Queenstake Resources - Drilling Program Update

Business Wire, May 5, 1995

VANCOUVER, BC--(BUSINESS WIRE)--MAY 5, 1995--QUEENSTAKE RESOURCES (TSE:QTR):

Bizkaitarra Concession, Kilometre 88, Venezuela Phase II Hardrock Diamond Drilling Program Complete Two High Grade Intercepts Encountered

Queenstake Resources Ltd. reports that since January 12, 1995, Vengold Inc. has drilled 17 diamond drill holes on the 61N and Blue Lagoon zones of the Bizkaitarra Concession. Vengold is earning a 50% interest, which can be increased to 65% under certain conditions, in the Bizkaitarra Concession by funding all exploration costs and a portion of the acquisition costs.

Twelve holes were drilled in the 61N Zone to evaluate various wide, gold bearing pyritic shear zones. Two high grade mineralized quartz veins assaying 39.86 g/t gold over an intercept of 11 metres and 29.76 g/t gold over an intercept of 3.4 metres were identified within the 61N Zone. Although these intercepts do not appear to be part of the same structure they form part of an extensive zone of gold mineralization, the strike and extent of which has not yet been determined. These structures may form an en-echelon series of northwesterly trending, gold bearing pyritic shear zones. These appear to be part of a major mineralized system which has been shown to extend from the Rio Manaca in the south to (at least) the border with Oro Uno in the north. Extensive auger drilling to an average depth of 7 metres in the 61N Zone has defined a NNW striking zone of greater than 400 metres of anomalous gold-in-saprolite with a core of .6 to greater than 1.2 grams per tonne gold values. When combined with the regional auger drilling the anomalous gold-in-saprolite zones are seen to extend for more than 1 kilometre. The next phase of auger drilling and trenching has already begun on the 61N Zone to be followed by a continuation of the second phase of diamond drilling later in the second quarter to further evaluate this very extensive zone of gold mineralization.

Five holes were drilled to further explore the Blue Lagoon Zone identifying further gold mineralized structures. The drilling has defined a zone of shearing with disseminated sulphide mineralization and quartz veining with dimensions in the order of 200 metres in width and a strike length of 550 metres. The gold mineralized zones within the shear zones are lenticular and discontinuous with gold values ranging from 1 to 3 grams per tonne. Auger drill samples of the saprolite returned values of 0.5 to 2 grams per tonne values for the upper 5 to 9 metres. In addition, Queenstake's bulk sampling on- site milling program processed 770 tonnes of saprolite from the SE end of the Blue Lagoon structure. Results of the sample indicate a head grade of 2.33 grams per tonne and provide a more representative sample of the Blue Lagoon mineralized zone in which the gold grain size is variable and the gold distribution very erratic.

Results of the significant intercepts for the first quarter 1995 drill programs are summarized in Table 1. -0-