ELKO, Nevada QUEENSTAKE RESOURCES has signed a letter of intent to purchase the Jerritt Canyon gold mine located just north of the Carlin Trend. The mine is jointly owned by ANGLOGOLD (70%) and MERIDIAN GOLD (30%). In 2002 production was 237,000 oz of gold at a total cash cost of US$249/oz. The sale is to close at the end of June 2003.
The assets at Jerritt Canyon include four underground mines, a 4,000-tons/day mill, and a 100-sq-mi land holding. The mine has turned out over 6 million oz of gold since it opened in 1980. Proven and probable reserves stand at 2.5 million tons averaging 0.24 oz/ton Au. There is also a measured and indicated resource of 5 million tons at 0.26 oz/ton. Queenstake is confident the ore supply will keep the mines going until late 2007, by which time another 1.15 million oz of gold will be produced.
A Jerritt Canyon fact sheet is available at www.anglogold.com by going to the Operations Info and choosing North America. Or contact Queenstake's president and CEO Chris Davie at 303-297-1557 or CFO Doris Meyer at 604-516-0566.