Queenstake starts up mine; to repay note to Campbell
Queenstake Resources Ltd (2) QRL
Shares issued 58,222,954 Sep 12 close $0.27
Thu 12 Sept 2002 News Release
Mr. Chris Davie reports
QUEENSTAKE STARTS UP ITS NEW MINE
For the past two weeks Queenstake Resources, the operator of the Magistral
joint venture, has been stacking ore on the leach pad at its newly
completed Magistral gold mine in Sinaloa, Mexico. To date, about 20,000
tonnes of crushed ore has been placed on the pad and leaching will commence
over the next few days. The gold will be recovered, from the pregnant leach
solution, in the adsorption and stripping circuits, which will be started
up over the coming weeks.
Production is expected to gradually increase over the following months to
the anticipated annual production rate of approximately 40,000 ounces of
gold per year. Mine life is expected to be eight years and gold recovery
from the ore, over its 240-day leach cycle, is expected to be 73 per cent.
The proven and probable reserve base for the Magistral mine is 6.98 million
tonnes containing 465,100 ounces at an average grade of 2.07 grams of gold
per tonne. The feasibility study forecast an estimated life of mine
operating cost per ounce to be $180 (U.S.) but the Magistral joint venture
expects this to be reduced due to the high-grade nature of recently
discovered additional reserves (see news in Stockwatch on June 4, 2002).
"These are tremendously exciting days for Queenstake," said Chris Davie,
president and chief executive officer of Queenstake. "We completed the
construction of the mine from beginning to end in less than eight months
and now we become one of the relatively few junior companies that are
actually gold producers."
Warrants exercised
Queenstake issued 5,329,889 common shares, pursuant to the exercise of
share purchase warrants, for gross proceeds of $959,380. There are no
further warrants outstanding.
Gold price triggered note payment
On Sept. 9, 2002, the payment of a $150,000 (U.S.) promissory note to
Campbell Resources Inc. (see news in Stockwatch on Sept. 4, 2001) was
triggered when the gold price for the preceding 120 calendar days averaged
over $315.00 (U.S.). The company intends to satisfy this obligation,
subject to Toronto Stock Exchange approval, by the issuance of 978,500
shares to Campbell Resources. These shares will carry a four-month hold
period legend.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
