News Release 2003-20 | September 19, 2003 |
TSX - QRL - Queenstake Resources Ltd. | |
SEC file number 0-24096 |
JERRITT CANYON RESERVE AND RESOURCE UPDATE
Denver, Colorado - September 19, 2003 - A reconciliation of reserves and resources at Queenstake's 100% owned Jerritt Canyon property as at June 30, 2003, relative to those previously stated as at December 25, 2002 has been prepared and is reported on the attached tabulation. Reserves have been calculated on the basis of a $320 gold price and are based on resources estimated by PAC Kriging, a method that has produced highly reliable resource estimates in the past. The Jerritt Canyon resource and reserve estimates are reported as part of an ongoing rigorous data review program supervised by Mr. Donald Colli, Chief Mine Geologist, and Mr. Mark Odell, Mining Manager, who are appropriate qualified persons as defined by Canadian National Instrument 43-101.
Production by the previous owners in the first half of the year totaled 152,000 ounces while proven and probable reserves for the period decreased by only 56,745 ounces. Total proven and probable reserves at June 30, 2003 are 524,168 ounces compared to 580,913 ounces at December 25, 2002. Measured and indicated resources stand at 1,952,590 ounces, compared to 1,837,685 ounces as reported at December 25, 2002.
The net change in reserves relative to December 2002 is comprised of depletion due to production, additions due to increased definition drilling and inclusion of some blocks of resource which previously met reserve criteria but which were not included in the December 2002 reserve statement. In addition, reevaluation of the stockpile and cessation of stockpile screening have brought additional material to the reserve category while lowering the overall grade of the reserve.
Depletion has been at a lower rate than that of production as some resource material and some material that was neither resource nor reserve was mined during the period. Non reserve resource material provided 24,929 ounces. This is typical of the production pattern at Jerritt, where mineralized material additional to resource is routinely discovered by underground drilling and is frequently developed and mined before being brought to the reserve category.
The pace of development is increasing at Jerritt and over the next few months the results of definition drilling performed from newly developed drifts will be incorporated into a new resource and reserve estimate as at the end of this year.
Queenstake is approaching the end of its first quarter as owner of Jerritt Canyon. Third quarter production is expected at approximately 78,000 ounces. Revenues for the quarter from 73,000 ounces of gold shipped and sold are expected to total $26,400,000, representing an average sale price of $362 per ounce. Cash operating costs are expected to total $265 per ounce. This is a little higher than budgeted and is due mainly to additional administrative costs associated with the acquisition and to the reestablishment of gold inventory post acquisition as inventory at closing was for the account of the sellers. It is anticipated that cash operating costs will normalize in the fourth quarter leading to cash costs of the order of $250 per ounce.
For further information call:
John Haigh 303-297-1557 ext. 105
Email - info@queenstake.com web - www.queenstake.com
Forward looking statement - 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 TOTAL MINERAL RESOURCES - JUNE 2003 | ||||||||||||
Total Measured and | ||||||||||||
Deposit /area | Measured | Indicated | Indicated Resources | Inferred | ||||||||
Tons | Oz/st | Con'd Oz | Tons | Oz/st | Cont'd Oz | Tons | Oz/st | Cont'd Oz | Tons | Oz/st | Cont'd Oz | |
Murray | 221,479 | 0.369 | 81,714 | 557,606 | 0.285 | 159,002 | 779,085 | 0.309 | 240,716 | 482,560 | 0.278 | 134,364 |
MCE | 15,925 | 0.486 | 7,738 | 57,602 | 0.331 | 19,043 | 73,527 | 0.364 | 26,781 | 63,389 | 0.365 | 23,143 |
SSX | 456,954 | 0.378 | 172,598 | 1,913,434 | 0.279 | 534,290 | 2,370,388 | 0.298 | 706,888 | 1,516,578 | 0.235 | 356,041 |
Smith | 146,092 | 0.416 | 60,813 | 569,396 | 0.280 | 159,616 | 715,488 | 0.308 | 220,429 | 346,745 | 0.233 | 80,880 |
B-Pit | - | - | - | 63,453 | 0.261 | 16,574 | 63,453 | 0.261 | 16,574 | 64,822 | 0.245 | 15,849 |
Smith East | - | - | - | 252,769 | 0.333 | 84,172 | 252,769 | 0.333 | 84,172 | 83,127 | 0.256 | 21,280 |
Mahala | - | - | - | 212,729 | 0.342 | 72,753 | 212,729 | 0.342 | 72,753 | 263,574 | 0.239 | 63,122 |
Subtotal | 840,451 | 0.384 | 322,863 | 3,626,989 | 0.288 | 1,045,450 | 4,467,440 | 0.306 | 1,368,313 | 2,820,795 | 0.246 | 694,679 |
Stockpiles | 48,999 | 0.121 | 5,927 | 1,409,721 | 0.060 | 84,014 | 1,458,720 | 0.062 | 89,941 | - | - | - |
Underground | ||||||||||||
(Polygonal) | - | - | - | 1,458,374 | 0.265 | 386,333 | 1,458,374 | 0.265 | 386,333 | 420,012 | 0.273 | 114,512 |
Open Pit | ||||||||||||
(Polygonal) | - | - | - | 683,546 | 0.158 | 108,003 | 683,546 | 0.158 | 108,003 | 76,388 | 0.127 | 9,734 |
TOTAL | 889,450 | 0.370 | 328,790 | 7,178,630 | 0.226 | 1,623,800 | 8,068,080 | 0.242 | 1,952,590 | 3,317,195 | 0.246 | 818,925 |
JERRITT CANYON TOTAL MINERAL RESOURCES - DECEMBER 2002 | ||||||||||||
TOTAL | 1,102,744 | 0.370 | 412,896 | 5,875,010 | 0.243 | 1,424,789 | 6,977,754 | 0.263 | 1,837,685 | 3,867,388 | 0.268 | 1,034,652 |
JERRITT CANYON TOTAL PROVEN AND PROBABLE RESERVES - JUNE 2003 (Included in Resources) | |||||||||
PROVEN | PROBABLE | TOTAL PROVEN AND PROBABLE | |||||||
Mine | Tons | Oz/St | Cont'd Oz | Tons | Oz/St | Cont'd Oz | Tons | Oz/St | Cont'd Oz |
Murray | 147,624 | 0.334 | 49,281 | 206,553 | 0.266 | 54,849 | 354,177 | 0.294 | 104,130 |
MCE | 16,394 | 0.401 | 6,570 | 20,511 | 0.358 | 7,339 | 36,905 | 0.377 | 13,909 |
SSX | 255,162 | 0.356 | 90,931 | 558,987 | 0.265 | 148,321 | 814,149 | 0.294 | 239,252 |
Smith | 93,672 | 0.412 | 38,585 | 141,552 | 0.271 | 38,351 | 235,224 | 0.327 | 76,936 |
Stockpiles | 48,999 | 0.121 | 5,927 | 1,409,721 | 0.060 | 84,014 | 1,458,720 | 0.062 | 89,941 |
TOTAL | 561,851 | 0.340 | 191,294 | 2,337,324 | 0.142 | 332,874 | 2,899,175 | 0.181 | 524,168 |
JERRITT CANYON TOTAL PROVEN AND PROBABLE RESERVES - DECEMBER 2002 (Included in Resources) | |||||||||
TOTAL | 668,635 | 0.375 | 250,474 | 1,794,885 | 0.184 | 330,439 | 2,463,520 | 0.236 | 580,913 |