6-K 1 a06-3549_16k.htm CURRENT REPORT OF FOREIGN ISSUER

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of                                               January 2006

 

Commission File Number                              0-24096

 

QUEENSTAKE RESOURCES LTD.

 

999 18th Street, Suite 2940, Denver, CO 80202

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40 F.

 

Form 20-F  ý   Form 40 F  o

 

Indicate by check mark whether by furnishing the information contained in this Form the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yeso   No  ý

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 

 


 

DOCUMENTS FILED:

 

Press Release NR2006-02 January 18, 2006

DESCRIPTION:

 

Queenstake’s Drilling at Starvation Canyon Continues to Hit High Grade Gold Mineralization

DOCUMENTS FILED:

 

Press Release NR2006-04 January 25, 2006

DESCRIPTION:

 

Queenstake’s Drilling Expands High-Grade Mineralization at Smith, SSX and Steer Mines

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

QUEENSTAKE RESOURCES LTD.

 

 

(Registrant)

 

 

 

Date

January 25, 2006

 

By

“Dorian L. Nicol”“ (signed)

 

 

(Signature)

 

 

 

 

 

Dorian L. Nicol, President & CEO

 


 

 

NEWS RELEASE

 

 

 

 

News Release 2006-02

 

January 18, 2006

SEC file number 0-24096

 

 

 

Queenstake’s Drilling at Starvation Canyon
Continues to Hit High Grade Gold Mineralization

 

Denver, Colorado – January 18, 2006 – Queenstake Resources Ltd.’s (TSX:QRL, AMEX:QEE) recently completed exploration program(1) at the Starvation Canyon project intercepted high grade mineralization with substantial intervals, extending the mineralized zone to the south. Two holes, TJ-216C and TJ-242, had intercepts of 60 feet of 0.357 ounce of gold per ton (opt) or 18.3 meters of 12 grams of gold per tonne (gpt), and 45 feet of 0.413 opt or 13.7 meters of 14 gpt, respectively.

 

Commenting on the drill results, Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake, said, “These results from the Starvation Canyon project reinforce our belief that this project has tremendous potential to become another substantial Jerritt Canyon deposit at a higher grade than most of our current mine reserves. The two holes with high-grade mineralized intervals in excess of 0.35 opt (>12 gpt) were particularly significant as they lie on the southern edge of the mineralized zone, which remains open to the south and southeast. We will pursue step out drilling and further definition drilling beginning in spring 2006.”

 

In October through early December 2005, 27 drill holes totaling 15,544 feet (4,737.8 meters) of reverse circulation(2) and core drilling(2) were completed at Starvation Canyon, located 12 miles southwest of the Jerritt Canyon mill on private land owned by Queenstake.  This second phase of 2005 drilling was designed to extend the margins of the deposit as well as better define areas within the resource shape through tighter spaced drilling.  The results from the drilling program will be incorporated into the resource block modeling(3) for calculation of indicated and inferred resources(3) for year-end 2005.

 

The mineralized zone at Starvation Canyon lies above the water table in an area of steep topography and could be readily accessed by portal from the hillside.  Mineralization remains open along both directions (northeast and southwest; northwest and southeast) of each of the two principal controlling structures. Starvation Canyon appears to be part of a mineralized trend with a strike length of approximately 4.5 miles. This trend appears comparable geographically and geochemically to the mineralized trends in the northern and central parts of the Jerritt Canyon district that have combined to produce over seven million ounces of gold since 1981.

 

Of the 27 holes drilled in this program, 13 intercepted 10 feet (3.1 meters) or more of gold mineralization with an average grade above 0.15 opt (5 gpt); these holes are tabulated in the following table.

 

1


 

Table 1: Starvation Canyon Results Highlights(2), (4), (5)

 

Hole #

 

Dip

 

From
(feet)

 

To (feet)

 

Length
(feet)

 

Grade
(opt)

 

Drill Type

 

TJ-210

 

-90

 

500

 

520

 

20

 

0.296

 

RC

 

TJ-212

 

-90

 

600

 

630

 

30

 

0.380

 

RC

 

TJ-214

 

-90

 

630

 

645

 

15

 

0.210

 

RC

 

TJ-215C

 

-90

 

650

 

660

 

10

 

0.167

 

Core

 

TJ-216C

 

-90

 

660

 

720

 

60

 

0.357

 

Core

 

