UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month
January 2004
Commission File Number
0-24096
QUEENSTAKE RESOURCES LTD.
Suite 405 – 555 Sixth Street, New Westminster, B.C. V3L 5H1
(Address of principal executive office)
(indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40 F.
Form 20-F [X] Form 40 F [ ]
Indicate by check mark whether by furnishing the information contained in this Form the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No X
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
DOCUMENTS FILED:
Press Release NR2004-2 January 19, 2004
DESCRIPTION:
Queenstake reports reserve, resource increases and development plans at Jerritt Canyon
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
QUEENSTAKE RESOURCES LTD.
(Registrant)
Date January 19, 2004
By “Doris Meyer”
(Signature)
Doris Meyer, Corporate Secretary
Queenstake Resources Ltd.
News Release 2004-02
January 19, 2004
TSX – QRL – Queenstake Resources Ltd.
SEC file number 0-24096
QUEENSTAKE REPORTS RESERVE, RESOURCE INCREASES
AND DEVELOPMENT PLANS AT JERRITT CANYON
Denver,Colorado – January 19, 2004 – Queenstake Resources Ltd. (TSX:QRL) reports that proven and probable reserves at its 100% owned Jerritt Canyon mine in Elko County, Nevada have increased to 820,104 ounces within a newly calculated measured and indicated resource of 2,295,303 ounces. Inferred resources in addition to this are 1,034,044 ounces. Depletion of reserves during the second half of 2003 totaled 129,625 ounces; the new reserve therefore represents the addition of 425,561 ounces or more than double the depleted June 2003 reserve. A portion of the additional reserves will support a new mining operation. In addition, a development plan is being evaluated that would accelerate development of reserves accessible from existing mines, and could allow gold production from the 1.5 million ton per year processing facility to increase by 15 to 20% from mid 2005.
Reserves
Reserves have been calculated at a gold price of $350 per ounce by Mr. Donald Colli and Mr. Mark Odell, Superintendent of Geology and Manager Mining respectively at Jerritt Canyon, who are qualified persons as defined by N.I. 43-101. The calculations have also been reviewed and approved by independent consultants Pincock Allen and Holt of Denver, who will use this reserve calculation as the basis for an updated Technical Report under N.I. 43-101 and who are considered the qualified person for this report.
The increase in reserves comes both from consideration of the economics of mining previously established resources and from drilling in the past six months. It was recognized that numerous areas of resource met reserve criteria in terms of drill spacing, but they did not fit into the previous owner’s production plan. The increase in gold price as a basis for reserves has had only a minor effect in providing greater continuity and minimizing the effect of internal dilution.
Reserves consist of both in situ and stockpile material. In situ reserves are accessible either from existing established mine openings or from surface, via proposed new portals where appropriate. In situ reserves comprise 2,565,636 short tons @ 0.302 ounces per short ton (opt) (10.35gm/tonne). Stockpile reserves constitute 499,638 short tons @ 0.093 opt (2.98 gm/tonne). Mill feed has in the past typically consisted of a mixture of mined and stockpiled material, resulting in an average mill feed grade of 0.221 opt.
Development Plan
The company is evaluating a development plan that would increase production from underground sources and could displace stockpile as a source of mill feed.
The existing mines are known as Murray, SSX, Smith and MCE. While SSX and Murray are working at close to full capacity, portal capacity at Smith is not fully utilized due to intermittent production caused by relatively the small number of working places. New reserves have been established that are accessible from Smith and the development of these reserves and nearby resources will be accelerated to increase the production from the Smith Mine. The development of the Mahala reserve and resource, some 1,500 ft south west of the existing Smith operations, is already in hand and may be expected to take a little over a year to complete. Development of the East Dash reserve and resource, some 3,000 feet East of the Smith portal will begin during 2005. Other areas accessible
from Smith, notably B-pit and Dash West, are still in the resource category and work will continue during 2004 to bring these areas to the reserve category.
