Gold anomaly identified at Akrokeri-Homase Project

RNS Number : 9253R

Goldstone Resources Ltd

20 June 2018

 

20 June 2018

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Gold anomaly of over 8km identified at Akrokeri-Homase Project

GoldStone Resources Limited (AIM: GRL), is pleased to announce the identification of a >8 km gold-in-soil anomaly at its Akrokeri-Homase Gold Project ("AKHM" or the "Project"), located 12 km along strike from AngloGold Ashanti's +70 million ounce Obuasi Gold Mine in South-West Ghana.

The >8 km gold-in-soil anomaly, which runs from the historic Akrokeri underground mine ("Akrokeri Mine") to north of the Homase open pit ("Homase Pit"), see Figure 1 below, has been identified following a review of the results from the recent geochemical soil sampling programme (announced 25 January 2018) ("2018 Soil Programme") and historic field work.

Overview

·        >8 km gold-in-soil anomaly identified following the review of results for the 2018 Soil Programme and historic data

·        Gold anomaly contains the historic Akrokeri Mine and the Homase Pit, as well as demonstrating along strike extensions to both mines

·        Historic trenching indicates high grade gold mineralisation, including 15.0 metres @ 6.31 g/t Au which includes 4.5 metres @ 18.23 g/t Au from a trench in the Homase North Resource Zone

·        Scoping study commenced to better define the oxide resource potential of the >8 km Homase Mineralised Trend ("Homase Trend") to the north and south of the Homase Pit

·        2018 Soil Programme has also defined a gold in soil anomaly for 2.4 km south of the Akrokeri Mine

·        Parallel mineralised gold structures also delineated, which may provide further mineral resource upside potential following evaluation work

GoldStone's Chief Executive Officer, Emma Priestley, commented:

"The potential size, scale and grades at our AKHM continue to improve, providing significant support for our recently implemented strategy to commence commercial gold production within two years.

"These results of the 2018 Soil Programme, when combined with historic data, significantly upgrade the prospectivity of the Project and enhance our understanding of the exciting potential of AKHM to contain significant gold mineralised zones.  In particular, the Homase North Resource Zone and the zone between the Homase Pit and the Akrokeri Mine now represent two very strong and consistent anomalous areas with significant potential for high grade oxide resources.

"We have commenced a scoping study to evaluate the potential of these oxide zones along the Homase Trend and we look forward to providing further updates in the months ahead."

Further Information

As part of the 2018 Soil Programme, approximately 5,500 samples were collected from grids on a close- spaced pattern of 20 metres by 50 metres over six target areas along the Homase Trend and south of the Akrokeri mine as detailed in the announcement of 25 January 2018.  Together with the review of historic data, the Company has identified a >8 km gold in soil anomaly at AKHM which runs from the Akrokeri Mine to north of the Homase Pit, as shown in Figure 1 below.

Figure 1: Map of AKHM showing the >8 km gold in soil anomaly

http://www.rns-pdf.londonstockexchange.com/rns/9253R_1-2018-6-19.pdf

From the results of the 2018 Soil Programme, along with the review of historic fieldwork, the Company has defined a 2 km long, > 250 parts per billion (ppb), gold-in-soil anomaly immediately north of the Homase Pit, the Homase North Resource Zone - see Figure 2. below.  Several soil values from within this zone exceed 1.0 g/t Au and the Board believes that historic, shallow, RC drilling over this zone, completed in 1999 on 200 metre spaced sections, did not fully evaluate the soil anomaly.  Additionally, the Company's on-going review of historic data has highlighted significant historic trench results which have not been drill tested.  Most notably, trench TH925A, in the centre of the Homase North Resource Zone, reported 15 metres @ 6.31 g/t Au including 4.5 metres @ 18.23 g/t Au.

The recent soil results from the Homase North Resource Zone have produced an anomaly of similar size and tenor to that defined previously south of the Homase Pit.  The oxide portion of the gold-in-soil anomaly immediately south of the Homase Pit was RC drill tested by GoldStone in October 2017 on 25 metre spaced sections.  As announced on 9 November 2017, better than expected results were returned, including AKRC012: 12 metres @ 3.78 g/t Au and AKRC018: 30 metres @ 2.22 g/t Au.  On the basis of these drill results, Goldstone is designing two shallow oxide pits south of the Homase Pit.  Deeper drilling is planned for the next dry season, Q4 2018, to test the depth extensions of these encouraging intersections.

Results from the 2018 Soil Programme have also defined a gold-in-soil anomaly for 2.4 km south of the Akrokeri underground mine.  Values up to 2,890 ppb have been reported from soils that overlie the interpreted southern extensions of the Akrokeri mine structure.  GoldStone will undertake a programme of air core drilling of this anomaly, in the next dry season, on close-spaced sections over the southern projection of the Akrokeri mine as far as the boundary with AngloGold Ashanti's Mining Lease, which hosts the Obuasi Gold Mine, a strike length of approximately 2.75 km.

The recent soil results have also delineated two parallel structures, namely the Adubriem trend to the west of Homase and the Krodua trend to the east.  Both prospects will be explored further in due course.

Figure 2: Detailed map of the >8 km soil anomaly and two parallel structures

http://www.rns-pdf.londonstockexchange.com/rns/9253R_2-2018-6-19.pdf

Qualified Person

Simon Meadows-Smith is a Qualified Person as defined by "National Instrument 43-101 - Standards of Disclosure for Mineral Projects" and has approved the disclosure of the scientific and technical information contained in this news release.  Mr Meadows-Smith holds a BSc degree in geology from Nottingham University, England, and has been involved in mineral exploration since 1988, including 20 years of experience working in West Africa.  He is a Fellow in good standing of the Institute of Materials, Minerals & Mining in London.

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]
Citigate Dewe Rogerson
Louise Mason-Rutherford	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.

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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, 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 @ 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 @ 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.

 

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