TJ-221

 

-90

 

165

 

175

 

10

 

0.208

 

RC

 

TJ-230A

 

-80

 

450

 

460

 

10

 

0.303

 

RC

 

TJ-232C

 

-80

 

430

 

495

 

65

 

0.292

 

Core

 

TJ-233

 

-90

 

305

 

315

 

10

 

0.300

 

RC

 

TJ-241

 

-90

 

390

 

405

 

15

 

0.293

 

RC

 

TJ-242

 

-90

 

400

 

445

 

45

 

0.413

 

RC

 

TJ-243

 

-90

 

425

 

455

 

30

 

0.233

 

RC

 

TJ-244

 

-90

 

340

 

350

 

10

 

0.154

 

RC

 

 

Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado.  Its principal asset is the wholly owned Jerritt Canyon district in Nevada.  Jerritt Canyon has produced over seven million ounces of gold since 1981.  Current production at the property is from underground mines.  The Jerritt Canyon district comprises over 100 square miles of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada.

 

Notes:

 

(1) A complete data set, from which the drill results highlighted in this news release were derived, is available as an Appendix to this news release under the Investor Information/News section on the Company’s website, www.queenstake.com.

 

(2) Surface drilling uses either core or reverse circulation methods for near-mine and surface exploration programs at Jerritt Canyon. Reverse circulation drilling has demonstrated accuracy in ore control definition drilling and for resource conversion at Jerritt Canyon’s mines. However, reverse circulation drilling can result in a lower degree of confidence and less geologic information than core drilling.

 

(3) “Resources” or “resource” used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). For further information, please refer to the risk factors and definitions of reserves and resources in the Company’s filings on SEDAR and with the SEC on the Company’s website, www.queenstake.com. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake.

 

The Starvation Canyon gold resource block model is constrained within an interpreted 3-dimensional geologic wireframe boundary and uses an Inverse-Distance to the third power interpolation algorithm.  This methodology is the same as was used for the EOY 2004 resource calculation.  However, the new drilling data has allowed for adjustments to the wireframe boundaries and refinement of the search ellipse orientation, resulting in greater continuity of high-grade mineralization.

 

(4) Samples from surface drilling were analyzed using standard fire assay techniques at American Assay Laboratories in Nevada. Intercepts are reported as drilled and are not necessarily “true width.”

 

(5) A description of the geology, sampling procedures and the Company’s laboratory Quality Assurance/Quality Control procedures are described in the Company’s National Instrument 43-101 Technical Report filed on Sedar on February 23, 2005. This report is available under Investor Information/Financial Information/Sedar Filings at www.queenstake.com.

 

2


 

February 23, 2005. This report is available under Investor Information/Financial Information/Sedar Filings at www.queenstake.com.

 

For further information call:

Wendy Yang, 303-297-1557 ext. 105

800-276-6070

Email – info@queenstake.com Web – www.queenstake.com

 

Cautionary Statement – This news release contains “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. Such forward-looking statements include, without limitation, (i) estimates and projections of reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation and (iii) estimates of exploration investment and scope of exploration programs. 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, in particular the estimates do not include input cost increases that could occur in the future. 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. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in the Company’s 2004 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company’s other SEC filings.

 

3


 

APPENDIX

Map 1: Starvation Canyon Project

 

 

4


 

 

NEWS RELEASE

 

 

 

 

News Release 2006-04

 

January 25, 2006

SEC file number 0-24096

 

 

 

Queenstake’s Drilling Expands High-Grade Mineralization
at Smith, SSX and Steer Mines

 

Denver, Colorado – January 25, 2006 – Queenstake Resources Ltd. (TSX:QRL, AMEX:QEE) continued to intercept high grade gold mineralization in its recent near-mine drilling, extending the Mahala deposit at the Smith Mine in and around an access ramp for underground mining. In addition, encouraging drilling results at the drift connecting the SSX and Steer mines has expanded the mineralization in this new prospective area. Drilling results from the SSX-Steer connection included one drill hole intercepting 65 feet of 0.677 ounce of gold per ton (opt) or 19.8 meters of 23 grams per tonne (gpt).

 

Underground drilling in other zones of the recently connected SSX and Steer mines identified additional mineralization. Underground reverse circulation(1) and core(1) drilling was part of the near-mine exploration program(2) conducted at the Smith, SSX and Steer mines from September 2005 through early January 2006.

