Update on Developments at Akrokeri-Homase Project

RNS Number : 1967L

Goldstone Resources Ltd

21 December 2018

 

21 December 2018

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Operational Update on Developments at Akrokeri-Homase Gold Project

GoldStone Resources Limited (AIM: GRL), is pleased to provide an update on activities at its Akrokeri-Homase Gold Project ("AKHM" or "the Project") in the Ashanti Region of Ghana.  The Project is centred around two previously producing assets, the high-grade Akrokeri underground mine and the Homase open pit mine, which are being simultaneously developed towards delivering gold production by mid 2020.

The highlights from the work programmes that are continuing on both of the historic mines are set out below.

Akrokeri Underground Mine

·       Progress continues to be made at the high grade Akrokeri Mine within the area that hosts the numerous artisanal shafts and pits, whereby work continues to make safe the shallow workings, and those that have been accessed are being mapped

·       At the North Shaft, where Level 1 has been intersected, the process of clearing out old rails, wood and debris is underway to form a safe access to continue working in the shaft for the reopening of the mine to access the workings down to 400 feet (approximately 122 metres)

Homase Open Pit Mine

·       As part of the Scoping Study along the 8 km Homase Trend, a pilot heap leach project is underway to determine parameters for near term development including the period required for leaching and potential gold recoveries through heap leach treatment

-   After the first 40 days of irrigation of a pilot heap leach plant, using 2.5 tonnes of material from Homase South, within the Homase Trend, recoveries are 67.5%, with irrigation continuing through to extinction

-   The University of Mines and Technology (UMaT) in Tarkwa, Ghana, estimates that the leach cycle will be 65 days with recoveries of up to 80%

-   The oxide zone within Homase South is demonstrating amenability to low-capex heap leach treatment

·     Scoping Study will also look at the Homase North Resource Zone within the Homase Trend, where historic trenching has indicated high grade gold mineralisation, including 15.0 metres @ 6.31 g/t Au which includes 4.5 metres @ 18.23 g/t Au

·       Following on from the soils programme results announced 20 June 2018, a deep trenching programme  is underway, to prove up the continuity of the mineralisation within the Homase Trend north of the former Homase pit.   The first stage of trenching is at the Homase North and Adubriem deposits with samples having being submitted to the laboratory, with results expected in Q1 2019

·      The Environmental Baseline Study has been expanded to include the potential Homase North pits as well as Homase South

Emma Priestley, CEO of GoldStone, commented:

"Our strategy of advancing development at both Akrokeri and Homase is centred on achieving production at multiple mining operations in as short time as practicable.  Akrokeri has the distinct advantage of demonstrating exceptionally high grade material, including intercepts of 1.0 metre at 51.01 g/t Au, and established mining infrastructure, whilst Homase offers the potential benefit of being amenable to low capital heap leach treatment.  When looking at the assets in unison, I am confident that GoldStone has a clear pathway to production in mid 2020, utilising the significant support and expertise of our strategic shareholders and team who have a proven track record in building gold mines."

**ENDS**

For further information, please contact:

Strand Hanson Limited
Richard Tulloch / James Bellman	Tel: [phone]
SI Capital Limited
Nick Emerson	Tel: [phone]
Citigate Dewe Rogerson
Sam Stibbs	Tel: [phone]
St Brides Partners Ltd
Susie Geliher / Juliet Earl	Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted gold exploration and development company with projects in Ghana, Senegal and Gabon that range from grassroots to advanced exploration.

The Company is focused on developing the Akrokeri-Homase Gold Project ("AKHM" or the "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, along strike from the Obuasi Gold Mine, one of the world's major gold mines with a total historical and current resource in excess of 70 million ounces of gold.  GoldStone's existing resource is confined to a 4 km zone of the Homase Trend, including Homase North, Homase Pit and Homase South.  The recent soils programme carried out in 2018 identified that the existing 4 km zone is open along strike with a potential 8 km mineralised zone along the Homase Trend.

AKHM hosts two former mines, the underground mine at Akrokeri mined by Akrokeri Ashanti Mine Ltd, which produced 75,000 oz gold @ 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 @ 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.

 

END

 

 

UPDEAXAEALPPFFF