Last checked at 6 Sep 2010 07:00
GOLDSTONE RESOURCES LIMITED
VTEM Results: Homase Project
Extension of Prospecting Licence
GoldStone (AIM: GRL), the AIM quoted company focused on gold in West Africa, is pleased to announce that it has received positive results from its recent VTEM (Versatile Time-Domain Electromagnetic) geophysical survey over sections of the Homase Licence in Ghana.
The VTEM survey was conducted by Geotech Airborne Limited and was mainly carried out over the southern part of the Homase Licence in Ghana, in particular over the previously mined Homase pits area.
In addition, confirmation has been received from the Minerals Commission of Ghana that the prospecting licence at Homase, in which GoldStone currently holds a 51% interest, has been extended for a further 12 months.
STRUCTURE CONFIRMED
The VTEM survey was successful in establishing that the structure and main trend that is believed to control the gold mineralisation at Homase, extends to the north east and the south west along strike of the Homase ore body and to considerable depth, potentially below 600m. The depth capability of a VTEM survey is up to 600m depending on the surface conductivity.
The gold mineralisation at Homase appears to be associated with zones of slightly reduced conductivity. This is generally thought to be prospective for gold mineralisation in West Africa and may be related to zones of silicification within the Birimian formation, such as at Homase.
NEW TARGETS IDENTIFIED
Several new exploration targets, some of which exhibit reduced conductivity and others that display a distinct electromagnetic signature have been identified by the VTEM survey. The airborne survey identified a conspicuous VTEM anomaly at Adubrim, which corresponds with a gold in soil anomaly. Adubrim is located approximately 1.5 km north west of the northern Homase Pit. The VTEM anomaly at Adubrim has a north east - south west strike, which is parallel to the main structure at Homase. It appears to have a strike length in excess of 3.5 km and is open to the south. The shape, magnitude and depth extent of the Adubrim anomaly is identical to that observed over the known mineralised zones at Homase. The VTEM data set also identified a series of anomalies parallel to and slightly south east of the existing electromagnetic anomaly at Homase. These new targets are similar to the main Homase anomaly in size and strike length. The significance of these newly identified targets has yet to be established.
Jurie Wessels, Chief Executive of GoldStone, commented: "We are pleased that the VTEM survey has confirmed the existence and extended the known extent of the structure at Homase. This increases our chances of intersecting mineralisation at depth and along-strike of the pits. The VTEM information will aid us to focus our exploration efforts in and around the Homase pits and to obtain a better understanding of the geological units that host the known gold mineralisation. We are also looking forward to testing the new regional targets, especially the anomaly at Adubrim and are considering performing a VTEM survey over the northern portions of the licence area."
A number of geophysical maps showing these targets and the existing response from the main anomaly at Homase may be viewed on Goldstone's website at www.goldstoneresources.com.
APPROVAL
Dr. Hendrik Schloemann, who holds a PhD in GeoChemistry, has reviewed and approved the content of this announcement.
Extension of Prospecting Licence
The Company's Joint Venture partner, Cherry Hill Mining Company Limited ("Cherry Hill"), has received notification from the Minerals Commission of Ghana that the prospecting licence over the entire Homase Licence area has been extended for a further 12 month period with effect from 2 September 2010. The prospecting licence was granted on 3 September 2008 and was due to expire on 2 September 2010. In March 2010 the Minister of Lands, Forestry and Mines consented to the joint venture agreement with Cherry Hill.
Enquiries:
| GoldStone Resources Limited | +27 21 551 9009 |
| Jurie Wessels (Chief Executive Officer) |
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| Westhouse Securities Limited | +44 20 7601 6100 |
| Tim Feather / Matthew Johnson |
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| Optiva Securities Limited |
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| Jason Robertson | +44 20 3137 1906 |
| Jeremy King | +44 20 3137 1904 |
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| Walbrook PR | +44 20 7933 8788 |
| Ben Knowles | Mob: +44 7900 346 978 |
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| Ben.knowles@walbrookpr.com |