REG - Goldstone Resources - Operational Update

Goldstone ResourcesAnnouncement

31/05/2023 07:00

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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 £2.4m 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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