REG - Goldstone Resources - Update re Gold Loan and Operations
04/01/2022 07:00
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RNS Number : 2522X Goldstone Resources Ltd 04 January 2022
4 January 2022
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Update re Gold Loan and Operations
GoldStone Resources Limited (AIM: GRL) is pleased to provide an update
regarding operations and the shipment of its Gold Loan payments.
Despite various setbacks which delayed our targeted production timetable, 2021
was an extraordinary year in GoldStone's development, with the Company
achieving a number of key milestones, culminating in its transformation from a
developer into a producer.
As previously announced, in order to commence production of gold doré, the
Company was required to build an elution and smelt house earlier in the
production process than originally envisaged, however, the Board is pleased to
have maintained its key objective, for Goldstone to be a low-cost developer.
Having achieved the key milestone of gold production, the Company's
objective for the year ahead will be to ramp up operations to a steady state
and achieve consistent production.
Gold Production and Loan Repayments
The gold pour announced 30 November 2021, to the amount of 14.46kg of gold
doré, has been held in stock to accommodate the October and November 2021
Gold Loan payments to Asia Investments Management Services Limited ("AIMS"),
which totalled 11 kilogrammes of gold bullion, as announced on 20 September
2021.
A further gold pour is targeted for early January 2022, and it has been agreed
with AIMS that, in order to minimise shipment costs, the October and November
2021 payments will be shipped in January 2022, with no additional interest
incurred. The December 2021 Gold Loan Payment, 8kg of gold bullion, due to
AIMS will accrue interest until shipment.
Production in 2022
The Company has, to date, recovered approximately 37kg of gold, of which
14.46kg are held as gold doré and the remainder in concentrate, with a second
pour is anticipated in early January 2022.
The Company has stacked 108,000 tonnes of ore onto the heap leach pads which,
at the grade of approximately 1.7g/t, equates to approximately 184kg of
contained gold. The Company has recovered approximately 20 per cent. of
the contained gold, which was less than the expected recovery rate due to
agglomeration issues. The Company is in the process of carrying out detailed
test work and cost analysis to understand the leach kinetics within the heap
so as to optimise the recovery the remaining contained gold.
The final engineering stages for Cell 3 of the heap leach pad, approximately
7,000m(2), is being completed, and the geofabric and geomembrane will be laid.
The test work being undertaken on the existing leach pads, including our
understanding of the previously encountered agglomeration issues, will feed
into the stacking process design for Cell 3, so as to optimise recovery and
ensure the cell is ready for stacking late in January 2022.
The initial planned mining rate for the first six months of 2022 is expected
to be approximately 60,000 tonnes per month, which the Company then expects to
increase in H2 2022.
As with 2021, the Board expects this year to be very busy for GoldStone, as
the Company progresses the development of the Homase Mine by optimising the
heap leach process and ramping up production to achieve the previously planned
production rate of 25,000 ounces of gold doré per annum.
Exploration
The Company undertook a further geochemical soil sampling programme within the
Homase and Akrokeri Licence areas (the "Licences"), as infill and seeking
parallel zones of mineralisation, following the programme carried out in 2018.
In addition, soil sampling was undertaken at a former artisanal mining area
in the far north of the Homase licence area.
At the former Akrokeri underground mine, a drilling programme has been set out
and, subject to availability of a rig, exploration drilling is expected to
start as soon as practicable.
Emma Priestley, CEO of Goldstone, commented:
"Whilst 2021 was a difficult year in a number of respects, it was also a year
of change, as the Company transformed into a gold producer in challenging
circumstances. The Company nevertheless made good progress and has
maintained its low cost base strategy, and the Board is grateful for the
support of the Company's existing shareholders and new investors."
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 low debt, emerging
gold producer via its 100% owned Homase Mine, which started production in
2021. GRL has one of the lowest debt to equity ratios of any emerging gold
producer and when at full planned production of 2000oz pcm GRL expects an AISC
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