Homase/Akrokerri Resource Update

RNS Number : 7327R

Goldstone Resources Ltd

22 November 2012

 



GoldStone Resources Limited

("GoldStone" or the "Company")

UPDATED RESOURCE AT HOMASE/AKROKERRI

UPDATE OF THE JORC COMPLIANT GOLD RESOURCE ESTIMATE FOR THE HOMASE/AKROKERRI PROJECT, ASHANTI GOLD BELT, GHANA

The directors of GoldStone are pleased to announce that the Company has received an updated mineral resource estimation which is compliant with the Joint Ore Reserves Committee of Australasia (JORC) reporting code, for the Company's Homase/Akrokerri project ("the Estimate").

Highlights:

·     Homase/Akrokerri gold resource increased  by 100,000 ounces to 602,000 ounces

·     Overall gold grade increases to 1.77 g/t

·     Mineralisation remains open at depth

·     VTEM survey results identify new exploration targets

Hendrik Schloemann, GoldStone's Exploration Director, commented: "We are pleased that with a limited number of drill holes and in the short period since our last upgrade in early August we have been able to add significantly to the resource.  Our focus will now shift to the potential south-western extension of the Homase trend, to Adubrim and to the conductor that trends from the Obuasi mine into our Akrokerri permit."

The Homase/Akrokerri gold resource, which was updated using results from 20 additional diamond drill holes completed between April 2012 and July 2012 and extends along a strike length of 4.4 kilometres, is 10.6 million tonnes at an average grade of 1.77 g/t gold, containing 602,000 ounces of gold.  The Estimate has been compiled by SEMS Exploration Services Limited, an independent West African based firm of consulting geologists, engineers and surveyors.  Results of the Estimate, for which a cut-off grade of 0.5 g/t gold was applied, are summarised below:

MINERAL RESOURCE BY CATEGORY

CATEGORY	TONNAGE	GRADE	CONTAINED GOLD
	Tonnes (million)	(Au g/t)	(Ounces)
Measured	1.61	2.24	116,000
Indicated	4.41	1.73	245,000
Measured & Indicated	6.01	1.87	361,000
Inferred	4.56	1.64	241,000
Total *	10.6	1.77	602,000

MINERAL RESOURCE BY MATERIAL

CATEGORY	TONNAGE	GRADE	CONTAINED GOLD
	Tonnes (million)	(Au g/t)	(Ounces)
Oxide	2.39	1.29	100,000
Fresh Rock	8.18	1.91	502,000
Total *	10.6	1.77	602,000

* Totals may not add up correctly due to rounding

ONGOING EXPLORATION

A detailed interpretation of the recently acquired VTEM survey data in conjunction with various other data sets has been completed by Xcalibur Airborne Geophysics.  This work resulted in the identification of more than 30 exploration targets in the Homase/Akrokerri project area.  Notably, the study indicated that the conductor that hosts the Company's gold resource extends beyond the limits of the present resource to the south-west and to the north-east.  Targets along the south-western extension of this conductor, as well as targets on the parallel Adubrim structure and on the Obuasi extension conductor in the south-eastern corner of the Akrokerri permit, have been prioritised for soil sampling, pitting and trenching.  To date, 234 soil, trench and pit samples have been collected from these areas.

COMPETENT PERSON

The updated Estimate is based on data from 358 holes drilled by previous explorers, drilling data from 43 diamond holes drilled by GoldStone between June 2011 and July 2012 and the in depth knowledge gained by the authors of the Estimate.  The authors of the report are Messrs Simon Meadows Smith, Andrew Netherwood and Joe Amanor of SEMS Exploration Services Limited, West Africa.  Mr Meadows Smith has more than twenty years' experience in the mineral exploration and mining industry in Australia and Africa and was Shea Gold's exploration manager when it carried out exploration on the Homase and Akrokerri permits.  Mr Amanor has over thirty years' experience in the Ghanaian gold mining industry, part of which he served as Chief Geologist with AngloGold Ashanti ("AGA").  He was directly responsible for Mineral Resource estimations on all AGA projects in Ghana.  Andrew Netherwood is an experienced Mining Engineer.

BACKGROUND TO THE HOMASE AND AKROKERRI PERMITS

The Estimate is partially attributable to the Homase licence area which GoldStone holds in joint venture with Cherry Hill Mining Company Ltd, a Ghanaian company, and the Akrokerri license, the holder of which is GoldStone's wholly owned subsidiary GoldStone Akrokerri Ltd.  In terms of the joint venture the Company currently owns 65% of the Homase license and has the right to earn 85% through the completion of a feasibility study of any nature.  The Minerals Commission of Ghana granted a 12 month extension of the Homase Prospecting Licence to Cherry Hill on 1 June 2011 and the Akrokerri Permit was renewed on 12 May 2011 for a 12 month period.   The Company has applied for an extension of both permits, which are expected to be granted shortly.

The interest the Company holds in each licence is subject to a 10% free carried interest in favour of the Government of Ghana, which will become effective once a Mining Lease is granted.

APPROVAL

Dr. Hendrik Schloemann, who holds a PhD in geology, has reviewed and approved the geological content of this announcement other than the remarks regarding the resource estimate.

In addition, the technical content of this announcement in so far as it relates to the resource estimate has been reviewed by Mr. Simon Meadows Smith, Managing Director of SEMS Exploration Services Limited, which is a West African based firm of consulting geologists, engineers and surveyors.  Mr. Meadows Smith is a member of the Institute of Materials, Minerals and Mining (IOM3), holds a degree in geology and has over twenty years' experience working in the Pre-Cambrian terrains of West Africa and Western Australia primarily in the exploration for gold.

Enquiries:

GoldStone Resources Limited	[phone]
Jurie Wessels
Hendrik Schloemann
WH Ireland Limited	[phone]
Tim Feather
Optiva Securities Limited
Jason Robertson	[phone]
Jeremy King	[phone]

APPENDIX

GLOSSARY OF TECHNICAL TERMS

"g/t"	grammes per tonne
"Indicated Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence
"Inferred Resource"	that part of a resource for which tonnage,grade and mineral content can be estimated with a low level of confidence
"Measured Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence
"mineralisation"	rock in which minerals have been introduced to the point of a potential ore deposit
"strike"	the course or bearing of a structural surface, such as an inclined bed, as it intersects a horizontal plane
"VTEM survey"	Versatile Time-Domain Electromagnetic survey

 

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