Goldstone Resources Ltd
25 March 2004
25 March 2004
Goldstone Resources Limited commences trading on AIM
after £5.6 million placing
• Gold exploration in Guyana, South America
• Potential for additional Bauxite JV
Goldstone Resources Limited ('Goldstone' or the 'Company' (AIM: GRL)), which
holds two permits for mineral exploration in Guyana, South America, commenced
trading on AIM today after raising £5.6 million by the placing of 22.4 million
ordinary shares at 25 pence per share to institutional and other investors
through broker Westhouse Securities. Goldstone has a market capitalisation at
the placing price of £15.6 million.
GoldStone will use the funds raised to conduct further exploration within the
two areas covered by the permits in Guyana where it hopes to find economically
mineable gold palaeoplacers similar to the Witwatersrand deposit in South
Africa, one of the largest gold bearing reefs in the world. The exploration is
led by Dr Lawrie Minter, the Company's Director of Exploration, who is an
internationally-recognised placer sedimentologist and Witwatersrand expert.
Witwatersrand palaeoplacers have produced around 40 per cent. (an estimated
50,000 tonnes) of total world gold production.
GoldStone will carry out a systematic drilling programme which may last up to
twelve months depending on meteorological and site conditions. Throughout the
period progress will be assessed frequently. If appropriate, resources may be
diverted to conduct detailed drilling on a specific target with the intention of
bringing a potentially gold-bearing palaeoplacer to a feasibility stage earlier.
In addition, the area covered by the permits contains a lateritic bauxite
deposit. Preliminary sampling by GoldStone suggests the potential for the
deposit is large and in excess of 100 million tonnes of 35 per cent. extractable
alumina. Although the Company will utilise the funds raised to further its
potential gold assets, it will seek to develop the bauxite asset by engaging the
participation of major players in the bauxite industry. Discussions are
currently underway with two parties over potential joint ventures.
Speaking today Chief Executive Nico van der Hoven said:
'We are excited about the possibility of finding a major gold province and are
encouraged by the exploration results obtained during the past two years, in
particular the intersection of a palaeoplacer that yielded gold assay results of
3 g/t over 45 cm. The Company is optimistic about its ability to produce
further results that will enhance the significant interest already shown by the
market. Our drilling programme will commence during the second quarter of this
year and we expect that the first results will be available during the third
quarter of the year. Without losing focus on the gold assets, we will continue
the endeavours to develop the bauxite potential to the point where it underpins
the gold project.'
For more information
Nico van der Hoven Jurie Wessels
GoldStone Resources Ltd GoldStone Resources Ltd
+27 (0) 21 794 4004 / +27 (0) 82 417 0385 +27 (0) 21 794 4004 / +27 (0) 83 212 6669
Bill Staple/Tim Feather Laurence Read/Leesa Peters
Westhouse Securities Conduit PR
Tel: + 44 (0)20 7601 6100 Tel: + 44 (0)20 7936 9095/ + 44 (0)7979 955 923
This information is provided by RNS
The company news service from the London Stock Exchange