Elko-area gold mine falls short of target

Queenstake Resources Ltd.

last week said gold production at its Jerritt Canyon Mine 50 miles north of Elko totaled 60,383 ounces during the fourth quarter, a figure that was 19 percent below expectations.

Earlier, Queenstake had said it expected to produce about 75,000 ounces during the final three months of 2004.

The company said mechanical problems at the mine and mill contributed to the production shortfall.

Chris Davie, the Denver-based company's chief executive officer, also said Queenstake crews had difficulty keeping a steady flow of ore headed from the mine to the mill.

Queenstake's production plan for this year calls for production of 1.4 million tons of ore from underground mines.

This, the company said,will result in production of about 275,000 ounces of gold during the year 45 percent during the first half of the year and 55 percent during the second half.

Gold production from the mine during 2004 totaled about 243,000 ounces.During the third quarter, cash production costs ran $303 an ounce.