Ghanaian Government Positive on Obuasi Development

RNS Number : 0017U

Goldstone Resources Ltd

09 July 2018

 

9 July 2018

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Ghanaian Government Positive on Obuasi Development

GoldStone Resources Limited (AIM: GRL), which is seeking to bring the Akrokeri-Homase Gold Project ("AKHM" or the "Project") in the Ashanti Region of Ghana back into production, notes that AngloGold Ashanti Limited (JSE: ANG, NYSE: AU) ("AngloGold") has received environmental permits for its historic and current 70 million ounce Obuasi Gold Mine ("Obuasi Mine"), located c.8km along strike from AKHM.  The granting of the permits by Ghana's Environmental Protection Agency follows the Parliamentary ratifications of the regulatory and fiscal agreements that cover the redevelopment of the Obuasi Mine. The decision highlights the in-country support for the redevelopment of goldmines and underpins the pro-mining environment in Ghana and in particular the highly prospective Obuasi district within the Ashanti Gold Belt.   

The Ghanaian Government decision follows AngloGold's approval in February 2018 that they are committed to spending US$31 million for front-end engineering and other preparatory work as part of their US$500 million investment for the redevelopment of the high-grade Obuasi Mine.  The Company believes that the Obuasi Mine and its development plans underpin the significant potential of the Project.  AKHM contains two historic gold mines: the high-grade Akrokeri underground mine which produced approximately 75,000 oz Au at a final recovered average grade of 24 g/t, and the Homase open pit, a shallow oxide deposit which previously produced 52,000 oz Au at a final recovered average grade of 2.5g/t.  The Company is actively looking to bring the Project back into production with the support of its two major shareholders, Paracale Gold Ltd, a mining investment specialist, and BCM International Ltd, one of Africa's largest private contract miners.

Emma Priestley, CEO of GoldStone said, "I am currently in Ghana and there is significant interest in the development of mining opportunities.  With the news of the Obuasi Mine getting Governmental support and AngloGold committing over US$500 million funds, we are highly encouraged by the local and national operational environment of our AKHM Project as we seek to progress towards production within two years.  

"We have an extremely high-grade project which keeps on giving; on top of the historical production grades of 24 g/t Au, we have recently identified 8km of strike of which 4km houses the 602,000 oz Au JORC resource which highlights the significant potential of the Project."

**ENDS**

For further information, please contact:

GoldStone Resources Limited
Emma Priestley	Tel: [phone]
Citigate Dewe Rogerson
Louise Mason-Rutherford	Tel: [phone]
St Brides Partners Ltd
Susie Geliher / Juliet Earl	Tel: [phone]

About GoldStone Resources Limited

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

The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts an existing 602,000 oz gold JORC Code compliant resource at an average grade of 1.77g/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.  The project holds two former mines, the Akrokeri (Ashanti) Mine Ltd, which in the early 1900's produced 75,000 oz gold at a final recovered average grade of 0.73 ozs/t, equivalent to approximately 24 g/t, and the Homase Pit which AngloGold Ashanti developed in 2002/03 producing 52,000 oz gold @ 2.5g/t.  It is the Company's intention to develop the Akrokeri-Homase Project then 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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