Goldstone Resources Regulatory News (GRL)

2 Oct 2008 10:41



GOLDSTONE RESOURCES LTD

URANIUM UPDATE

The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish to provide the following update on the Company's proposed uranium project. 

DR3-EAST URANIUM PROJECT

On 20 June 2008 GoldStone announced the conditional acquisition of the entire issued share capital of Hymrai Properties 1 (Proprietary) Limited, which owns the uranium prospecting rights over two properties near Laingsburg in South Africa (the "DR3-East Uranium Project"). 

The examination of historical exploration data from the areas held under this exploration permit has now been completed.  The data will be independently reviewed in the Company's SAMREC compliant Competent Person's Report which is required to support GoldStone's application for the listing of its ordinary shares on the AltX stock exchange of the Johannesburg Stock Exchange.  

The DR3-East Project contains several outcropping uranium occurrences, which have not been tested historically. These were detected by GoldStone's geologists during a visit to the properties earlier this year. Consequently GoldStone has scheduled a limited RC drilling programme for the month of October 2008 to test the underground extent of two of these occurrences. Ten boreholes will be drilled to approximately 30m and the holes will be surveyed with down-hole radiometric equipment.

The Board has concluded that undertaking this limited drilling programme, the cost of which should not exceed US$30,000, is in the best interests of the Company and will allow for the further evaluation of the properties. The first phase of GoldStone's acquisition of the DR3-East Project remains subject to:

1. Approval of the purchase of the shares and loan accounts in Hymrai by the South African Reserve Bank;

2. Approval of the transaction by the Minister with regard to Section 11 of the Minerals and Petroleum Resources Development Act, Act 28 of 2002 of South Africa, and confirmation by the Minister of compliance with the objectives of Section 2(d) of the same Act; and

3. The listing of GoldStone's ordinary shares on the AltX stock exchange of the JSE Ltd.

  The DR3-East Uranium Project is approximately 200 km west of Areva's Ryst Kuil uranium deposit near Beaufort West.  Areva has publicised its intention to place the Ryst Kuil deposit into production by late 2009.  The style of the uranium mineralisation at Ryst Kuil and DR3-East is similar and Areva's intentions demonstrate that the Karoo uranium belt holds the potential to host economically viable uranium deposits.

APPROVAL

Dr Lawrie Minter, who holds a PhD in palaeoplacer sedimentology has reviewed and approved the content of this announcement.

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