TIDMGRL
RNS Number : 9454P
Goldstone Resources Ltd
14 February 2019
14 February 2019
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Commencement of Definitive Economic Plan and Environmental
Impact Assessment
& Development Update from Akrokeri-Homase Gold Project
GoldStone Resources Limited (AIM: GRL) is pleased to provide an
update on its key work streams at its Akrokeri-Homase Gold Project
("AKHM"), as the Company seeks to move rapidly towards establishing
its first operating mine within the Homase Trend. The Homase Trend
is an >8km gold-in-soil anomaly within AKHM, located on the
northern end of the Ashanti Gold Belt in Ghana, 12km along strike
from Anglo Gold Ashanti's >70 million ounce Obuasi Gold
Mine.
Highlights
-- Definitive Economic Plan ("DEP") to assess capital requirements, operating costs and timelines
in respect of developing an operational mine on the Homase Trend now commencing and expected
to be completed in Q2 2019 - this is a key milestone in the Company's strategy towards becoming
a gold producer
-- MAED (UK) Limited ("MAED") has been engaged to undertake the DEP (the "MAED Agreement"), with
the support of the wider MAED Group
-- Work on the DEP will focus on the completion of a fast track, low cost plan to submit for
final government approval in May 2019
-- Following initial consultation, MAED is of the opinion that a low tonnage, gravity and combined
heap leach facility can achieve early stage cash flow with minimal capital expenditure
-- Optimal Development Consult ("OPDEC") has been engaged to complete the Environmental Impact
Assessment ("EIA"), a pre-requisite to applying for a mining licence and will also manage
community and social relations work
-- Homase Trend scoping study progressing well
- Results of completed pilot heap leach project and results from
the first stage of trenching at the Homase North and Adubriem
deposits expected shortly
- Additional trenching, targeting the mineralised zone along the
Homase Trend to the north of the existing Homase open pit, is
underway, the results of which are expected in Q2 2019
Emma Priestley, CEO of GoldStone, commented:
"Last year, we made a commitment to our shareholders to bring
the Akrokeri-Homase project into production in the shortest
possible time. Initial indications point towards the viability of a
low tonnage, gravity and combined heap leach facility to generate
early stage cash flow with minimal capital expenditure at Homase.
As such, this is the focus of our development efforts, as we seek
to deliver our objective of near term production."
Further Information
The Company is pleased to announce that it is commencing two key
work streams, being the DEP and the EIA, as the Company seeks to
move towards establishing its first operating mine, which it
proposes to construct and operate on the Homase Trend, a >8km
gold-in-soil anomaly.
Both the DEP and EIA are major project milestones as the Company
seeks to achieve production and builds on the Company's recent
preliminary findings from the pilot heap leach project processing
material from the Homase South Pits, which were announced on 21
December 2018. A further update regarding recoveries from a 65-day
leach cycle are expected shortly. The Company also anticipates the
receipt of laboratory analysis from the first stage of trenching at
the Homase North and Adubriem deposits in the coming weeks.
Additional trenching, targeting the mineralised zone north of the
existing Homase open pit, is underway and results from this
programme are expected in Q2 2019.
Definitive Economic Plan
The Company is pleased to announce that it has engaged MAED to
undertake the DEP. MAED, which is wholly owned by Bill Trew, the
Company's Non-executive Chairman, will be supported by the wider
MAED Group in the development of the DEP. MAED Group has
significant experience in the mining sector, having completed EPCM
and turnkey projects for many of the world's leading gold mining
companies. The team has designed and constructed a number of highly
successful heap leach projects that have been in production for
more than a decade in West Africa and Asia.
Following an initial consultation, MAED has indicated that it
believes that a low tonnage, gravity and combined heap leach
facility can achieve early stage cash flow with minimal capital
expenditure. This assessment is based on MAED's initial geological
and metallurgical review of the Homase Trend, coupled with the
conclusion from the preliminary findings from the pilot heap leach
project which, using 2.5 tonnes of material from Homase South
within the Homase Trend, The University of Mines and Technology
(UMaT) in Tarkwa, Ghana, estimates could achieve recoveries of up
to 80% gold extraction over a 65 day cycle.
Environmental Impact Assessment
The Company is pleased to announce that it has appointed OPDEC
to undertake the EIA. The EIA is an important workstream that is
required to enable the Company to apply for a mining licence. OPDEC
has significant experience of providing such assessments for
clients in Ghana and across Africa in this regard. OPDEC will also
oversee the environmental, community and social relations work
which has continued to progress the advanced stage of environmental
permitting
Related party transaction
MAED is wholly owned by the Company's Non-Executive Chairman
Bill Trew and, accordingly, MAED is deemed to be a related party of
the Company as defined in the AIM Rules for Companies ("AIM
Rules"). The MAED Agreement is therefore a related party
transaction pursuant to Rule 13 of the AIM Rules. The directors of
the Company, other than Bill Trew, consider, having consulted with
the Company's nominated adviser, Strand Hanson Limited, that the
terms of the MAED Agreement are fair and reasonable insofar as the
Company's shareholders are concerned.
For further information, please contact:
GoldStone Resources Limited
Emma Priestley Tel: +44 (0)20 7236 1177
Strand Hanson Limited
Richard Tulloch / James Tel: +44 (0)20 7409 3494
Bellman
SI Capital Limited
Nick Emerson Tel: +44 (0)1483 413 500
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.
- ENDS-
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 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. 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. 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 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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