NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: QUEENSTAKE RESOURCES LTD.
SEC File Number 0-24096
TSE SYMBOL: QTR
JANUARY 4, 1999
Queenstake Resources: Initial Drill Results - Pico Machay
Project, Peru
VANCOUVER, BRITISH COLUMBIA--Newcrest Resource Inc., Queenstake's
joint venture partner, has completed an initial program of 8
reverse circulation drill holes totaling 1,846 meters on the
Company's Pico Machay Project, Huancavelica Province, Peru. (News
Release 98-8, November 10, 1998). Gold assay results have been
received for all 8 holes indicating that follow up work is
warranted. Newcrest is currently evaluating all information and a
detailed report, including their recommendations for follow up
programs, is expected shortly.
Drill holes 1,5,6 and 8 intersected intervals of better than 0.3
grams per tonne ("gpt") gold. Hole locations are shown on the
attached map (Figure 1) and gold intercepts on the attached table.
Holes 1 and 6 were drilled to intersect the suspected down dip
extension of the mass of intensely silicified volcanic rocks.
Hole 8 was drilled on a western projection of the intense
silicification and hole 5 was drilled 500 meters to the east.
Holes 1 and 6 were angled to intersect significant gold values in
rock chip sample lines as noted on the map and summarized on the
attached table. Hole 1, drilled beneath Line 3, which has 69
meters of 1.21 gpt gold cut 174 meters of 0.47 gpt gold, including
36 meters in two zones with better than 1 gpt gold. Hole 6, on
the extension of chip sample line 2 (90 meters of 1.29 gpt gold)
cut 25.5 meters of 0.87 gpt gold, including 10.5 meters of 1.45
gpt gold. Holes 5 and 8 cut smaller intervals of plus 1 gpt gold.
Very preliminary interpretation indicates the existence of a
strongly silicified mineralized zone related to a favorable
horizon, faulting, and a dacite intrusive body. We believe there
is room for a bulk mineable heap leachable gold deposit at Pico
Machay, but considerable additional drilling will be necessary to
establish a resource. Newcrest will advise the Company in the
first quarter of 1999 as to whether they will fund additional
drilling and the timing thereof.
In addition, Queenstake has a drill program underway at its 60
percent owned Guinoloza project in Mexico and Barrick has a drill
program underway on Queenstake's Uchcumachay project in the south
Ancash area of Peru. Queenstake is listed on the Toronto Stock
Exchange (QTR), with 38,410,879 shares outstanding. The Company's
mission is to discover significant precious and/or base metal
deposits through exploration in selected Latin American countries.
During this difficult market period, conserving cash is critical,
so the Company has and will continue to seek out substantial Joint
Venture partners to conduct expensive drilling and follow-up
programs on its projects. The Company's cash treasury will ensure
the Company can survive for more than 3 years at anticipated
spending rates without seeking additional financing.
We take this opportunity to inform shareholders and interested
parties that we are the only reliable source of information for
Queenstake Resources Ltd.
James Mancuso, President and Chief Executive Officer
/T/
SIGNIFICANT DRILL INTERCEPTS - PICO MACHAY
Drill From To Width Gold
Hole Number Meters Meters Meters Grams per Tonne
("gpt")
Hole 1 0 174 174 0.47 gpt
Includes 22.5 63 25.5 1.00 gpt
And 52.5 63 10.5 1.16 gpt
Hole 5 21 27 6 1.21 gpt
Hole 6 24 49.5 25.5 0.87 gpt
Includes 32.5 48 10.5 1.45 gpt
Hole 8 54 93 39 0.38 gpt
Includes 54 57 3 2.06 gpt
ROCK CHIP SAMPLE LINES - PICO MACHAY
Sample Line Meters Gold
Number Grams per Tonne
("gpt")
Line 1 36 0.88 gpt
Line 2 90 1.21 gpt
Includes 12 4.97 gpt
Line 3 69 1.25 gpt
Includes 42 1.82 gpt
Line 4 33 0.84 gpt
Line 5 115 0.92 gpt
TRENCH SAMPLE LINES - PICO MACHAY
Trench Sample Meters Gold
Line Number Grams per Tonne
("gpt")
Trench 1 100 0.75 gpt
Trench 2 Less than 0.3 gpt
Trench 3 80 0.37 gpt
/T/
NOTE: Location map available from the Company at the phone number
listed below. |
