RNS Out13 May 2021 08:13
13 May 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Commencement of Ore Stacking and
Increased Production Schedule
GoldStone Resources Limited (AIM: GRL), is pleased to announce that mining and ore stacking at the Homase Mine within its Akrokeri-Homase Gold Project ("AKHM") in Ghana has commenced with the first mined ore having been successfully stacked onto the heap leach pad.
Homase Mining Highlights
· First ore stacked on leach pad on 6 May 2021
· The first two cells of the heap leach pad have been commissioned, enabling stacking to commence at a rate of 100 tonnes per hour, which is currently ramping up to a target of 200 tonnes per hour
· 80,000 tonnes of ore have been stockpiled, equating to around one month of mine production at full 3,000 tonne per day heap leach capacity
· All crushing plant and stacking equipment has been tested and commissioned, and the dry plant is now operating on day shift
Mining and Production Schedule
Further to the increased mineable resource announced, 3 December 2020, and the Company's optimization review of the Homase Mine, GoldStone is also pleased to provide its planned mining schedule for the year ending 31 December 2021.
The first eight months production of the Homase Mine is forecast to produce some 25,000 ounces of gold, at a total cash cost, pre-tax, of under US$600per ounce. These figures have been derived by the Company, which believes the cash cost lies within the lower quartile of industry cost standards.
Planned gold production for the first eight months from commencement of mining now exceeds the Company's original guidance of 14,400 ounces per annum, stated in the Definitive Economic Plan ("DEP") announced on 19 June 2019. Accordingly, the Company expects to increase the planned production rate to around 50,000 ounces of gold per annum, which would represent an increase of more than 300% from the original production schedule.
The Company is continuing to review the options available for extracting saleable gold from the loaded carbon it is producing, including toll treatment or expanding its own processing facility to include an elution plant and gold room. In this regard, Goldstone expects to make a decision shortly depending on the terms offered by existing third party processing facilities and any financing options that may be available, however notes that additional funding may be required in the coming months depending on the timing and cost associated with such arrangements.
The Company can confirm that mining operations, which b