Senegal Exploration License G

RNS Number : 1267C

Goldstone Resources Ltd

06 November 2009

 



GOLDSTONE RESOURCES LIMITED

GOLD EXPLORATION LICENSE GRANTED: SANGOLA, SENEGAL

The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") are pleased to announce that the Company has been granted the Sangola Permis de Recherche ("Sangola License") by the Senegalese Ministry of Mines.  The Company will be able to commence exploration activities for gold and related minerals as soon as a decree is issued by the Mining Minister, which is expected to occur shortly.  

The Sangola License covers approximately 471 km² and is situated 60km south east of Tambacounda, the largest city in eastern Senegal.  The Directors believe the license area to be highly prospective because it is largely unexplored and covers the southern part of the Main Transcurrent Fault Zone ("MTZ") of the Kenieba Inlier of Birimian Formation.  Historic exploration of the Kenieba Inlier resulted in the discovery of more than 20 million ounces ("Moz") of gold. North of the Sangola License the MTZ yielded large gold deposits/mines such as the 3.4 Moz Masawa deposit (Randgold Resources), 2.2 Moz Sabodala mine (Mineral Deposits Limited), the 2 Moz Yatela mine and the 10 Moz Sadiola mine (both IAMGOLD and AngloGold Ashanti).  

The License

Senegal's mining code is based on French civil law.  The Government of Senegal is the owner of all minerals and GoldStone has, prior to the granting of the Sangola License, agreed with the State of Senegal the terms of exploration and mining by entering into a Convention de Recherché ("Convention").  The Convention
incorporates the following terms:

The Sangola License is granted for three years and may be renewed twice for two further three year periods.  If exploration is successful the Convention prescribes that an operating company will be created in which the State of Senegal will have a free-carried interest of 10%, with an option to take up a further contributing interest of 25%.

Under the Convention, the Government guarantees GoldStone and the operating company:

• A minimum interest of 65% in the operating company
• Taxation exemption (import, export, VAT and withholding taxes) during the exploration phases
• A four year customs-free status during the development phase
• A seven year tax-free status (including income and withholding taxes) during the mining phase
• Unfettered repatriation of foreign loans and remittance of dividends 

Planned Exploration

The exploration programme for the permit will commence with a structural and regolith study based on remotely sensed data.  A first field visit will serve to identify and map any artisanal gold mining sites. The results of this work will help to focus the initial stream sediment and/or soil sampling programme on to prospective structural targets and sites of artisanal gold mining.  The field sampling will commence as early as possible during the next dry season from November 2009 to June 2010.

Approval

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

For more information please visit www.goldstoneresources.com

Enquiries:

GoldStone Resources Ltd	[phone]
Jurie Wessels (Chief Executive Officer)
Hendrik Schloemann (Exploration Director)
Hanson Westhouse Limited	[phone]
Tim Feather / Matthew Johnson

 

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