Previous Operational Mines - not explo!25 Mar 2020 13:52
Homase (90% WI):
Homase previously produced 52,000 oz Au from one open pit at a final recovered average grade of 2.5g/t.
GoldStone’s work has defined initial JORC compliant resources of 602,000 oz Au at 1.77 g/t from southern and northern extensions (based on initial shallow deposit used for open pit production – see following paragraphs).
Homase scoping study was carried out for initial phase 1 production based on 72,000oz being mined over 5 years:
Initial 5 year production at 14,400oz per annum @ AISC of $850/oz and just $6m capex will yield $26m profit (after tax and capex payback) IRR of 144% meaning payback well within 1 year and this was at $1300/oz gold price.
Current $1500 gold price would yield $37.5m profit (after tax and capex payback) over a 5 year period which is significant in itself for this £6m Mcap microcap. This however is just the start for Goldstone as this cashflow generated from phase 1 will be used to fund the much larger phase 2 production and further exploration across both projects snowballing the potential upside available to shareholders.
Further significant exploration upside: On top of this delineated 602,000oz JORC resource, historic trenching indicates very high grade gold mineralisation, including 15.0 metres @ 6.31 g/t Au which includes 4.5 metres @ 18.23 g/t Au from a trench in the Homase North Resource Zone. GoldStone’s recent soil geochem programme coupled with the review of historical data has identified a >8km gold-in-soil anomaly, the Homase Trend. This extends both to south and north of the pit and contains the 4km resource zone which remains open at depth and along strike.
Akrokeri (100% WI):
The Licence is located approximately 6 km along strike from AngloGold Ashanti’s Obuasi Mine, and used to be a part of Anglos Licence.
The Akrokeri Licence is home to the Akrokeri Mine, which historically produced 75,000 ounces of gold at a final recovered average grade of 24 g/t. Recent work by GoldStone has identified high grade quartz veins of up to 51.2g/t Au.
The Akrokeri Mine was closed in 1909 following an ingress of water meaning that a mine clean-up was, in all likelihood, never executed. On that basis and assuming the gold recovery from previous workings was not 100%, the Board believe that the mined head grade at the mine could have been greater than 24g/t Au.
Goldstone plan to further prove up Akrokeri through extensive self funded exploration from their phase 1 Homase production. Akorkeri being right next door to worlds largest gold mine, the 70Moz Obuasi and located on the same geological trend therefore makes this licence extremely prospective with astronomical blue sky exploration upside potential.
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