Goldstone Resources Regulatory News (GRL)

27 Apr 2005 15:17

Goldstone Resources Ltd27 April 2005 GOLDSTONE RESOURCES LIMITED ("GoldStone" or the "Company")UPDATE ON BAUXITE On 15 April 2005, the Company announced that it was in the final stages ofnegotiation with a major player in the alumina industry in respect of itsbauxite interests. GoldStone holds two general reconnaissance permissions over an area totalingapproximately 17,000 square kilometres in Guyana. Under the permissions,GoldStone has exclusive rights to apply for 20 prospecting licences over smallerparts of the lease areas. In order to effect the proposed transaction over the bauxite interests,GoldStone would be required to release its exclusive rights to apply for 8prospecting licences, thereby reducing its entitlement to 12 prospectinglicences. If this were to happen, the Directors believe it may have an adverseimpact on the advancement of the Company's gold interests. In order to maintain its existing rights, GoldStone has entered into discussionswith the Guyana Geology and Mines Commission ("GGMC") over the grant of anadditional and separate reconnaissance permission specifically aimed at bauxite.It is envisaged that such a new permission would host its own exclusive rightsto apply for a number of prospecting licences relating to bauxite. The proposedpermission may cover an area greater than the known extent of the Company'sbauxite deposit. The GGMC has verbally indicated that they are, in principle,favourably disposed towards such a new permission. Formal approval is requiredand the application process will commence this week. As a result, the Directors anticipate that conclusion of the agreement over thebauxite interests will take longer than previously anticipated. The party withwhom negotiations are being conducted is in favour of the proposed applicationfor a new permission, which will increase the number of potential prospectinglicences for bauxite. 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