QUEENSTAKE RESOURCES LTD.
TSE SYMBOL: QTR
AND ALAMOS MINERALS LTD.
VSE SYMBOL: AAS
FEBRUARY 24, 1999
Queenstake and Alamos: Initial Drill Program Completed At
Guinoloza, Mexico, With Negative Results
VANCOUVER, BRITISH COLUMBIA--Compania Minera Vulcan S.A. de C.V.
("Vulcan"), owned 60 percent by Queenstake Resources Ltd. and 40
percent by Alamos Minerals Ltd., has recently completed an initial
drill program on its Guinoloza (formerly Yecorato 51) property,
Chihuahua, Mexico, with negative results.
Eight reverse circulation drill holes totaling 800 meters were
drilled to test silicified zones in lower tertiary volcanic and
sedimentary rocks similar to those found at Francisco Gold's
nearby El Sauzal gold deposit. The drill targets were defined by
strong silicification (jasperoid); geochemically anomalous barium,
lead, zinc and arsenic in surface rocks; and coincident induced
polarization resistivity and chargeability anomalies.
Drill holes ranged from 36 to 260 meters deep. All but one hole
penetrated massive to semi-massive silica up to 40 meters thick
and bottomed in weakly altered Cretaceous andesite. Lead, zinc,
barium and arsenic are anomalous to strongly anomalous in drill
cuttings, especially in the siliceous zones, but gold and silver
are below detection in most samples; highest gold values are below
0.2 grams per tonne (200 parts per billion.)
The silica zones identified on surface and in drill cuttings are
interpreted to be located along the uncomformable contact between
Lower Tertiary volcanic and sedimentary rocks and the underlying
Cretaceous andesites. They are probably the distal facies of
gold-base metal skarn deposits.
Vulcan will continue to hold its 1,850 hectare Guinoloza property
and will thoroughly review the project to determine whether
potential may still exist for epithermal gold and/or gold-base
metal skarn mineralization.
Queenstake Resources Ltd
James Mancuso, President and Chief Executive Officer
Alamos Minerals Ltd.
Chester Millar, Chairman and Chief Executive Officer
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