Last checked at 23 Nov 2009 07:00
GOLDSTONE RESOURCES LIMITED
("GoldStone" or "the Company")
GOLD EXPLORATION JOINT VENTURE: MANSO AMENFI, GHANA
The Directors of GoldStone are pleased to announce that the Company has entered into a joint venture agreement with Asasemu Mining Ltd ("Asasemu"), a Ghanaian company, to develop the Manso Amenfi Prospecting License (the "License") (the "Agreement").
Propectivity and Location of the Manso Amenfi License
The Manso Amenfi License is wholly owned by Asasemu and is situated in the Wasa Amenfi West District of the Western Region in Ghana, approximately 30 km from the town of Tarkwa. The concession covers approximately 83 square kilometres. The Directors believe the Manso Amenfi License is prospective because it lies along strike of a zone of intense artisanal gold mining and the Ayanfuri gold deposit, where Perseus Mining Limited defined a gold resource of 5.3 million ounces ("Moz"). The intersection of the Salman structure, which controlled the formation of Adamus Resources Ltd's Salman gold deposit (2.1 Moz), and the Ayanfuri structure abuts the eastern boundary of the License and will be a priority exploration target. Other exploration targets include the margins of two granitic intrusions which straddle the northern and southern concession boundaries. Similar intrusions are known to have controlled the formation of gold mineralisation elsewhere in the gold belt. Also of interest are two large gold in soil anomalies in the concession. These were identified by previous explorers and will be followed up by means of additional soil sampling.
The license area is within trucking distance (25 km) of Golden Star Resources' ("GSR") Bogoso processing plant. The viability of ore trucking in the area has been demonstrated by GSR which trucks ore from the Pampe gold mine, six kilometres from the Manso Amenfi License, to its Bogoso plant. The proximity of the permits to the processing plant could increase the chances of any discovered gold deposit being economically viable. Future exploration of the concession will be guided by the principles of "brown fields exploration", directed not only to discover large, stand alone, gold deposits but also to define smaller gold resources that could serve as satellite feeders to the Bogoso plant.
Summary of the Agreement
Under the terms of the Agreement GoldStone has the right to earn an escalating interest in the Manso Amenfi License subject to it financing exploration expenditure in pre-agreed phases. The Agreement provides for a legal and geological due diligence period of six months under the terms of which the Company will be able to obtain comfort that the License is in good standing and that the Ministry of Mines has consented to the terms of the Agreement.
Should the Company decide to progress with the project following the geological due diligence period of five months, GoldStone is obliged to spend a minimum of US$700,000 or identify a code compliant resource of any magnitude in order to acquire a majority interest of 55% over the next four years or less. An additional US$1 million expenditure or the conclusion of a pre-feasibility study over a resource of any magnitude will earn the Company a further 20% interest. If a successful bankable feasibility study is concluded on an identified resource, GoldStone will acquire an 85% interest in the Joint Venture. GoldStone has full and unfettered managerial control over the exploration process and may withdraw from the Joint Venture at any time without penalty.
In terms of Ghanaian law the Government of Ghana is entitled to a 10% free carried interest in any mining ventures and Ghana's Minerals Act stipulates a mining royalty of not more than 6% and not 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 attracts a withholding tax of 8%.
Approval
Dr. Hendrik Schloemann, who holds a PhD in geochemistry, has reviewed and approved the geological content of this announcement.
For more information please visit www.goldstoneresources.com
Enquiries:
| GoldStone Resources Ltd | +27 21 551 9009 |
| Jurie Wessels (Chief Executive Officer) | |
| Hendrik Schloemann (Exploration Director) | |
| Hanson Westhouse Limited | +44 20 7601 6100 |
| Tim Feather / Matthew Johnson |