Queenstake Resources - Chupaca Project, Ancash Region, Peru Preliminary Diamond Drill Results.VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 17, 1996-- QUEENSTAKE RESOURCES(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : QTR QTR Quarter QTR Qatar Airways (ICAO code) QTR Exact Time (American Radio Relay League - Amateur Handbook) QTR Qualification Test Report ) Significant potentially ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly and near ore grade intercepts were cut in three holes of a planned 6 hole drill program on Queenstake's CHUPACA project, Central Peru. CHUPACA is located 2.5 kilometres northwest of Barrick's (formerly Arequipa's) multi-million ounce gold and silver deposit at Pierina. The drill target at CHUPACA is defined at surface by hydrothermally altered volcanic rock, fractured and brecciated brec·ci·ate tr.v. brec·ci·at·ed, brec·ci·at·ing, brec·ci·ates To form (rock) into breccia. brec with limonite limonite (līm`ənīt) or brown hematite (hĕm`ətīt, hē`–), yellowish to dark brown mineral, a hydrated oxide of iron, FeO(OH)·nH2 , clay, sericite Ser´i`cite n. 1. (Min.) A kind of muscovite occuring in silky scales having a fibrous structure. It is characteristic of sericite schist. and silica. A geochemical gold plus arsenic anomaly has been defined within the altered zone, which measures over one kilometre long and 100 to 400 metres wide. Best gold values are expected at depth near the interface between Cretaceous sediments and Mid-Tertiary volcanics where this contact is cut by shearing and brecciation brec·ci·ate tr.v. brec·ci·at·ed, brec·ci·at·ing, brec·ci·ates To form (rock) into breccia. brec . To date, three holes, plus duplicates, for a total of 760 metres have been drilled at CHUPACA in the southernmost 450 metre segment of the alteration-geochemical target. All are angle holes and encountered difficult drilling conditions because of extremely broken and brecciated rock. Consequently, it was necessary to redrill two holes, DDH DDH Decision Diffie-Hellman DDH Developmental Dysplasia of Hip DDH Dorothy Day House DDH Document Drafting Handbook DDH Dublin Dental Hospital DDH Destroyer-Carrying Helicopter DDH Dissociated Double Hypertropia 1 and DDH2. Original hole DDH1 reached only 36 metres before it was abandoned, and duplicate hole DDH1A was completed at a total depth of 264 metres. Original hole DDH2 was drilled to 166 metres before it was lost, and hole DDH2A, drilled at a slightly different angle, was also lost at a depth of 106 metres. Hole DDH3, the most southern hole, was completed at 188 metres. Because of difficulty in diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral at CHUPACA, the most important target, the volcanic-sediment interface, was cut in only one hole, DDH1A, and it did not penetrate that contact where the strongest shearing and brecciation are projected. Even though the most important target has not yet been intersected, drilling has confirmed in the subsurface sub·sur·face adj. Of, relating to, or situated in an area beneath a surface, especially the surface of the earth or of a body of water. Adj. 1. that the gold bearing system continues to depth. Gold appears to be related to epithermal alteration in fractures and breccias with limonite, pyrite pyrite (pī`rīt) or iron pyrites (pīrī`tēz, pə–, pī`rīts), pale brass-yellow mineral, the bisulfide of iron, FeS2. , clay, sericite and silicification si·lic·i·fy v. si·lic·i·fied, si·lic·i·fy·ing, si·lic·i·fies v.tr. To convert into or impregnate with silica. v.intr. To become converted into or impregnated with silica. . Gold values range up to 1.99 grams/tonne, with a number of substantial intervals averaging close to one gram/tonne; potentially ore grade intercepts (greater than 9 metres of 0.4 gram/tonne gold) were cut in holes DDH1A, DDH2A and DDH3 as noted on the attached table, which lists intercepts greater than 0.1 gram/tonne gold. Also attached is a diagrammatic cross section illustrating the location of holes drilled in relation to the subsurface gold