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:
Material Change Report for News 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 30, 2004
By "Doris Meyer"
(Signature)
Doris Meyer, Corporate Secretary
Queenstake Resources Ltd.
MATERIAL CHANGE REPORT
1. Reporting Issuer
Full name of the Issuer:
Queenstake Resources Ltd.
The address of the principal office in Canada of the reporting issuer is as follows:
Suite 405, 555 Sixth Street
New Westminster, British Columbia
V3L 5H1
PHONE: (604) 516-0566
2. Date of Material Change
January 19, 2004
3. Press Release
The date and place(s) of issuance of the press release are as follows:
January 19, 2004
The Press Release was released to The Toronto Stock Exchange being the only exchange upon which the shares of the Issuer are listed, and through various other approved public media.
4. Summary of Material Change(s)
A summary of the nature and substance of the material change is as follows:
Queenstake Resources Ltd. reports that estimated proven and probable reserves at its 100% owned Jerritt Canyon mine in Elko County, Nevada have increased to 820,104 contained ounces estimated within a newly calculated measured and indicated resource estimate of 2,295,303 contained ounces. Inferred resources in addition to this are estimated 1,034,044 contained ounces. Depletion of reserves during the second half of 2003 totalled 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 are expected to support a new mining area. 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 existing 1.5 million ton per year processing facility to increase by approximately 15 to 20% from mid 2005.
5. Full Description of Material Change
Queenstake Resources Ltd. reports that estimated proven and probable reserves at its 100% owned Jerritt Canyon mine in Elko County, Nevada have increased to 820,104 contained ounces estimated within a newly calculated measured and indicated resource estimate of 2,295,303 contained ounces. Inferred resources in addition to this are estimated 1,034,044 contained ounces. Depletion of reserves during the second half of 2003 totalled 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 are expected to support a new mining area. 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 existing 1.5 million ton per year processing facility to increase by approximately 15 to 20% from mid 2005.
- 2 -
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 of the Company 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 updated report.
The increase in reserves comes both from reconsideration 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 which would be expected to enhance average mill feed grade and increase gold production.
The existing mines at Jerritt Canyon 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 a relatively small number of working places. New reserves have been established that are accessible from Smith Mine 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 Mine operations, is already in hand and are 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 is expected to 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 the SSX Mine 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, is planned for development 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. The MCE Mine, which has provided minor tonnage over the past few months, will be depleted during 2004.
Resources
The measured and indicated categories of estimated 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.
- 3 -
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 has been consistent and, in practice, mineralized material outside reserves is frequently defined, blocked out, developed and mined before it ever becomes a formal 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 which are considered to have 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. The polygonal methodology is used when the drill spacing will not support the kriging methodology of estimating resources.
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 Quality Assurance/Quality Control ("QA/QC") procedures or by Jerritt Canyon's laboratory, using standard fire assay techniques and industry accepted QA/QC procedures.
6. Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
Not Applicable
7. Omitted Information
Not Applicable
8. Executive Officer
The following senior officer of the Issuer is knowledgeable about the material change and may be contacted by the Commission at the following address and telephone number:
Doris Meyer, Corporate Secretary
Suite 405 - 555 Sixth Street
New Westminster, British Columbia
V3L 5H1
PHONE: (604) 516-0566
9. Date of Report
DATED at New Westminster, British Columbia, this 30th day of January 2004.
"Doris Meyer"
Doris Meyer, Corporate Secretary
JERRITT CANYON ESTIMATED RESERVES - DECEMBER 31, 2003 * (Included in Total Estimated 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 |
* Calculated on the basis of a US$350 per ounce gold price.
JERRITT CANYON TOTAL ESTIMATED RESOURCES - DECEMBER 31, 2003 (Including Estimated 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 ESTIMATED RESOURCES - DECEMBER, 2003 (Included in Total Estimated Resource) | ||||||||||||
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 | |
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 |