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LONDON (Alliance News) - Goldstone Resources Ltd Wednesday said it believes that the potential remains to make a meaningful discovery at its Sangola permit in Senegal despite Randgold Resources Ltd planning to pull-out of the site on disappointing test results.
The exploration company in West and Central Africa said it sees opportunities at the Sangola site in a number of prospects including the Thiabedji area and Baraboye region, and is now planning to perform further work on the site.
"I am pleased to say that the permit has not lost its potential to yield a significant discovery," Exploration Director Hendrik Schloemann said in a statement. "The licence area is large and has not, to date, been sufficiently tested by either Goldstone or Randgold."
The news comes a fortnight after Randgold handed in a termination notice for its joint venture at the Sangola site, giving the company a notice period of 90 days, stating that results from drilling on the Baraboye and Ibel prospects at its Sangola site had not returned gold intercepts that justify an immediate follow-up programme.
In April 2013 the two parties set up the joint venture in order for exploration, evaluation and, potentially, the development and mining of the Sangola project which meant Randgold holds a 51% interest in the site and agreed to fund all work up to and including a pre-feasibility study on the site.
However Randgold did say in its termination notice that in their opinion the permit is "still prospective for smaller or lower grade deposits than those which pass our investment filters."
On Wednesday, Goldstone said deeper drilling should now be carried out at its Thiabedji and Baraboye sites to test if previous intersects could be the peripheral portion of a higher-grade system, while further geological mapping or sampling should be carried out on its Tiobo South, Gangara, Bandafassi, Lankanta and Samalia prospects.
Goldstone Resources shares were down 2.0% to 0.500 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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