TIDMGRL
RNS Number : 2505C
Goldstone Resources Ltd
28 September 2018
28 September 2018
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Interim Results for the six months ended 30 June 2018
GoldStone Resources Limited (AIM: GRL), the West-African focused
gold developer which is fast-tracking development of its
Akrokeri-Homase Gold Project ("AKHM" or "the Project") in the
Ashanti Region of Ghana, is pleased to announce its unaudited
interim results for the six-month period ended 30 June 2018.
Overview
-- Highly encouraging mineralised intercepts of up to 1.0 metre
at 51.01 g/t Au confirmed by review and re-logging of historic
diamond core ("DD") holes drilled under or adjacent to Akrokeri
Mine
-- New 'Norton' shaft, located 40 metres east of the historic
North Shaft at the Akrokeri Mine, completed post period end to a
target depth of 30 metres
- Norton Shaft and historic North Shaft will be used as the two
access points to the old workings at the Akrokeri mine, which
previously produced 75,000 ounces of gold at a recovered average
grade of 24 g/t Au
-- Soil geochemistry programme has successfully highlighted
Akrokeri's position on the Homase Trend
- >8km gold-in-soil anomaly which runs from the historic
Akrokeri Mine to north of the Homase Pit
- Defined gold in soil anomaly for 2.4km south of the Akrokeri
Mine, which may provide further mineral resource upside
potential
-- Licences for Akrokeri Project, within prospecting licence
PL6/87, and Homase Project within prospecting licence RL6/96,
renewed through to 20 April 2020
-- Title to Senegalese licences were maintained - the Company
will apply for extension of exploration licence upon the
satisfactory review of raw drill data
-- GoldStone's new website launched to reflect the Company's new
strategy of accelerating the development of AKHM into production
(www.goldstoneresources.com)
Emma Priestley, CEO of GoldStone, commented:
"2018 has been very busy for the GoldStone team, as we seek to
ensure the Company is on track to deliver production at AKHM within
the next two years. The results confirmed by the review and
re-logging of the historic diamond core are very encouraging and
our soil geochemistry programme has indicated further mineral
resource upside potential. We are also pleased to launch the
Company's new website, as we look to fully communicate our fast
track to production strategy with our loyal shareholders."
For further information, please contact:
GoldStone Resources Limited
Emma Priestley Tel: +44 (0)7867 785177 / +233 (0)55
581 8855
Strand Hanson Limited
Richard Tulloch / James Tel: +44 (0)20 7409 3494
Bellman
SI Capital Limited
Nick Emerson Tel: +44 (0)1483 413 500
Citigate Dewe Rogerson
Louise Mason-Rutherford Tel: +44 (0)20 7282 2932
St Brides Partners Ltd
Susie Geliher / Juliet Tel: +44 (0)20 7236 1177
Earl
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.
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted gold
exploration and development 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 a JORC Code compliant 602,000
oz gold resource at an average grade of 1.77 g/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. GoldStone's existing resource is confined to a 4 km
zone of the Homase Trend, including Homase North, Homase Pit and
Homase South.
AKHM hosts two former mines, the underground mine at Akrokeri
mined by Akrokeri Ashanti Mine Ltd, which produced 75,000 oz gold @
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 @
2.5 g/t recovered. 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.
Chairman's Statement
GoldStone has made solid progress in the year to date in
transitioning from a gold explorer to gold developer, and the
journey to becoming a gold producer within two years is now
underway.
We stated in June that we are targeting initial production from
our Akrokeri-Homase Gold Project ("AKHM") within two years, which
the Board believes to be a conservative estimate. We have
demonstrated the highly prospective mineralisation at both
previously producing mines within AKHM, as we recently highlighted
to the market following the publication of two drill core images.
These images clearly show visible gold from both the Akrokeri
Underground Mine, where intercepts include up to 1.0 metre at 51.01
g/t Au have been announced, and the Homase Open Pit, which has the
potential to host multiple additional pits along what is now known
as, "the Homase Trend".
Importantly, we have identified potential routes through which
to fast-track development - successful production is subject to our
execution. Drawing on the expertise of the Board and management
team as a whole, we benefit from the collective experience of
developing 23 gold mines and the track record of mining in West
Africa. The two major shareholders that are represented on the
Board are fully supportive of the Company's strategy and I am
therefore extremely confident, that subject to funding, we have
both the know-how and influence to ensure first production is
expedited.
