Overview

Golden Queen Mining Co. Ltd.  

Golden Queen Mining Co. Ltd. is listed on the Toronto Stock Exchange (TSX-GQM).

The Soledad Mountain Project

The company is proposing to develop a gold-silver, open pit, heap leach operation on its Soledad Mountain property, located just outside the town of Mojave in Kern County in southern California. Every element of the Soledad Mountain Project (the “Project”) has been rethought and reengineered since 2003 in an effort to find sound technical and cost-effective solutions that would see the Project proceed with a robust internal rate of return or IRR. This phase of the technical work was completed toward the end of 2007. 

Independent Technical Report & Mineral Resource Estimates

The company engaged SRK Consulting (U.S.), Inc. in 2005 to prepare a National Instrument 43-101 compliant Technical Report to validate and confirm mineral resource estimates. The Technical Report was released on March 6, 2006. The mineral resources confirmed in the Technical Report are estimated to contain 2,162,000 oz of gold and 37,628,000 oz of silver in the Measured and Indicated categories and a further 511,000 oz gold and 11,154,000 oz silver in the Inferred category, both calculated with a gold-equivalent cut-off grade of 0.274g/t (0.008oz/ton). 

Independent Feasibility Study & Mineral Reserve Estimates 

The company engaged Norwest Corporation of Vancouver in January 2007 to prepare a National Instrument 43-101 compliant Technical Report to assess mineral reserves for the Project as part of an independent feasibility study. The results of the study were made public in a press release dated December 14, 2007. The Technical Report was filed with the applicable Canadian securities commissions in January 2008.

The open pit design done by Norwest Corporation is considered to be both detailed and complete. The mineral reserve estimates are set out in the table below: 

Proven and Probable Mineral Reserve Estimates

Allowance has been made for ore loss and dilution in determining the detailed mining schedule. Dilution has been assigned a zero grade for calculation of reserves. The planned ore mining rate is 4,500,000 tonnes per year (5,000,000 tons per year) once in full production with an average stripping ratio of 2.12:1 and this includes the waste rock mined during the pre-production period. 

Only approximately 50% of the mineral resource estimates have been included in the current 12-year mine plan.

Capital Requirements

The company will need significant additional financing to develop a mine on the property once a production decision is made and estimates that this could range as high as US$60million in addition to the working capital required. Cost have recently increased rapidly and these estimates will now have to be revised. 

Other

It is expected that an aggregate business can be developed on the property once the heap leach operation is in full production as more fully described under the heading – AGGREGATE.

A technical update with information on recoveries for gold and silver obtained in the column leach tests is available under the heading - TECHNICAL.

Mr. H. Lutz Klingmann, P.Eng., the president of the Company, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical information of this website.

Further information on Golden Queen Mining Co. Ltd. is available on the SEDAR web site at www.sedar.com. 

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last updated: June 19, 2009

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