Queenstake shuffles, hires new management
2003-08-18 21:18 ET - News Release
Mr. John Haigh reports
QUEENSTAKE BUILDS ITS TEAM TO MANAGE ITS RAPID GROWTH IN GOLD PRODUCTION
Queenstake Resources has promoted and hired new personnel to address the needs, challenges and opportunities created by the overnight growth experienced by the company as a result of its recent acquisition of the Jerritt Canyon gold mine. Queenstake's president and chief executive officer, Chris Davie, said, "On an annualized pro forma basis we will produce over 300,000 ounces of gold in 2003 and this dramatic growth means we must have the right people in the right place at the right time."
Queenstake's Dorian (Dusty) Nicol has been promoted from vice-president, exploration, to executive vice-president and director of exploration of Queenstake. This appointment is in line with the duties and responsibilities he has assumed over an extended period. Mr. Nicol will retain his responsibility for all exploration activities of Queenstake.
Queenstake has appointed John F. (Jack) Engele as vice-president, finance, and chief financial officer. Mr. Engele has 17 years experience in gold mining as a financial executive with Vista Gold Corp. and Echo Bay Mines Ltd. and has substantial experience in overseeing mine site controllers with respect to operations analysis, management reporting, audit and accounting issues. He has hands-on experience with U.S. and Canadian compliance reporting, treasury responsibility, equity financing, and tax and risk management functions. He is an honours graduate of Regis University, Denver, with a master of business administration in finance and accounting.
Colin F. Smith has joined Queenstake as vice-president of operations. Mr. Smith has over 40 years of mining, engineering, and project management experience in diverse, international mining and construction projects. He spent more than 10 years with each of Rio Tinto PLC, Murray and Roberts Group of Johannesburg, and Anglo American Corporation and as an independent consultant. He is a graduate of the Royal School of Mines, London, with a bachelor of science in mining engineering.
At Jerritt Canyon, Nigel Bain has been promoted to general manager. Previously underground mine manager, Mr. Bain has been employed at Jerritt Canyon for more than seven years and was development manager for the startup of the SSX and Smith mines. Prior to Jerritt Canyon, he was employed by and with increasing responsibility Echo Bay Mines, Nevada Goldfields Corp. and Newmont. He is a graduate of Otago University, Dunedin, New Zealand, with a bachelor of science with honours in mineral technology.
Queenstake has engaged Dean T. (Ted) Wilton as district exploration manager based in Elko, Nev. Mr. Wilton has nearly 30 years of domestic and international mineral exploration experience, most recently as chief geologist/technical services manager for Kinross Gold Corporation at Fairbanks Gold Mining, Inc. Previously he was vice-president and regional geologist for Independence Mining and conducted an extensive exploration program at Jerritt Canyon that resulted in the discovery of four major gold deposits in the early 1990s. Before that, he had 15 years exploration experience with Freeport-McMoRan, Inc. He is a graduate of the New Mexico Institute of Mining and Technology with a bachelor of science in geology.
John R. Haigh has joined Queenstake as manager of investor relations. Mr. Haigh has more than four decades of experience in the mining industry. For the past 17 years he has focused exclusively on working in the mining industry as an investor relations professional with, among others, Newmont Mining Corporation, Archangel Diamond Corporation and USMX Inc. He is a graduate in geology from the University of Minnesota, a member of the National Investor Relations Institute and a board member of the Denver Gold Group.
Queenstake has hired, for the Magistral joint venture, John E. Rice as general manager of the Magistral project in Sinaloa, Mexico. Mr. Rice has 26 years experience in the mining industry, with 18 years of middle and senior management responsibility with gold mining operations. He has 10 years experience with Pegasus Gold including general manager, South American operations, based in Chile, and general manager of the Florida Canyon operation in Nevada. Mr. Rice holds a master of science in mining engineering from the Mackay School of Mines and a bachelor of science in geology from the University of California, Davis. He also holds a master of business administration from the University of Phoenix, Reno, Nev.
Doris Meyer will continue in her position as corporate secretary of the company and passes on her responsibility as chief financial officer to Mr. Engele and her investor relations duties to Mr. Haigh.
On Aug. 13, 2003, Gordon Gutrath retired from the board of directors. Mr. Gutrath is the founder of the company and has been on the board at various times since the company's inception more than 25 years ago. Mr. Davie and the rest of the board thank Mr. Gutrath for his many years of service and sound advice through the company's development.
Operation update
At Jerritt Canyon, Queenstake's flagship operation, production is on track to achieve a robust second month of production in August. Each of the four mines has recently been producing unusually high-grade ore and production achieved to date has been well ahead of forecast levels for the month.
At Magistral, of which Queenstake is 42.5-per-cent owner and manager, a disappointing second quarter has been followed by production interruptions due to the wet season. Production in the second quarter was similar to that of the first quarter at 6,371 ounces of gold. It had been anticipated that production would increase during this period. The lack of increase in production was partly due to a shortage of ore caused by earlier low availability of the equipment fleet and partly due to a slowing of the leach recoveries. The company is currently investigating the reason for the latter.
On Aug. 7, 2003, the gold price averaged $350 (U.S.) per ounce over the previous 120-day period and a $600,000 (U.S.) note was triggered for payment to Campbell Resources Inc. by the Magistral joint venture. The joint venture has looked to its partners, the company and Midwest Mining, Inc., to assist it in paying the note, as operations at Magistral are not yet completely self-sustaining. Subject to regulatory approval, Campbell has agreed to accept one million common shares of Queenstake to satisfy $300,000 (U.S.) of the note with the rest to be paid in cash.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
