Uranium Update

RNS Number : 0241O

Goldstone Resources Ltd

27 February 2009

 



GOLDSTONE RESOURCES LIMITED

('GoldStone' or the 'Company')

URANIUM UPDATE

The Directors of GoldStone Resources Ltd ('GoldStone' or the 'Company') wish to provide the following update on the Company's proposed uranium project.

DR3-EAST URANIUM PROJECT

During June 2008 GoldStone conditionally agreed to acquire up to a 100 per cent. interest in a uranium exploration project owned by Hymrai Properties 1 (Pty) Ltd ('Hymrai') which is known as the DR3-East Uranium Project (the 'Acquisition').

The area held under the prospecting permit occupies 43 km2 and is approximately 200 km west of Areva's Ryst Kuil uranium deposit and approximately 50 km north of the town of Laingsburg in the Western Cape Province of South Africa.

An examination of historical exploration data from the areas held under this exploration permit has been completed by the Company and will be independently reviewed in a SAMREC compliant Competent Person's Report which is required to support GoldStone's application for the listing of its ordinary shares on the Alt-X stock exchange of the Johannesburg Stock Exchange ('ALTX').

The DR3-East Permit Area contains several outcropping uranium occurrences. GoldStone carried out a limited reverse circulation drill programme during October 2008 by drilling ten holes sited over two of these occurrences. The depths of the drill holes ranged from 14 metres to 55 metres. Preliminary field testing of the drill cuttings with a spectrometer demonstrated that the outcropping mineralisation extends underground at both locations and a down hole radiometric survey will be undertaken in the future.

The style of the uranium mineralisation at DR-3 East is similar to Areva's Ryst Kuil deposit and their publicised intentions to place the deposit into production demonstrate that the Karoo uranium belt holds the potential to host economically viable uranium deposits.

The Acquisition comprises the conditional purchase of the entire issued share capital and loan accounts of Hymrai from two different classes of vendors. A Black Economic Empowerment company, Obeec (Pty) Ltd (the 'BEE Vendor'), holds 26 per cent. of the share capital of Hymrai in accordance with the policy of the Department of Minerals and Energy ('DME') of South Africa. The remaining 74 per cent. of the share capital is held by various different private entities (the 'Non-BEE Vendors').  As announced on 27 November 2008, the BEE Vendor has been unable to obtain the requisite Section 11 approval from the DME for the sale of its 26 per cent. shareholding in Hymrai, and will consequently retain this holding. Therefore the transaction is proceeding in respect of the remaining 74 per cent. shareholding of the Non-BEE Vendors. Completion of the transaction with Hymrai is pending certain approvals by the DME in respect of the remaining 74 per cent., as well as the listing of GoldStone on the ALTX Stock Exchange.

GoldStone and the Non-BEE Vendors have now agreed to extend the long stop date for completion of the Acquisition to 31 May 2009.

Enquiries:

GoldStone Resources Ltd                                        [phone]
Nico van der Hoven

(Chief Executive Officer)

Hanson Westhouse Limited                                    [phone]

Tim Feather / Matthew Johnson

 

END

 

 

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