AKROKERRI PERMIT EXPLORATION UPDATE

RNS Number : 3710P

Goldstone Resources Ltd

03 October 2011

 



GoldStone Resources Limited

("GoldStone" or the "Company")

AKROKERRI PERMIT EXPLORATION UPDATE

REVIEW OF HISTORICAL EXPLORATION DATA, SURFACE SAMPLING AND MAPPING ON THE AKROKERRI PERMIT (GHANA, ASHANTI GOLD BELT) HIGHLIGHT DRILL TARGETS

The Directors of GoldStone are pleased to announce that the Company has completed a review of historical exploration data and a field based mapping and surface sampling programme for the Company's Akrokerri permit ("Akrokerri").

HIGHLIGHTS

·     Historical soil sampling demonstrates widespread gold mineralisation in the Akrokerri granite

·     GoldStone's recent surface rock sampling of the same granite returned gold values of up to 16 g/t

·     Results highlight drill targets to test (i) the potential for wide gold mineralisation under a 450 metre long zone of artisanal mining and (ii) the prospectivity of a previously mined high-grade quartz vein

GoldStone's Exploration Director, Dr. Hendrik Schloemann, commented: "We are very pleased with our progress on this permit as these results confirm our view that the area holds the potential for new discoveries to add to the existing gold resource."

The Akrokerri permit has common boundaries with GoldStone's Homase permit and AngloGold Ashanti's Obuasi permit and contains three significant gold prospects.  These gold prospects are the southern extension of the Homase trend which accounts for part of GoldStone's 405,600 ounce JORC compliant gold resource, the high-grade quartz vein which abuts the Akrokerri granite along its eastern flank and the Akrokerri granite itself.

Historical soil sampling in the Akrokerri area demonstrated widespread gold mineralisation in the granite.  GoldStone's recent follow-up work in this area included the mapping of artisanal activity and geology, as well as surface rock sampling.  The results showed that a 450 metre long and 100 metre wide zone of artisanal gold mining activity is parallel to north-west trending shear systems and quartz veins and coincides with high gold concentrations in surface rock samples.  The six rock samples taken along this zone returned gold values of 16.0 g/t, 11.8 g/t, 7.3 g/t, 5.7 g/t, 2.2 g/t and 0.13 g/t.  The down-dip extension of this surface gold mineralisation will be tested with three inclined drill holes.

The strike extent of the 0.75 metre to three metre wide, high-grade quartz vein along the eastern flank of the Akrokerri granite is in excess of 600 metres and its central portion was the focus of colonial mining from 1900 to 1909.  Underground mining to a depth of 114 metres resulted in the recovery of 75,000 ounces of gold at an average grade of 24 g/t.  More recently, Birim Goldfields Ltd (1996 - 1997) and Pan African Resources plc (2008), previous operators of the permit, drilled a total of 16 boreholes to test for potential extensions of the mineralisation.  As the deep drilling did not reach the projected down-dip extensions of the quartz vein, the results of these boreholes were mixed.  Recent channel sampling by GoldStone's geologist across the quartz vein returned assay results of up to 7.9 g/t gold over 0.75 metres.  The gold mineralisation of the quartz vein is also demonstrated by the recent significant increase of artisanal activity along the vein.  Future drilling will be conducted to further test the strike extent, width and gold grade of the vein and its footwall and hanging wall rocks.

An orientation IP (Induced Polarisation) survey over the known part of the Homase trend on the Homase permit is presently ongoing to determine if this geophysical surveying method can detect the structure that controlled the formation of GoldStone's Homase gold deposit.  A more extensive IP survey will be carried out over the Akrokerri permit to detect the southern extension of the Homase mineralised trend, if positive results are received from the IP orientation survey.

Approval

Dr. Hendrik Schloemann, who holds a PhD in Geology, has reviewed and approved the technical content of this announcement.

Enquiries:

GoldStone Resources Limited	[phone]
Jurie Wessels / Hendrik Schloemann
Westhouse Securities Limited	[phone]
Tim Feather / Matthew Johnson
Optiva Securities Limited
Jason Robertson	[phone]
Jeremy King	[phone]
Walbrook PR	[phone]
Louise Mason Bob Huxford

 

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