Gold Production and Gold Loan Update

RNS Number : 9549T

Goldstone Resources Ltd

30 November 2021

 

30 November 2021

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Gold Production and Gold Loan Update

GoldStone Resources Limited (AIM: GRL), is pleased to announce that it has now successfully completed its first commercial gold pour at the Homase Mine in the Ashanti Gold Belt in Ghana.  The first pour was completed during the commissioning of the Smelt House this week, which followed the commissioning of the Elution Plant announced on 1 November 2021. 

The Company's first smelt and gold pour produced gold bars weighing, in aggregate, 14.46kg (approximately 464.90 Troy Ounces). This production now enables the Company to meet the interest payment demands for the US$3 million secured gold loan announced on 22 June 2020 with Asia Investments Management Services Limited ("AIMS"), subject to the Company receiving its Export Permit.  The total interest payments in respect of October and November 2021 comprise 11kg of gold, which is due to be paid today, as announced on 20 September 2021 and 1 November 2021.

AIMS acknowledges that, following the first gold pour, the Company is in a position to settle the amounts due and has therefore agreed that the Company will not be in default under the Gold Loan agreement, subject to the Company settling the October and November interest payments in gold within 15 business days (or longer if agreed by AIMS in writing). Interest will continue to accrue at the default rate of 17% on the amounts due.  The Company expects to receive the required Export Permit within this 15 business day period. Further announcements will be made in due course as and when appropriate.

In the context of COVID-19 related restrictions, and if conditions permit, the Company will be hosting an on-site inauguration ceremony of Ghana's newest gold mine with Ghanaian Government authorities early next year.

Following the pause of operations announced 17 September 2021, the Company will now be recommencing mining operations, and the Company will update the market with a revised production schedule in due course.

Emma Priestley, Chief Executive Officer, commented : 

" First gold production at Homase is a great credit to GoldStone's operational team, which has been advised and supported by MAED, having worked tirelessly to deliver this product, while dealing with all the challenges that the last 18 months has presented.

"Now that we have managed to successfully complete the transition into a gold producer, we will focus our efforts on ramping up the project to full operations as efficiently as possible, by continuing ramp-up of stacking to the Heap Leach and optimisation of the processing plant."

For further information, please contact:

GoldStone Resources Limited
Bill Trew / Emma Priestley	Tel: [phone]
Strand Hanson Limited
James Dance / James Bellman	Tel: [phone]
S. P. Angel Corporate Finance LLP
Ewan Leggat / Charlie Bouverat	Tel: [phone]

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted exploration and development company with projects in Ghana that range from grassroots exploration to development.

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.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

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