Goldstone Resources Ltd
27 April 2005
GOLDSTONE RESOURCES LIMITED ('GoldStone' or the 'Company')
UPDATE ON BAUXITE
On 15 April 2005, the Company announced that it was in the final stages of
negotiation with a major player in the alumina industry in respect of its
bauxite interests.
GoldStone holds two general reconnaissance permissions over an area totaling
approximately 17,000 square kilometres in Guyana. Under the permissions,
GoldStone has exclusive rights to apply for 20 prospecting licences over smaller
parts of the lease areas.
In order to effect the proposed transaction over the bauxite interests,
GoldStone would be required to release its exclusive rights to apply for 8
prospecting licences, thereby reducing its entitlement to 12 prospecting
licences. If this were to happen, the Directors believe it may have an adverse
impact on the advancement of the Company's gold interests.
In order to maintain its existing rights, GoldStone has entered into discussions
with the Guyana Geology and Mines Commission ('GGMC') over the grant of an
additional and separate reconnaissance permission specifically aimed at bauxite.
It is envisaged that such a new permission would host its own exclusive rights
to apply for a number of prospecting licences relating to bauxite. The proposed
permission may cover an area greater than the known extent of the Company's
bauxite deposit. The GGMC has verbally indicated that they are, in principle,
favourably disposed towards such a new permission. Formal approval is required
and the application process will commence this week.
As a result, the Directors anticipate that conclusion of the agreement over the
bauxite interests will take longer than previously anticipated. The party with
whom negotiations are being conducted is in favour of the proposed application
for a new permission, which will increase the number of potential prospecting
licences for bauxite.
Contact:
GoldStone Resources Ltd 00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)
This information is provided by RNS
The company news service from the London Stock Exchange