Activities on the ground have included the sinking of a new
shaft, the 'Norton Shaft', to access the historic high grade
Akrokeri underground gold mine, to enable our team to complete a
geological assessment of the mine. Bearing in mind the high-grade
results that we have had to date from Akrokeri, and that the
underground mine historically produced 75,000 ounces of gold in the
early 1900s at a recovered average grade of 24g/t Au, we remain
bullish about the viability of bringing this mine back into
production within our stated timeframe.
The Norton shaft has now been completed to a depth of 33 metres
and fully partitioned to 30 metres to accommodate a sump and
pumping station that will aid pumping the water from the mine.
Following the rainy season, we will seek to access the old mine
workings and we look forward to providing further updates on our
progress, as we look to begin the full geological and technical
assessments of the Mine. The Company has also started work to
re-open the North Shaft to provide a second and direct access into
the old workings.
Underpinning this entire enterprise is the quality of our
geological postcode. The Akrokeri Mine is located approximately
12km along strike from one of the world's major gold mines,
AngloGold Ashanti's ("AngloGold") Obuasi Mine, which has a total
historical and current resource in excess of 70 million ounces of
gold. In addition to this, is the mineralised feature, the Homase
Trend, which commences north of the Akrokeri Mine and continues for
>8km through the former Homase Pit in a north easterly
direction, this will act as the geological backbone of our future
mining operations at AKHM. The Company is currently undertaking a
scoping study and the environmental baseline study for the proposed
pits, (formerly AK01) within the Homase Trend as part of the
application process for the Mining Licence.
Momentum is beginning to build in terms of news flow and I
believe this will continue throughout 2018 and into 2019 as we get
closer to first production.
I look forward to detailing our production plans and successes
in due course as we embark on this transition to a cash generative
gold producer.
William (Bill) Trew
Chairman
Chief Executive Officer's Report
Principal Activities
During the first six months of the financial year GoldStone
continued to concentrate on the development of its principle asset
in Ghana, the Akrokeri and Homase Project (AKHM), which houses two
former mines, the Akrokeri Underground Mine and the Homase Pit.
GoldStone remains confident that the development of AKHM will drive
the growth of the Company as it looks to commence production and
deliver first revenues within two years.
During the period, GoldStone has undertaken a review and
re-logged historic diamond core ("DD") holes drilled under or
adjacent to the Akrokeri Mine. As announced on 7 June 2018, the
review confirmed mineralised intercepts, which is highly
encouraging and adds credence to our wider development plan for
Akrokeri. Two further DD holes identified from the 2012 programme,
indicated gold bearing quartz intersections in the footwall of the
mine and the Company is currently assaying four historic DD holes
drilled by Pan African Resources Plc, which were not assayed at the
time. These are being analysed and reviewed in conjunction with the
additional findings from Akrokeri over the past months and the
Board is confident that together, they will support the historic
evidence of Akrokeri's potential to host a high-grade mining
operation.
The Company also undertook a soil geochemistry programme to
identify the wider resource potential of AKHM. This was carried out
in combination with a review of the historical geochemistry and
trenching programmes. These programmes have successfully
highlighted the Homase Trend; an >8km gold-in-soil anomaly which
runs from the historic Akrokeri Mine to north of the Homase Pit.
The Company has commenced a scoping study to define the potential
open pit(s) (formerly AK01) within the Homase Trend, along with an
environment baseline study to support onward development at AKHM,
ahead of intended production within two years.
The 2018 soil programme also defined a gold in soil anomaly for
2.4km south of the Akrokeri Mine and delineated parallel
mineralised gold structures which may provide further mineral
resource upside potential following evaluation work.
A key focus of activities during the period has also been
accessing the historic workings of the Akrokeri Mine. To achieve
this, a new shaft, the 'Norton' shaft, has been sunk 40 metres east
of the historic North Shaft at the Akrokeri Mine to a target depth
of 30 metres. The shaft has been sunk to a depth of 33 metres below
surface with 30 metres fully timbered and partitioned. A sump and
pumping station is being established in the lower 3 metres, that
will aide pumping the water when the Company accesses the old mine
workings.
Work has also started on re-opening the North Shaft to provide a
second and direct access into the old workings. Both the North and
Norton Shafts are required to access the old workings, as they will
complement each other, providing the legally required two entry
points as well as giving the Company options regarding ventilation,
pumping and other required underground services. When the workings
are safely accessed, GoldStone expects to gather valuable
geological information and to carry out exploration drilling with
the intention of bringing the Akrokeri mine back into
production.
