We have been monitoring Goldstone Resources (AIM:GRL) very closely in recent weeks. After emerging from a difficult few years the company has recently morphed into a pure gold exploration company with some territory in the most highly prospective areas of the world.
By highly prospective we are talking about Goldstone’s two projects in Ghana and a project in Senegal. In all three cases the projects are in known gold exploration and mining zones and, notably, all three are located close to a number of multi-million ounce gold projects.
More importantly, in the case of the Homase licence in Ghana, the company also has a project previously drilled extensively a few years ago, the data for which the company was able to acquire with the project. This has enabled Goldstone to develop a JORC compliant resource which it announced to the market yesterday (click here to view).
We contacted the Exploration Director, Dr Hendrik Schloemann with a few questions and give him the opportunity to expand on todays news for the benefit of investors.
Here's what he had to say:
MM: Can you expand a little on the significance of today's JORC announcement?
HS:We have been pleasantly surprised by the fact that 81% of the resource is in the indicated and measured categories. The higher valuation and measure of confidence ascribed to such a resource as opposed to a majority inferred resource is not something we expected at this early stage. What’s interesting is that it appears that the market does not understand the different values ascribed to the categories and the measure of confidence one can assume for a measured resource as opposed to an inferred resource.
MM: What do these results contribute to your understanding of the resource?
HS:The fact that 81% of the resource was classified in the indicated and measured categories and that the ore is within 200 meters of the surface indicates that an enlarged resource can potentially be exploited by open pit mining methods. Before we however start to think of scoping studies we would have to upgrade the resource to at least 600,000 ounces or more. Given the obvious exploration targets below the present resource and along strike, this is a realistic aim. Under the pit high grade ore shoots were identified and, following the geological Obuasi model where present day mining activities have reached a depth of close to 2000m, these shoots are likely to extend to larger depths. The continuation of the mineralisation along strike is indicated by a gold in soil anomaly. Both targets will be the focus of future exploration.
MM: What does the planned Homase exploration programme entail and what is the broad timetable for completion?
HS:The first exploration step will an airborne geophysical survey (subject to board approval) which is suitable to survey zones of higher conductivity in the rocks below far below the surface. One has to understand that the mineralised rocks at Homase are more conductive then than other rocks in the area. Therefore the survey will allow us to see to what extent and where the high grade ore shoots continue to depth. Drilling will be targeted at higher conductivity zones which connect to known high grade ore shoots close to surface and will comence this year.
MM. Is Homase the priority for Goldstone Resources and to what extent are you planning to conduct exploration at Manso Amenfi (Ghana) and Sangola (Senegal)?
HS:Homase currently is our flag ship project and we’d concentrate a lot of attention to it but at the same time we believe that Manso Amenfi and Sangola are extremely exciting prospects that beg to be worked on. Both these projects would require, comparatively speaking, less funds for exploration but could yield early indications of prospectivity.
END
To download the latest analyst research note on Goldstone Resources, click here
This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otheriwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies.
MM: Can you expand a little on the significance of today's JORC announcement?
HS:We have been pleasantly surprised by the fact that 81% of the resource is in the indicated and measured categories. The higher valuation and measure of confidence ascribed to such a resource as opposed to a majority inferred resource is not something we expected at this early stage. What’s interesting is that it appears that the market does not understand the different values ascribed to the categories and the measure of confidence one can assume for a measured resource as opposed to an inferred resource.
MM: What do these results contribute to your understanding of the resource?
HS:The fact that 81% of the resource was classified in the indicated and measured categories and that the ore is within 200 meters of the surface indicates that an enlarged resource can potentially be exploited by open pit mining methods. Before we however start to think of scoping studies we would have to upgrade the resource to at least 600,000 ounces or more. Given the obvious exploration targets below the present resource and along strike, this is a realistic aim. Under the pit high grade ore shoots were identified and, following the geological Obuasi model where present day mining activities have reached a depth of close to 2000m, these shoots are likely to extend to larger depths. The continuation of the mineralisation along strike is indicated by a gold in soil anomaly. Both targets will be the focus of future exploration.
MM: What does the planned Homase exploration programme entail and what is the broad timetable for completion?
HS:The first exploration step will an airborne geophysical survey (subject to board approval) which is suitable to survey zones of higher conductivity in the rocks below far below the surface. One has to understand that the mineralised rocks at Homase are more conductive then than other rocks in the area. Therefore the survey will allow us to see to what extent and where the high grade ore shoots continue to depth. Drilling will be targeted at higher conductivity zones which connect to known high grade ore shoots close to surface and will comence this year.
MM. Is Homase the priority for Goldstone Resources and to what extent are you planning to conduct exploration at Manso Amenfi (Ghana) and Sangola (Senegal)?
HS:Homase currently is our flag ship project and we’d concentrate a lot of attention to it but at the same time we believe that Manso Amenfi and Sangola are extremely exciting prospects that beg to be worked on. Both these projects would require, comparatively speaking, less funds for exploration but could yield early indications of prospectivity.
END
To download the latest analyst research note on Goldstone Resources, click here
This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otheriwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies.
Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.
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