Queenstake Resources Ltd.

Queenstake Resources Ltd.

March 23, 2005 17:43 ET

Queenstake Reports on Mine Development Activities and Selected Near-Mine Exploration Results at Jerritt Canyon


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUEENSTAKE RESOURCES LTD.

TSX SYMBOL: QRL
AMEX SYMBOL: QEE

MARCH 23, 2005 - 17:43 ET

Queenstake Reports on Mine Development Activities and
Selected Near-Mine Exploration Results at Jerritt
Canyon

DENVER, COLORADO--(CCNMatthews - March 23, 2005) - Queenstake Resources
Ltd. (TSX:QRL)(AMEX:QEE) (the "Company") reports that it has restarted
development at the Steer Mine and entered into a contract to complete
the installation of a combined ventilation and escape raise at its
Mahala Deposit. These developments will allow Steer and Mahala to go
into commercial production in the third quarter of 2005.

At the Mahala deposit, which is accessed through the Smith Mine portal,
site preparation and steel fabrication for the raise are currently
underway, with drilling expected to start in late April. The raise will
be 1,050 feet in length and nine feet in diameter. The escape hoist and
exhaust fan that will be used are from the MCE mine, which is now
entering planned closure. Completion of the raise scheduled for late in
the second quarter of 2005 will allow commencement of commercial
production from the Mahala orebody. Mahala's reserve at the end of
December 2004 was estimated at 217,300 tons at a grade of 0.371 ounces
of gold per ton (opt) (80,700 contained ounces) within an indicated
resource of 485,500 tons at a grade of 0.305 opt. There is an additional
280,900 tons of inferred mineral resource estimated at Mahala at a grade
of 0.244 opt. The Company's press release dated February 7, 2005
contains details on the December 2004 reserves and resources. The
orebody is open to the east and west along strike and also along the
northeast-trending Coulee fault. The Mahala ore is metallurgically
friendly, with low fuel value (i.e., it does not cause the roaster to
overheat). Reserve definition and exploration drilling is ongoing with
an underground reverse circulation drill. Thirty-two holes totaling
9,295 feet were drilled from February 1 through March 18, 2005. The
table below lists intercepts with an average grade greater than 0.250
opt over 10 or more feet and that are outside the measured and indicated
resource envelope. These intercepts therefore represent incremental
additions to mineralization.



Mahala
---------------------------------------------------------------------
Az Dip Len-
(deg- (deg- TD From To gth Grade Drill
Hole # rees) rees) (feet) (feet) (feet) (feet) (opt) Area Type
---------------------------------------------------------------------
C40020 092 -02 300 190 205 15 0.270 Zone 4 UG-RC
---------------------------------------------------------------------
and 230 260 30 0.352 Zone 4 UG-RC
---------------------------------------------------------------------
C40021 099 00 300 100 115 15 0.258 Zone 4 UG-RC
---------------------------------------------------------------------
C40029 115 00 300 115 165 50 0.340 Zone 4 UG-RC
---------------------------------------------------------------------
C40031 115 -14 300 270 300 30 0.386 Zone 4 UG-RC
---------------------------------------------------------------------
C40054 124 00 300 105 115 10 0.252 Zone 4 UG-RC
---------------------------------------------------------------------
C40055 124 -07 300 115 170 55 0.292 Zone 4 UG-RC
---------------------------------------------------------------------
C40057 133 +20 200 85 95 10 0.260 Zone 4 UG-RC
---------------------------------------------------------------------
C40058 133 +10 250 95 130 35 0.323 Zone 4 UG-RC
---------------------------------------------------------------------
C40062 145 +10 250 105 130 25 0.355 Zone 4 UG-RC
---------------------------------------------------------------------
C40065 157 +05 300 115 175 60 0.309 Zone 4 UG-RC
---------------------------------------------------------------------


At the Steer Mine, the connection between the mine and the SSX Mine is
being advanced from both SSX and Steer. The 1,800 foot production drift
connecting the two mines will provide a secondary escapeway and
ventilation, and is expected to be completed late in the second quarter
of 2005. The connection will allow full-scale commercial production from
Steer to commence. Development of the Steer orebody is continuing
simultaneously with delineation and exploration drilling from
underground. The reserve at the end of December 2004 was estimated at
342,100 tons at a grade of 0.279 opt (95,300 contained ounces of gold);
Steer's indicated and measured resource (including the reserve) at the
end of 2004 was estimated at 522,700 tons at 0.282 opt. The additional
inferred resource is 379,000 tons at 0.262 opt. The company's press
release dated February 7, 2005 contains details on the December 2004
reserves and resources. Fifty-seven drill holes totaling 11,585 feet
were drilled from February 1 through March 18, 2005. The table below
lists intercepts with an average grade greater than 0.250 opt over 10 or
more feet and that are outside the measured and indicated resource
envelope. These intercepts therefore represent incremental additions to
mineralization.



