Last checked at 1 Jun 2011 07:00
Goldstone Resources LTD
JORC COMPLIANT AKROKERRI GOLD RESOURCE
JORC COMPLIANT GOLD RESOURCE ESTIMATE FOR THE AKROKERRI PERMIT, ASHANTI GOLD BELT, GHANA
The directors of GoldStone Resources Ltd ("GoldStone" or the "Company") are pleased to announce that the Company has received a mineral resource estimation ("the Estimate") which is compliant with the Joint Ore Reserves Committee of Australasia (JORC) reporting code, for the Company's Akrokerri permit ("Akrokerri").
·; The Estimate's resource area is the direct southern extension of the Company's previously reported Homase gold resource.
·; The resulting total gold resource for the Homase/Akrokerri project is now 405,600 ounces.
·; Potential extensions of the mineralisation at both Homase and Akrokerri will be tested during the upcoming drill programme. The drilling programme is aimed at upgrading the gold resource and is scheduled to commence during early June 2011.
The Akrokerri gold resource, which was calculated from historical drill data, is 2.55 million tonnes of ore at an average grade of 1.5 g/t gold, containing 123,000 ounces of gold. The Estimate has been compiled by SEMS Exploration Services Limited, an independent West African based firm of consulting geologists, engineers and surveyors. Results of the Estimate, for which a cut off grade of 0.5 g/t gold was applied, are summarised below:
AKROKERRI RESOURCE BY CATEGORY
Tonnage | Grade | Contained Gold | |
(g/t) | (ozs) | ||
Indicated | 995,000 | 1.57 | 50,000 |
Inferred | 1,560,000 | 1.45 | 73,000 |
TOTAL | 2,555,000 | 1.50 | 123,000 |
Approximately 34% of the Akrokerri resource is contained in oxidised ore (see the table below) and the balance within the transitional and sulphide zones.
AKROKERRI RESOURCE BY OXIDATION
Tonnage | Grade | Contained Gold | |
(g/t) | (ozs) | ||
Oxidised | 860,000 | 1.53 | 42,000 |
Fresh | 1,695,000 | 1.48 | 81,000 |
TOTAL | 2,555,000 | 1.50 | 123,000 |
The combined Homase/Akrokerri gold resource is 8.87 million tonnes of ore at an average grade of 1.42 g/t, containing 405,600 ounces of gold. The details of the combined resource, for which a 0.5 g/t gold cut off was applied, are given in the table below.
COMBINED HOMASE/AKROKERRI RESOURCE
Tonnage | Grade | Contained Gold | |
(g/t) | (ozs) | ||
Measured | 3,032,617 | 1.61 | 157,298 |
Indicated | 2,694,102 | 1.42 | 122,755 |
Measured & Indicated | 5,726,719 | 1.52 | 280,053 |
Inferred | 3,145,282 | 1.24 | 125,503 |
TOTAL | 8,872,001 | 1.42 | 405,556 |
EXPLORATION POTENTIAL
The mineralisation associated with the resource includes high grade shoots which may continue to plunge steeply beyond their currently known extent of approximately 150 metres below surface. The directors believe that the Homase/Akrokerri project area lies within a similar geological environment as the 42 million ounce Obuasi gold deposit 15 km to the south-west, which has been exploited at surface and underground to a depth of close to 2,000 metres.
In addition, gold in soil anomalies indicate that potential exists for the mineralisation to extend north and south along strike of the Homase/Akrokerri resource. Separate large gold in soil anomalies over the Akrokerri granite in the Western part of the Akrokerri permit and over the Adubrim prospect in the Homase permit will also be investigated in the short term. The potential of mineralisation associated with structures that run parallel to the existing resource area, which was identified during a geophysical interpretation by the Company, will also be explored.
COMPETENT PERSON
The Estimate is based on acquired drilling data and exploration work undertaken by previous explorers as well as in depth knowledge gained by the authors of the Estimate. The authors of the report are Messrs Simon Meadows Smith, Andrew Netherwood and Joe Amanor of SEMS Exploration Services Limited, West Africa. Mr Meadows Smith has more than twenty years' experience in the mineral exploration and mining industry in Australia and Africa and was Shea Gold's exploration manager when it carried out exploration on the Akrokerri permit. Mr Amanor has over thirty years' experience in the Ghanaian gold mining industry, part of which he served as Chief Geologist with AngloGold Ashanti ("AGA"). He was directly responsible for Mineral Resource estimations on all AGA projects in Ghana. Andrew Netherwood is an experienced Mining Engineer.
BACKGROUND TO THE AKROKERRI PERMIT
The holder of the Akrokerri Permit is GoldStone Akrokeri Ltd ("GoldStone Akrokerri") (previously known as Pan African Resources Ghana Ltd) in which the Company currently holds a 95.1% interest. The interest the Company holds is subject to a 10% free carried interest in favour of the Government of Ghana, which will become effective once mining operations are being conducted and a 4.9% dilutable holding in favour of Volta Resources Ltd (previously Birim Goldfields Ltd). The Akrokerri Permit was recently renewed for a further period of 12 months commencing 12 May 2011.
In terms of Ghanaian law the Government of Ghana is, in addition to its 10% free carried interest, entitled to receive a mining royalty of not more than 6% or less than 3% of the total revenue obtained from mining operations. The corporate tax rate for Ghanaian companies and for income derived from Ghana is 25% and dividends attract a withholding tax of 8%.
CEO COMMENT
Jurie Wessels, Chief Executive of GoldStone, commented: "The resource estimate at Akrokerri brings our Homase/Akrokerri project closer to achieving critical mass and has contributed significantly to the prospectivity and value of the Company. Our endeavours will now focus on increasing the resource with target driven exploration and on testing the upside of regional targets."
APPROVAL
Dr. Hendrik Schloemann, who holds a PhD in geology, has reviewed and approved the geological content of this announcement.
In addition, the technical content of this announcement has been reviewed by Mr. Simon Meadows Smith, Managing Director of SEMS Exploration Services Limited, which is a West African based firm of consulting geologists, engineers and surveyors. Mr. Meadows Smith is a member of the Institute of Materials, Minerals and Mining (IOM3), holds a degree in geology and has over twenty years' experience working in the Pre-Cambrian terrains of West Africa and Western Australia primarily in the exploration for gold.
Enquiries:
GoldStone Resources Limited | +27 21 551 9009 |
Jurie Wessels / Hendrik Schloemann | |
Westhouse Securities Limited | +44 20 7601 6100 |
Tim Feather / Matthew Johnson | |
Optiva Securities Limited | |
Jason Robertson | +44 20 3137 1906 |
Jeremy King | +44 20 3137 1904 |
Walbrook PR | +44 20 7933 8788 |
Bob Huxford | |
Jack Rich |
GLOSSARY OF TECHNICAL TERMS
"cut off grade" | the lowest grade value that is included in a resource statement. Must comply with JORC requirement 19: "reasonable prospects for eventual economic extraction" the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification |
"g/t" | grammes per tonne, equivalent to parts per million |
"JORC" | The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 (the "JORC Code" or "the Code"). The Code sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves |
"JORC Indicated Resource"
| that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed |
"JORC Inferred Resource"
| that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability |
"JORC Measured Resource"
| that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity |
Mineral Resource" | a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories when reporting under JORC |
"oz" | Troy ounce (= 31.103477 grammes). Moz = million troy ounces |
"t" | tonne (= 1 million grammes) |