REG - Goldstone Resources - Gold Production and Gold Loan Update

Goldstone ResourcesAnnouncement

30/11/2021 07:00

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RNS Number : 9549T  Goldstone Resources Ltd  30 November 2021

30 November 2021

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Gold Production and Gold Loan Update

 

GoldStone Resources Limited (AIM: GRL), is pleased to announce that it has
now successfully completed its first commercial gold pour at the Homase Mine
in the Ashanti Gold Belt in Ghana.  The first pour was completed during the
commissioning of the Smelt House this week, which followed the commissioning
of the Elution Plant announced on 1 November 2021.

 

The Company's first smelt and gold pour produced gold bars weighing, in
aggregate, 14.46kg (approximately 464.90 Troy Ounces). This production now
enables the Company to meet the interest payment demands for the US$3 million
secured gold loan announced on 22 June 2020 with Asia Investments Management
Services Limited ("AIMS"), subject to the Company receiving its Export
Permit.  The total interest payments in respect of October and November 2021
comprise 11kg of gold, which is due to be paid today, as announced on 20
September 2021 and 1 November 2021.

 

AIMS acknowledges that, following the first gold pour, the Company is in a
position to settle the amounts due and has therefore agreed that the Company
will not be in default under the Gold Loan agreement, subject to the Company
settling the October and November interest payments in gold within 15 business
days (or longer if agreed by AIMS in writing). Interest will continue to
accrue at the default rate of 17% on the amounts due.  The Company expects to
receive the required Export Permit within this 15 business day period. Further
announcements will be made in due course as and when appropriate.

 

In the context of COVID-19 related restrictions, and if conditions permit, the
Company will be hosting an on-site inauguration ceremony of Ghana's newest
gold mine with Ghanaian Government authorities early next year.

 

Following the pause of operations announced 17 September 2021, the Company
will now be recommencing mining operations, and the Company will update the
market with a revised production schedule in due course.

 

Emma Priestley, Chief Executive Officer, commented:

"First gold production at Homase is a great credit to GoldStone's operational
team, which has been advised and supported by MAED, having worked tirelessly
to deliver this product, while dealing with all the challenges that the last
18 months has presented.

"Now that we have managed to successfully complete the transition into a gold
producer, we will focus our efforts on ramping up the project to full
operations as efficiently as possible, by continuing ramp-up of stacking to
the Heap Leach and optimisation of the processing plant."

 

 

 

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 exploration and
development company with projects in Ghana that range from grassroots
exploration to development.

 

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.

 

 

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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