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a u g u s t / s e p t e m b e r 2 0 1 6 www.resourceworld.com 23 Producing Gold In California Golden Queen Mining Co. Ltd. TSX: GQM TEL: (778) 373-1557 E: info@goldenqueen.com www.goldenqueen.com open pit contains a measured resource of 247,000 ounces of gold grading 2.80 g/t, an indicated resource of 412,000 ounces of gold grading 2.07 g/t and an inferred resource of 100,000 ounces of gold at 1.82 g/t. Underground, the measured resource is 17,000 ounces of gold at 4.83 g/t, an indicated resource of 100,000 ounces of gold at 4.05 g/t and an inferred resource of 69,000 ounces gold at 6.13 g/t. The resource was estimated using a 0.5 g/t gold minimum cut-off for the open pit resources and a 2.0 g/t gold minimum cut-off for the underground resources. The first assay results were recently released from the company's current 7,000- metre drill program. The focus has been on the 1.6-km mineralized trend between the Marathon and Sprite deposits which exhibit a number of geological charac- teristics that appear more conductive to open-pit mining methods (compared to Leprechaun). Results from the down-dip extension of hole MA-15-047 that was drilled last year at Marathon, include 7.2 metres grading 20.17 g/t gold from a downhole depth of 285 metres, including 0.7 metres grading 12.54 g/t gold and 0.7 metres grading 190.88 g/t gold. The higher grades intersected at depth are encour- aging and show the potential for higher grade, underground resources. In April, the company announced positive initial metallurgical test results pointing to reduced capital and operat- ing costs through a heap leaching process. Currently, flotation and leaching work is being conducted on samples from the Marathon deposit with similar results to the previously tested Leprechaun deposit that returned results of up to 96% gold recovery. Positive results from short col- umn heap leach test-work have also been encouraging and results from both metal- lurgical tests will be incorporated into a Preliminary Economic Assessment (PEA) due out in the first half of next year. n The above article was written by Barry Muir who is a registered Investment Adviser with Haywood Securities Inc. a Canadian based independent, full‐service investment firm and member of the Canadian Investor Protection Fund. The article is for informational pur- poses only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. The information contained in the reports have been compiled from sources Haywood believes are reliable; however, Haywood makes no guarantee, representation or warranty, expressed or implied, as to such information's accuracy or completeness. The views expressed are those of the author and not necessarily Haywood Securities Inc. All opinions and estimates contained in the reports are based on assumptions the author believes to be rea- sonable as of the dates of the reports but are subject to change without notice. Either the author, Haywood Securities Inc. or its employ- ees may from time to time hold or transact in the securities mentioned. Barry can be reached at (604) 697-6172 or bmuir@haywood.com