Progress Report - Bauxite

Goldstone Resources Ltd
10 August 2004


GOLDSTONE RESOURCES LIMITED
PROGRESS REPORT - BAUXITE


Estimated resource significantly increased


The Directors of GoldStone Resources Limited ('the Company') are pleased to
announce that since May 2004 further exploration work has been undertaken on its
bauxite project in the Kopinang Basin, Guyana in order to enhance and expedite
this asset's potential for commercialisation.

Utilising remote sensing techniques, the extent of the potential bauxite to be
found in the Kopinang basin was previously estimated to be between 100 million
tonnes and 300 million tonnes of suitable grade for making alumina.  The
thickness and grade of the bauxite, however, could not be accurately assessed by
remote sensing alone and further fieldwork was therefore necessary.

The Company's independent consultant undertook a field study to Guyana during
June and July 2004 to assess the grade and to confirm by means of ground
truthing the accuracy of bauxitic areas identified by remote sensing.

Fieldwork has indicated:

  • An overburden thickness of no more than 1 metre.
  • An ore thickness of at least 4 metres.
  • A reactive-silica content of less than 4 percent, and in many instances
    less than 2 percent.
  • An average extractable alumina content of greater than 30 percent, and in
    many instances exceeding 40 percent.
  • That bauxitic ore is distributed over an area of approximately 13,830
    hectares.
  • That based on
      • a sampled thickness of 4 metres minimum;
      • an extrapolation based on remote sensing;
      • a recalculation of the total area;

the estimated tonnage of the resource exceeds 1,100 million tonnes.

The Directors are of the opinion that the results from the Company's recent
exploration programme have significantly elevated the potential of this asset
and positively enhance continuing discussions with interested parties.


Contacts:

GoldStone Resources Limited                                 00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)
Jurie Wessels (Finance Director)

Westhouse Securities                                            020 7601 6101
Tim Feather



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