GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
SANGOLA RESULTS INTERPRETATION
GoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West and Central Africa, is pleased to provide an overview of the continuing prospectivity of its Sangola permit in Senegal.
Dr Hendrik Schloemann, GoldStone's Exploration Director, commented: "Although it is disappointing that Randgold has withdrawn from our joint venture agreement over the Sangola project, I am pleased to say that the permit has not lost its potential to yield a significant discovery. The licence area is large and has not, to date, been sufficiently tested by either GoldStone or Randgold. Therefore, subject to the availability of funding, GoldStone intends to perform further work, particularly around Randgold's very widely spaced drill lines."
During 2013 the joint venture carried out a 10,000 metre reverse circulation ("RC") drill programme to partially test the Baraboye, Thiabedji, Tiobo and Ibel gold prospects. Subsequently Randgold terminated the joint venture because they no longer saw the potential for a discovery of a scale that met their internal investment criteria, which is the "potential for a deposit larger than three million ounces at an average grade above 3 g/t". In the termination notice Randgold remarked that in their opinion the permit is "still prospective for smaller or lower grade deposits than those which pass our investment filters". In the meantime GoldStone's technical team has reviewed the geological data set and confirms that it believes that the potential remains to make a meaningful discovery at Sangola and that further work is justified.
A number of prospects considered appropriate for further work by GoldStone's technical team are listed below, together with their recommended actions:
Thiabedji: RC drilling confirmed low-grade mineralisation over a 70m wide zone to a depth of approximately 100m. Drill holes in this zone yielded 39m @ 0.67g/t (including 7m @ 2.19g/t; including 2m @ 5.39g/t), 38m @ 0.34g/t, 30m @ 0.28g/t and 27m @ 0.45g/t in a promising structural setting. Deeper drilling should be carried out to test if these intersects demarcate the peripheral portion of a higher-grade system.
Baraboye: Results from RC drilling along very widely spaced lines (between 1.6 km and 2.7 km apart) confirmed low-grade mineralisation over a 100m wide zone to a depth of approximately 100m. Drill holes in this zone yielded 7m @ 1.53g/t (including 1m @ 8.35g/t), 6m @ 0.72g/t (including 1m @ 2.24g/t), 9m @ 0.52g/t (including 1m @ 2.54g/t) and 16m @ 0.16g/t and 9m @ 0.25g/t in sheared andesites of the central Baraboye structural corridor. Infill and deeper drilling should be carried out to test for potential higher grade mineralisation. Also at Baraboye a drill line across the central structure should be extended to the north-west in order to test the best part of the gold anomaly at surface. At the Baraboye northern structure, Birimian-aged schists which were mapped by Randgold, coincide with a significant gold anomaly at surface which remains untested.
Tiobo South: This structure, which was inferred from magnetic data, is parallel to the Tiobo main structure and coincides with a limited gold anomaly at surface. However, this area is covered by laterite which can weaken the geochemical response at surface and follow up soil sampling should be carried out to resolve this anomaly.
Gangara: A surface gold anomaly close to the village of Gangara coincides with the location of the gold fertile MTZ structure, as recently re-interpreted by Randgold. No drill testing has been carried out over this prospect. Geological mapping and infill surface sampling should be carried out to define this area further.
Bandafassi, Lankanta and Samalia: These prospects were defined by Randgold and contain interesting structural targets and in the case of Lankanta a stream sediment anomaly. Further geological mapping and possible in-fill soil sampling is justified.
APPROVAL
The information in this report that relates to exploration results, is based on information compiled by Dr. Hendrik Schloemann, who is a Member of the South African Council for Natural Scientific Professions . Dr. Schloemann is a full-time employee of GoldStone Resources Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a competent person in terms of the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Schloemann consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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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