Guinoloza drilling under way
Queenstake Resources Ltd QTR
Shares issued 38,210,879 Nov 17 close $0.53
Wed 18 Nov 98 News Release
Also Alamos Minerals Ltd (AAS)
Ms. Doris Meyer reports
Queenstake and Alamos have commenced the drilling of a four-hole,
1,000-metre drilling program on the Guinoloza property (formerly called the Yecorato 51) in Chihuahua, Mexico. Guinoloza is surrounded by concessions held by Francisco Gold, the discoverers of the El Sauzal gold deposit two kilometres east of the Guinoloza property boundary. Francisco Gold reports that El Sauzal contains an estimated resource of 3.59 million ounces of gold at 2.21 grams per tonne with a mineable reserve of 2.26 million ounces of gold at 2.98 grams per tonne.
The anomaly on the 1,850 hectare Guinoloza property was identified in 1994 using remote sensing satellite imagery and was staked by Minera Vulcan, a company owned 60 per cent by Queenstake and 40 per cent by Alamos.
Mapping at Guinoloza has identified an altered rock package in the centre of the claim block, which is interpreted to be the same rock package found at the El Sauzal deposit. A volcanic-sedimentary sequence of andesites, dacites and limestones is altered by strong silicification along north-south and east-west fracture zones. The altered rocks are geochemically enriched in barium, arsenic and lead, with a weaker gold signature. The target is beneath the currently mapped surface exposures within open pit mineable depth. An induced polarization geophysical survey conducted last year identified high resistive zones within a more conductive halo. The resistivity anomaly is coincident with silica altered rocks. Similar anomalous resistive zones have been recognized over the El Sauzal ore body.
A four-hole reverse circulation program is planned to test the altered rock package. A road completed this summer by Francisco Gold crosses the northern portion of the Guinoloza property and access roads have been constructed to the drill sites. Holes will be drilled to plus 200-metre depths to test altered and geochemically anomalous rocks as well as the geophysical anomaly. The target at Guinoloza is a multimillion ounce gold deposit, similar to El Sauzal, mineable by open pit methods. The initial drilling program is expected to be finished within two weeks, but analysis of results may take an additional two weeks or more to complete.
Surface rights over the Guinoloza concession for exploration as well as subsequent development and mining operation have been acquired from the local Ejido community.
The Guinoloza project in Mexico and the Mamanina project in Peru are the two principal properties jointly owned by Queenstake and Alamos.
Discussions with potential joint venture partners to drill Mamanina's large copper, zinc, gold polymetallic porphyry skarn target in 1999 are under way.
**********
heh heh heh
O/49r |
