Half Yearly Report

RNS Number : 2481D

Goldstone Resources Ltd

30 November 2009

 



GOLDSTONE RESOURCES LIMITED

("GoldStone" or "the Company")

Interim Results for the period ended 31 August 2009

Chief Executive's Report

A review of GoldStone's activities during the six months ended 31 August 2009, which incorporates an update on the current status of the Company's projects, is set out below:

GOLD

The Company has increasingly been focusing on gold in West Africa because of the region's proven gold prospectivity. During the past two months the Company has concluded two joint ventures in Ghana and acquired a prospecting permit in Senegal. 

Ghana - Homase and Manso Amenfi

The Company has entered into two joint venture agreements with Ghanaian companies with respect to properties at different stages of exploration development. 

The Homase Joint Venture property is located in close proximity to Anglo Gold Ashanti's Obuasi mine and was explored during the period from 1999 to 2003 and mined by Anglo Gold Ashanti in 2002/2003 when the gold price averaged approximately US$300 per ounce. The mineralisation in the Homase and Obuasi mine areas appear to be controlled by the same geological structure. The Directors believe a code compliant gold resource, based on historical drill data, may be definable on the Homase Joint Venture property. In addition untested mineralisation seems to extend below the known part of the gold deposit. The Joint Venture agreement allows the Company to earn a majority interest of 51% after spending a minimum of US$700,000 and up to an 85% interest after completion of a bankable feasibility study.  

As announced on 23 November 2009, the Manso Amenfi Joint Venture entitles the Company to acquire a majority interest of 55% after spending a minimum of US$700,000 or upon obtaining a code compliant resource of any magnitude.  The Company may acquire an interest of up to 85% in the project upon completion of a successful bankable feasibility study.  The property shows "brown fields" potential due to its proximity to Golden Star Resources's Bogoso processing plant and also of interest are two large gold in soil anomalies identified by previous explorers. 

Senegal - Sangola

The Company has been granted a Permis de Recherche over Sangola which is a 471 square kilometre prospect situated in the south-east of Senegal.  The Company will be able to commence exploration activities as soon as the necessary decree is issued by the Mining Minister which is expected to occur shortly.  The license area is largely unexplored and covers the southern part of the Main Transcurrent Fault Zone of the Kenieba Inlier of the Birimian Formation. Exploration in this area has yielded more than 20 million ounces of gold. 

Mali - Baroya, Metedia-Est and Yatia

GoldStone was granted an Autorisation d'Exploration for Baroya and Metedia-Est in June 2008.  This licence allowed the Company to evaluate the potential of the permit areas for a period of three months. The Autorisation d'Exploration included the exclusive right to apply for long term prospecting licences over Baroya and Metedia-Est within the three month period.  After GoldStone received results from its evaluative exploration it elected to exercise its exclusive right to apply for the two prospecting licences and applied to the Malian Department of Mines and Geology ("DNGM") for a Permis de Recherche over Baroya and Metedia-Est during August 2008.  In addition the Company applied for a Permis de Recherche over Yatia, which is adjacent to Baroya and Metedia-Est.  

The Baroya, Metedia-Est and Yatia permit areas are within eight kilometres of the Tabakoto/Segala gold mine, which was recently re-commissioned by Avion Resources.  

The Company has not received a conclusive answer from the DNGM regarding the progress of its application for a Permis de Recherche and will make an announcement in due course.

India - Karnataka 

The Company filed an application for a prospecting licence in Karnataka for gold and associated minerals (including uranium) during June 2008. The Company is waiting to receive a response from the Karnataka Department of Mines and Geology regarding this application.  

BAUXITE

On 2 June 2009 GoldStone was informed by the Guyana Geology and Mines Commission ("GGMC") that it had approved the granting of eight prospecting licences in Kopinang. The GGMC requires that GoldStone pays the yearly rental fee of approximately US$9,800 and that it posts work performance bonds to the amount of US$66,000 before the licences are executed. The Company has decided to delay payment of the required fees and bonds in view of the current economic climate, its cash resources and the apparent lack of interest from bauxite industry participants.

GEOQUEST DIVESTMENT

Any future acquisition by GoldStone of an interest in exploration and/or mining opportunities in the Southern African Development Community ("SADC") will only become effective if the requirements of the South African Reserve Bank are met. In terms of these requirements, GoldStone may only acquire an interest in assets in the SADC if GeoQuest Holdings Ltd ("GeoQuest"), which is a major shareholder in GoldStone, has divested of its interest in the Company. The Company has recently been informed by the board of GeoQuest that it intends to seek the requisite shareholder approval shortly to divest of its interest in Goldstone. 

