Sangola License decree issued

RNS Number : 6644U

Goldstone Resources Ltd

20 October 2010

 

GOLDSTONE RESOURCES LIMITED

SANGOLA DECREE (SENEGAL) ISSUED

UPDATE: HOMASE, GHANA

GoldStone Resources Ltd ("GoldStone" or the "Company"), the AIM quoted company focused on gold in West Africa, announces that the decree relating to the Sangola Permis de Recherche (the "Decree") has been signed by the Senegalese Mining Minister. The Company also provides an update on its Homase Licence.

The Sangola Decree

On 6 November 2009 GoldStone announced that the Company had entered into a Convention de Recherché with the Government of Senegal under which the Sangola Exploration Licence ("Licence") was granted for a period of three years.  In accordance with Senegalese legislation, the Company was not able to commence exploration activities until the Decree was issued by the Mining Minister.  The Licence period is to commence on the date of the Decree and is renewable for two further three year periods.    

The Licence

The Licence area is approximately 471 km² in extent and mostly covers the gold-prospective Kenieba Inlier of Birimian Formation.  The licence is located 30 km west of Kedougou, the regional capital city.

The directors believe the area covered by the Licence is highly prospective because historic exploration of the Kenieba Inlier resulted in the discovery of more than 30 million ounces ("Moz") of gold in five major deposits in Mali and Senegal. The Licence contains locations of artisinal gold mining activity and covers the south-eastern end of the Main Transcurrent Shear Zone, a major gold bearing system that yielded the recently discovered 3.4 Moz Massawa gold deposit (Randgold Resources Ltd).  Further to the north the same structure is targeted by Mineral Deposits Limited and Bassari Resources Limited. Both companies have located new mineralization (Sounkounkou and Sanbarabougou) along this 70 km long gold anomalous trend. The Licence also covers the very prospective basalts and andesites (Mako Volcanic Formation) that host the 3 Moz Sabodala deposit, presently the only active gold mine in Senegal. Despite its strategic position the Licence is still largely unexplored.

Exploration Programme for Sangola

A desk top study based on remotely sensed data to generate maps of the most prospective structures and the regolith in the permit area has been commissioned. A termite mound and soil sampling programme to cover most of the Licence area will commence as soon as the seasonable rains subside during December 2010 or January 2011.  Any additional artisinal gold workings will be mapped at the same time. Subsequently any gold and/or pathfinder element anomalies will be followed up with infill soil sampling and trenching.

Homase, Ghana:  Exploration Update

Local communities have reached agreement with the Company regarding crop compensation rates and have assented to GoldStone commencing with the planned drilling programme. The drilling programme will commence once the Environmental Protection Agency of Ghana is satisfied with certain environmental issues surrounding the forthcoming exploration programme and that community interests are safeguarded in the Homase Licence area during exploration work. 

Approval

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

Enquiries:

GoldStone Resources Ltd Jurie Wessels (Chief Executive Officer)		[phone]
Westhouse Securities Limited Tim Feather / Matthew Johnson		[phone]
Optiva Securities Limited Jeremy King Jason Robertson		[phone] [phone]
Walbrook PR Ben Knowles		[phone]

 

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