Business
Senegal Exploration License G
Senegal Exploration License G.
About this update from Goldstone Resources Limited
[{"type":"text","content":"\n RNS Number : 1267C Goldstone Resources Ltd 06 November 2009 \n \n\nGOLDSTONE RESOURCES LIMITED\n\nGOLD EXPLORATION LICENSE GRANTED: SANGOLA, SENEGAL\n\nThe Directors of GoldStone Resources Ltd (\"GoldStone\" or the \"Company\") are pleased to announce that the Company has been granted the Sangola Permis de Recherche (\"Sangola License\") by the Senegalese Ministry of Mines. The Company will be able to commence exploration activities for gold and related minerals as soon as a decree is issued by the Mining Minister, which is expected to occur shortly. \n\nThe Sangola License covers approximately 471 km² and is situated 60km south east of Tambacounda, the largest city in eastern Senegal. The Directors believe the license area to be highly prospective because it is largely unexplored and covers the southern part of the Main Transcurrent Fault Zone (\"MTZ\") of the Kenieba Inlier of Birimian Formation. Historic exploration of the Kenieba Inlier resulted in the discovery of more than 20 million ounces (\"Moz\") of gold. North of the Sangola License the MTZ yielded large gold deposits/mines such as the 3.4 Moz Masawa deposit (Randgold Resources), 2.2 Moz Sabodala mine (Mineral Deposits Limited), the 2 Moz Yatela mine and the 10 Moz Sadiola mine (both IAMGOLD and AngloGold Ashanti). \n\nThe License\n\nSenegal's mining code is based on French civil law. The Government of Senegal is the owner of all minerals and GoldStone has, prior to the granting of the Sangola License, agreed with the State of Senegal the terms of exploration and mining by entering into a Convention de Recherché (\"Convention\"). The Conventionincorporates the following terms:\n\nThe Sangola License is granted for three years and may be renewed twice for two further three year periods. If exploration is successful the Convention prescribes that an operating company will be created in which the State of Senegal will have a free-carried interest of 10%, with an option to take up a further contributing interest of 25%.\n\nUnder the Conventi...