elias announced on October 22, 2012 as those proceeds are intended to advance the Company's exploration activities in Peru.
The 3,201-hectare Gold Summit property in British Columbia consists of eight mineral claims and one placer claim in which St. Elias has a 100% interest, as well as three mineral claims in which St. Elias has an 85% interest.The target commodity for Gold Summit is primarily gold, but may also include silver with lead and zinc. The property is located within the prolific Bralorne-Pioneer gold mining camp. Reported historic production of the camp is approximately 4.15 million ounces of gold and 0.95 million ounces of silver. In addition, there are numerous past producing gold mines in the area (the Minto Mine, Congress Mine, Blackdome Mine) as well as a number of advanced projects including Poison Mountain and Prosperity Lake with 13.3 million ounces gold with 5.3 billion pounds copper.