target. Our objectives at CHUPACA are a multi-million ounce modest grade deposit, most of which would be mineable by bulk open-pit methods, or a bonanza type high grade deposit near the volcanic/sedimentary contact. The model deposit for CHUPACA is the La Coipa District in northern Chile. There a cluster of ore bodies are at and immediately above a contact between older sediments and young volcanic rocks rocks which have been produced from the discharges of volcanic matter, as the various kinds of basalt, trachyte, scoria, obsidian, etc., whether compact, scoriaceous, or vitreous. See also: Volcanic . At La Coipa, where reserves total more than 5 million ounces of gold, mining is underway for bulk type, low grade gold-silver ores, and also for ore grades better than 10 grams/tonne. The diagrammatic cross section illustrates the La Coipa model. So far only 15 percent of the altered zone mapped on surface has been tested by drilling, and, as noted above, so far only one hole penetrated the most important sub-surface target at the contact between the volcanics and underlying sediments. Diamond drilling will continue through an initially planned program of 6 holes, expected to be completed by the end of September. A thorough evaluation will then be conducted to determine how and where to continue exploration at CHUPACA. It is probable that reverse circulation drilling will be initiated in the next program in order to collect larger samples, penetrate the severely broken ground, and reach the main target. Two other properties in the Ancash Region Ancash is a region in northern Peru. It is bordered by the La Libertad region on the north, the Huánuco and Pasco regions on the east, the Lima region on the south, and the Pacific Ocean on the west. Its capital is the city of Huaraz, and its largest city and port is Chimbote. , MATA MATA The mata mata (binomial name Chelus fimbriatus) is a freshwater turtle found predominantly in South America, notably in the Amazon and Orinoco basins. The animal's peculiar physical aspect distinguishes it from other members of its order. and OLLEROS, will be drilled before the end of the year. A portable rig will be used initially at MATA MATA, which is not easily accessible for the transport of larger rigs. At OLLEROS, access is not difficult; roads are in place to within a few hundred metres of the drill target. Drilling is also planned for the CARISLA GOLD PROJECT, 400 kilometres south of Ancash. Road access is being prepared, and the diamond drill rig from CHUPACA will be relocated to the CARISLA project. We do not anticipate severe problems when the rainy season starts in November in Peru. Road access should be secure at CHUPACA, OLLEROS and CARISLA, and weather should have little effect on drilling with a portable rig at MATA MATA. Queenstake continues to actively evaluate, on our own account and/or through affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. and joint ventures, our extensive portfolio of prospects in other parts of Peru as well as in Chile, Mexico and Venezuela.
CHUPACA PROJECT, PERU
DIAMOND DRILL GOLD VALUES - FIRST 3 HOLES OF 6 HOLE PROGRAM
Metres Gold gram/tonne
Hole Interval Thickness High Average
---- ------------- --------- ----- -------
1A 17.8 - 23.6 5.8 0.388 0.271
34 - 58 24 0.843 0.440
164.5 - 168.2 3.7 0.810 0.480
202.6 - 208.5 5.9 1.290 0.630
221.1 - 225.5 4.5 0.306 0.186
237.6 - 247 9.4 1.150 0.630
2 11.9 - 19.5 7.6 0.584 0.353
50.7 - 52 1.3 0.514 0.514
66.8 - 71.5 4.7 0.554 0.420
153.8 - 157.1 3.3 1.990 0.880
2A 0 - 7.5 7.5 no recovery
7.5 - 27.1 19.6 0.558 0.425
65.6 - 73.1 7.5 0.246 0.122
103.4 - 105.6 2.2 0.140 0.140
3 0 - 13 13 no recovery
13 - 36.6 23.3 1.590 0.690
14.9 - 32.3 17.4 1.590 0.903
54.8 - 82.6 27.8 1.020 0.532
88.5 - 104.1 15.6 0.488 0.255
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-0- NOTE: Location map available from the Company at the phone number listed below. CONTACT: Queenstake Resources Ltd. James D. Mancuso, 604/684-1218 |
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