GoldStone Resources (AIM: GRL) said it has received an approval from the Ghanaian Ministry of Lands and Natural Resources ("MLNR") for an expanded mining lease in respect of the company’s principal Akrokeri-Homase project (“AKHM”) in south-western Ghana.
The Akrokeri-Homase project hosts a JORC Code compliant 602,000 oz gold resource at an average grade of 1.77 grams per tonne (“g/t”). The project’s existing resource is confined to a 4km zone of the Homase Trend, including Homase North, Homase Pit and Homase South.
The gold exploration company said the AKHM lease now accommodates the proposed Homase North and Homase Central pits as well as the expanded Homase South Pit with the increased minable resource by 86,900 ounces of gold at depth, representing a 257% rise on the previous estimate of 33,800 ounces of gold, within the existing JORC resource.
The Lease has been granted for an initial period of 10 years to coincide with the date of the award of the original mining lease, announced on 14 February 2020 (the "Original Lease").
The Company added that it is also the process of updating the Definitive Economic Plan ("DEP"), an important step as it demonstrates the viability for a low cost mining operation.
Upon the receipt of the Environmental Permit for the Homase South Pit, based on the Original Lease, a corresponding application to the Ghanaian Environmental Protection Agency ("EPA") will be submitted for the Lease.
GRL said it continues to liaise with the EPA in regard to the Environmental Permit and with the Ghanaian Minerals Commission on the operational permits for the Homase South Pit.
Though the ongoing COVID-19 pandemic has caused delays in this regard, the company said it remains in a position to immediately commence operations upon receipt of the permits, with an estimated timeline for the first gold pour being within two months of such grant.
It has now taken delivery of the majority of the processing plant required at Homase South, including the pad HDPE lining system along with crushing, screening, agglomeration and conveying and stacking equipment, which is now fully assembled and cold commissioned.
Meanwhile, the Company said it has also received delivery of pumps, carbon in column ("CIC") columns, electrical control panels and 4 x 500 kVA diesel generators at site, ensuring that operations at site will be protected from the risk of unstable electricity supply.
Commenting on the lease extension, Emma Priestley, CEO of GoldStone, commented:"We are pleased to have received approved by the MLNR for the expanded Lease and continue to work closely with the relevant Ghanaian Ministerial bodies to finalise the grant of the requisite permits to enable open pit mining to commence at Homase South Pit.”
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