Northwest of SSX a broad area of mineralization known as Steer and Saval has been partially converted to reserve. A new underground mine, to be known as Steer, will be developed from the Steer open pit at a point about 3,500 ft from the nearest SSX workings. Producing at an initial rate of the order of 500 tons/day in 2005, it is expected eventually to expand to include the Saval resource and eventually to link up with SSX. MCE, which has provided minor tonnage over the past few months, will be depleted during 2004.
Resources
The measured and indicated categories of resource have increased from 1.9 million ounces to 2.3 million ounces after being depleted during the second half of 2003 by 138,458 ounces. This is the result both of drilling, which outlined new resources and in some cases promoted resources from the inferred to indicated category, and of reclassification of some previously drilled mineralized material into the resource category.
Each area of reserve is contained within a greater area of resource that does not currently meet reserve criteria, usually due to drill spacing. The history of resource conversion in these mines is consistent and mineralized material outside reserves is frequently defined, blocked out, developed and mined before it ever becomes reserve. For this reason, depletion is typically less than production and the potential for a substantial degree of resource conversion is high.
Unlike the reserve category, the resource category includes some material that is remote from existing mines. In many cases, resources form the nucleus of known areas of mineralization which constitute significant exploration targets with potential for infill or step out drilling; in some areas, earlier drilling did not reach the most favorable stratigraphic horizons. Notable among these areas of high potential are Starvation Canyon, Waterpipe and Pie Creek, which are located in the southern part of the land package. In the northern part, mineralization behind the high wall of the old Winters Creek open pit shows potential to be developed into an underground mineable reserve. Drilling is currently in progress at Starvation Canyon and Winters Creek, in spite of severe winter conditions.
The attached tabulations give reserves by mine and break down resources between those that are accessible from existing mines and those that are remote.
Most of the assays on which these estimations are based were performed by Chemex Laboratories using standard fire assay techniques and subject to Chemex’s internal QA/QC procedures or by Jerritt Canyon’s laboratory, using standard fire assay techniques and industry accepted QA/QC procedures.
Queenstake Resources CEO Chris Davie commented: “We were always confident of bringing a substantial proportion of resources to the reserve category but have been agreeably surprised by the speed with which this has been done. Now we have a basis to open at least one new mine and to develop in numerous directions to areas where there are not only reserves waiting to be mined but also additional resources waiting to be converted. With the topographic limitations of surface drilling in some of these mines, it is typically preferable to perform definition drilling on resources from underground and the new reserves give us a basis to get close enough to many of these resources to do this. We confidently expect to continue the conversion process while continuing to outline additional resources from both underground and surface drilling. We expect at least to keep pace with depletion at the existing mines over th e next few years and for reserves of this order of magnitude to be maintained for a number of years. During those years we shall be performing district scale exploration in some of the most exciting geology in Nevada. We firmly believe that this district, one of the great mining districts of the U.S., has a long life ahead of it.”
Queenstake is a Canadian corporation based in Denver, Colorado that has traded on the Toronto Stock Exchange for more than twenty years. In 2003 it acquired the Jerritt Canyon property from the AngloGold /Meridian Joint
Venture. The Jerritt Canyon property consists of four operating underground mines and stockpiles that feed a 1.5 million ton per year processing facility. Jerritt Canyon has consistently produced more than 300,000 ounces of gold in each of the past twenty years and since 1999 , from underground sources. The four operating mines are located within a contiguous 100 square mile land package that represents some of the most exciting gold exploration ground in Nevada.
For further information call:
John Haigh 303-297-1557 ext. 105
800-276-6070
Email –info@queenstake.com web –www.queenstake.com
Forward-Looking Statements – This news release contains “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake’s future plans are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management’s estimates or opinions change.
The TSX has neither reviewed nor accepts responsibility for the adequacy or accuracy of this release.
