Operational Update and Loan Payment Extension

RNS Number : 9491Q

Goldstone Resources Ltd

01 November 2021

 

1 November 2021

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Operational and Construction Update

Extension of Gold Loan Interest Payment

GoldStone Resources Limited (AIM: GRL), the AIM quoted gold exploration and development company focused on bringing the Homase Mine in the Ashanti Region of Ghana into production, is pleased to announce an operational update and an agreement reached with Asian Investments Management Services Limited ("AIMS").

Operational Update

The Company is pleased to announce that it has now successfully completed the cold commissioning and has commenced the final phase of hot commissioning of its newly constructed 1 tonne elution plant, together with the electrowinning plant and smelting plant at the Homase Mine (together, the "New Plant"). This enables Goldstone to strip, elute, electrowin and thereafter smelt doré bars without reliance on third parties.

As a result of the successful commissioning of the New Plant, the Company will be resuming normal mining operations shortly and will update the market on first gold production and the Company's updated production schedule over the coming weeks.

Gold Loan

The Company is also pleased to announce, further to its announcement of 20 September 2021, that AIMS, encouraged by the Company's operational progress and with the confirmation that commissioning in underway, has confirmed that the Company will not be deemed in default under the US$3 million secured gold loan in relation to the payment due at the end of October 2021. Interest will continue to accrue at the default rate of 17%, and AIMS has agreed that the Company is able to settle both the October and November 2021 instalments by the end of November 2021.

Emma Priestley, CEO of GoldStone, commented :

"Despite the many setbacks encountered this year, the construction of the elution plant and smelt house began on the 17 September 2021. To construct and commission an elution plant of this size and complexity within six weeks is a great achievement for the Homase Mine.  This not only serves as an important milestone for the Company, which is now on the cusp of first gold production, but also an achievement for the employees who have been supported by MAED for the design and construction, with assistance through to commissioning in record time.  The Company wishes to thank MAED and all employees for pulling together to achieve this goal, and its shareholders for their continued support ."

- ENDS-

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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