Soledad Mtn written down

Denver — Low gold prices have forced Golden Queen Mining (GQM-T) to write down the value of the Soledad Mountain project in southern California. The company posted a net loss of US$28.9 million for 2000, compared with a loss of US$564,657 in 1999. The writedown reduced its asset value to US$1.4 million, down from US$30 million in 1999. The company ended 2000 with working capital of US$371,000 and liabilities of US$993,000.

Permits for construction of the open-pit mine are in place, but the company says it needs gold prices of at least US$325 per oz. to arrange financing. Reserves stand at 45 million tonnes grading 1 gram gold and 14.3 grams silver per tonne, equivalent to 1.4 million oz. gold and 20.7 million oz. silver. The estimate is based on a stripping ratio of 4.5-to-1 and metal prices of US$325 oz. gold and US$6 oz. silver.

At full production, the operation would produce 130,000 oz. gold and 1.5 million oz. silver at US$176 per oz.

The company recently moved its headquarters to Mojave, Calif., and Steven Banning has resigned as president.