Goldstone Resources Regulatory News (GRL)

8 Feb 2006 12:49

Goldstone Resources Ltd08 February 2006 GOLDSTONE RESOURCES LIMITED PROGRESS REPORT The Directors of Goldstone Resources ("Goldstone" or the "Company") are pleasedto provide the following update on the gold programme in Guyana. The Company has completed a systematic soil-geochemistry and mapping programmeover six prospective palaeoplacer surfaces in its lease areas, as well ascompleting a sedimentological and three-dimensional stratigraphic analysis ofthe reconnaissance drill hole data. The soil sampling has successfully confirmed the outcrop location of twooverlapping shallow palaeoplacers in Lease Area "B". The assay results havedefined a 1 km-wide zone of anomalous mineralisation that extends for 7 km toencompass two drill holes where grades of 3 g/t over 45cm and 3.8 g/t over 18 cmhad been intersected. This area, which may contain potential economicmineralisation, lies in open terrain amenable to low-cost drilling. A follow-upexploration programme is being planned. The outcrop traces of the four palaeoplacers tested in the leached mountainousterrain of Lease Area "A" did not respond to the soil-geochemistry samplingtechnique applied and therefore shallow drilling along their peripheries willhave to be undertaken in any follow-up programme. The commencement of aprospecting programme in this area will be dependent on a successful outcomefrom the anticipated exploration work programme in Lease Area B referred toabove. The sedimentological analysis of drill cores has produced a three-dimensionalstratigraphic model of the internal layering of the Roraima mountainland inLease Area "A". Nine sequence boundaries that could be associated with placermineralisation processes have been identified and additional sampling of thedrill cores is in progress to test surfaces not previously included. Assayresults will be available in March. Furthermore an angular unconformity, afeature that is considered significant in the Witwatersrand, has beendiscovered. This enables the positioning of short drill holes in an environmentwhere reworking and placer upgrading might have taken place. This could becarried out in March after the end of the wet season. The GGMC has acknowledged the twenty-six Prospecting Licence applications thatGoldStone submitted in December and has granted permission for exploration to becontinued within their boundaries, pending issuance of any or all of the abovetwenty-six Prospecting Licences. The Company currently has cash resources of approximately US$3.4 million. Contact: 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