posted
Things are looking good for another gold rally. This is a company that could possibly benefit. Latest PR:
Queenstake's Third Quarter 2005 Operating Highlights on Track with Redevelopment Plan and 2005 Production Estimates Thursday October 6, 6:30 pm ET
DENVER--(BUSINESS WIRE)--Oct. 6, 2005--Queenstake Resources Ltd. (TSX:QRL - News; AMEX:QEE - News) reported that its Jerritt Canyon operations in northeastern Nevada produced 49,613 ounces of gold during the third quarter of 2005, slightly better than was expected under the new redevelopment plan. ADVERTISEMENT
Third quarter gold sales totaled 54,445 ounces under the redevelopment plan, which was implemented in mid-August 2005. The financial results for the third quarter of 2005 are pending and will be reported by mid-November 2005.
Commenting on the third quarter operating performance, President and Chief Executive Officer of Queenstake Dorian L. (Dusty) Nicol said, "After seven weeks of operating under the redevelopment plan, several key indicators show that the Jerritt Canyon operations are progressing well under the redevelopment plan. Gold production of 49,613 ounces slightly exceeded the new plan average mill ore grade of 0.21 ounce of gold per ton (opt) was on target and capitalized mine development of 2,570 feet completed was on track during the quarter. The scale back in production from operating two roasters to one roaster at a time was clearly the right path towards optimization of Jerritt Canyon. Based on the operating results from the third quarter, we remain confident in our full year 2005 production estimate of 200,000 to 220,000 ounces."
Redevelopment Plan Progress
During the third quarter, the average processed ore grade progressively improved from 0.18 opt in July 2005 to 0.25 opt in September 2005 for an average processed grade of 0.21 opt for the third quarter, in line with the redevelopment plan. The mill recovery rate for the quarter held steady at 86.5% in accordance with the plan.
Capitalized mine development completed improved from 2,150 feet in the second quarter of 2005 to 2,570 feet for the third quarter of 2005. Jerritt Canyon has allocated more internal resources to capitalized mine development and engaged a mining contractor to accelerate capitalized mine development in order to maintain production in 2006 comparable to 2005's estimates.
The connection between the SSX and Steer underground mines has been completed. This is expected to allow better operational efficiency of labor, equipment and maintenance in a combined SSX-Steer mining complex.
Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon district in Nevada. Jerritt Canyon has produced over seven million ounces of gold since 1981. Current production at the property is from underground mines. The Jerritt Canyon district comprises over 100 square miles of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada.
Cautionary Statement - This news release contains "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various known and unknown risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of future gold production and cash operating costs, (ii) estimates of savings or cost reductions and (iii) estimates related to financial performance, including cash flow. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, mine development, production and cost estimate risks and other risks which are described in the Company's most recent Annual Report on Form 40-F on file with the Securities and Exchange Commission (SEC), as it may be updated in subsequent filings. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SEC file number 0-24096
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Queenstake Drills High Grade Mineralization; Potential to Extend Mine Life at Smith Mine Business Wire - November 08, 2005 18:58
DENVER, Nov 08, 2005 (BUSINESS WIRE) -- Queenstake Resources Ltd. (TSX:QRL)(AMEX:QEE) reported that its surface drilling program has encountered high grade gold intercepts, extending the known mineralization outside the current resource(1) boundary of the Smith Mine. The results(2) will be incorporated in a new mine model that will be used in the estimation of reserves and resources(1) at year-end 2005 and could extend the projected life of mine at Smith.
Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "These excellent results from the Mahala and West Dash deposits suggest likely gold resource additions at the Smith Mine and associated high-grade Mahala deposit that could extend the mine life at Smith. Pending incorporation of these results into a new mine model, we believe these results could expand the resource and improve the grade at West Dash and could expand near-term mineable reserves at Mahala. Our geologists have done an excellent job in interpreting the controlling structures for drill targets and continuing to discover high-grade mineralization around our mines."