Steer
---------------------------------------------------------------------
Az Dip Len-
(deg- (deg- TD From To gth Grade Drill
Hole # rees) rees) (feet) (feet) (feet) (feet) (opt) Area Type
---------------------------------------------------------------------
S10241 194 -33 185 0 120 120 0.312 Block 1 UG-RC
---------------------------------------------------------------------
S10242 194 -22 225 95 145 50 0.333 Block 1 UG-RC
---------------------------------------------------------------------
S10243 194 -15 230 110 200 90 0.530 Block 1 UG-RC
---------------------------------------------------------------------
S10249 199 -02 175 0 20 20 0.303 Block 1 UG-RC
---------------------------------------------------------------------
S10253 204 -17 180 135 160 25 0.539 Block 1 UG-RC
---------------------------------------------------------------------
S10254 204 -10 175 105 130 25 0.702 Block 1 UG-RC
---------------------------------------------------------------------
S10259 219 -15 150 70 140 70 0.263 Block 1 UG-RC
---------------------------------------------------------------------
S10265 225 -11 125 60 120 60 0.274 Block 1 UG-RC
---------------------------------------------------------------------
S30012 95 -07 290 180 200 20 0.312 Block 3 UG-RC
---------------------------------------------------------------------
S30022 114 -20 265 220 265 45 0.297 Block 3 UG-RC
---------------------------------------------------------------------
S30023 114 -14 265 80 180 100 0.259 Block 3 UG-RC
---------------------------------------------------------------------
S30024 114 -02 245 65 105 40 0.270 Block 3 UG-RC
---------------------------------------------------------------------
and 120 130 10 0.271 Block 3 UG-RC
---------------------------------------------------------------------
S30025 114 +05 245 65 85 20 0.513 Block 3 UG-RC
---------------------------------------------------------------------
S30026 114 +12 250 175 185 10 0.280 Block 3 UG-RC
---------------------------------------------------------------------
and 200 215 15 0.420 Block 3 UG-RC
---------------------------------------------------------------------
S30028 115 -02 250 170 180 10 0.680 Block 3 UG-RC
---------------------------------------------------------------------
and 225 250 25 0.386 Block 3 UG-RC
---------------------------------------------------------------------
S30029 115 +04 150 70 90 20 0.445 Block 3 UG-RC
---------------------------------------------------------------------
and 110 130 20 0.259 Block 3 UG-RC
---------------------------------------------------------------------
S30033 115 +31 150 85 110 25 0.451 Block 3 UG-RC
---------------------------------------------------------------------
S10281 130 -09 225 60 80 20 0.302 Block 1 UG-RC
---------------------------------------------------------------------
S10282 130 -02 230 45 160 115 0.293 Block 1 UG-RC
---------------------------------------------------------------------
S10283 130 +04 225 45 100 55 0.309 Block 1 UG-RC
---------------------------------------------------------------------
S10284 130 -09 225 5 40 35 0.512 Block 1 UG-RC
---------------------------------------------------------------------
S10285 130 -02 225 55 185 130 0.328 Block 1 UG-RC
---------------------------------------------------------------------
S10286 130 +04 225 80 130 50 0.270 Block 1 UG-RC
---------------------------------------------------------------------
S10287 130 -10 200 0 50 50 0.384 Block 1 UG-RC
---------------------------------------------------------------------
S10288 130 -03 200 0 30 30 0.470 Block 1 UG-RC
---------------------------------------------------------------------
S10289 130 +03 200 90 115 25 0.259 Block 1 UG-RC
---------------------------------------------------------------------
S10290 97 00 275 25 35 10 0.301 Block 1 UG-RC
---------------------------------------------------------------------
S10291 97 +06 300 5 20 15 0.358 Block 1 UG-RC
---------------------------------------------------------------------
S10292 97 +12 300 30 75 45 0.257 Block 1 UG-RC
---------------------------------------------------------------------


Dorian (Dusty) Nicol, Queenstake's President and Chief Executive
Officer, said, "We continue to obtain high-grade gold mineralization
results in our near mine exploration program and are confident that we
will continue to add gold ounces to our reserve base. Steer and Mahala
ore that will be produced starting in the third quarter should have a
positive impact on Jerritt Canyon production."

Notes:

1. A complete set of the data from which the highlighted drill results
were selected, as well as maps showing mine and prospect locations, are
available on the Company's website, www.queenstake.com.

2. A description of the geology, sampling procedures, and the Company's
laboratory Quality Assurance /Quality Control procedures are as
described in the Company's National Instrument 43-101 Technical Report
filed on February 23, 2005. This report is available on the Company's
website, www.queenstake.com.

3. Samples from underground drilling are analyzed at the Jerritt Canyon
laboratory. All samples are analyzed using standard fire assay
techniques.

4. The Qualified Person for the release of this exploration information
is Mr. Dorian (Dusty) Nicol, Queenstake's President and Chief Executive
Officer, Executive Vice President and Director of Exploration.

5. Intercepts are reported as drilled; true widths have not yet been
calculated.

Queenstake Resources Ltd. is a gold mining and exploration company based
in Denver, Colorado. Its principal asset is the Jerritt Canyon District
in Nevada, acquired in June 2003. The Jerritt Canyon District consists
of four underground mines, a 1.5 million ton per year capacity
processing facility and a 100 square mile land package that represents
some of the most exciting gold exploration ground in Nevada. Jerritt
Canyon has produced more than 7,000,000 ounces of gold since 1981.

Forward-Looking Statements - This news release contains "Forward-Looking
Statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended and the Private Securities
Litigation Reform Act of 1995. All statements, other than statements of
historical fact, included in this release, and Queenstake's future plans
are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Forward-looking
statements are based on the estimates and opinions of management on the
date the statements are made, and Queenstake does not undertake any
obligation to update forward-looking statements should conditions or
management's estimates or opinions change.

SEC file number 0-24096


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Queenstake Resources Ltd.
    John Haigh
    (303) 297-1557 ext. 105 or Toll Free: 1-800-276-6070
    info@queenstake.com
    www.queenstake.com
    The Toronto Stock Exchange has neither reviewed nor accepts
    responsibility for the adequacy or accuracy of this release.