Goldstone Resources Regulatory News (GRL)

1 Nov 2007 09:17

Goldstone Resources Ltd01 November 2007 GOLDSTONE RESOURCES LTD PROGRESS REPORT AND CHANGE OF REGISTERED OFFICE The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish toprovide the following update on the Company's activities. SWARTDORING DIAMOND PROJECT In April 2007 GoldStone conditionally agreed to acquire a 70% interest in XanaduMining (Pty) Ltd ("Xanadu") from GeoQuest Holdings Limited ("GeoQuest") (the "Acquisition"). The interest comprises 70% of both the share capital of Xanaduand inter-company loans owed by Xanadu to GeoQuest. Xanadu, through its wholly owned subsidiaries, GrindStone Mining (Pty) Ltd andMultidirect Mining (Pty) Ltd, holds prospecting rights over the SwardoringDiamond Project. Completion of the Acquisition is conditional on: • The successful listing of GoldStone on the Alternative Exchange of the JSE Securities Exchange; and • The approval of the Acquisition by the South African Reserve Bank (" SARB"). The Company has received provisional approval from the Listings Committee of theJSE Securities Exchange to list on the Alternative Exchange. In addition theSARB has approved the acquisition of 70% of the share capital of Xanadu byGoldStone. Approval by the SARB of the acquisition of the inter-company loansis still pending. Completion of the Acquisition will not take place until full satisfaction ofeach of the conditions. GoldStone and GeoQuest have agreed to extend the longstop date for completion of the Acquisition to 28 February 2008. The Swartdoring Diamond Deposit is a preserved diamondiferous palaeochannel ofthe Swartdoring River in the Northern and Western Cape Provinces of SouthAfrica. An inferred resource of 12 million tonnes of diamond bearing gravellies beneath loose to slightly cemented sandy overburden and there is apossibility to extend this resource to approximately 49 million tonnes ofdiamond bearing gravel. Exploration at an investment cost of approximatelyUS$500,000 will be conducted in order to complete a Mining Feasibility Study onthe inferred resource of the project. BAUXITE In September 2005, GoldStone entered into an option agreement with BHP Billitonover the bauxite interests in Guyana. An initial programme was launched toexplore the bauxite potential in the leased areas. The programme confirmed thedeposits previously identified by GoldStone. Further more detailed sampling was undertaken during the first quarter of 2007and the Company has since received all the results from this completedprogramme. BHP Billiton elected during July 2007 not to exercise its option andsubsequently made available to GoldStone all information in its possessionrelating to the exploration programme, as well as a summarising geologicalreport. During the third quarter of 2007 GoldStone secured an extension of the expirydate of the bauxite Reconnaissance Permission from 5 September 2007 to 4 January2008. The Company has since entered into discussions with other major playersin the bauxite industry and the bauxite project is accordingly being evaluatedand considered. FINANCING The Company's cash resources are currently US$2.65 million. APPROVAL Dr. Lawrie Minter, who holds a PhD in palaeoplacer sedimentology has reviewedand approved the content of this announcement. CHANGE OF REGISTERED OFFICE The Directors of GoldStone also announce that registered office of the Companyhas changed to: PO Box 560 Heron House L'Avenue de la Commune St Peter JE4 8XP Jersey SUMMARY The Board looks forward to the completion of the acquisition of the SwartdoringDiamond Project which has the potential to provide near term production to theCompany. The listing of GoldStone on the Alternative Exchange is taking longer thanplanned due to the outstanding SARB approval. This process is well advanced andthe Board anticipates that the listing and completion of the Acquisition willtake place in early 2008. In addition and on an ongoing basis the Board is actively investigating andreviewing other potential exploration projects which may fall within the ambitof sediment hosted minerals. Enquiries: GoldStone Resources Ltd 00 27 21 794 4004Nico van der Hoven (Chief Executive Officer) Hanson Westhouse Limited 0113 246 2610Tim Feather / Matthew Johnson This information is provided by RNS The company news service from the London Stock Exchange