Queenstake acquires new placer project

During 1987, Carnes Creek Explorations carried out an extensive program of geological and geophysical surveys as well as bulk sampling and reverse circulation drilling at a cost of about $1.5 million. Queenstake said the work located new exploration targets and provided an excellent data base for ongoing exploration and development work planned for 1989.

The agreements call for Queenstake to issue 284,151 shares, make $345,000 in phased payments and assume certain obligations of the vendors. The production unit is also subject to a final payout of $400,000 from 25% of net profits and a royalty with an end price of $1,170,000. In the exploratory portion of the property, Queenstake as operator can acquire a 60% working interest from Carnes Creek Explorations. This portion of the property is subject to a 5% royalty with an end price of $470,000.

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