 

Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, “The positive results from the Mahala deposit at the Smith Mine have expanded the mineralization, especially around the access ramp at Mahala, potentially allowing easier recovery of the mineralization. Pending incorporation of these results into a new mine model, the results reinforce the potential to extend the mine life at Smith beyond 2008. Turning to the SSX-Steer connection, this is exciting new ground for further drilling this year and we have ordered a second drill for the SSX-Steer complex to enable us to accelerate this program.”

 

All results highlighted in this news release are outside of the year-end 2004 resource boundary and represent extensions of mineralization, which could add to reserves and resources(3). The results will be incorporated in new mine models that will be used in the estimation of reserves and resources for year-end 2005.

 

The Mahala results were from 76 reverse circulation and core holes totaling 17,005 feet or 5,183 meters completed. The Mahala deposit, part of the Smith Mine, commenced commercial production in August 2005.  At the 6630 Ramp at Mahala,  three reverse circulation holes had intercepts of 55 feet of 0.354 opt (16.8 meters of 12 gpt), 35 feet of 0.264 opt (10.7 meters of 9 gpt) and 10 feet of 0.351 opt (3.1 meters of 12 gpt), respectively.

 

The prospective target in Zone 2 at the Smith Mine is in mineralization associated with two parallel dikes. This target remains open to the west.  Follow up drilling to expand the mineralization at Mahala and along Zone 2 to the west is underway in 2006. The following table shows drill intercepts at the Smith Mine of 10 feet or more at a grade of 0.25 opt or higher (>3 meters of approximately 9 gpt or better). The dike trends and Mahala ramps are shown in Map 1 in the Appendix.

 

5


 

Table 1: Smith Mine-Mahala Deposit Results Highlights(4), (5)

 

Hole #

 

From
(feet)

 

To
(feet)

 

Length
(feet)

 

Grade
(opt)

 

Drill Type

 

Zone 4 - Mahala 6630 Ramp

 

 

 

 

 

 

 

 

 

 

 

C40173

 

45

 

90

 

45

 

0.279

 

RC

 

C40168

 

0

 

25

 

25

 

0.301

 

RC

 

and

 

50

 

105

 

55

 

0.354

 

 

 

C40169

 

5

 

40

 

35

 

0.264

 

RC

 

C40165

 

40

 

60

 

20

 

0.292

 

RC

 

C40175

 

20

 

45

 

25

 

0.292

 

RC

 

C40184

 

0

 

15

 

15

 

0.292

 

RC

 

C40218

 

240

 

250

 

10

 

0.351

 

RC

 

Zone 4 - 6760

 

 

 

 

 

 

 

 

 

 

 

C40221

 

0

 

20

 

20

 

0.290

 

RC

 

C40228

 

110

 

130

 

20

 

0.298

 

RC

 

C40230

 

10

 

30

 

20

 

0.342

 

RC

 

C40234

 

95

 

105

 

10

 

0.526

 

RC

 

C40249

 

105

 

125

 

20

 

0.265

 

RC

 

C40279

 

170

 

180

 

10

 

0.320

 

RC

 

C40283

 

70

 

85

 

15

 

0.430

 

RC

 

R4 and R11 Dike Trends

 

 

 

 

 

 

 

 

 

 

 

LX-619

 

0

 

15

 

15

 

0.311

 

Core

 

LX-620

 

0

 

20

 

20

 

0.325

 

Core

 

LX-623

 

155

 

185

 

30

 

0.537

 

Core

 

 

At the SSX-Steer complex, 242 reverse circulation and core holes totaling 24,420 feet or 7,443 meters were completed. Three reverse circulation holes in Zone 5 of the SSX-Steer drift connection encountered high-grade mineralized intervals of 65 feet of 0.677 opt (19.8 meters of 23) as mentioned on page one, 45 feet of 0.368 opt (13.7 meters of 13 gpt) and 10 feet of 0.559 opt (3.1 meters of 19 gpt), respectively. Other highlighted results from SSX and Steer are shown in Map 2 in the Appendix. All of these areas will be followed up with further drilling in 2006.  The following table shows drill intercepts from the SSX and Steer mines of 10 feet or more at a grade of 0.25 opt or higher (>3.1 meters of 9 gpt or better).

