TIDMGRL
RNS Number : 0398Q
Goldstone Resources Ltd
07 September 2017
7 September 2017
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Operational Update - Akrokerri Deep Trenches and Licences
GoldStone Resources Limited (AIM: GRL) announces the results of
a deep trenching programme, completed as the first step of the pit
definition programme announced on 17 July 2017, on the Akrokerri
Licence in Ghana. The trenching was undertaken to define the extent
of the mineralisation in the near-surface oxide zone of the known
deposit and augment the findings from the continued review by the
Company of the historical database for the Homase and Akrokerri
licences.
The Company dug four trenches (Figure 1), two in each of the
proposed pits, within the Southern part of the 2012 JORC Code
compliant resource ("Current Resource"). The trenches, located on
the Southern part of the Current Resource and along strike from the
old Homase pit, were identified as having a high potential for an
initial open pit for heap-leach production within the oxide zone.
The trenches were dug to a depth of 7 metres and channel samples
were taken near the bottom of each trench in 1 metre consolidated
intervals.
Figure 1. Location of trenching within the Proposed Pit Outlines
in the Akrokerri Licence
http://www.rns-pdf.londonstockexchange.com/rns/0398Q_1-2017-9-6.pdf
The trenches showed economic intersections of up to 14 metres
true width with grades of up to 4.5 g/t of gold (see Table 1). Both
widths and grades shown in the trenches were above the Company's
expectation, exceeding the intersections of nearby drill holes (see
Figure 1) by approximately 20 per cent. This indicates the
potential for increased gold content in the upper oxide zone. The
trenching also indicated that the zones have a free digging
potential, which would reduce production costs considerably if the
material is shown to be consistent.
Further trenching is now being set out to assess the extent of
the mineralised zone within the Akrokerri Licence and the Company
is currently conducting a pit definition reverse circulation (RC)
drilling programme within the proposed pits.
The geology within the licences is typical for the Obuasi area.
The mineralisation is contained within a highly-sheared suite of
meta-greywackes and partly graphitic shales. A series of
sub-parallel quartz veinlets is the main host of pyrite and minor
arseno-pyrite. The gold mineralisation at Akrokerri is associated
with both the swarms of quartz veinlets (pyrite/ arseno-pyrite/
free gold) and the disseminated sulphides in the shales and
greywackes. The degree of contribution to the total gold content
will vary on the strike and at depth and this will be determined
during production.
The review of historical data has shown that the Homase pit,
mined by Ashanti Goldfields ("AGF") between 2002 and 2003, produced
52,452 oz gold, which was significantly in excess of AGF's original
estimate of 35,799 oz gold, reported in AGF's Homase Pit Mining
Reconciliation June 2002-03. According to AGF's mining
reconciliation figures, there was a significant increase in tonnage
and minor increases in grade and density compared to the original
estimates. The differences are between the ore reserve model (based
on pre-production drilling) and the grade control model (based on
more closely spaced drilling during production).
One of the features that resulted in the higher recovery of gold
from the Homase pit was the higher than anticipated widths in the
upper zones of the mineralisation, which caused a mushroom effect,
i.e. near-surface gold mobilisation and re-deposition.
AGF also reported pinching and swelling within the mineralised
structure. This is a consistent feature throughout the
Homase/Obuasi shear system. Ore shoots at the nearby Obuasi mine
are characterised by tight en-echelon lenses. If these are repeated
within the proposed pits on Akrokerri, there is potential for
increased gold content to continue at depth.