Since the period end, the Company has continued to develop AKHM
in a cost-effective manner and has sufficient funds through to Q1
2019. In order to advance the Project towards production and to
provide general working capital, the Company will, with the support
of its two major shareholders, seek to raise the requisite funding
as necessary.
Licence Update
The Company was pleased to announce on 18 May 2018 that the
licences for both the Akrokeri Project, within prospecting licence,
PL6/87, 100% owned and the Homase Project within prospecting
licence, RL6/96, 90% owned were renewed through to 20 April
2020.
The title to the Senegalese licences have been maintained and
upon a satisfactory review of raw drill data acquired from Randgold
plc earlier this year, the Company will apply for the extension of
the exploration licence.
As previously announced, the licences in respect of Gabon were
rescinded during the period.
Former Director Claim
As announced on 13 October 2016, there is an outstanding claim
by a former director of the Company. Legal advice has been sought
and the Board continues to believe that there is no merit in the
claim. It is expected that the case will be heard in the South
African Labour Court in due course.
Corporate Developments
The Company was pleased to announce that it has updated its
website that includes an up to date presentation on the Company.
The website also includes the Company's first corporate governance
statement in compliance with the AIM Rules to adopt a recognised
corporate governance code by 28 September 2018.
Outlook
Since January, we have laid the ground work to implement a rapid
development plan at AKHM, aimed at, subject to funding, delivering
initial gold production and first revenues in less than two years.
I look forward to reporting on the various workflows underway on
site, including accessing the old workings of Akrokeri Mine and the
delivery of a scoping study - both key deliverables in our path to
achieving production in the near term.
Emma Priestley
Chief Executive Officer
Consolidated statement of financial
position
as at 30 June 2018
In United States dollars Notes 30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
Assets
Property, plant and equipment 5,722 6,809 5,722
Intangible assets - exploration 6 7,353,496 6,416,788 6,800,827
-------------------------------- ----- ------------ ------------ ------------
Non-current assets 7,359,218 6,423,597 6,806,549
-------------------------------- ----- ------------ ------------ ------------
Trade and other receivables 3,220 239 3,220
Cash and cash equivalents 735,044 318,152 1,626,057
-------------------------------- ----- ------------ ------------ ------------
Current assets 738,264 318,391 1,629,277
-------------------------------- ----- ------------ ------------ ------------
Total assets 8,097,483 6,741,988 8,435,826
-------------------------------- ----- ------------ ------------ ------------
Equity
Share capital - ordinary shares 3,480,430 1,526,658 3,480,430
Share capital - deferred shares 6,077,013 6,077,013 6,077,013
Share premium 27,219,262 26,495,336 27,219,262
Capital contribution reserve 555,110 555,110 555,110
Share options reserve 90,650 49,447 90,650
Accumulated deficit (29,392,611) (28,483,459) (29,046,364)
-------------------------------- ----- ------------ ------------ ------------
Total equity 8,029,854 6,220,105 8,376,101
-------------------------------- ----- ------------ ------------ ------------
Liabilities
Trade and other payables 67,629 13,318 59,725
Short term loan - 508,565 -
-------------------------------- ----- ------------ ------------ ------------
Current and total liabilities 67,629 521,883 59,725
-------------------------------- ----- ------------ ------------ ------------
Total equity and liabilities 8,097,483 6,741,988 8,435,826
-------------------------------- ----- ------------ ------------ ------------
Consolidated statement of comprehensive
income
for the 6 months ended 30 June 2018
in United States dollars Notes 6 months ended 6 months ended Year ended
30 June 2018 30 June 2017 31 December
2017
Unaudited Unaudited Audited
Continuing operations
Sundry income - - -
Exploration expenses - - -
Administrative expenses 5 (346,253) (233,825) (805,854)
---------------------------------- ------ -------------- -------------- ------------
Results from operating activities (346,253) (233,825) (805,854)
---------------------------------- ------ -------------- -------------- ------------
Finance income 6 395 410
---------------------------------- ------ -------------- -------------- ------------
Net finance cost 6 395 410
---------------------------------- ------ -------------- -------------- ------------
Loss before tax (346,247) (233,430) (805,444)
---------------------------------- ------ -------------- -------------- ------------
Taxation - - -
---------------------------------- ------ -------------- -------------- ------------
Loss from continuing operations (346,247) (233,430) (805,444)
---------------------------------- ------ -------------- -------------- ------------
Other comprehensive income - - -
Total comprehensive loss for
the period (346,247) (233,430) (805,444)
---------------------------------- ------ -------------- -------------- ------------
Earnings per share:
Basic and diluted (USD) 4 (0.002) (0.003) (0.005)
