On the African gold trail with GoldStone Resources

Thursday, Feb 03 2011 by
13
On the African gold trail with GoldStone Resources

Since Jurie Wessels took the reins as chief executive of Goldstone Resources (LON:GRL) in May 2009, the company has snapped up a collection of prospective gold projects in west and central Africa that have given its investors a reason to get excited. Together with exploration director Dr Hendrik Schloemann, Wessels has built a shimmering prospector’s portfolio that started in Ghana and now stretches west to Senegal and south to Gabon. The more advanced Homase project in Ghana has the potential to tempt GoldStone’s strategic partner Unity Mining (ASX: UML) to consider putting it into production once it has reached critical mass and all the other projects could be a company-maker in their own right.

GoldStone first listed on London’s Alternative Investment Market in 2004 when it raised £5.6m to fund exploration work in Guyana. Mixed results and a string of inconclusive new projects followed before Wessels got the chance to step up from FD to CEO and change the company’s strategy. In May 2010 the company raised £2,125,771 through a share placement to Unity Mining (at that time known as Bendigo Mining), which occurred shortly after GoldStone entered into a strategic alliance with the Australian group. As part of that deal, Unity acquired a 20% interest in GoldStone. In June the company went on to raise a further £2.06m in a share placing with investors, again including Unity.

Today, the amiable South African is relaxed on which of the company’s projects will take the lead in 2011. Drilling at its first and flagship project at Homase in Ghana is about to get under way and a positive result there would be a welcome boost. But it is the prospect of an asset deal in Gabon that gets Wessels most energised. As first in line with applications on significant licence areas in the country earlier this year, he believes GoldStone could be transformed if it gets its way. In the mean time, Schloemann’s eye for a project and Wessels’ nous for a deal have helped drive the GoldStone share price up from under a penny to 7p in 18 months without a single hole drilled. In an interview with Stockopedia, Wessels revealed the thinking behind the company’s strategy.

Jurie, you are a lawyer by training so how did that lead to you getting involved in running mining companies?

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Goldstone Resources Limited is engaged in the exploration and mining of gold and associated elements. The Company operates through two segments: exploration and corporate. Its exploration segment includes Homase and Akrokerri licenses (Ghana), the Manso Amenfi license (Ghana), the Sangola license (Senegal), the Oyem license (Gabon) and the Ngoutou license (Gabon). The Company's Homase/Akrokerri project is located within the defined Ashanti Gold Belt and abuts Anglo Gold Ashanti's Obuasi tenements. The Company holds the Homase license and the Akrokerri license, through its subsidiary, Goldstone Akrokerri (Ghana) Limited. The Manso Amenfi License is located in the Wasa Amenfi West District of the Western Region in Ghana. Its subsidiary, Goldstone Resources Limited Gabon S.A.R.L., is the holder of the Oyem and Ngoutou Licenses. The Oyem and Ngoutou permits both contain gold in soil anomalies in over 10 kilometers length. The Company has not generated revenues. more »

LSE Price
1.43p
Change
 
Mkt Cap (£m)
3.6
P/E (fwd)
n/a
Yield (fwd)
n/a

Barrick Gold (Holdings) Ltd, formerly Randgold Resources Limited, is engaged in gold mining, exploration and related activities. The Company's activities are focused on West and Central Africa. The Company operates through the gold mining segment. The Company operates various mines, such as Morila, Loulo, Gounkoto, Tongon and Kibali. The Company is exploring in African countries, such as Mali, Senegal, Cote d'Ivoire and the Democratic Republic of Congo (DRC). The Company also holds an interest in the Massawa project. The Company holds Morila Limited, which holds interests in the Morila mine in Mali. The Company holds a controlling interest in the Loulo mine, located in Mali, through Societe des Mines de Loulo SA (Loulo). The Loulo mine is mining from over two underground mines. It has a controlling interest in the Gounkoto mine through Societe des Mines de Gounkoto SA. more »

LSE Price
6546p
Change
 
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a



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About Ben Hobson

Ben Hobson

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