GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Joint Venture with Randgold over Sangola Project, Senegal
GoldStone Resources Ltd (AIM: GRL), the AIM quoted company focused on gold exploration in West and Central Africa, is pleased to announce that the Company has entered into a joint venture agreement with Randgold Resources (Senegal) Limited ("Randgold") over the Sangola gold project in Senegal.
Highlights
· Joint venture with Randgold for the exploration and potential development of a mine at Sangola
· Randgold to fund all costs up to and including the completion of a pre-feasibility study indicating that the mining of at least 1Moz of gold is feasible
· Joint venture to be owned 51% by Randgold and 49% by GoldStone with GoldStone having the election to contribute towards a feasibility study or dilute to 35%
Jurie Wessels, Chief Executive Officer of GoldStone, said: "We are delighted to have entered into this joint venture with our neighbour Randgold, who have an exceptional track record of finding and developing gold projects in West Africa. We are retaining a material interest in the project whilst removing any funding requirement until the project has advanced significantly. We are looking forward to moving ahead at Sangola with our new partners."
Details of the Joint Venture
On 5 April 2013 GoldStone entered into a joint venture agreement with Randgold, a wholly owned subsidiary of FTSE 100-quoted Randgold Resources Limited, in relation to the exploration, evaluation and, potentially, the development and mining of the Sangola project in Senegal (the "Joint Venture"). Randgold will hold 51% of the Joint Venture and GoldStone 49% and a committee comprising three representatives from Randgold and two from GoldStone will manage the project.
Under the terms of the Joint Venture, Randgold has agreed to undertake exploration over the Sangola permit and fund all work up to and including the completion of a pre-feasibility study ("PFS") on the project. The committed work includes the execution of at least 10,000 metres of reverse circulation (or equivalent) drilling per annum up to the completion of a PFS which indicates that mining of at least 1Moz of gold is economically feasible.
Subject to the PFS satisfying this condition, GoldStone will have the option to maintain its 49% interest through funding its share of the costs of a feasibility study (the "FS"). In the event that GoldStone elects not to fund its share of the FS, its interest in the Joint Venture would reduce to 35%. If, following completion of the FS, the decision is taken to develop a mine, GoldStone will have the right to retain its interest through funding its share of the costs.
If the PFS indicates that the mining of at least 1Moz of gold will not be economically and commercially feasible, the Joint Venture will cease to have effect. In addition, Randgold may terminate the Joint Venture at any time by giving GoldStone 90 days' notice.
Background on Sangola
The 471 km² Sangola permit lies in the south-eastern corner of Senegal in a prolific gold province where more than 30 Moz of gold have been discovered in the past 10 years. The Sangola permit area is bisected by a major gold bearing shear zone known as the Main Transcurrent Shear Zone ("MTZ"). This shear zone is host to Randgold's 3 Moz Massawa deposit, which lies 30km towards the north-east of the licence area.
Three major elongated gold-in-soil anomalies, Baraboye, Tiabedji and Tiobo, all of which are associated with underlying structures related to the MTZ, have been identified and explored by the Company. The Thiabedji anomaly was investigated by a 11,350m RAB ("Reverse Air Blast") drilling programme between May and July 2012 and yielded very encouraging results with the recognition of a mineralised trend up to 70 metres wide and 2km in extent. Initial geological interpretation suggests that the mineralisation is controlled by two north-east trending secondary structures splaying off the regional MTZ and indicates a bedrock gold source is likely in the south-western portion of the six kilometre long Thiabedji gold anomaly.
About Randgold
Randgold Resources (Senegal) Limited is a wholly owned subsidiary of Randgold Resources Limited ("RRS"), the FTSE 100 and NASDAQ quoted gold mining and exploration company operating in the prospective gold belts of west and central Africa. The group's strategy is to create value for all its stakeholders through the discovery of multi-million ounce gold deposits and their development into profitable mines.
Major discoveries to date include the 3 Moz Massawa gold deposit in eastern Senegal, the 7.5 Moz Morila gold deposit in southern Mali, the 7 Moz Yalea gold deposit and the 5.5 Moz Gounkoto gold deposit, both in western Mali and the 4 Moz Tongon gold deposit in the Côte d'Ivoire.
RRS operates four gold mines: Morila, Loulo and Gounkoto in Mali and Tongon in Côte d'Ivoire. A fifth mine, Kibali in the Democratic Republic of the Congo ("DRC"), is currently being developed and first gold is scheduled for the end of 2013. The Massawa project in Senegal is at feasibility stage and exploration programmes are underway in Burkina Faso, Côte d'Ivoire, DRC, Mali and Senegal.
Enquiries
GoldStone Resources Limited |
+27 21 551 9009 |
Jurie Wessels |
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WH Ireland Limited |
+44 20 7220 1666 |
Tim Feather |
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Nick Field |
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