TIDMGRL
RNS Number : 2522X
Goldstone Resources Ltd
04 January 2022
4 January 2022
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Update re Gold Loan and Operations
GoldStone Resources Limited (AIM: GRL) is pleased to provide an
update regarding operations and the shipment of its Gold Loan
payments.
Despite various setbacks which delayed our targeted production
timetable, 2021 was an extraordinary year in GoldStone's
development, with the Company achieving a number of key milestones,
culminating in its transformation from a developer into a
producer.
As previously announced, in order to commence production of gold
doré, the Company was required to build an elution and smelt house
earlier in the production process than originally envisaged,
however, the Board is pleased to have maintained its key objective,
for Goldstone to be a low-cost developer. Having achieved the key
milestone of gold production, the Company's objective for the year
ahead will be to ramp up operations to a steady state and achieve
consistent production.
Gold Production and Loan Repayments
The gold pour announced 30 November 2021, to the amount of
14.46kg of gold doré, has been held in stock to accommodate the
October and November 2021 Gold Loan payments to Asia Investments
Management Services Limited ("AIMS"), which totalled 11 kilogrammes
of gold bullion, as announced on 20 September 2021.
A further gold pour is targeted for early January 2022, and it
has been agreed with AIMS that, in order to minimise shipment
costs, the October and November 2021 payments will be shipped in
January 2022, with no additional interest incurred. The December
2021 Gold Loan Payment, 8kg of gold bullion, due to AIMS will
accrue interest until shipment.
Production in 2022
The Company has, to date, recovered approximately 37kg of gold,
of which 14.46kg are held as gold doré and the remainder in
concentrate, with a second pour is anticipated in early January
2022.
The Company has stacked 108,000 tonnes of ore onto the heap
leach pads which, at the grade of approximately 1.7g/t, equates to
approximately 184kg of contained gold. The Company has recovered
approximately 20 per cent. of the contained gold, which was less
than the expected recovery rate due to agglomeration issues. The
Company is in the process of carrying out detailed test work and
cost analysis to understand the leach kinetics within the heap so
as to optimise the recovery the remaining contained gold.
The final engineering stages for Cell 3 of the heap leach pad,
approximately 7,000m(2) , is being completed, and the geofabric and
geomembrane will be laid. The test work being undertaken on the
existing leach pads, including our understanding of the previously
encountered agglomeration issues, will feed into the stacking
process design for Cell 3, so as to optimise recovery and ensure
the cell is ready for stacking late in January 2022.
The initial planned mining rate for the first six months of 2022
is expected to be approximately 60,000 tonnes per month, which the
Company then expects to increase in H2 2022.
As with 2021, the Board expects this year to be very busy for
GoldStone, as the Company progresses the development of the Homase
Mine by optimising the heap leach process and ramping up production
to achieve the previously planned production rate of 25,000 ounces
of gold doré per annum .
Exploration
The Company undertook a further geochemical soil sampling
programme within the Homase and Akrokeri Licence areas (the
"Licences"), as infill and seeking parallel zones of
mineralisation, following the programme carried out in 2018. In
addition, soil sampling was undertaken at a former artisanal mining
area in the far north of the Homase licence area.
At the former Akrokeri underground mine, a drilling programme
has been set out and, subject to availability of a rig, exploration
drilling is expected to start as soon as practicable.
Emma Priestley, CEO of Goldstone, commented:
"Whilst 2021 was a difficult year in a number of respects, it
was also a year of change, as the Company transformed into a gold
producer in challenging circumstances. The Company nevertheless
made good progress and has maintained its low cost base strategy,
and the Board is grateful for the support of the Company's existing
shareholders and new investors."
For further information, please contact:
GoldStone Resources Limited
Bill Trew / Emma Priestley Tel: +44 (0)1534 487 757
Strand Hanson Limited
James Dance / James Bellman Tel: +44 (0)20 7409 3494
S. P. Angel Corporate Finance
LLP
Ewan Leggat / Charlie Bouverat Tel: +44 (0)20 3470 0501
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted low
debt, emerging gold producer via its 100% owned Homase Mine, which
started production in 2021. GRL has one of the lowest debt to
equity ratios of any emerging gold producer and when at full
planned production of 2000oz pcm GRL expects an AISC of
<USD600/oz. Target for full production is mid-2022.
L ocated 15km north-west of AngloGold Ashanti's Obuasi mine, in
the mineral-rich and highly prospective Ashanti Goldbelt. Homase
Mine is a series of shallow open pits producing approximately
25,000oz pa of gold, with a recently commissioned CIC treatment
plant, for the Heap Leach operation. First gold was poured in
November 2021, and the Company will be ramping up production during
the first quarter 2022 .
The Homase Mine, hosts a JORC Code compliant 602,000 oz gold
resource at an average grade of 1.77 g/t. This is confined to a 4km
strike length, which the Company plans to explore, along strike and
down dip, in order to expand on the known resource. The mine was
formerly operated by AngloGold Ashanti in 2002/03 producing 52,000
oz gold at 2.5 g/t recovered.
The Company also hosts the former underground Akrokerri Ashanti
Mine, which produced 75,000 oz gold at 24 g/t recovered grade in
the early 1900s. It is the Company's intention to commence
exploration of this former mine in the near future.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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END
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