Sangola Exploration Update

RNS Number : 3991S

Goldstone Resources Ltd

07 November 2013

 



GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

SANGOLA EXPLORATION UPDATE

GoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West and Central Africa, is providing an update of progress at the Company's Sangola project in Senegal, where it has a joint venture with Randgold Resources Ltd ("Randgold").

Full assay results of the drilling programme completed by Randgold at Thiabedji and Tiobo in July 2013 have been received.  From these results Randgold concluded that the Thiabedji and Tiobo anomalies do not meet their high criteria to justify further work and that these prospects will not be investigated further under the current exploration programme.  Randgold's work will now focus on the Baraboye and Ibel prospective targets with a 5,000m reverse circulation ("RC") drilling programme expected to commence in December, as well as further work on four newly identified regional conceptual targets.

Jurie Wessels, CEO of GoldStone, commented: "While it is disappointing that Thiabedji and Tiobo do not meet Randgold's high criteria for further exploration, we are encouraged that Randgold has identified four further exploration targets in the licence area, utilising its understanding of the controls on mineralisation of their substantial Massawa deposit, which lies to the north-east along the same major shear that bisects Sangola.  This underlines the fact that GoldStone is benefiting not only from a free-carry on exploration, but also the considerable experience that a tier one gold mining company can bring to our partnership.  We are looking forward to the results of the upcoming 5,000m drilling campaign, which is planned to commence shortly."

On 9 August 2013 the Company announced assay results for the first 2,435m from the reverse circulation ("RC") drilling programme which has been completed by Randgold in the Thiabedji and Tiobo areas of the Sangola permit area.

Assay results for the remaining 2,480m of the programme have now been received.  The results are for 31 holes drilled along three drill fences on the Tiobo area.  All holes were drilled to 80m depth.  Gold intercepts were generally subeconomic, but included 1m @ 8 g/t and 2m @ 0.7 g/t.

Despite encouraging results from the initial drilling campaign, GoldStone has been notified by Randgold that the drilling results do not meet Randgold's filter criteria which require the "potential for a deposit larger than three million ounces at an average grade above 3 g/t".  Thiabedji and Tiobo will therefore not be investigated significantly under the current exploration programme.

Randgold's team of geologists has identified four additional regional conceptual exploration targets namely Lankata, Samalia, Gangara and Bandafassi.  These targets were identified through their geochemistry signal and lithological/structural setting and will initially be investigated by means of rock-sampling and geological mapping.  Further work carried out by Randgold during the rainy season included litho sampling at Ibel, where litho-results of up to 3.09 g/t were received, stream sediment sampling over the eastern part of the licence area and mapping.

Randgold is planning to recommence drilling with a 5,000m RC programme during December 2013 in the dry season.  The programme will focus on the previously identified Baraboye and Ibel targets, and potentially an untested structure at Tiobo.

The Sangola permit was first granted in October 2011 and its first period of validity ended in October 2013.  An application for its renewal has been duly submitted to the Mining Ministry and the directors are confident that the licence will be renewed in due course.  This renewal requires that 25% of the 471 km² permit area should be relinquished.  Coordinates delineating the least prospective portion of the permit area in the south-western portion of the permit for relinquishment were submitted with the renewal application.  The Senegalese Mining Code provides for two renewal periods of three years each.

APPROVAL

The information in this announcement that relates to exploration results, is based on information compiled by Dr. Hendrik Schloemann, who is a Member of the South African Council for Natural Scientific Professions.  Dr. Schloemann is a full-time employee of GoldStone.  Dr. Schloemann has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a competent person in terms of the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Dr. Schloemann consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Enquiries

GoldStone Resources Limited	[phone]
Jurie Wessels
WH Ireland Limited	[phone]
Tim Feather
Nick Field

 

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