Table 1: Trench Assays
Proposed Akrokerri Pit - 1 Proposed Akrokerri Pit - 2
-------------------------------------- -----------------------------------
Trench number Sample ID Au g/t Trench number Sample ID Au g/t
---------------- ----------- ------- -------------- ---------- -------
Trench 2 Q1018 0.08 Trench 1 Q1002 0.55
----------- ------- ---------- -------
Q1019 0.08 Q1003 1.51
---------------------------- ------- ---------- -------
Q1020 0.08 Q1004 0.62
---------------------------- ------- ---------- -------
Total length Total length
of Trench 2 - of Trench 1
17 metres Q1021 0.08 - 15 metres Q1005 0.73
----------- ------- ---------- -------
Q1022 0.05 Q1006 1.08
---------------------------- ------- ---------- -------
Q1023 0.07 Q1007 0.61
---------------------------- ------- ---------- -------
Q1024 0.03 Q1008 0.67
---------------------------- ------- -------------- ---------- -------
Q1025 0.04 Q1009 0.43
---------------------------- ------- -------------- ---------- -------
Q1026 0.03 Q1010 3.18
---------------------------- ------- ---------- -------
Q1027 0.06 Q1011 1.75
---------------------------- ------- ---------- -------
Q1028 0.08 Q1012 3.68
---------------------------- ------- ---------- -------
Q1029 0.03 Q1013 2.11
---------------------------- ------- ---------- -------
Q1030 0.05 Q1014 2.58
---------------------------- ------- ---------- -------
Q1031 0.15 Q1015 1.36
---------------------------- ------- ---------- -------
Q1032 0.30 Q1016 0.81
---------------------------- ------- -------------- ---------- -------
Q1033 1.23
---------------------------- ------- -------------- ---------- -------
Q1034 2.81 Trench 4 Q1047 0.03
---------------------------- ------- ---------- -------
Q1048 0.07
---------------------------- ------- ---------- -------
Trench 3 Q1036 2.20 Q1049 0.03
----------- ------- ---------- -------
Total length
of Trench 4
Q1037 3.57 - 17 metres Q1050 0.08
---------------------------- ------- ---------- -------
Q1038 3.16 Q1051 0.06
---------------------------- ------- ---------- -------
Total length
of Trench 3 -
10 metres Q1039 4.51 Q1052 0.06
----------- ------- ---------- -------
Q1040 3.72 Q1053 0.12
---------------------------- ------- ---------- -------
Q1041 1.05 Q1054 0.12
---------------------------- ------- ---------- -------
Q1042 1.17 Q1055 0.25
---------------------------- ------- ---------- -------
Q1043 0.78 Q1056 0.94
---------------------------- ------- ---------- -------
Q1044 1.03 Q1057 1.06
---------------------------- ------- ---------- -------
Q1045 1.53 Q1058 0.70
---------------------------- ------- ---------- -------
Q1059 1.36
---------- -------
Q1060 1.78
---------- -------
Q1061 0.19
---------- -------
Q1062 0.23
---------- -------
Q1063 0.13
-------------- ---------- -------
Sampling, assaying and QA/QC
GoldStone's sampling and other geological activities conforms to
industry-wide good practice. The Company maintains Quality
Assurance and Quality Control on all analytical work via the use of
certified reference materials, field duplicates and blank samples
in addition to monitoring of internal laboratory check-analyses.
Chain of custody is observed for all samples. Determination of
gold, by fire assay of 25g sub-samples and atomic absorption
finish, was undertaken by ALS Minerals Limited in Kumasi,
Ghana.
Bulk samples from the trenches have also been sent to the
University of Mines and Technology at Tarkwa, Ghana for
metallurgical testing, under the supervision of Prof. Amanwah, the
Dean of the Faculty of Mineral Resource Technology and Ghana's
leading expert in the metallurgy of the Ashanti shear system. The
result of the metallurgical testing will be announced once
received.
Licence Update
The Company continues to review its portfolio and is in the
process of renewing its licences in both Senegal and Ghana. With
regards to Gabon, the Company is considering its options which will
likely result in the disposal or relinquishment of the
licences.
In respect to Ghana, all requisite documents have been submitted
to the Ghanaian Minerals Commission for both Akrokerri (100 per
cent. interest) and Homase (90 per cent. economic interest) and the
Company has received confirmation that the licences are awaiting
signature from the Minister of Mines.
The current drilling and trenching will facilitate in
determining the potential pit design for the proposed Akrokerri
pits and will provide the necessary platform for proceeding with an
application to the Government of Ghana for a mining permit,
following the extension of the licences.
For further information, please contact:
GoldStone Resources Limited
Emma Priestley / Neil Gardyne Tel: +44 (0)7867 785177 / +27 (0)82
490 4427
Strand Hanson Limited
Richard Tulloch / James Bellman Tel: +44 (0)20 7409 3494
SI Capital Limited
Nick Emerson / Andy Thacker Tel: +44 (0)1483 413 500
Information in this announcement has been complied and reviewed
by Klaus Kappenschneider, an independent geologist with 30 years
experience in gold mining, exploration and resource estimation.
Klaus is a member of the Association of Professional Geoscientist
of Ontario (APGO), is a Competent Person (JORC, SAMREC, PEMREC) and
a Qualified Person (NI 43- 101) and accordingly, is a qualified
person as required under the AIM Rules.
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.
- END -
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 Homase-Akrokerri
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. 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 information is provided by RNS
The company news service from the London Stock Exchange
END
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