GoldStone Resources (AIM: GRL ) has released positive results from a recent infil Reverse Circulation (“RC”) drilling programme at the Homase South Pit which forms part of the company’s principal area of focus, the Akrokeri-Homase project in south-western Ghana.
The objective of the drilling programme and metallurgical work was to seek to increase the quantum and confidence in the mineable resource at depth within the Homase South Pit.
The gold exploration firm also completed further metallurgical test work on samples from the drilling to demonstrate the similarity between the minable resources and those set out in a previous feasibility study completed by Ashanti Goldfields Corporation (AGC) in 2001.
Today’s results showed an increase in the mineable resource by 86,900 ounces of gold at depth,a 257% increase on the previous estimate of 33,800 ounces of gold at the Homase Main Pit (the "AGC Feasibility Study"), which was then mined by AGC in 2002 and 2003.
Visible gold appears to be more common in the deeper parts of the mineralised zone. GoldStone believes it is likely that the cumulative head grade will exceed the modelled resource and that the total recovered gold will exceed the projected 120,700 oz of gold.
The results also confirm that there is ‘considerable potential’ to expand the Homase South Pit at depth from 30m to 80m to exploit both the oxide ore and the underlying fresh ore.
“The results from these drillholes exceeded our expectations of the extent of the near-surface mineralisation and confirmed our expectations of the grade increasing at depth,” said CEO, Emma Priestley, who added that this was in line with the 2001 feasibility report.
Shares in GoldStone Resources have increased in value by over 8% in the past two weeks to open 4.43% higher this morning to 8.25p following the announcement.
GoldStone outlined to investors that it is confident, based on its extensive experience and the substantial increase in the mineable resource determined by the programme, that the Homase South Pit ‘can be significantly extended at depth and mined economically.’
Accordingly, the company will now seek to update the Definitive Economic Plan ("DEP"), announced back in June 2019, to reflect the increased mineable resource at the pit.
The company said it continues to liaise closely with the EPA regarding the issue of the Environmental Permit and with the Minerals Commission on the operational permits for the Homase South Pit, though noted that the COVID-19 pandemic had caused some delays.
Upon receipt of the permits, GoldStone said it is in a position to immediately commence operations, with an estimated timeline for the first gold pour being within two months.
The group said it has submitted an additional application for the expansion of the mining lease area within the existing exploration licence areas following ministerial approval.
"As previously confirmed, we are ready to commence mining operations once the permits have been issued, as we seek to bring GoldStone into production, and we look forward to keeping you updated as we seek to move the project forward,” Priestley told investors.
The Homase South Pit hosts an existing 602,000 oz gold JORC Code compliant resource at an average grade of 1.77g/t, along strike from the Obuasi Gold Mine, one of the World's major gold mines with a total historical and current resource in excess of 70 million ounces of gold.
Follow News & Updates from GoldStone Resources here: