A record- breaking gold production year for Queenstake Resources boosted 9-month net profits to $196,942 on revenues of $4.3 million. This compares with a loss of $434,114 on revenues of $1.5 million the year before.
Profits for the third quarter were $736,437 on revenues of $1.1 million, compared with a loss of $422,424 on revenues of $830,341 in 1986.
In the 1987 placer mining season, Queenstake more than doubled its placer gold output to 13,150 fine troy ounces, compared to 6,375 oz in 1986. The increase is attributed to the acquisition of the Pine Creek placer gold property, in Atlin, B.C., and mining equipment in May, 1987. In addition to this increased production, Queenstake benefited from the higher gold prices, averaging $592 per oz. Gross placer gold sales are projected at $7.8 million in 1987.
Queenstake’s one-third joint venture interest in the Chichagof gold mines project in Alaska has now been transferred to a 25.8% shareholding in Golden Stika Resources, providing funds to bring the project through production feasibility. Mine crews and equipment are at the site and exploration and development work will continue this winter on both the Chichagof and Hirst-Chichagof Mines.
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