At the Mahala deposit, which commenced commercial production in mid-August 2005 following commissioning of the ventilation and escape-way raise, three reverse circulation(3) holes were completed in September 2005, totaling 2,735 feet. Positive results included an intercept of 20 feet with an average grade of 0.972 ounce of gold per ton (opt). This drill hole is approximately 800 feet northwest of the current drift in Zone 4 at Smith. Follow up drilling is planned this year that could add reserves to be mined in 2007. Mahala had measured and indicated resources, including reserves of 486,000 tons at 0.305 opt, containing 148,000 ounces of gold, at year-end 2004. The following table shows drill intercepts of 10 feet or more at a grade of 0.20 opt or higher.
In October 2005, six reverse circulation(3) holes were completed from surface, totaling 4,140 feet, to expand the West Dash resource, which is approximately 800 feet west of the main drift for the Smith Mine. Positive results from four of the holes indicate expected additions at year-end 2005 to the 2004 indicated resources of 83,000 tons grading 0.269 opt, containing 22,300 ounces of gold, and inferred resources of 109,600 tons grading 0.244 opt, containing 11,700 ounces of gold. Results included one hole with intercepts of 30 feet of 0.544 opt and 15 feet of 0.456 opt, which could improve the average grade of mineralization. The following table shows intercepts of 10 feet or more at a grade of 0.20 opt or higher.
(See Appendix Maps 1 and 2 for the location of the drill holes. These maps are available under the Investor Information/News Releases section at www.queenstake.com). A near-mine surface and underground drilling program continues, targeting resource conversion and discovery of new resources and reserves. The Company currently has two surface drill rigs conducting near-mine exploration at Mahala and West Dash and another three surface rigs being utilized for district exploration at Starvation Canyon.
Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon district in Nevada. Jerritt Canyon has produced over seven million ounces of gold since 1981. Current production at the property is from underground mines. The Jerritt Canyon district comprises over 100 square miles of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada.
Notes:
(1) "Resources" or "resource" used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). Mineral resources are not reserves and do not have economic viability. For further information, please refer to the risk factors and definitions of reserves and resources in the Company's filings on SEDAR and with the SEC on the Company's website, www.queenstake.com. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake.
(2) A complete data set, from which the drill results highlighted in this news release were derived, is available as an Appendix to this news release under the Investor Information/News section on the Company's website, www.queenstake.com.
(3) Surface and underground drilling use either core or reverse circulation methods for near-mine and surface exploration programs at Jerritt Canyon. Underground reverse circulation drilling has demonstrated accuracy in ore control definition drilling and for resource conversion at Jerritt Canyon's mines. However, reverse circulation drilling can result in a lower degree of confidence and less geologic information than core drilling.
(4) Results presented in this news release were analyzed using standard fire assay techniques at the Company's Jerritt Canyon laboratory. Intercepts are reported as drilled and are not necessarily "true width".
(5) A description of the geology, sampling procedures and the Company's laboratory Quality Assurance/Quality Control procedures are described in the Company's National Instrument 43-101 Technical Report filed on Sedar on February 23, 2005. This report is available under Investor Information/Financial Information/Sedar Filings at www.queenstake.com.
Cautionary Statement - This news release contains "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation and (ii) estimates of exploration investment and scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular the estimates do not include input cost increases that could occur in future. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in in the Company's 2004 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company's other SEC filings.
SEC file number 0-24096
The Toronto Stock Exchange has neither reviewed nor accepts respon sibility for the adequacy or accuracy of this release.
Queenstake Resources Ltd. (TSX:QRL) (AMEX:QEE)
SOURCE: Queenstake Resources Ltd.
Queenstake Resources Ltd. Wendy Yang (303) 297-1557 ext. 105 or 1-800-276-6070 info*queenstake.com www.queenstake.com
Copyright Business Wire 2005
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