Goldstone Resources Inc. (TSX: GRC) (PINK SHEETS: GRSZF) today
announced first results from the 2011 drilling program at its Key
Lake property where the Company is focused primarily on obtaining
enough drilling information for the purposes of estimating a NI
43-101 compliant mineral resource and establishing the viability of
an open pit mining operation.
Located just west of Geraldton, Ontario, Key Lake is contiguous
to the Hardrock Project where eight rigs will be active in 2011 and
where diamond drilling by the Company's joint venture partner,
Premier Gold Mines Ltd. (TSX: PG), as operator, has established a
significant gold resource near surface as well as high grade
intersections at depth. Goldstone holds a 30% carried interest in
the Hardrock Project and a 100% interest in Key Lake and its other
properties.
To date in the 2011 Key Lake drilling program, 42 holes have
been completed for a total of 9,000 metres along a strike in excess
of 800 metres. Complete assay results have been received for 27
holes. Drilling is primarily focused on identifying near surface
gold mineralization amenable to open pit mining. All holes drilled
to-date have intersected gold mineralization, including hole
KL-11-92 which encountered gold grading 49.3 g/t over 0.65 metres
(a photograph of the core with visible gold is posted at
www.goldstoneresourcesinc.com). Additional holes not yet assayed
have also encountered visible gold. Results for these holes will be
published in a future press release.
Drilling suggests the potential for defining open-pit style with
wide zones such as in KL-11-68 that intersected 24 m at 1.56 g/t
Au. Approximately 30,000 metres of drilling are planned for this
year along the main Key Lake corridor, including testing new
anomalies identified by the IP geophysical survey carried out
earlier this year. The current program is capitalizing on the
success of a 12,000-meter drilling program in 2010 which outlined
significant gold mineralization, including 3.17 g/t over 44 metres
and 2.28 g/t over 42.7 metres.
2011 Significant results received to date are as follows:
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Hole UTM UTM From To Interval Au
No N 5E Azi Dip (m) (m) (m) (g/t)
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KL-11-57 5506133 492652 192 -60 36 43 7 0.80
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KL-11-59 5506226 492672 192 -48 126 137 11 1.60
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KL-11-61 5506168 492609 192 -48 62 68 6 1.57
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KL-11-62 5506222 492621 192 -48 44 52 8 1.00
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112 114 2 1.37
----------------------------
120 125 5 1.98
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KL-11-63 5506222 492621 192 -57 43 50 7 2.39
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129 133 4 1.62
----------------------------
168 179 11 1.24
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KL-11-64 5506222 492621 192 -68 161 176 15 2.08
----------------------------------------------------------------------------
184 197 13 2.24
----------------------------
207 208.5 1.5 6.35
----------------------------
273 280 7 1.10
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KL-11-65 5506241 492574 192 -46 57 62 5 2.08
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96 99 3 2.52
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KL-11-66 5506281 492581 192 -45 91 97 6 1.26
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150 154 4 1.79
----------------------------
159 164 5 0.91
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KL-11-67 5506281 492581 192 -57 259 265 6 1.28
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269 272 3 1.25
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KL-11-68 5506205 492515 12 -45 51 75 24 1.56
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KL-11-69 5506094 492491 12 -48 105 110 5 1.55
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138 140 2 2.27
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KL-11-70 5506094 492491 12 -59 130 134 4 0.87
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162 173 11 1.12
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KL-11-71 5506094 492491 12 -67 49 52 3 1.22
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190 193 3 1.26
----------------------------
199 202 3 4.21
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KL-11-72 5506072 492433 12 -47 133 146 13 1.14
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KL-11-73 5506072 492433 12 -58 112 117 5 1.07
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KL-11-74 5506072 492433 12 -67 228 230 2 2.03
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241 244 3 2.44
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KL-11-75 5506127 492498 7 -47 43 65 22 1.18
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KL-11-76 5506310 492307 197 -47 54 59 5 2.46
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includes 54 55 1 8.72