 

Table 2: SSX-Steer Complex Results Highlights(4), (5)

 

Hole #

 

From
(feet)

 

To
(feet)

 

Length
(feet)

 

Grade
(opt)

 

Drill Type

 

Zone 1 (SSX)

 

 

 

 

 

 

 

 

 

 

 

Z13277

 

20

 

110

 

90

 

0.349

 

RC

 

and

 

115

 

180

 

65

 

0.598

 

 

 

and

 

195

 

205

 

10

 

0.332

 

 

 

Z13287

 

210

 

235

 

25

 

0.864

 

RC

 

Z13288

 

50

 

70

 

20

 

0.443

 

RC

 

Z13289

 

35

 

55

 

20

 

0.360

 

RC

 

Z13290

 

50

 

65

 

15

 

0.419

 

RC

 

 

6


 

Hole #

 

From
(feet)

 

To
(feet)

 

Length
(feet)

 

Grade
(opt)

 

Drill Type

 

Zone 2 (SSX)

 

 

 

 

 

 

 

 

 

 

 

Z23305

 

0

 

25

 

25

 

0.412

 

RC

 

Z23313

 

30

 

40

 

10

 

0.352

 

RC

 

Z23314

 

0

 

35

 

35

 

0.272

 

RC

 

Z23323

 

0

 

15

 

15

 

0.288

 

RC

 

and

 

55

 

70

 

15

 

0.698

 

 

 

Z23342

 

0

 

15

 

15

 

0.607

 

RC

 

Z23343

 

0

 

10

 

10

 

0.318

 

RC

 

Z23346

 

0

 

45

 

45

 

0.307

 

RC

 

with

 

35

 

45

 

10

 

0.508

 

 

 

Z23350

 

0

 

30

 

30

 

0.476

 

RC

 

with

 

10

 

20

 

20

 

0.616

 

 

 

Z23356

 

0

 

15

 

15

 

0.259

 

RC

 

Zone 4 (SSX)

 

 

 

 

 

 

 

 

 

 

 

Z41062

 

10

 

35

 

25

 

0.273

 

RC

 

Z41066

 

30

 

40

 

10

 

0.248

 

RC

 

Z41069

 

20

 

40

 

20

 

0.511

 

RC

 

Z41070

 

10

 

45

 

35

 

0.457

 

RC

 

Z41073

 

5

 

20

 

15

 

0.275

 

RC

 

Z41083

 

35

 

80

 

45

 

0.586

 

RC

 

Z41085

 

0

 

15

 

15

 

0.532

 

RC

 

Z41086

 

0

 

30

 

30

 

0.462

 

RC

 

Z41089

 

0

 

75

 

75

 

0.286

 

RC

 

Z41093

 

0

 

15

 

15

 

0.253

 

RC

 

Z41094

 

0

 

30

 

30

 

0.234

 

RC

 

and

 

55

 

65

 

10

 

0.475

 

 

 

Z41097

 

0

 

30

 

30

 

0.285

 

RC

 

Z41103

 

35

 

55

 

20

 

0.323

 

RC

 

Z41115

 

20

 

50

 

30

 

0.252

 

RC

 

Z41122

 

85

 

95

 

10

 

0.318

 

RC

 

Z41125

 

25

 

45

 

20

 

0.425

 

RC

 

Z41131

 

5

 

25

 

20

 

0.356

 

RC

 

Z41132

 

10

 

45

 

35

 

0.438

 

RC

 

Z41139

 

0

 

20

 

20

 

0.305

 

RC

 

Z41148

 

100

 

110

 

10

 

0.432

 

RC

 

Z41153

 

90

 

100

 

10

 

0.417

 

RC

 

and

 

120

 

130

 

10

 

0.587

 

 

 

Z41163

 

0

 

15

 

15

 

0.292

 

RC

 

 

7


 

Hole #

 

From
(feet)

 

To
(feet)

 

Length
(feet)

 

Grade
(opt)

 

Drill Type

 

Zone 5 (SSX-Steer connection)

 

 

 

 

 

 

 

 

 

 

 

Z50544

 

110

 

130

 

20

 

0.291

 

RC

 

Z50550

 

105

 

115

 

10

 

0.559

 

RC

 

and

 

125

 

170

 

45

 

0.232

 

 

 

Z50561

 

0

 

20

 

20

 

0.255

 

RC

 

Z50563

 

0

 

10

 

10

 

0.252

 

RC

 

Z50564

 

0

 

