2 May 2019
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Operational Update on Homase Open Pit Gold Mine
GoldStone Resources Limited (AIM: GRL) is pleased to provide an update on its key work streams along the Homase Trend, which includes results exceeding expectations from its pilot heap leach test work and encouraging results from its recent trenching programme, as the Company seeks to move rapidly towards achieving low cost production.
The Homase Trend, an >8km gold-in-soil anomaly within its Akrokeri-Homase Gold Project ("AKHM" or the "Project"), is located on the northern end of the Ashanti Gold Belt in Ghana, 12km along strike from Anglo Gold Ashanti's >70 million ounce Obuasi Gold Mine, and which also contains the high-grade 24g/t Au (recovered grade) Akrokeri Mine.
Highlights
· Pilot heap leach test work indicated recoveries in excess of 87.5% after just 60 days due to coarse gold content, exceeding initial expectations and endorsing plans for an initial gravity and combined heap leach facility to minimise capex
· Trenching over 900 metres at the proposed Homase North Pit completed, with six out of eight trenches encountering above cut-off mineralisation and the highest individual assay at 3.87 g/t Au (1 metre cut)
· Trenching at the parallel structures of Adubriem and Krodua over 800 metres has been completed and the assay results are expected within the next few weeks
· Potential new Homase Central Pit investigation started in the area immediately to the north of the existing Homase Pit, a shallow open oxide pit that was mined by AngloGold Ashanti in 2002/3 and produced 52,000 oz at 2.85g/t Au
· Definitive Economic Plan ("DEP") progressing well and is expected to be submitted for final government approval in May 2019
· Initial work indicates Gravity Recoverable Gold ("GRG") circuit can be utilised which has low capital outlay and can facilitate early revenue
· The baseline study for the Environmental Impact Assessment and Management Plan is nearing completion
Emma Priestley, CEO of GoldStone, commented:
"Operations are progressing in line with our commitment to move rapidly towards establishing our first operating gold mine within the Homase Trend. The initial results from the bulk heap leach test work are extremely encouraging and are an endorsement of our plans to achieve early stage cash flow with minimal capital expenditure via a low tonnage, gravity and combined heap leach facility.
"With the DEP nearing completion, this will also allow us to complete and submit the environmental study, and we look forward to providing further updates as work at AKHM progresses.
"We will provide an operational update on the Akrokeri Mine in the coming weeks."
Homase Trend
The Company's pilot heap leach, undertaken at the University of Mines and Technology in Tarkwa, Ghana, utilising 2.5 tonnes of material from the proposed Homase South Pit, within the Homase Trend, achieved recoveries of 87.5% after just 60 days. This exceeded the Company's expectations due to the known presence of coarse gold which influences the head grade and as a result, the test work was halted earlier than anticipated. This endorses the Company's consultant's, MAED (UK) Limited ("MAED"), plans for an initial gravity facility, to ensure the recovery of the coarse content prior to the heap leach, thereby maximising recoveries.
Trenching at the proposed Homase North Pit, to the north of the Homase Main Pit, has now been completed with assay results having been received. Six out of eight trenches encountered above cut-off mineralisation, with over 97% of the 901samples assayed from the trenches giving positive results, including:
· the widest intersection being 26 metres at 0.71g/t;
· the highest grade being 3 metres at 1.82g/t; and
· the highest individual assay being 3.87 g/t over a 1 metre cut.
A potential new Homase Central Pit investigation has started. This area is immediately to the north of the existing Homase Pit that was mined by AngloGold Ashanti in 2002/3 and to the south of the proposed Homase North Pit.
This area was not investigated previously due to historic records showing a waste dump on surface immediately above the mineralisation. However, recent field work has shown that this waste dump may be considerably smaller than previously believed. Accordingly, a survey of this is being considered to confirm the amount of material needed to be moved.
Trenching at the parallel structures of Adubriem and Krodua has been completed and the assay results are expected within the next few weeks. These may not be retained as immediate targets, due to their proximity to settlements, with the focus maintained on the main Homase Trend.
Definitive Economic Plan ("DEP")
MAED is making good progress on the DEP and expects to complete the study shortly ahead of submitting for final governmental approval in May 2019 as previously reported. The results of the pilot heap leach test work (referred to above) have also further strengthened the initial thoughts of MAED, regarding the ability to use a Gravity Recoverable Gold ("GRG") circuit to recover the coarse gold, which has a low capital outlay and can facilitate early revenues.
Following the results of the pilot heap leach test, some additional samples have been taken from positions that lie within the proposed Homase South Pit for additional coarse gold and size fraction (gradings) analyses. This work is expected to be completed within the next few weeks.
Figure 1: Map of the Homase Trend and Proposed Pits
http://www.rns-pdf.londonstockexchange.com/rns/8229X_1-2019-5-1.pdf
Environmental Impact Assessment ("EIA")
The EIA baseline study and report are nearing completion. Community meetings have commenced, starting with the Bekwai Paramount King and the Chief Executive of the Amansie Central District Assembly. A farm survey is currently ongoing, involving farm sizes and crops (types and sizes) for compensation purposes.
Final DEP information will be required to complete the EIA, ahead of its submission to the Ghanaian Environmental Protection Agency in association with the consultant undertaking the DEP, Optimal Development Consult ("OPDEC").
Information in this announcement has been complied and reviewed by Klaus Kappenschneider, an independent geologist with 30 years experience in gold mining, exploration and resource estimation. Klaus is a member of the Association of Professional Geoscientist of Ontario (APGO), is a Competent Person (JORC, SAMREC, PEMREC) and a Qualified Person (NI 43- 101) and accordingly, is a qualified person as required under the AIM Rules.
For further information please visit www.goldstoneresources.com or contact:
GoldStone Resources Limited |
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Emma Priestley |
Tel: +44 (0)20 7236 1177 |
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Strand Hanson Limited |
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Richard Tulloch / James Bellman |
Tel: +44 (0)20 7409 3494 |
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SI Capital Limited |
|
Nick Emerson |
Tel: +44 (0)1483 413 500 |
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St Brides Partners Ltd |
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Catherine Leftley / Juliet Earl |
Tel: +44 (0)20 7236 1177 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
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About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted exploration company with projects in Ghana, Senegal and Gabon that range from grassroots to advanced exploration.
The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts a JORC Code compliant 602,000 oz gold resource at an average grade of 1.77 g/t. The existing resource is confined to a 4km zone of the Homase Trend, an >8km gold-in-soil anomaly within the Akrokeri-Homase Licences.
The project hosts two former mines, the Akrokerri Ashanti Mine Ltd, which produced 75,000 oz gold at 24 g/t recovered grade in the early 1900s, and the Homase Pit which AngloGold Ashanti developed in 2002/03 mining 52,000 oz gold at 2.85 g/t overall head grade. It is the Company's intention to build a portfolio of high-quality gold projects in Ghana, with a particular focus on the highly prospective Ashanti Gold Belt.
