Vancouver – Underground exploration drilling by Queenstake Resources (QRL-T, QEE-X) on the Mahala deposit in its Smith Mine, part of the Jerritt Canyon mining complex in northeastern Nevada, has returned exceptional gold grades over good widths.
Testing for extensions along the Mahala Dike trend returned an intercept of 12.2 metres grading 62.4 grams gold per tonne in reverse circulation (RC) hole C40551. Another RC hole, C40538, cut 9.1 metres averaging 31.2 grams gold. The new high-grade zone is in close proximity to a development drift at the Smith mine.
“These are some of the most impressive drill results Queenstake has received from its near-mine underground program,” stated Queenstake president and CEO Dorian (Dusty) Nicol. “These positive results are expected to provide resource and reserve additions this year and to extend the mine life at Smith beyond 2008. We are excited that these high-grade mineralized drill intercepts are within 180 feet of the current development drift and are currently adapting our mine plans to include initial mining of these mineralized extensions in the fourth quarter of 2006.”
Extensions of high-grade gold mineralization along the Mahala Dike trend remains open along strike to the northwest and southeast. Additional drilling will focus on the zone with an eye to add mineable tonnage to the deposit.
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