Application for Indian Reconn

RNS Number : 5158Y

Goldstone Resources Ltd

08 July 2008

 



GOLDSTONE RESOURCES LTD

APPLICATION FOR INDIAN RECONNAISSANCE LICENCE

The Directors of GoldStone Resources Ltd ('GoldStone' or the 'Company') are pleased to announce that the Company has applied to the Foreign Investment Promotion Board ('FIPB') of India to set up a subsidiary company through which to explore for gold, diamond and uranium mineral resources. The FIPB has granted GoldStone permission in respect of gold and diamonds, but permission for uranium is presently being withheld pending a Government resolution. 

Following the FIPB's approval and investigations by the Company, GoldStone has now submitted an application for a reconnaissance licence to explore for gold and associated minerals in an area where Witwatersrand type palaeoplacer sedimentation has been found to exist.  Previous exploration by the Government of India has identified a basal quartz-pebble conglomerate unit invariably mineralised with pyrite and uranium, a well known characteristic of Witwatersrand palaeoplacers. Gold values of up to 0.2g/t and uranium values of up to 350 ppm have been recorded.  A desktop study conducted by Dr Minter, who is GoldStone's Director of Geology and an internationally recognised expert in Witwatersrand palaeoplacers, combined with a visit to the area by the Company, has led the Board to conclude that the deposits deserve detailed exploration.  In particular, a 138 km² portion of the basin, which outcrops along a south-easterly strike for 34 km and dips north at 33 degrees presents a prospective target with down-dip potential.

APPROVAL

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

Enquiries:

GoldStone Resources Ltd                    00 27 21 794-4004

Nico van der Hoven (Chief Executive Officer)            

Hanson Westhouse Limited                    0113 246 2610

Tim Feather / Matthew Johnson

 

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