Last checked at 4 Oct 2010 07:00
GOLDSTONE RESOURCES LIMITED
("GoldStone" or "the Company")
ACQUISITION: AKROKERRI LICENSE, GHANA
The Directors of GoldStone are pleased to announce that the Company has entered into an agreement with AIM-quoted Pan African Resources PLC ("PAF") that will lead to the Company obtaining a beneficial interest of 85.1% in the Akrokerri License in Ghana.
The Akrokerri License
The permit area is approximately 10 km north of Anglo-Gold Ashanti's ("AGA") 50 million ounce Obuasi Gold Mine and adjoins AGA's Obuasi eastern border and the southern boundary of GoldStone's Homase permit. The Directors believe that the 27.6 km² permit area covers the structure that controlled the formation of the Obuasi gold deposit, which structure also trends into the Homase license area. Historical exploration demonstrated that the Akrokerri License area contains at least two sites with known gold mineralisation.
A 2.8 km long gold in soil anomaly indicates that the Homase structure and gold deposit extend into the northern portion of the Akrokerri permit. This was confirmed from the drilling of 110 boreholes for a total of 7,303m along the soil anomaly by Shea Gold Limited ("Shea") from 1998 to 2000. Some of the most significant intersects are listed below:
| Northing | Hole | From (m) | To (m) | Width (m)* | Au Grade (g/t) |
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| 53,000 | 99AKRC058 | 9 | 24 | 15 | 2.27 |
| 52,900 | 99AKRC044 | 11 | 41 | 30 | 2.09 |
| 52,680 | 99AKRC003 | 24 | 34 | 10 | 2.14 |
| 52,300 | 99AKRC078 | 36 | 47 | 11 | 4.76 |
| 52,180 | 99AKRC052 | 39 | 49 | 10 | 2.47 |
* The widths given in the table do not reflect the true widths of the mineralisation.
The distances between the drill fences along the trend increase from 100 metres in the north to 400 metres in the southern portion. The Directors believe that drilling between the widely spaced drill sections and below the known extent of the mineralisation adds exploration upside and resource potential to the permit which, if successfully explored, will enhance the value and potential of GoldStone's adjoining Homase permit.
At a dormant gold mine in the central portion of the permit area underground mining to a depth of 114 metres between 1900 and 1909 resulted in the recovery of 75,000 ounces of gold at an average grade of 24 grammes per tonne. More recently, Birim Goldfields Ltd (1996 - 1997) and PAF (2008), previous operators of the permit, drilled a total of 16 boreholes to test for potential extensions of the mineralisation at the mine site. A preliminary review of the exploration data indicated that this exploration was inconclusive and that more work is justified to explore for potential extensions of the mineralisation.
From published geological reports, the recently completed VTEM study and historical exploration information currently available to the Company, the Directors believe that the Akrokerri License is prospective because:
- the structure which controlled the formation of the Obuasi and Homase gold deposits also trends through the Akrokerri permit;
- a small code compliant resource based on historical exploration data may be achievable after limited due diligence;
- drilling along the southern extension of the Homase trend between the widely spaced drill sections and below the known extent of the mineralisation add exploration upside and resource potential to this permit;
- the projected extension of the Adubrim gold in soil and geophysical anomaly, which trends from the Homase license area into the Akrokerri License area, forms a prospective regional exploration target; and
- drilling programmes to find extensions of the dormant gold mine in the central part of the permit area by previous operators have been inconclusive.
Exploration Approach
Initially the Company intends to confirm the quality and integrity of the historical exploration data base. A small code compliant resource based on this historical exploration data and without any additional drilling may be achievable shortly thereafter. Drilling on the permit area to add further ounces to the initial resource may commence during 2010. An airborne geophysical survey and a soil sampling programme are planned to identify additional regional exploration targets.
The License and the Acquisition Agreement
The holder of the Akrokerri License is Pan African Resources Ghana Ltd ("PAR Ghana"), a wholly owned subsidiary of PAF. In early 2009 PAF withdrew from all its projects and activities in Ghana and decided to focus exclusively on its recently acquired platinum and gold producing projects in South Africa and Mozambique. The Akrokerri License is due to expire on 6 November 2010 but may be renewed subject to approval being granted by the Minerals Commission of Ghana. As result of the acquisition of the license by GoldStone and with the Company's commitment to conduct exploration over the Akrokerri License, the Directors are cautiously optimistic that the license will be renewed.
Subject to a 10% free carried interest in favour of the Government of Ghana, which will become effective once mining operations are being conducted, a 4.9% holding in favour of Volta Resources Ltd (previously Birim Goldfields Ltd) and on the basis that PAR Ghana has no environmental rehabilitation liabilities, statutory requirements outstanding (including taxes), future or existing contractual liabilities or pending legal proceedings which may, in aggregate, amount to more than US$25,000 in value, the Company is to attain ownership of 85.1% of the Akrokerri License for US$1.00. The agreement is also subject to GoldStone obtaining section 14 approval of this transaction from the Minister of Mines and Forestry, if required.
In terms of Ghanaian law the Government of Ghana is, in addition to its 10% free carried interest, entitled to receive a mining royalty of not more than 6% or less than 3% of the total revenue obtained from mining operations. The corporate tax rate for Ghanaian companies and for income derived from Ghana is 25% and dividends attract a withholding tax of 8%.
Approval
Dr. Hendrik Schloemann, who holds a PhD in Geochemistry, has reviewed and approved the content of this announcement.
Enquiries:
| GoldStone Resources Limited | +27 21 551 9009 |
| Jurie Wessels (Chief Executive Officer) |
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| Westhouse Securities Limited | +44 20 7601 6100 |
| Tim Feather / Matthew Johnson |
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| Optiva Securities Limited |
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| Jason Robertson | +44 20 3137 1906 |
| Jeremy King | +44 20 3137 1904 |
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| Walbrook PR | +44 20 7933 8788 |
| Ben Knowles | +44 7900 346 978 |
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| ben.knowles@walbrookpr.com |