Commencement of Definitive Economic Plan and EIA

RNS Number : 9454P

Goldstone Resources Ltd

14 February 2019

 

14 February 2019

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Commencement of Definitive Economic Plan and Environmental Impact Assessment

& Development Update from Akrokeri-Homase Gold Project

GoldStone Resources Limited (AIM: GRL) is pleased to provide an update on its key work streams at its Akrokeri-Homase Gold Project ("AKHM"), as the Company seeks to move rapidly towards establishing its first operating mine within the Homase Trend.  The Homase Trend is an >8km gold-in-soil anomaly within AKHM, 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.

Highlights

•	Definitive Economic Plan ("DEP") to assess capital requirements, operating costs and timelines in respect of developing an operational mine on the Homase Trend now commencing and expected to be completed in Q2 2019 - this is a key milestone in the Company's strategy towards becoming a gold producer
•	MAED (UK) Limited ("MAED") has been engaged to undertake the DEP (the "MAED Agreement"), with the support of the wider MAED Group
•	Work on the DEP will focus on the completion of a fast track, low cost plan to submit for final government approval in May 2019
•	Following initial consultation, MAED is of the opinion that a low tonnage, gravity and combined heap leach facility can achieve early stage cash flow with minimal capital expenditure
•	Optimal Development Consult ("OPDEC") has been engaged to complete the Environmental Impact Assessment ("EIA"), a pre-requisite to applying for a mining licence and will also manage community and social relations work
•	Homase Trend scoping study progressing well

-  Results of completed pilot heap leach project and results from the first stage of trenching at the Homase North and Adubriem deposits expected shortly

-  Additional trenching, targeting the mineralised zone along the Homase Trend to the north of the existing Homase open pit, is underway, the results of which are expected in Q2 2019

Emma Priestley, CEO of GoldStone, commented:

"Last year, we made a commitment to our shareholders to bring the Akrokeri-Homase project into production in the shortest possible time.  Initial indications point towards the viability of a low tonnage, gravity and combined heap leach facility to generate early stage cash flow with minimal capital expenditure at Homase.  As such, this is the focus of our development efforts, as we seek to deliver our objective of near term production."

Further Information

The Company is pleased to announce that it is commencing two key work streams, being the DEP and the EIA, as the Company seeks to move towards establishing its first operating mine, which it proposes to construct and operate on the Homase Trend, a >8km gold-in-soil anomaly. 

Both the DEP and EIA are major project milestones as the Company seeks to achieve production and builds on the Company's recent preliminary findings from the pilot heap leach project processing material from the Homase South Pits, which were announced on 21 December 2018.  A further update regarding recoveries from a 65-day leach cycle are expected shortly.  The Company also anticipates the receipt of laboratory analysis from the first stage of trenching at the Homase North and Adubriem deposits in the coming weeks.  Additional trenching, targeting the mineralised zone north of the existing Homase open pit, is underway and results from this programme are expected in Q2 2019.

Definitive Economic Plan

The Company is pleased to announce that it has engaged MAED to undertake the DEP.  MAED, which is wholly owned by Bill Trew, the Company's Non-executive Chairman, will be supported by the wider MAED Group in the development of the DEP.  MAED Group has significant experience in the mining sector, having completed EPCM and turnkey projects for many of the world's leading gold mining companies.  The team has designed and constructed a number of highly successful heap leach projects that have been in production for more than a decade in West Africa and Asia.

Following an initial consultation, MAED has indicated that it believes that a low tonnage, gravity and combined heap leach facility can achieve early stage cash flow with minimal capital expenditure.  This assessment is based on MAED's initial geological and metallurgical review of the Homase Trend, coupled with the conclusion from the preliminary findings from the pilot heap leach project which, using 2.5 tonnes of material from Homase South within the Homase Trend, The University of Mines and Technology (UMaT) in Tarkwa, Ghana, estimates could achieve recoveries of up to 80% gold extraction over a 65 day cycle.

Environmental Impact Assessment

The Company is pleased to announce that it has appointed OPDEC to undertake the EIA.  The EIA is an important workstream that is required to enable the Company to apply for a mining licence.  OPDEC has significant experience of providing such assessments for clients in Ghana and across Africa in this regard.  OPDEC will also oversee the environmental, community and social relations work which has continued to progress the advanced stage of environmental permitting

Related party transaction

MAED is wholly owned by the Company's Non-Executive Chairman Bill Trew and, accordingly, MAED is deemed to be a related party of the Company as defined in the AIM Rules for Companies ("AIM Rules").  The MAED Agreement is therefore a related party transaction pursuant to Rule 13 of the AIM Rules.  The directors of the Company, other than Bill Trew, consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the MAED Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

GoldStone Resources Limited
Emma Priestley	Tel: [phone]
Strand Hanson Limited
Richard Tulloch / James Bellman	Tel: [phone]
SI Capital Limited
Nick Emerson	Tel: [phone]
St Brides Partners Ltd
Susie Geliher / Juliet Earl	Tel: [phone]

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.

- ENDS-

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, including Homase North, Homase Pit and Homase South.

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 producing 52,000 oz gold at 2.5 g/t recovered.  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.

 

END

 

 

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