Queenstake Res. sees profit in its 1987 gold production

The production season has ended at Queenstake Resources’ placer operations in the Yukon and gold output was 5% higher than last year. More than 6,400 oz of gold was produced from three main properties: Clear Creek, Black Hills and Maisy May Creek, but exploration bulk sampling at Preido Hill, Moyie River and Atlin also contributed significantly.

Stronger gold prices increased cash flow and the 1987 production outlook is “very profitable,” says Queenstake. Surface and underground exploration programs are planned on five B.C properties to increase placer reserves, the company adds.

An initial 2,265-ft drill program has been completed on Queenstake’s 70%-owned O’Connor River gypsum deposit in northwestern B.C. About three million tons of gypsum reserves now are drill- proven in the East zone out of a total possible 10 million indicated in three zones. Marketing and transportation studies are being conducted and mine plans are completed for detailed feasibility work in 1987.

A drill program has increased reserves at Queenstake’s 30%- owned Buckskin National mine in northern Nevada. At $425(US) Queenstake feels approximately double the currently-indicated tonnage would be required for economic operations. The 1987 program will concentrate on outlining additional reserves.

The company is evaluating reserves in the Kay oreshoot at the Hirst Chichagof mine in Alaska. Should the grades in the Kay and Big Croppings oreshoots be substantiated by further drilling, the project could become viable with the inclusion of 500,000 tons of mine tailings grading 0.11 oz gold.

Drilling is under way or is planned at several other precious metals properties in the U.S.