Queenstake Continues to Expand Gold Mineralization at SSX and Steer Mines
Wednesday September 13, 8:00 am ET
DENVER, Sept. 13 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd. (Amex: QEE - News; Toronto: QRL - News) reported that recent underground drilling at the SSX Mine at the Jerritt Canyon operations in Northeastern Nevada continued to identify high-grade gold mineralization, the most significant of which included intersections of 35 feet grading 0.628 ounce of gold per ton (opt) or 10.7 meters grading 22 grams of gold per tonne (gpt) in Zone 2 and 15 feet of 0.658 opt (4.6 meters of 23 gpt) in Zone 6.
In addition, drilling from underground platforms along the prospective connecting corridor between the SSX and Steer mines in Zone 7 intercepted 50 feet of 0.369 opt (15.2 meters of 13 gpt) and 40 feet of 0.412 opt (12.2 meters of 14 gpt). This mineralization is expected to provide additions to the estimated mineral resource at the Steer Mine. Production from the SSX and Steer mines are managed and reported as part of the SSX-Steer Complex.
Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "The continuing positive exploration results from the near-mine exploration program reinforces our belief that we can achieve our goal of replacing gold reserves, net of production, and increasing our resources at Jerritt Canyon at year-end 2006. These areas referred to above are near production drifts and have good potential for discovery of resource additions in the future. Key targets include Zones 5 and 6 along the South Boundary Fault trend at SSX and along the connecting drift between the SSX and Steer mines."
The extensions of the newly identified mineralization from results highlighted in this news release are open along strike. The SSX Mine started gold production in 1997 in Zone 2 of the South Boundary Fault trend. This northwest trend is now known to extend for approximately 7,500 feet (2,286 meters), intersected by several northeast mineralized faults, and is generally open in the northwest and southeast directions. The South Boundary Fault trend remains one of the best target areas for gold resource additions.
All results highlighted in this news release are located outside of the Company's year-end 2005 mineral resource estimate boundary. (Refer to the Appendix Map 1 showing the selected drill results at the SSX-Steer Complex.) These results will be incorporated in new mine models that will be used in the estimation of mineral reserves and resources(1) for year-end 2006. The data in the table below report drill intercepts of 10 feet or more at a grade of 0.225 opt or higher (>3 meters of approximately 8 gpt).
Underground reverse circulation(2) and core(2) drilling results highlighted in this news release were part of the near-mine exploration program(3) conducted at the SSX and Steer mines this past summer. The program completed 140 reverse circulation drill holes totaling 33,538 feet (10,222 meters) drilled and 27 core holes totaling 13,348 feet (4,069 meters).
Table 1: SSX-Steer Complex Significant Results(4), (5)
From To Length Grade Drill
Hole # (feet) (feet) (feet) (opt) Type
SX-995 385 420 35 0.628 Core
SX-997 380 395 15 0.610 Core
SR-080 365 380 15 0.365 Core
Z50743 15 60 45 0.225 RC
Z50750 0 15 15 0.431 RC
Z50837 0 50 50 0.330 RC
Z50838 25 50 25 0.496 RC
Z60397 90 115 25 0.435 RC
Z60403 120 135 15 0.658 RC
Z70301 120 145 25 0.318 RC
and 185 210 25 0.253 RC
Z70305 140 190 50 0.369 RC
Z70306 145 160 15 0.354 RC
Z70307 45 60 15 0.354 RC
and 75 100 25 0.225 RC
Z70310 90 110 20 0.274 RC
SR-082 395 455 60 0.275 Core
SR-087 310 350 40 0.412 Core
Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon gold operations in Nevada. Jerritt Canyon has produced over 7.5 million ounces of gold from open pit and underground mines since 1981. Current production at the property is from underground mines. The Jerritt Canyon District, which comprises 119 square miles (308 square kilometers) of geologically prospective ground controlled by Queenstake, represents one of the largest contiguous exploration properties in Nevada.
(1) Mineral "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 demonstrated economic viability. For further
information, please refer to the risk factors and definitions of
mineral 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) Underground drilling uses either core or reverse circulation (RC)
methods for near-mine exploration programs at Jerritt Canyon. 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.
(3) A complete data set, from which the drill results highlighted in this
news release were selected, is available as an Appendix to this news
release under the Investor Information/News section on the Company's
(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
widths," which have not yet been calculated.
(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 May 4, 2006. This report is available under Investor
Information/Financial Information/SEDAR filings at www.queenstake.com
or at www.sedar.com under the Company's name.