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| Queenstake Accelerates Jerritt Canyon Exploration
DENVER--(BUSINESS WIRE)--Sept. 4, 2003--Queenstake Resources Ltd. (TSX:QRL) has received over $4 million pursuant to share purchase warrant and stock option exercises from July to August 31, 2003 and has issued 51.2 million common shares. The Company had 295,549,049 shares outstanding and 380,004,227 shares fully diluted as of August 31, 2003. If all existing warrants and options are exercised the Company will receive an additional $21.5 million. The proceeds of debt and equity financing completed on June 30, 2003 were devoted to the cost of acquiring the Jerritt Canyon mine and the purchase of the environmental risk transfer program. The Jerritt Canyon mine exceeded expectations in August, during which over 30,000 ounces of gold were produced. The mines are performing well but debt covenants limit the amount of cash flow the Company can expend on exploration. Queenstake intends to use some of the corporate cash from these warrant exercises to accelerate and expand the exploration program. Serious & personalized business, investment and technology intelligence for a serious advantage - BizVantage! The following tabulation shows highlights of 2003 underground drilling conducted in the four underground mines at Jerritt Canyon. These tables show only results that are outside the current reserve and resource envelope as determined in January of 2002 but proximal to current workings; thus all these intercepts represent additional mineral inventory that can be expected to be converted to reserves and/or mined during the next year. Historically 25 to 30 percent of the underground ore mined at Jerritt Canyon has been derived from podiform mineralization that was initially discovered by intercepts of this type wherein the mineralization identified by the intercept was never classified as a reserve or resource. Intercepts of the order of magnitude indicated in these tabulations are quite routine in the continuing expansion of the mines by underground drilling. Smith Mine
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Smith Mine
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Grade (ounces of
Drill Hole Feet gold per ton)
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P20408 18 0.934
LX-295 15 0.323
LX-381 105 0.424
LX-332 40 0.427
LX-331 60 0.337
LX-329 45 0.435
LX-343 70 0.364
LX-345 30 0.911
LX-340 35 0.553
C20142 30 0.577
LX-339 35 0.475
P20337 30 0.288
LX-398 45 0.577
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SSX Mine
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Grade (ounces of
Drill Hole Feet gold per ton)
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SX-796 45 1.118
Z11935 75 0.385
Z11975 55 0.430
Z11983 50 0.415
Z12054 20 0.459
Z12096 35 0.422
Z12172 60 0.708
Z40493 25 0.525
Z4-0500 15 0.658
Z50023 35 0.698
P50005 30 0.539
P50016 30 0.493
C60031 90 0.406
Z6A3 180 0.771
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Murray Mine
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Grade (ounces of
Drill Hole Feet gold per ton)
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C10188 15 0.533
C10182 15 0.359
C10185 35 0.256
C40153 80 0.300
C40162 25 0.551
C40143 35 0.311
C40281 70 0.660
C40283 65 0.653
C40243 35 0.588
C40243 20 0.459
NC-037 20 0.360
NC-038 35 0.277
NC-038 10 0.705
C54335 15 0.295
NC-024 50 0.356
NC-036 15 0.794
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MCE Mine
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Grade (ounces of
Drill Hole Feet gold per ton)
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CP-110 25 0.519
CP-110 15 0.645
CP-112 20 0.827
Z90061 36 0.877
Z90057 42 0.789
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Queenstake has begun an aggressive underground drilling program exploring for additional resources proximal to current workings. Some surface drilling is also being conducted this year, focusing on extensions to known ore bodies. Ted Wilton will be the onsite manager of a team of exploration geologists dedicated to District-scale exploration in the 100 square mile Jerritt Canyon land package. The winter months will be used to compile and review the extensive Jerritt Canyon District exploration data base that Queenstake acquired as part of the Jerritt Canyon acquisition. An evaluation of the data by a team experienced in the District but viewing the data with current target concepts in mind will lead to the definition of targets to be aggressively explored during 2004 and in the future. Dorian (Dusty) Nicol, Queenstake's Executive Vice President and Director of Exploration, said, "We are tremendously excited to have the chance to continue the tradition of exploration in the Jerritt Canyon District. Historically, exploration success at Jerritt Canyon has required geologic imagination, patience, and persistence. Although the District as a whole has received its 'first pass' of exploration, much of this work was done years ago in search of either open pit targets or multi-million ounce underground targets appropriate for the prior owners. We are assembling a team of exploration professionals to supplement and expand the superb geologic staff already on site with decades of success at Jerritt Canyon. This staff, armed with current target concepts and the flexible and aggressive approach to exploration that is best provided by an entrepreneurial company like Queenstake, should lead to continued exploration success in the District." Forward-Looking Statements - This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Queenstake does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change. SEC file number 0-24096 The TSX has neither reviewed nor accepts responsibility for the adequacy or accuracy of this release.
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