---------------------------------- ------ -------------- -------------- ------------
Consolidated statement of change
in equity
for the 6 months ended 30 June
2018
Share Share
capital capital Capital Share
In United ordinary deferred Share contribution options Accumulated
States dollars shares shares premium reserve reserve deficit Total equity
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
Balance as at
1 January
2017 1,526,658 6,077,013 26,495,336 555,110 49,447 (28,250,029) 6,453,535
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
total
comprehensive
income
for the
period - - - - - (233,430) (233,430)
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
Balance as at
30 June 2017 1,526,658 6,077,013 26,495,336 555,110 49,447 (28,483,459) 6,220,105
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
total
comprehensive
loss
for the
period - - - - - (572,014) (572,014)
issue of
ordinary
shares 1,953,772 - 723,926 - - - 2,677,698
options
expired or
lapsed
in the period - - - - (9,109) 9,109 -
share warrants
expense
for the year - - - - 50,312 - 50,312
warrants
issued in the
period
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
Balance as at
31 December
2017 3,480,430 6,077,013 27,219,262 555,110 90,650 (29,046,364) 8,376,101
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
total
comprehensive
income
for the
period - - - - - (346,247) (346,247)
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
Balance as at
30 June 2018 3,480,430 6,077,013 27,219,262 555,110 90,650 (29,392,611) 8,029,854
--------------- ------------ ------------ ------------- ------------- ------------- ------------- -------------
Consolidated statement of
cash flow
for the 6 months ended 30
June 2018
In United States dollars 6 months ended 6 months ended Year ended
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
Cash flow from operating activities
Loss for the period (346,247) (233,430) (805,444)
adjusted for:
* depreciation - - 1,087
* finance income (6) (395) (410)
* share based payments - - 50,312
changes in:
* trade and other receivables - (2,982)
* trade and other payables 7,904 (19,895) 26,513
========================================= ============== ============== ============
Net cash used in operating activities (338,349) (253,720) (730,924)
========================================= ============== ============== ============
Cash flow from investing activities
Finance income 6 395 410
Capitalisation of exploration costs (552,670) (72,661) (456,700)
Net cash used in investing activities (552,664) (72,266) (456,290)
========================================= ============== ============== ============
Cash flow from financing activities
Proceeds from issue of ordinary
share capital - - 2,677,699
Proceeds from short term loan - 508,566 -
Net cash received from financing
activities - 508,566 2,677,699
========================================= ============== ============== ============
Net (decrease) / increase in cash
and cash equivalents (891,013) 182,580 1,490,485
========================================= ============== ============== ============
Cash and cash equivalents at beginning
of the year 1,626,057 135,572 135,572
========================================= ============== ============== ============
Cash and cash equivalents at end
of the period 735,044 318,152 1,626,057
========================================= ============== ============== ============
Notes to the consolidated financial statement
1. General Information
The financial statements present the consolidated results of the
Company and its subsidiaries (together the "Group") for each of the
periods ending 30 June 2018, 30 June 2017 and 31 December 2017.
As permitted, the Group has chosen not to adopt International
Accounting Standard 34 'Interim Financial Reporting' in preparing
these interim financial statements. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2017,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union and
interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC).
The interim financial information set out above does not
constitute statutory accounts. The information has been prepared on
a going concern basis in accordance with the recognition and
measurement criteria of IFRS as adopted by the European Union.
Except as described below, the accounting policies applied in
preparing the interim financial information are consistent with
those that have been adopted in the Group's 2017 audited financial
statements. The Directors approved these condensed interim
financial statements on 27 September 2018.
There are no IFRSs or IFRIC interpretations that are effective
for the first time for the financial year commencing 1 January 2018
that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2018
and the 6 months ended 30 June 2017 has not been audited.
The business is not subject to seasonal variations. No dividends
have been paid in the period (2017: US$ Nil).
2. Risks and Uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2017 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.goldstoneresources.com.
3. Critical accounting estimates and judgements
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note 2(d) of the Group's 2017 Annual Report and
Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period.
