Queenstake and Midwest Mining Are Building a $12.5 Million Gold Mine in Mexico

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston Texas). Queenstake Resources Limited (TSE: QRL) (Vancouver, Canada) is constructing a gold mine in Sinaloa in Northwestern Mexico.

Construction of the Magistral Gold project, which is an open pit mine with a one million ton per year gold processing facility, began in January. Construction is being carried out by Allen Pincock & Holt (Denver. Colorado). It will cost Queenstake and its partner $12.5 million to bring the 45,000 ounces of gold per year to production. The Magistral Gold Mine has a mine-life of 6.5 years and Queenstake has set aside one year for reclamation and closure at an anticipated cost of $1,837,500.

The Magistral gold project is located approximately 22 kilometers east of the town of Mocorito, Mexico (pop 15,000) and has created employment for 156 people. Except for Mr. Mike Robb, the Project General Manager, all of the 156 (122 hourly & 34 salary) people working on this project are locals.

The Magistral Gold Mine will be operated under The Magistral Joint Venture ("MJV") between the Company's subsidiary, Pangea Resources Inc., and privately owned Midwest Mining of Delaware.

Queenstake Resources Ltd., a junior resources company registered in Whitehorse, Canada, is traded on the Toronto Stock Exchange under the symbol QRL, and is led by Mr. Chris Davie from his office in Denver, Colorado.

In addition to this project, Industrialinfo.com is tracking mining projects throughout the world. Last year alone, Industrialinfo.com reported on 390 metals & mineral mining projects worldwide with a total investment value of close to $50 billion.