Been buying today16 Mar 2020 09:43
This is huge news here.
Goldstone have two main Gold assets which are both former mines located on the Ashanti Belt in Ghana – the most prolific gold producing district in Africa and one of the most prospective gold belts in the world. Indeed Goldstone’s Homase-Akrokeri mines are located just 6km from AngloGold Ashanti’s Obuasi Mine, which has a total historical and current resource in excess of 70M oz Au and is one of the largest gold mines on the planet.
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 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.
Sign In
Follow the stocks
