Queenston cuts gold at Pandora

Drilling at Queenston Mining‘s (QMI-T) wholly owned Pandora gold property, east of Rouyn-Noranda, Que., has uncovered a new gold occurrence at depth.

When the program began, in late 1999, privately held Electrum Stater Resources was still pursuing its option to acquire a 50% interest in the property from Queenston by making cash payments of $200,000 and spending $500,000 on exploration. However, after the first hole, Electrum terminated its option agreement and Queenston decided to complete the drilling on its own.

The 6-hole program is designed to explore known gold mineralization at the Amm shaft, the No. 3 shaft and the North Branch zones.

All three holes completed to date have expanded the targeted zones. The new gold occurrence, situated 150 metres south of the No. 3 shaft, was intersected by hole 3, which cut 3.4 metres (from 171 metres) grading 6.07 grams gold per tonne.

The next three holes in the program, to be completed by the end of January, will try to define the dimensions of the new discovery.

In other news, Queenston has acquired a 100% interest in the 32-claim Upper Beaver Gold Mine property, near Kirkland Lake, Ont., following a decision by Pricewaterhouse Coopers to abandon its 51% interest. Pricewaterhouse is the interim receiver of Royal Oak Mines.

For the nine months ended Sept. 30, 1999, Queenston posted a net loss of $350,780 (or 1 per share) on revenue of $326,629, compared with earnings of $1.4 million (5 per share) on revenue of $2 million in the corresponding period of 1998. Most of the revenue in 1999 was derived from the sale of securities.

On Sept. 30, 1999, Queenston was debt-free and had $8.6 million in cash and term deposits, as well as another $2.6 million in marketable securities.

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