OUTLOOK

After a successful campaign of investigating, applying for and acquiring prospective gold exploration projects during the past few months, the Directors intend to shift their attention to building shareholder value by target driven exploration.  The Company will also file applications in Gabon with the aim of adding further grassroots potential to its current exploration portfolio.  GoldStone currently has cash resources of approximately US$850,000, most of which will be utilised towards its immediate exploration requirements on current prospects.  The Directors expect that the Company will have to raise funds in order to advance its projects further.

APPROVAL

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

Jurie Wessels

Chief Executive Officer

27 November 2009

Change of Adviser Name 

The Company also announces that with effect from 26 November 2009 its Nominated Adviser and Broker has changed its name from Hanson Westhouse Limited to Westhouse Securities Limited.

GoldStone Resources Ltd	[phone]
Jurie Wessels (Chief Executive Officer)
Westhouse Securities Limited	[phone]
Tim Feather / Matthew Johnson

CONDENSED STATEMENT OF OPERATIONS
	Six months ended  31 August 2009	Year ended   28 February 2009	Six months ended   31 August 2008
	US$	US$	US$
Turnover
Interest Receivable	686	42,983	32,031
	686	42,983	32,031
Exploration expenses-continuing	(22,598)	(145,189)	(74,266)
Gross loss	(21,912)	(102,206)	(42,235)
Other operating expenses	(220,824)	(1,008,444)	(508,350)
Operating loss for the financial period	(242,736)	(1,110,650)	(550,585)
Loss for the financial period	(242,736)	(1,110,650)	(550,585)
Loss per ordinary share
Basic - cents per share	(0.2)	(0.8)	(0.4)

CONDENSED BALANCE SHEET
	31 August 2009	28 February 2009	31 August 2008
	US$	US$	US$
FIXED ASSETS
Tangible assets	15,605	12,026	19,095
Other Assets	-	-	30,000
CURRENT ASSETS
Debtors and prepayments	-	19,195	19,195
Cash at bank	1,007,932	1,233,834	1,771,856
	1,007,932	1,253,029	1,791,051
CREDITORS
Amounts falling due within one year
Creditors and accruals	(42,784)	(41,566)	(56,591)
	(42,784)	(41,566)	(56,591)
Net current assets	965,148	1,211,463	1,734,460
TOTAL ASSETS	980,753	1,223,489	1,783,555
CAPITAL AND RESERVES
Share capital	2,354,482	2,354,482	2,354,482
Share premium	13,849,554	13,849,554	13,849,554
Capital contribution reserve	555,110	555,110	555,110
Accumulated deficit	(15,778,393)	(15,535,657)	(14,975,591)
SHAREHOLDERS FUNDS	980,753	1,223,489	1,783,555

CONDENSED STATEMENT OF CHANGES IN EQUITY For the six month period ended 31 August 2009
	Six months ended  31 August 2009	Year ended  29 February 2009	Six months ended  31 August 2008
	US$	US$	US$
Share Capital - GBP0.01 par value
Authorised - 250,000,000 shares
Issued and fully paid up 130,816,663	2,354,482	2,354,482	2,354,482
Share premium	13,849,554	13,849,554	13,849,554
Capital contribution reserve	555,110	555,110	555,110
Accumulated deficit
Balance at beginning of year	(15,535,657)	(14,425,007)	(14,425,007)
Net loss	(242,736)	(1,110,650)	(550,584)
Balance at end of year	(15,778,393)	(15,535,657)	(14,975,591)
	980,753	1,223,489	1,783,555

CONDENSED CASH FLOW STATEMENT
	Six months ended  31 August 2009	Year ended  28 Feb 2009	Six months ended 31 August 2008
	US$	US$	US$
Loss for period	(242,736)	(1,110,650)	(550,584)
Adjusted for:
Depreciation	6,828	16,018	6,340
Interest Received	(686)	(42,983)	(32,031)
Decrease in Debtors	19,195	-	-
Increase/Decrease in Creditors	1,218	(953)	14,072
Net cash outflow from operating activities	(216,181)	(1,138,568)	(562,203)
Returns on investment and servicing finance
Interest received	686	42,983	32,031
Deposit paid	-	-	(30,000 )
Purchase of Fixed Assets	(10,407)	(7,028)	(4,419)
		-	-
Decrease in cash	(225,902)	(1,102,613)	(564,591)
Cash at beginning of period	1,233,834	2,336,447	2,336,447
Cash at end of period	1,007,932	1,233,834	1,771,856

NOTE

Earnings per share

Basic earnings per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares in issue.

	Six months ended  31 August 2009	Year ended  28 February 2009	Six months ended  31 August 2008
Earnings per share
Loss attributable to shareholders- continuing operations	(242,736)	(1,110,650)	(550,584)
Loss attributable to shareholders- discontinuing operations	-		-
	No.	No.	No.
Weighted average number of ordinary shares
	130,816,633	130,816,633	130,816,633
Basic loss per share (cents) - continuing operations	(0.2)	(0.8)	(0.4)

 

END

 

 

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