Goldstone Resources Regulatory News (GRL)

15 Apr 2005 08:08

Goldstone Resources Ltd15 April 2005 GOLDSTONE RESOURCES LTDASSAY RESULTS AND PROGRESS REPORT The Directors of GoldStone Resources Ltd ("the Company" or "GoldStone") arepleased to report on the progress of the Company's gold and bauxite explorationprogrammes. RORAIMA GOLD Initial results from the reconnaissance drilling programme in Guyana havesuccessfully demonstrated that gold producing processes are present in a similargeological environment to the Witwatersrand in South Africa. A number ofanomalous intersections, which yielded up to 1,900 ppb gold (1.9 g/t), have beenencountered. While not of economic quantity at this stage, they show thatsignificant concentration over the background level has occurred. Geologicalanalysis will be required to determine areas of higher gold concentration withinGoldStone's exploration model, which can then be tested by further drilling. The full complement of four drill rigs owned by the Company are currentlydrilling in the field. To date 41 holes (9,430 metres of core), averaging 230metres in depth, have been drilled over the Unit 4 Formation target. To date1,642 samples have been assayed. The assays have indicated 23 gold anomaliesthat range in value from 100 to 1,900 parts per billion in 12 drill holes thatare widespread across the lease area. Results are listed below: SAMPLE THICKNESS ASSAY VALUE number m ppb Au 3016 0.30 100 3238 0.21 1516 3395 0.18 510 3432 0.27 110 3724 0.30 620 3755 0.30 330 3756 0.21 150 3758 0.24 100 3784 0.29 140 3788 0.20 100 3790 0.15 170 3826 0.28 630 3859 0.28 100 3866 0.34 100 4033 0.24 140 4087 0.20 600 4102 0.21 120 4321 0.36 100 4342 0.30 1900 4414 0.29 120 4507 0.21 760 4598 0.23 230 4609 0.22 450 An additional 731 samples are at present being assayed and the cores of sixdrill holes are in the process of being sampled. The Company intends drillinganother eighteen holes during the next two months as part of its initialreconnaissance drilling programme. Assay results should be available during thelatter half of this quarter. The Directors expect that integration of core logging, down-hole survey data,and gold assays will ultimately enable the Company to identify prospectivelocations of high mineral concentration for follow-up reconnaissance drilling. As at date hereof, GoldStone has approximately US$3 million cash available tocover its drilling operations and working expenses. Dr Minter, GoldStone's Director of Exploration, reports that: "The objectives ofthe drilling programme are to verify that conceptual palaeoplacer producingprocesses were operative during Roraima deposition and to define depositionalfeatures of the palaeo-environment in order to test the most prospectivelocations for high mineral concentrations. Sediments representing alluvial fan, fluvial braidplain, aeolian and lacustrineenvironments have been recognised indicating situations similar to many of theWitwatersrand analogues available. For instance, numerous erosionalunconformities, deflation surfaces and an abundance of clast supportedconglomerates have been intersected, all of which occur associated with goldmineralization in the Witwatersrand. Furthermore, small gold nuggets extractedfrom a mineralized core by hydrofluoric acid demonstrate their placer origin. Atpresent drilling is investigating a distal environment similar to that in whichthe Carbon Leader, Vaal and Basal reefs in the Witwatersrand were deposited. It should be emphasised that the lease areas being explored in Guyana cover aprospective palaeoplacer province of 17,000 square kilometres, an area equal tothe mineralized part of the Central Witwatersrand Basin. The assay resultslisted in the table, although sub-economic, are associated with conglomeratesand unconformities. They are encouraging indicators of palaeoplacer potentialbecause they demonstrate that selective concentration of the background goldcontent of 10 ppb has occurred. The results obtained represent an intermediatestage in our programme and will be followed by 3-dimensional stratigraphicanalysis to define palaeoplacer lobes and determine the best locations forfollow up reconnaissance drilling." BAUXITE The Company is in the final stages of negotiation with a major player in thealumina industry in respect of its bauxite interests within Lease Areas A and B,and anticipates releasing particulars of an agreement in the near future. Contacts: GoldStone Resources Ltd 00 27 21 794 4004Nico van der Hoven (Chief Executive Officer) This information is provided by RNS The company news service from the London Stock Exchange