Corporate and Operational Update

Goldstone Resources Ltd

19 September 2023

 

19 September 2023

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Corporate and Operational Update

Corporate Update

Further to the Company's announcement of 27 June 2023, the Company notes that the audit of its final results for its financial year ended 31 December 2022 is ongoing, with the final results and Annual Report currently expected to be finalised and published within the next 2-3 weeks. The audit process is taking longer than expected, in part due to the fact that Moore Stephens Audit & Assurance (Jersey) Limited ("Moore Stephens"), as the Company's new auditor who started working at the beginning of June 2023, have needed, inter alia, to on-board the Company and the Company's Ghanaian subsidiary. In addition, an associate firm of Moore Stephens, based in Africa, was required to audit the Company's Ghanaian subsidiary. 

The Board is also in ongoing discussions with Asia Investment Management Services Limited ("AIMS") with regard to seeking an appropriate extension to its secured gold loan facility which is currently scheduled to mature and fall due for settlement in full on 30 September 2023. AIMS has historically been supportive of the Company, and the Board is therefore confident of obtaining an extension in the coming weeks, however it is noted that there can be no certainty as to the outcome of these discussions and that, if an extension cannot be agreed, security over the Company's primary assets could potentially be enforced.

The Company's ordinary shares will remain suspended from trading until such time as it has satisfied the requirements of AIM Rule 19 with respect to the 2022 Annual Report. The Company also notes the requirements of AIM Rule 18 with regard to its interim results for the six-month period to 30 June 2023, which are required to be published by 30 September 2023. Preparation of the Company's interim results is underway, which are expected to be published shortly after publication of the abovementioned final results for the financial year ended 31 December 2022.

Operational Update

On 27 January 2023, the Company set out its plans to improve production utilising the proceeds from the issue of its £2.4m Convertible Loan Note.  The Company has subsequently made significant improvements to the existing dry plant to enable it to perform more in line with expectations.  The agglomeration drum for the second dry plant has been completed, the second screen is on order and the additional 30 metres of conveyors are to be fabricated.   The Company has also purchased two second hand 30 tonne excavators, two new front end loaders, a truck crane, TLB, tractor and supporting associated accessories.

In-line with the enhancements to the dry plant, mining commenced in Pit 2 of the Homase Mine in May 2023, with an initial stripping ratio of 3:1, and to date some 65,300 tonnes of ore have been mined at an inferred grade of 1.1g/t. Stacking recommenced in June 2023, and plant feed has been maintained at an average of 1,000 tonnes per shift, running on a single shift basis.   The Company can report that for Q3 2023 to date, some 652 ounces (20.290 kilos) of fine gold has been shipped.

After reconciling mine development and production from 2022, including investigating the issues with the heap leach process, which have been an on-going problem, and the impact of no stacking on to the heap for the first six months of 2023, the Company is currently undertaking a review of its Homase production plan and forecast.

A further announcement(s) will be made in due course, as appropriate.   

**ENDS**

For further information, please contact:

GoldStone Resources Limited	Tel: [phone]
Bill Trew / Emma Priestley
Strand Hanson Limited	Tel: [phone]
James Dance / James Bellman
S. P. Angel Corporate Finance LLP	Tel: [phone]
Ewan Leggat / Charlie Bouverat
St Brides Partners Ltd	Tel: [phone]
Susie Geliher / Max Bennett

About GoldStone

GoldStone (AIM: GRL) is an AIM quoted mining and development company with projects in Ghana that range from grassroots exploration to production.

The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts a JORC Code compliant 602,000oz 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 Akrokerri 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 52,000 oz gold at 2.5 g/t recovered.  Production is currently focussed on the Homase Mine however 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.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

END