QTR announces increase in resources for the Magistral Project...
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: QUEENSTAKE RESOURCES LTD.
SEC file number 0-24096
TSE SYMBOL: QRL
JANUARY 25, 2000
Queenstake Resources Ltd. Announces Updated Gold Resource
Estimate For The Magistral Project
VANCOUVER, BRITISH COLUMBIA--Queenstake Resources Ltd. (QRL - TSE)
is pleased to announce the results of an updated resource estimate
prepared by Pincock, Allen and Holt Inc. ("PAH") for its 100%
owned Magistral project in Sinaloa, Mexico. Resources are updated
relative to those announced in press release 99-5 by the results
of recent drilling, the results of a recently completed
topographic survey, the inclusion of mill tailings and by some
refinements in modeling methodology. The increase in resource in
the La Prieta Zone (a portion of Samaniego Hill) due to the recent
drilling was 354,000 tonnes at 4.34 grams per tonne ("gpt").
Overall, the updated measured and indicated resource estimate was
increased to 508,100 ounces from 450,700 ounces.
Resources reported by PAH at a cut off grade of 0.4 gpt are
tabulated as follows:
/T/
Measured
Zone Tonnes Gold Contained
(x 1000) gpt ounces
San Rafael 2,072 1.77 117,900
Samaniego Hill 3,513 1.62 182,500
Sagrado Corazon,
Central, Lupita 2,235 1.10 78,800
Magistral Mill
tailings 170 2.22 12,200
Total 7,990 1.53 391,400
Indicated
Zone Tonnes Gold Contained
(x 1000) gpt ounces
San Rafael 447 1.24 17,900
Samaniego Hill 1,072 1.85 63,700
Sagrado Corazon,
Central, Lupita 1,082 0.96 33,300
Magistral Mill
tailings 104 0.53 1,800
Total 2,705 1.34 116,700
Inferred
Zone Tonnes Gold Contained
(x 1000) gpt ounces
San Rafael 10 1.02 300
Samaniego Hill 42 1.89 2,500
Sagrado Corazon,
Central, Lupita 64 1.55 3,200
Magistral Mill
tailings
Total 116 1.63 6,000
/T/
PAH prepared the resource estimate as part of the ongoing
feasibility study and are now continuing with mine design and
reserve estimates. Completion of the feasibility study, being
managed by Kappes, Cassiday and Associates of Reno, is expected in
March 2000.
Queenstake President Chris Davie commented: "The increase of over
12% in total resource and of 10% in average grade will
substantially enhance the already robust project economics at
Magistral. The feasibility study is expected to demonstrate that
a substantial part of the resource will be included in the reserve
and that both capital and operating costs will be sufficiently low
to demonstrate not only a highly profitable project at current
gold prices but also one that will exhibit great resilience to
lower prices. Recent drilling has demonstrated a high grade zone
in the Samaniego Hill area that is currently open on strike and
down dip over a 150 meter strike length. Intersections in this
zone include 20.4 meters at 6.76 gpt, 18.8 meters at 6.64 gpt and
60.8 meters at 0.92 gpt. A number of prospective targets on the
property also remain undrilled."
FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" within the meaning of Section 21E of
the United States Securities Exchange Act of 1934, as amended.
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. 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. 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.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Queenstake Resources Ltd.
Christopher Davie
President and Chief Executive Officer
(604) 684-1218
Email: info@queenstake.com
Website: www.queenstake.com
INDUSTRY: MNG
SUBJECT: MEX
-0-
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