Queenston expects royalties from Kirkland Lake to increase

Queenston Mining (TSE) is anticipates rising royalty revenues from its Kirkland Lake properties adjoining the Macassa mine on the west where LAC Minerals (TSE) is stepping up deep exploration and development. LAC has already doubled its ore reserve calculations on the Queenston ground to 288,870 tons grading 0.49 oz. Last year it mined 17,610 tons from which it recovered 10,150 oz. of gold representing an average grade of 0.58 oz. from which Queenston received some $46,000.

In the previous year, LAC extracted 9,708 oz. on which it paid Queenston royalties of $231,000. The reduction, Queenston’s President and Chairman H.D. Harbinson points out, resulted from lower gold prices and higher development costs. This year’s production is projected at 12,000 oz., with revenues expected to increase reflecting higher bullion prices.

The adjoining Macassa mine itself turned out 82,000 oz. last year.

LAC is now concentrating its deep development on the Queenston West property, where three separate gold zones are being explored.

On its 5,875-ft. level, it is drifting on a gold-bearing quartz- molybdenite vein in the hangingwall paralleling what is known as the 04 break, with gold values up to 0.60 oz.

On the 4,750-ft. level, a crosscut is being driven to this 04 break in the Queenston ground. A 2,000- ft. exploration drive is planned along the break, with systematic drilling to test for additional hangingwall veins.

And on the 6,450-ft. level, diamond drilling is under way to test the westward extension of the new 05 break. This is described as a significant new gold structure lying 1,500 ft. north of the 04 structure, picked up on the Macassa side.