JERRITT CANYON RESERVES – DECEMBER 31, 2003 (Included in Total Resources) | |||||||||
MINE | PROVEN | PROBABLE | TOTAL | ||||||
Tons | oz/st | Cont'd Oz | Tons | oz/st | Cont'd Oz | Tons | oz/st | Cont'd Oz | |
MURRAY | 197,225 | 0.336 | 66,213 | 52,636 | 0.347 | 18,258 | 249,861 | 0.338 | 84,472 |
MCE | 6,101 | 0.452 | 2,755 | 8,416 | 0.504 | 4,242 | 14,516 | 0.482 | 6,997 |
SSX | 458,561 | 0.302 | 138,424 | 1,023,144 | 0.285 | 291,793 | 1,481,705 | 0.290 | 430,216 |
STEER/SAVAL |
| 137,649 | 0.307 | 42,263 | 137,649 | 0.307 | 42,263 | ||
SMITH WEST, includes Mahala | 237,281 | 0.278 | 66,048 | 211,220 | 0.360 | 76,075 | 448,501 | 0.317 | 142,123 |
SMITH EAST, includes Dash East |
|
| 200,799 | 0.301 | 60,426 | 200,799 | 0.301 | 60,426 | |
WRIGHT WINDOW |
|
| 32,605 | 0.226 | 7,369 | 32,605 | 0.226 | 7,369 | |
TOTAL IN SITU | 899,168 | 0.304 | 273,440 | 1,666,468 | 0.300 | 500,425 | 2,565,636 | 0.302 | 773,865 |
|
|
|
|
|
|
| |||
STOCKPILES | 33,678 | 0.166 | 5,602 | 465,960 | 0.087 | 40,637 | 499,638 | 0.093 | 46,239 |
TOTAL | 932,846 |
| 279,042 | 2,132,429 |
| 541,062 | 3,065,274 |
| 820,104 |
JERRITT CANYON TOTAL RESOURCES – DECEMBER 31, 2003 (Including Reserves) | |||||||||||||
DEPOSIT/AREA | MEASURED | INDICATED | MEASURED & INDICATED | INFERRED | |||||||||
Tons | oz/st | Cont'd Oz | Tons | oz/st | Cont'd Oz | Tons | oz/st | Cont'd Oz | Tons | oz/st | Cont'd Oz | ||
Kriged Resources at Existing or Proposed Mines | |||||||||||||
MURRAY | 665,677 | 0.309 | 205,544 | 175,284 | 0.297 | 52,145 | 840,961 | 0.306 | 257,689 | 431,613 | 0.276 | 119,183 | |
MCE | 41,686 | 0.377 | 15,716 | 20,192 | 0.400 | 8,077 | 61,878 | 0.385 | 23,792 | 72,245 | 0.345 | 24,903 | |
SSX | 1,000,769 | 0.310 | 309,801 | 1,842,478 | 0.289 | 531,985 | 2,843,247 | 0.296 | 841,786 | 503,818 | 0.278 | 139,883 | |
STEER/SAVAL |
|
| 248,432 | 0.317 | 78,753 | 248,432 | 0.317 | 78,753 | 239,467 | 0.262 | 62,740 | ||
SMITH WEST, Includes Mahala | 477,534 | 0.299 | 142,989 | 651,684 | 0.295 | 192,547 | 1,129,218 | 0.297 | 335,536 | 473,923 | 0.251 | 119,078 | |
SMITH EAST, includes Dash East |
| 339,316 | 0.331 | 112,247 | 339,316 | 0.331 | 112,247 | 129,828 | 0.235 | 30,519 | |||
WRIGHT WINDOW |
| 114,175 | 0.147 | 16,784 | 114,175 | 0.147 | 16,784 | 277,988 | 0.105 | 29,099 | |||
TOTAL | 2,185,666 | 0.308 | 674,049 | 3,391,561 | 0.293 | 992,538 | 5,577,227 | 0.299 | 1,666,587 | 2,128,882 | 0.247 | 525,407 | |
Other Resources Stockpiles | 33,678 | 0.166 | 5,602 | 1,303,521 | 0.059 | 76,886 | 1,337,199 | 0.062 | 82,487 |
