Expanded Mining Lease and update re Homase South

RNS Number : 3518H

Goldstone Resources Ltd

03 December 2020

 

3 December 2020

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Approval of Expanded Mining Lease and update re Homase South

GoldStone Resources Limited (AIM: GRL), the AIM quoted gold exploration and development company focused on bringing its Akrokeri-Homase Gold Project ("AKHM") into production, is pleased to announce that the Ghanaian Ministry of Lands and Natural Resources ("MLNR") has approved the recommendation for the grant of the expanded mining lease in respect of AKHM (the "Lease"), and is now subject to ratification by the relevant Ghanaian Ministerial bodies.

In addition to the Homase South Pit, the Lease now accommodates the proposed Homase North and Homase Central pits as well as the expanded Homase South Pit, announced 12 November 2020, with the increased minable resource by 86,900 ounces of gold at depth, representing a 257% increase on the previous estimate of 33,800 ounces of gold, within the existing JORC resource.  The Company is in the process of updating the Definitive Economic Plan ("DEP"), as announced 27 June 2019.

The Lease has been granted for an initial period of 10 years to coincide with the date of the award of the original mining lease, announced on 14 February 2020 (the "Original Lease").

Upon receipt of the Environmental Permit for the Homase South Pit, based on the Original Lease, a corresponding application to the Ghanaian Environmental Protection Agency ("EPA") will be submitted for the Lease.  The original baseline data used in the initial application to the EPA included the expanded area within the Lease.

Update re Homase South

The Company continues to liaise closely with the EPA regarding the issue of the Environmental Permit and with the Ghanaian Minerals Commission on the operational permits for the Homase South Pit.  Though the COVID-19 pandemic has caused delays in this regard, we remain in a position to immediately commence operations upon receipt of the permits, with an estimated timeline for the first gold pour being within two months of such grant.

The Company has now taken delivery of the majority of the processing plant required at Homase South, including the pad HDPE lining system along with crushing, screening, agglomeration and conveying and stacking equipment, which has all been fully assembled and cold commissioned.  The Company has also received delivery of pumps, carbon in column ("CIC") columns, electrical control panels and 4 x 500 kVA diesel generators at site, ensuring that operations at site will be protected from the risk of unstable electricity supply.

Emma Priestley, CEO of GoldStone, commented:

" We are pleased to have received approved by the MLNR for the expanded Lease and continue to work closely with the relevant Ghanaian Ministerial bodies to finalise the grant of the requisite permits to enable open pit mining to commence at Homase South Pit ."

For further information, please contact:

GoldStone Resources Limited
Bill Trew / Emma Priestley	Tel: [phone]
Strand Hanson Limited
Richard Tulloch / James Bellman	Tel: [phone]
SI Capital Limited
Nick Emerson	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.

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 Akrokeri 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 52,500 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.

 

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