Queenston Mining (QMI-T) released its year end results – results that showed the Toronto-based company to be well financed and poised to be one of the key players in the Kirkland Lake and Cadillac gold camps.
Queenston – whose 160 sq. km of property make it the largest land holder in the Kirkland Lake gold camp – is advancing four, wholly owned gold deposits towards development just as it contributes to the development of two joint ventured projects.
Such an aggressive agenda requires serious capital and thanks to two equity financings completed last year, Queenston is in good shape.
Fortunately for the company its share price recovered early and strongly from the 2008 crash, allowing it to finance at relatively health prices and raising $35 million for its coffers.
Those financings, when combined with exercise of a block of warrants, brings the company’s kitty up to $46 million – and Queenston has no long-term debt.
As is the case with all exploration companies that drill and don’t yet produce, Queenston reported a loss for the 2009. The loss, however, jumped to $2.2 million compared to just $158,000 in 2008, which could raise dome eyebrows.
The company blames the increase on losses taken on two non-cash items, income tax considerations and a stock-based compensation expense of over $3.5 million.
As for where the real dollars went to work, Queenston reports that it spent roughly $11 million on exploration for the year.
It proved to be money well spent, as it was able to increase resource calculations for three of its projects, and reported strong deep drilling from another.
Queenston managed to increase its portion of resources at its McBean, Anoki and South Claims projects by 160,000 oz. of gold from 926,000 tonnes grading 5.4 grams per tonne while inferred resources increased by 245,000 oz. from 1.4 million tonnes grading 5.3 grams gold
The company has a 100% interest in McBean, Anoki but is joint ventured on the South Claims.
The company’s total measured and indicated gold resources has now increased to approximately 2.8 million tonnes grading 7 grams gold for 640,000 oz of gold while total inferred resources at 2.7 million tonnes grading 6.7 grams gold for 577,000 oz.
Those figure also include the Upper Beaver deposit which contains an indicated resource of 1.4 million tonnes grading 8.5 grams gold for 375,000 oz. with 0.43% copper.
But Queenston wasn’t only busy with drill. The company also formed a joint venture last year and announced a friendly merger.
In February of last year it announced a JV with Newstrike Capital (NES-V) on the Commodore project. The deal saw the two companies buy additional claims and compile claims they already held separately to create a Commodore project composed of 57 claims in total.
By October drills were returning results form the project highlighted by 1.3 grams gold over 11.6 metres and 0.8 grams gold over 47 metres. The companies plan to do 10,000 metres of drilling this year.
As for the planned merger, it is with Vault Minerals (VMI-V). Vault shareholders are set to vote on the friendly offer on April 19th. The deal would give them one common Queenston share for every ten Vault shares.
If successful the deal would let Queenston consolidate holdings in the Kirkland Lake gold camp and give it a dominant land position spanning over 190 sq. km.
In Toronto on Apr. 9 Queenston shares were up 5¢ to 4.60 on 372,000 shares traded.
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