----------------------------
123.5 132 8.5 1.89
----------------------------
140 143 3 1.22
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KL-11-77 5506310 492307 197 -57 59 62 3 1.52
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KL-11-78 5506276 492275 197 -47 43.25 46.40 3.15 1.44
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97.5 99 1.5 1.26
----------------------------
103.5 105 1.5 10.60
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KL-11-79 5506276 492275 197 -65 17.6 25 7.4 1.05
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104 108.9 4.9 2.43
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117 121 4 2.72
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KL-11-80 5506310 492287 197 -60 151 160 9 1.16
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KL-11-81 5506310 492230 197 -60 38 47 9 0.92
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54 59 5 1.87
----------------------------
115 120 5 1.33
----------------------------
139 147 8 1.24
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KL-11-83 5506319 492180 197 -47 50 57 7 1.74
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66 72 6 1.92
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includes 68 69 1 4.03
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KL-11-84 5506319 482180 197 -72 100 102 2 10.94
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137 141 4 1.56
----------------------------
145 154 9 2.17
----------------------------
168 185 17 1.03
----------------------------
202 205 3 1.25
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KL-11-85 5506387 492170 197 -47 106.5 115 8.5 1.72
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124.5 133.5 9 2.79
----------------------------
143.6 147 3.4 6.43
----------------------------
includes 145 146 1 17.20
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KL-11-88 5506375 492115 197 -53 99 103 4 2.65
----------------------------------------------------------------------------
121 125 4 1.55
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KL-11-92 5506263 491991 7 -63 197.5 200 2.5 1.05
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219.6 221 1.4 2.60
----------------------------
235.1 235.75 0.65 49.30
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(i)True width of the zone is between approximately 20 to 85% of drilled
interval.
(ii) Holes not drilled in sequence, (iii)Samples are typically 1 m lengths
of NQ core
Tracy Armstrong, P.Geo. is the Qualified Person for the
technical information contained in this news release and is a
Qualified Person within the meaning of National Instrument
43-101.
"These are early days for 2011 exploration, but what we have
seen so far-in drilling results and identification of additional
targets-is very encouraging." said Philip Cunningham, Goldstone
Chairman and Interim Chief Executive Officer.
"Goldstone's previously-stated objective is to establish the
viability of an open pit mining operation at Key Lake and to build
a NI 43-101 compliant resource," Cunningham added. "Our program is
also seeking to extend the zone another kilometer to the west of
the 2010 drilling where, in addition to open pit potential, we
believe there may be higher grade underground potential as
indicated by historical drilling completed by Cyprus in the 1990s."
(The exact nature of the historical drilling remains to be verified
by Goldstone.)
About Key Lake
The Key Lake property hosts the former Jelex Mine which had
historical production of 5,675 oz of recovered gold. The gold
mineralization is hosted by greenschist facies metagreywacke and is
associated with alteration, quartz veining, and disseminated
arsenopyrite and pyrite. Mineralization boundaries are generally
gradational and not visually distinctive. By the end of 2010, over
200 holes had been drilled over a 3 km long north-northwest
trending zone to a depth of about 200 m with horizontal spacing of
25-50 m in the eastern two-thirds and spacing of 25-100 m in the
western third.
The Key Lake deposit is hosted in altered greywackes, with a
higher grade core comprised of quartz-feldspar porphyry. The
deposit dips sub-vertically, and is currently defined in multiple
mineralized envelopes along a strike in excess of 2.5 km. While
visible gold is a frequent occurrence, the majority of
mineralization is disseminated.
On-site Quality Assurance/Quality Control Measures
All samples were shipped to Activation Laboratories ("Actlabs")
for analysis. Actlabs has laboratories internationally, and its
Quality System is accredited to international quality standards
through the International Organization for Standardization
/International Electrotechnical Commission (ISO/IEC) 17025 (ISO/IEC
17025 includes ISO 9001 and ISO 9002 specifications) with
CAN-P-1758 (Forensics), CAN-P-1579 (Mineral Analysis) and
CAN-P-1585 (Environmental) for specific registered tests by the
SCC. The accreditation program includes ongoing audits which verify
the QA system and all applicable registered test methods.
