On 6th September Goldstone Resources (LON:GRL) announced that it has received positive results from its recent VTEM (Versatile Time-Domain Electromagnetic) geophysical survey over sections of the Homase Licence in Ghana. As per their announcement to Market, the VTEM survey was conducted by Geotech Airborne Limited and was mainly carried out over the southern part of the Homase Licence in Ghana, in particular over the previously mined Homase pits area.
The company also announced that it had received confirmation from the Minerals Commission of Ghana that the prospecting licence at Homase, in which GoldStone currently holds a 51% interest, has been extended for a further 12 months.
Full details of the VTEM survey results can be seen on the Company website here
We took this opportunity to put a few questions to CEO Jurie Wessels and exploration director Hendrik Schloemann to give them the opportunity to expand on this news. Here is what they had to say.
MM: What is the significance of the VTEM survey results and, in particular, how has the news reinforced your confidence of the resource potential at Homase?
GR: The VTEM survey was important to us because it not only confirmed the existence of the gold bearing structure but also that the structure extends beyond its previously known extent, to depth and along strike of the pits. In practical terms this means that we now know that mineralisation may also extend to depth, like it does 15 km to the south at the Obuasi gold mine. We will certainly be able to upgrade our resource if the mineralisation is to extend to depth, as it was found on surface.
We are also very encouraged by the fact that the survey considerably upgraded the Adubrim exploration target. The geophysical signatures of the Homase and Adubrim areas are very similar and both areas are marked by a clear gold in soil anomaly. We are therefore very hopeful that further exploration at Adubrim will result in the discovery of a new gold zone. Similar discoveries on parallel gold zones at Ayanfuri, Obotan and Chirano contributed significantly to the resources of these gold deposits.
MM: How important is the finding that the gold bearing structure continues for considerable depth and potentially below 600 metres? How will the potential below 600 metres be tested, given the depth limitations of VTEM?
GR: At Obuasi mining extends to depths close to 2000m. Historical drilling at Homase traced the gold mineralisation and its controlling structure to a depth of 130m. The VTEM survey now showed that the controlling structure exists at least to a depth of 600 metres. Deeper drilling, commencing very soon, will tell us if the lower parts of the structure are mineralised, like at Obuasi. Targets below 600 metres would only be drill tested once the shallow part of the gold deposit has been confirmed to be economically viable. We now know that the structure at Homase is not only a surface phenomenon but extends to greater depths. The VTEM results have given us the confidence to take the risk and to test mineralisation by drilling to these depths.
MM: How will the regional targets identified/upgraded be further investigated?
GR: The Adubrim target and the area to the south-east of Homase will both see infill and confirmatory soil sampling and possibly trenching. We are quite confident that Adubrim will subsequently proceed to the drill stage. The significance of the zones of reduced conductivity which exhibit a geophysical similar to that of the Homase pits area is presently under discussion with our geophysicist. Some of these targets may also be drill tested.
MM: Overall, how will your forward exploration programme be tailored to reflect the findings of the VTEM study?
GR: As explained above, the survey further encouraged us to test deeper targets along the Homase gold bearing structure and we will certainly give attention to the identified regional targets. I would not be surprised if the good results would prompt our board to authorise are deeper and more extensive drill programme than initially planned.
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