Vancouver — At its Jerritt Canyon gold operation in Elko Cty., Nev.,
Since acquiring the mine less than a year ago, Queenstake has been focusing on ways to increase the mine life.
Second-quarter production is projected to be just shy of 70,000 oz. gold — a 44% improvement over the first quarter, when operations were hampered by heavy snowfall. Production for the third and fourth quarters is expected to average 80,000 oz. Output for the year is estimated to be 280,000 oz., with overall cash operating costs pegged at US$280 per oz.
The Jerritt Canyon complex comprises four underground mines, the SSX, Smith, Murray and MCE, a 1.4-million-tonne-per-year mill, and a 260-sq.-km land package with exploration potential. In 2003, the complex produced 302,095 oz. gold; since 1981, it has turned out more than 7 million oz.
Queenstake is developing the Mahala deposit, about 500 metres southwest of the Smith mine, for underground access. Drilling will define mining blocks, upgrade the existing resource, and explore for more mineralization.
Underground development is also under way at the Steer deposit, 1,100 metres northwest of the SSX mine. Mining is expected to begin early in 2005.
Underground drilling at the Murray mine identified a new area of high-grade gold mineralization adjacent to existing workings, with intercepts of up to 9 metres grading 101.8 grams gold per tonne. Further work will test the extent of the ore-grade material.
Queenstake was propelled to mid-tier gold producer status through its purchase of the Jerritt Canyon mine from
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