Queenstake starts work program on Latin American properties

Preliminary reconnaissance work is under way on the package of Latin American properties recently acquired by Queenstake Resources (TSE).

Through the issue of common shares, the company acquired extensive land holdings in Peru, Chile and Mexico from a private company.

Concurrent with the acquisition, two principals of the private company took over as president and vice-president of Queenstake, while Gordon Gutrath, the previous president, moved into the position of chairman and director.

The Latin American land package was originally put together by studying satellite images of areas considered favorable for base and precious metal mineralization, with the objective of outlining visual anomalies.

A reconnaissance helicopter program in Peru covered 71 properties defined by means of evaluating satellite images. Each anomaly was investigated to determine if it represented an altered mineral system or some other feature, such as soils, volcanic rocks or red sediments.

Initial results indicate that 28 of the anomalies represent alteration zones with economic mineral potential, including eight that warrant immediate follow-up.

In order to outline drill targets, Queenstake will conduct mapping and sampling on five or six of the Peruvian prospects during the first quarter.

The company also plans preliminary exploration work on prospects in Chile and Mexico.