|
|
| |
Open pit (Polygonal), tabulated below |
| 814,896 | 0.140 | 113,961 | 814,896 | 0.140 | 113,961 | 2,341,590 | 0.116 | 270,778 | |||
U/G (Polygonal), tabulated below |
| 1,767,608 | 0.245 | 432,268 | 1,767,608 | 0.245 | 432,268 | 944,945 | 0.252 | 237,860 | |||
TOTAL | 2,219,344 | 0.306 | 679,650 | 7,277,586 | 0.222 | 1,615,652 | 9,496,930 | 0.242 | 2,295,303 | 5,415,417 | 0.191 | 1,034,044 |
JERRITT CANYON POLYGONAL RESOURCES - DECEMBER, 2003 (Included in Total Resource) | ||||||||||||
DEPOSIT/AREA | MEASURED | INDICATED | MEASURED & INDICATED | INFERRED | ||||||||
K-TONS | GRADE | K-OZ | K-TONS | GRADE | K-OZ | K-TONS | GRADE | K-OZ | K-TONS | GRADE | K-OZ | |
Open Pit |
|
|
|
|
|
|
|
|
|
|
|
|
Burns |
|
|
| 65,476 | 0.120 | 7,857 | 65,476 | 0.120 | 7,857 | 1,735,113 | 0.121 | 210,014 |
California Mountain |
|
|
| 27,054 | 0.128 | 3,463 | 27,054 | 0.128 | 3,463 |
|
|
|
Coyote Zone 10 |
|
|
| 25,714 | 0.107 | 2,751 | 25,714 | 0.107 | 2,751 |
|
|
|
Pie Creek |
|
|
| 293,651 | 0.140 | 41,111 | 293,651 | 0.140 | 41,111 | 232,140 | 0.095 | 21,984 |
Road Canyon |
|
|
| 171,126 | 0.105 | 17,968 | 171,126 | 0.105 | 17,968 | 111,442 | 0.105 | 11,701 |
Saval |
|
|
| 231,875 | 0.176 | 40,810 | 231,875 | 0.176 | 40,810 |
|
|
|
WaterPipe II |
|
|
|
|
|
| 262,895 | 0.103 | 27,078 | |||
Subtotal Open Pit |
|
|
| 814,896 | 0.140 | 113,961 | 814,896 | 0.140 | 113,961 | 2,341,590 | 0.116 | 270,778 |
UnderGround |
|
|
|
|
|
|
|
|
|
|
|
|
California Mountain |
|
|
| 41,250 | 0.370 | 15,248 | 41,250 | 0.370 | 15,248 | 4,285 | 0.273 | 1,170 |
Murray-Zone 9 |
|
|
| 64,666 | 0.344 | 22,245 | 64,666 | 0.344 | 22,245 | 272,414 | 0.256 | 69,738 |
Coyote Zone 10 |
|
|
| 41,786 | 0.245 | 10,238 | 41,786 | 0.245 | 10,238 | 1,875 | 0.310 | 581 |
Saval |
|
|
| 917,556 | 0.243 | 222,799 | 917,556 | 0.243 | 222,799 | 82,341 | 0.240 | 19,762 |
Starvation |
|
|
| 86,309 | 0.220 | 18,988 | 86,309 | 0.220 | 18,988 | 108,134 | 0.221 | 23,898 |
West Dash |
|
|
| 64,286 | 0.278 | 17,872 | 64,286 | 0.278 | 17,872 | 292,781 | 0.287 | 84,028 |
West Mahala |
|
|
| 368,054 | 0.224 | 82,444 | 368,054 | 0.224 | 82,444 | 141,865 | 0.209 | 29,650 |
Winters Creek |
|
|
| 183,701 | 0.231 | 42,435 | 183,701 | 0.231 | 42,435 | 41,250 | 0.219 | 9,034 |
Subtotal UnderGround |
|
|
| 1,767,608 | 0.245 | 432,268 | 1,767,608 | 0.245 | 432,268 | 944,945 | 0.252 | 237,860 |
TOTAL |
|
|
| 2,582,504 | 0.212 | 546,228 | 2,582,504 | 0.212 | 546,228 | 3,286,535 | 0.155 | 508,638 |