TIDMGRL
RNS Number : 0922B
Goldstone Resources Ltd
31 May 2023
31 May 2023
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Operational Update
GoldStone Resources Limited (AIM: GRL) is pleased to provide an
operational update in relation to mining and production activities
at the Homase Gold Mine in south-western Ghana.
Overview
-- Front-end loaders, tractor and excavators, and the required
plant including a second stacker and vibrating screens delivered to
site with the objective of optimising production at Homase.
-- $1.5 million invested into new and second-hand plant,
equipment and components for the second dry plant and to complete
the construction of next pad for the heap leach operation.
-- Mining production levels forecast for 60,000 tonnes per month
of ore, within three months following mine plan revision during Q1
2023.
-- Revision of mine plan and improvements to the process plant
to improve long-term performance has impacted Q1 2023 production,
resulting in a small gold pour of 250 ounces doré for the
quarter.
-- Second dry plant will allow stacking to increase to some
40,000 tonnes pcm over the coming months, thus improving gold
production for the remainder of 2023.
Emma Priestley, CEO of Goldstone, commented:
"Whilst these first few months have been disappointing in terms
of gold poured, with the recent investment into the Company it has
allowed for improvements to be made to enhance the long-term
production profile of the mine, resulting in much additional work
being undertaken at Homase. All this will put the Company on a
sound footing going forward. The Company will update the market
with a production forecast in the near future, as it is currently
reviewing the forecast of costs of production which includes fuel,
reagents and consumables, all of which remain high in this current
economic climate."
Further Information
Since the investment of GBP2.4m announced 27 January 2023, the
Company has invested in the necessary equipment and infrastructure
to improve the long-term production profile of the Homase Mine. The
Company has acquired front-end loaders, tractor and excavators, and
the required plant including a second stacker and vibrating
screens. In addition, the Company has bought the components
required to completed the fabrication of the second dry plant, this
includes the fabrication of grasshopper conveyors, the second
agglomeration drum and cement feed. The equipment and components
have been arriving at the Homase Mine over recent weeks, with
certain components to complete the second dry plant to arrive
during June and July. Some $1.5million has been invested into new
and second-hand plant, equipment and components for the second dry
plant and to complete the construction of the next pad for the heap
leach operation.
Following the management review of the mineable oxide resource,
announced 30 December 2022, the mine plan was revised during Q1
2023, and as such mining was paused. Mining has now resumed, with
production levels forecast for 60,000 tonnes per month within three
months.
In conjunction, the Company has been focussing on construction
of heap leach pads, building the second dry plant and reviewing
process methods. Irrigation on Pads 1 and 2 of the Heap Leach was
stopped to allow for the spent ore to dry out so that the material
can be compacted ready for a second lift of fresh ore to be
stacked, however the rainy season may delay the compaction.
Stacking onto the heap leach pads resumed in line with the
mining, but with the revision of the mine plan and the improvements
to the process plant being the core focus for the Company during Q1
2023, there was limited production during this quarter, resulting
in a small gold pour of 250 ounces doré.
It is anticipated that the second dry plant will be assembled
and commissioned for use within two months, along with the
completion of further improvements to the screening plant of the
existing agglomeration plant. With these improvements to the
agglomeration process, documented in 2022, and improved recoveries,
the Company expects to build up the stacking to 40,000 tonnes pcm
over the next few months thus improving the gold production for the
remainder of the year.
Gold Production
To date, some 220,000 tonnes of oxide ore @ 1.43g/t has been
mined and stacked on the heap leach pads. This has yielded
contained gold of some 10,956 ounces of gold. The Company has, to
date, recovered and sold some 5,403 ounces of gold, with the
remaining contained gold, estimated to be 5,553 ounces, still
within the pads. The Company is assessing the economics of
re-agglomerating this ore on the heap leach pads, as insufficient
cement was added and this needs to be remediated.
**ENDS**
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
St Brides Partners Ltd Tel: +44 (0)20 7236 1177
Susie Geliher
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted mining
and development company with projects in Ghana that range from
grassroots exploration to production.
The Company is focused on developing the Akrokeri-Homase project
in south-western Ghana, which hosts a JORC Code compliant 602,000oz
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.
Production is currently focussed on the Homase Mine however 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.
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 (as amended).
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END
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