Queenstake expects record year for placer gold production

By year-end, Queenstake Resources (TSE) expects it will have produced a total of 13,800 fine troy oz from its placer mining operations in British Columbia and the Yukon Territories, making 1987 its second consecutive record production year. The company reported gold production to Sept 30, of 12,535 oz, 29% above the 9,683 oz produced during the comparable period last year.

Revenues for the 9-month period were $6.3 million, an increase of 49% over last year. The company said direct operating costs per oz produced increased by only 1%, consequently cash flow from operations of $1.3 million for the period exceeded last year’s figure by 45%. Queenstake’s cash position to Sept 30 was $1.96 million, a 16% increase over the previous year. The company also declared a dividend of 2.5 in November, payable Jan 6.

During 1988 the company carried out exploration programs including 3,000 ft of drilling on its operating placer mines and on six properties in the Yukon and British Columbia. An active placer exploration and acquisition program is planned for 1989 to expand gold reserves.

Underground exploration is also continuing at the 100%-owned Dos Cabezas project in Arizona, with material derived from the program shipped as gold-bearing silica flux to a smelter in New Mexico. The first shipment of about 500 tons at 0.37 oz gold was made in early November, and the company expects to receive in excess of 83% of the gold value in the flux, thereby generating cash flow for ongoing exploration and development.

Work is also expected to continue on the Argus project in California and on the Buckskin National mine project in Nevada, both precious metals hardrock exploration/ development projects involving a joint venture partner.