REG - Goldstone Resources - Homase Mine Update

Goldstone ResourcesAnnouncement

08/07/2024 08:00

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RNS Number : 4761V  Goldstone Resources Ltd  08 July 2024

8 July 2024

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Homase Mine Update

 

GoldStone Resources Limited (AIM:GRL) is pleased to provide an operational
update in respect of the Homase Gold Project in south-western Ghana
("Homase").

 

Highlights

 

·    Continuous operations maintained at Homase during H2 2023 and H1
2024:

o  Current operation achieving mining and stacking agglomerated ore at an
average of 5,400 tonnes pcm

o  2024 production to date of 1,350 troy ounces of gold following last gold
pour on 18 June 2024 (Figure 1)

o  Significant increase in gold recovery to 68% over the past six months

o  On track to increase production to deliver the planned 50,000 tonnes of
stacked and agglomerated ore, targeting gold-production of 1,000oz pcm within
six months

·    Exploration activities continue to demonstrate the potential to
materially expand Homase's current JORC Code Compliant Resource of 602,000oz
gold resource at an average grade of 1.77 g/t

 

Emma Priestley, CEO of Goldstone, commented:

 

"The Company remains focused on delivering Shareholder value, and this is why
the difficult decision was taken in 2023 to halt production and review the
design of the processing plant. Despite the many challenges associated with
the Company's ordinary shares being suspended from trading for such a long
period of time, the Board and management team have remained committed to
building value for our Shareholders and are now pleased that the upgraded
plant is delivering the improved heap-leaching gold recoveries we targeted.

 

"Importantly, the capital-expenditure requirements to increase gold production
are relatively minimal henceforth, merely requiring completion of leach pads
5, 6, and 7 and construction of an additional pond. These works will allow the
Company to further realise the considerable potential of the Homase Mine's
oxide resource base, with the key objective of increasing monthly gold
production to 1,000 ounces within six months and achieving [increased
operating] cash flow through optimising unit costs and decreasing G&A
exposure.

 

"I would like to thank the Board and the Company's advisers for their support
and to the management team in Ghana for maintaining the mining operations in
good order - and especially the Shareholders for their patience as we focused
on improving the gold recoveries and ensuring a long-life mining operation."

 

Homase Gold Project - Production

 

In 2023, the Company elected to suspend mining in order to evaluate processing
options. This was facilitated by the £2.4 million investment, announced on 27
January 2023, which enabled engineering improvements and further test work to
be undertaken.

 

As announced by the Company on 31 May 2023, the Company's process plant on
site was extensively upgraded during 2023, with the acquisition of vibrating
screens, improved cement feed, and the introduction of a radial stacker,
resulting in a significant increase in gold recovery rate to 68% demonstrated
over the past two months (2022 average of 34%). The Company is now on track to
start increasing production to deliver the planned 50,000 tonnes of stacked
and agglomerated ore within six months, and this level is expected to be
maintained on a monthly basis to ensure that gold-production targets of
1,000oz pcm can be achieved.

 

The Company has now hired a 50-tonne excavator and three 45-tonne ADT trucks
(Figure 2), which will allow a substantial increase in production from
Homase's Pit 2, which is yielding an average grade of 1.1g/t.

 

On the heap leach pads, the Company has levelled and compacted Pads 1, 2 and 3
in readiness for the second lift - superimposition of the next layer of ore
for leaching. Pad 4 is nearing completion, Pad 5 is being constructed, and
civil engineering has begun for Pads 6 and 7.

 

Another important achievement in 2023 was the commissioning of the on-site
laboratory, allowing the Company to undertake continuous Column Leach test
work and Fire Assays, with the appropriate microbalances and an Atomic
Absorption machine to ensure accurate analysis. This facility now enables
better grade control, critical for both mining and processing.

 

Despite limited cash resources during 2023 and H1 2024, the Company remained
focused on resuming mining and increasing production, and with the equity
raise announced on 24 May 2024, the Company was able to return to trading and
the Board now look forward to progressing operations.

 

 

Figure 1. June 2024 Gold Doré Bar - 280 ounces

 

 

Figure 2. The 50-tonne excavator loading one of the three 45-tonne ADTs in Pit
2 at the Homase Mine

 

 

Figure 3.  The Company's Laboratory with the Muffle Furnace and Column Leach
Test Work

 

Continued Desk Review for Exploration

 

Throughout 2023 and in H1 2024, the Company continued to review historical
exploration datasets for the Homase mine and its extended mineralised trend,
as described in the Company's announcement on 20 June 2018, that extends
north-east and south-west of the current Homase Mine and is open at depth.
Within the Homase mining lease, the mineralised zone extends over NNE-SSW
distance of approximately 5km including a substantial deeper gold resource of
c. 600,000 oz underlying and NNE of the Homase pit. There is also a parallel
zone (Adubriem) around 800m in length within the exploration permit area that
has yet to be systematically explored, as shown in Figure 4.

 

Historical records show that there was significant close-spaced drilling
undertaken beneath the former pit mined by Ashanti Goldfields Corporation
("AGC" - now AngloGold Ashanti) between 2002 and 2003, and it is evident that
the grade improves markedly at depth with the transition through 5-10 m of
transition ore to sulphide ore. This former AGC pit is referred to as Pit 4
under the current mine plan.

 

Notwithstanding the mineralogical changes with depth, the oxide cap that is
currently being mined along the Homase trend is some 40-50 metres thick and
averages 1.1g/t.

 

The Company is fortunate to have the feasibility study and metallurgical
testwork data that was undertaken by AGC in the early 2000s and this shows
that the primary sulphide ore is predominantly non-refractory. Drilling
beneath the AGC pit (now Pit 4), in 2011 and 2012 was made in sections to 25m
intervals along strike.  The results from the drilling programme were
announced during the 2011 - 2012 period, concluding with the JORC Resource in
announcement 22 November 2012.  Results recorded as announced 5 December
2011, showed mineralised zones over 10 metres wide on the vertical with a
grades in excess of 6g/t.  The Company intends to undertake further drilling
of this section of the Homase trend, including Pits 1-4, targeting the primary
ore.

 

 

Figure 4.  Plan showing the target areas for exploration

 

For further information, please contact:

 

 GoldStone Resources Limited
 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
                                     Tel: +44 (0)20 7236 1177

 St Brides Partners Ltd

 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.

 

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