Queenstake ships first poured gold at Magistral
Queenstake Resources Ltd (2) QRL
Shares issued 58,222,954 Oct 15 close $0.17
Wed 16 Oct 2002 News Release
Mr. Chris Davie reports
QUEENSTAKE SHIPS MAGISTRAL GOLD
Queenstake Resources, the operator of the Magistral joint venture, shipped
its first 254 ounces of gold poured at Magistral on Wednesday, Oct. 9,
2002. The gold was received at the Johnson Matthey refinery on Oct. 11 and
was sold at $316.10 (U.S.) per ounce. Gold production is not hedged.
Queenstake began stacking ore on the leach pad at the end of August and
leaching began mid-September. Production is expected gradually to increase
over the next few 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, as
reported in Stockwatch on June 4, 2002.
Queenstake's strategy to grow to a mid-tier gold producer comprises three
stages:
stage one -- cash flow from production at Magistral;
stage two -- increase gold reserves at Magistral through exploration; and
stage three -- acquire additional cash-flow producing gold assets.
Stage one is complete and stage two is partially complete. First quarter
2002 exploration increased reserves by 26 per cent to their present level.
Additional exploration potential is excellent, with near-term programs to
be financed from Magistral cash flow.
Stage three is management's current focus. With the company's treasury
intact by virtue of the financing used at Magistral, the company is ready
to advance to additional production opportunities. Chris Davie,
Queenstake's chief executive officer, said: "The first pour at any project
is exciting but this has been particularly so, representing as it does the
culmination of an extended period of project development and construction.
When we completed financing of the project, the gold price was $270 and
many said it could not be done. We now have our principal asset in
production at a time of rising gold prices and our first stepping stone to
the company's future growth is complete."
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