4. Earnings per share
In United States dollars 6 months ended 6 months ended Year ended
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
Loss attributable to shareholders (346,247) (233,430) (805,444)
Weighted average number
of shares 154,385,042 79,832,253 154,385,042
================================== ============== ============== ============
Basic and diluted earnings
per share (0.002) (0.003) (0.005)
================================== ============== ============== ============
5. Operating Segments
The Group has two reportable segments, exploration and
corporate, which are the Group's strategic divisions. For each of
the strategic divisions, the Group's CEO, deemed to be the Chief
Operating Decision Maker ("CODM"), reviews internal management
reports on at least a monthly basis. The Group's reportable
segments are:
Exploration: the exploration operating segment is presented as
an aggregation of the Homase and Akrokerri licences (Ghana), the
Manso Amenfi licence (Ghana) and the Sangola licence (Senegal).
Expenditure on exploration activities for each licence is used to
measure agreed upon expenditure targets for each licence to ensure
the licence clauses are met.
Corporate: the corporate segment includes the holding company
costs in respect of managing the Group. There are varying levels of
integration between the corporate segment and the combined
exploration activities, which include resources spent and accounted
for as corporate expenses that relate to furthering the exploration
activities of individual licences.
Information about reportable segments for the year ended 31
December 2017
In United States dollars Exploration Corporate Total
---------------------------------- ------------ ---------- ----------
Reportable segment expenditure - (805,854) (805,854)
=================================== ============ ========== ==========
Reportable segment profit/(loss) - (805,444) (805,444)
=================================== ============ ========== ==========
Finance income - 410 410
Depreciation - (1,087) (1,087)
Reportable segment assets 6,847,148 1,588,678 8,435,826
=================================== ============ ========== ==========
Reportable segment liabilities - (59,725) (59,725)
=================================== ============ ========== ==========
Information about reportable segments for the period ended 30
June 2017
In United States dollars Exploration Corporate Total
-------------------------------- ------------ ---------- ----------
Reportable segment expenditure - (233,825) (233,825)
================================= ============ ========== ==========
Reportable segment loss - (233,430) (233,430)
================================= ============ ========== ==========
Finance income - 395 395
Reportable segment assets 6,416,788 325,200 6,741,988
================================= ============ ========== ==========
Reportable segment liabilities - (521,883) (521,883)
================================= ============ ========== ==========
Information about reportable segments for the period ended 30
June 2018
In United States dollars Exploration Corporate Total
-------------------------------- ------------ ---------- ----------
Reportable segment expenditure - (346,253) (346,253)
================================= ============ ========== ==========
Reportable segment loss - (346,247) (346,247)
================================= ============ ========== ==========
Finance income - 6 6
Reportable segment assets 7,353,496 743,986 8,097,483
================================= ============ ========== ==========
Reportable segment liabilities - (67,629) (67,629)
================================= ============ ========== ==========
Reconciliation of reportable segment revenues, profit or loss,
assets and liabilities, and other material items
In United States dollars 6 months 6 months year ended
ended ended December
June 2018 June 2017 2017
Unaudited Unaudited Audited
-------------------------------------- ----------- ----------- -----------
Revenues
Total revenue for reportable - - -
segments
Consolidated revenue - - -
====================================== =========== =========== ===========
Loss
Total loss for reportable segments (346,247) (233,430) (805,444)
Consolidated loss from continuing
operations (346,247) (233,430) (805,444)
====================================== =========== =========== ===========
Assets
Total assets for reportable segments 8,097,483 6,741,988 8,435,826
Consolidated total assets 8,097,483 6,741,988 8,435,826
====================================== =========== =========== ===========
Liabilities
Total liabilities for reportable
segments (67,629) (521,883) (59,725)
Consolidated total liabilities (67,629) (521,883) (59,725)
====================================== =========== =========== ===========
6. Intangible assets - exploration
The Group's Intangible assets comprise wholly of Exploration
assets in respect of the Homase-Akrokerri project in Ghana.
Homase and
In United States dollars Akrokerri Total
-------------------------------- ----------- ----------
Balance as at 31 December 2016 6,344,127 6,344,127
================================= =========== ==========
Additions 72,661 72,661
Balance as at 30 June 2017 6,416,788 6,416,788
================================= =========== ==========
Additions 384,039 384,039
Balance as at 31 December 2017 6,800,827 6,800,827
================================= =========== ==========
Additions 552,670 552,670
Balance as at 30 June 2018 7,353,496 7,353,496
================================= =========== ==========
7. Availability of Interim Report
The Interim Report will shortly be available on the Company's
website www.goldstoneresources.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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