45

 

45

 

0.368

 

RC

 

Z50565

 

0

 

10

 

10

 

0.318

 

RC

 

Z50567

 

35

 

45

 

10

 

0.375

 

RC

 

Z50592

 

70

 

95

 

25

 

0.399

 

RC

 

Z50593

 

70

 

135

 

65

 

0.677

 

RC

 

Z50601

 

125

 

135

 

10

 

0.439

 

RC

 

Z50612

 

250

 

270

 

20

 

0.339

 

RC

 

Z50618

 

50

 

65

 

15

 

0.950

 

RC

 

Z50622

 

60

 

70

 

10

 

0.389

 

RC

 

and

 

185

 

205

 

20

 

0.866

 

 

 

SX-980

 

433

 

455

 

22

 

0.639

 

Core

 

Zone 6 (SSX)

 

 

 

 

 

 

 

 

 

 

 

Z60343

 

10

 

25

 

15

 

0.295

 

RC

 

Z60344

 

0

 

35

 

35

 

0.259

 

RC

 

Zone 7 (Steer)

 

 

 

 

 

 

 

 

 

 

 

X70006

 

50

 

60

 

10

 

0.302

 

RC

 

X70015

 

25

 

50

 

25

 

0.345

 

RC

 

X70016

 

18.5

 

6.5

 

25

 

0.392

 

RC

 

X70033

 

10

 

25

 

15

 

0.389

 

RC

 

X70034

 

0

 

10

 

10

 

0.495

 

RC

 

 

Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado.  Its principal asset is the wholly owned Jerritt Canyon mining district in Nevada.  Jerritt Canyon has produced over seven million ounces of gold since 1981.  Current production at the property is from underground mines.  The Jerritt Canyon district comprises over 100 square miles of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada.

 

#     #     #

 

Notes:

 

(1) Underground drilling uses either core or reverse circulation (RC) methods for near-mine exploration programs at Jerritt Canyon. Reverse circulation drilling has demonstrated accuracy in ore control definition drilling and for resource conversion at Jerritt Canyon’s mines. However, reverse circulation drilling can result in a lower degree of confidence and less geologic information than core drilling.

 

(2) A complete data set, from which the drill results highlighted in this news release were derived, is available as an Appendix to this news release under the Investor Information/News section on the Company’s website, www.queenstake.com.

 

(3) “Resources” or “resource” used in this news release are as defined in National Instrument 43-101 of the Canadian Securities Administrators and are not terms recognized or defined by the U.S. Securities and Exchange Commission (SEC). Mineral resources are not reserves and do not have demonstrated economic viability.  For further information,

 

8


 

please refer to the risk factors and definitions of reserves and resources in the Company’s filings on SEDAR and with the SEC on the Company’s website, www.queenstake.com. The Qualified Person for the technical information contained in this news release is Mr. Dorian L. (Dusty) Nicol, President and Chief Executive Officer of Queenstake.

 

(4) Results presented in this news release were analyzed using standard fire assay techniques at the Company’s Jerritt Canyon laboratory. Intercepts are reported as drilled and are not necessarily “true widths,” which have not yet been calculated.

 

(5) A description of the geology, sampling procedures and the Company’s laboratory Quality Assurance/Quality Control procedures are described in the Company’s National Instrument 43-101 Technical Report filed on Sedar on February 23, 2005. This report is available under Investor Information/Financial Information/Sedar Filings at www.queenstake.com.

 

For further information call:

Wendy Yang, 303-297-1557 ext. 105

800-276-6070

Email – info@queenstake.com Web – www.queenstake.com

 

Cautionary Statement – This news release contains “Forward-Looking Statements” within the meaning of applicable Canadian securities regulations and 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. Such forward-looking statements include, without limitation, (i) estimates and projections of reserves and resources, (ii) estimates and opinions regarding geologic and mineralization interpretation and (iii) estimates of exploration investment and scope of exploration programs. 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, in particular the estimates do not include input cost increases that could occur in future. 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. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, political and operational risks, which are described in the Company’s 2004 Annual Information Form filed on SEDAR and 2004 Annual Report on Form 40-F on file with the Securities and Exchange Commission as well as the Company’s other regulatory filings.

 

9


 

APPENDIX

Map 1: Smith Mine – Mahala Deposit

 

 

10


 

Map 2: Steer-SSX Complex

 

 

11