Production from Queenstake Resources’ placer mining operations in the Yukon doubled this year to l3,000 fine ounces of gold before royalties, President Gordon Gutrath reports.
The production season in the Yukon has ended now and Queenstake is turning its attention to several gold-silver projects in the U.S.
A 4-month sampling program on the 100%-owned Dos Cabezas gold prospect in Arizona was recently completed. Reserves at the former producing mine are estimated at 200,000 tons grading 0.38 oz gold per ton. Metallurgical tests are under way and the winter drilling program will begin shortly. Queenstake expects to start production feasibility work early in 1988.
Drill work is continuing at the Argus mine northeast of Barkersfield, Calif. As part of a $1-million(US) expenditure required for Childs International to earn a 60% interest in the property, a 5,000-ft. reverse circulation drill program is concentrating on the Davenport mine reserves. A 3,000-lb. bulk metallurgical sample from the Davenport vein zone was taken for column cyanide leach testing to determine optimum crushing size and heap-leaching characteristics of the ore. Estimated reserves are 423,000 tons averaging 0.053 oz.
At the Buckskin National mine in Nevada, Bolero Resources drilled two holes in October, intersecting the Bell vein above the Halcyon workings. The second hole returned 4 ft of core grading 0.26 oz gold and l.99 oz silver. Additional surface sampling is currently being carried out. Bolero can earn 50% of the company’s 60% interest in the prospect.
Bolero is also a partner at the Quartz Hill silver prospect in Montana, with an option to earn 50% of Queenstake’s 80% interest. Two drill holes have been completed in the Hasmark formation and the Aurora vein, and an ip survey is being carried out. Further drilling is planned in 1988.
In Canada, a trenching program is under way on the Mar gold prospect in the Yukon. Queenstake has plans for a 2,000-ft drilling program in 1988.
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