Samples were shipped to the Actlabs' facility in Geraldton,
Ontario for preparation. Pulps were forwarded from the Geraldton
lab to the Thunder Bay lab, where analyses were performed using
fire assay with Atomic Absorption (AA) finish. Samples yielding in
excess of 3.0 g/t Au were reanalyzed using fire assay with a
gravimetric finish. Samples with visible gold were analyzed using
the metallic screen method, which separates out the coarse and fine
fractions, and weighs and analyzes them separately before
recombining for a weighted average gold grade.
All core samples were selected by the Goldstone site geologist,
and were cut in half by diamond core saw. Individual samples were
labeled, placed in plastic sample bags and sealed. Groups of
samples were then placed into durable rice bags that were secured
for shipping.
Independent Quality Assurance and Quality Control Protocol
A QA/QC program was implemented in 2010, and continues to
monitor all assays from the current drilling program. Samples are
assembled in numbered batches. Included in each batch of 38 are 32
core samples, two certified reference standards, one coarse reject
and one pulp duplicate, one blank sample comprised of silica sand
and one core duplicate sample. This QC program was set up for
Goldstone by Tracy Armstrong, P. Geo, of T.J. Armstrong Geological
Consulting Inc. Ms. Armstrong is a qualified geologist in the
Provinces of Ontario, Quebec and British Columbia.
Beardmore Camp Drilling
A third drill has recently been relocated from Key Lake to begin
the 2011 drilling program on Goldstone's 100%-owned Beardmore camp
properties, beginning with Leitch-Sand River. Overall, Goldstone's
exploration budget for the year is approximately $6.5 million,
covering approximately 50,000 metres of drilling at Key Lake and
Beardmore.
About Goldstone
Goldstone Resources Inc. is a gold exploration and development
company operating in the historically significant
Geraldton-Beardmore camp of Northwestern Ontario and focused on
gold exploration and deposit delineation at its Key Lake,
Brookbank, Northern Empire and Leitch-Sand River gold properties,
and as a partner in the Hardrock Project joint venture with Premier
Gold. Goldstone's 100%-owned NI 43-101 compliant resources in the
Beardmore area total more than 800,000 ounces. In April 2011,
Premier announced an updated NI 43-101resource estimate for the
Hardrock Project in the Geraldton area of 3.6 million ounces of
gold of which Goldstone has a 30% interest, or more than 1 million
ounces. The camp is host to several past producers in a district
that has historical production of more than 4.1 million ounces of
gold from high grade ore-before being shut down primarily as a
result of a $35 gold price-and to Goldstone's fully permitted,
expandable 200-TPD Northern Empire mill.
Forward-Looking Statements
This news release may contain forward-looking information under
applicable securities laws concerning Goldstone's business,
operations, financial performance, condition and prospects, as well
as management's objectives, strategies, beliefs and intentions.
Forward looking information is frequently identified by such words
as "may", "will", "plan", "expect", "anticipate", "intend" and
similar words referring to future events and results. This
forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those implied by the forward-looking
information. Factors that may cause actual results to vary
materially include, but are not limited to, inaccurate assumptions
concerning the exploration for and development of mineral deposits,
delay or inability to retain a senior exploration and/or operating
officer or to obtain additional financing, unanticipated
operational or technical difficulties, changes in laws or
regulations, the risks of obtaining necessary licenses and permits,
changes in general economic conditions and changes in conditions in
the financial markets. Readers are cautioned not to place undue
reliance on this forward-looking information as actual results may
differ materially from those expressed or implied in the forward
looking information. Goldstone does not assume the obligation to
revise or update this forward-looking information after the date of
this release or to revise such information to reflect the
occurrence of future unanticipated events, except as may be
required under applicable securities laws.
Neither Toronto Stock Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Goldstone Resources Inc. Philip Cunningham Chairman
and Interim CEO (416) 860-1636 www.goldstoneresourcesinc.com 801 -
80 Richmond Street West Toronto, ON M5H 2A4
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