LONDON (Alliance News) - Goldstone Resources Ltd saw its shares slide Tuesday after it said test results from drilling on the Baraboye and Ibel prospects at its Sangola joint venture project in Senegal had not returned gold intercepts that justify an immediate follow-up programme.#
In a statement, the exploration company in West and Central Africa said joint venture partner Randgold Resources Ltd will now focus its exploration activities on the Gangara and Bandafassi prospects by undertaking geological mapping and lithological sampling to identify additional drill targets.
"The Gangara and Bandafassi prospects are of particular interest because they cover an area where Randgold, through its recently completed work programme, identified a previously unknown extension of the MTZ structure which controlled the formation of Randgold's 3 million ounce Massawa gold deposit to the north-east," the company said in a statement.
It said that the drilling on the Baraboye and Ibel prospects had revealed best gold intercepts including 7 metres at 1.5 grammes a tonne, including 1 metre at 8.3 g/t, 6 metres at 0.7 g/t including 1 metres at 2.2 g/t, and 11 metres at 0.5 g/t, including 1 metre @ 1.9 g/t.
Goldstone Resources shares were down 13% at 1 pence early Tuesday, one of the biggest declines on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Goldstone Resources (GRL)