Company Announcements

8 July 2024

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Homase Mine Update

GoldStone Resources Limited (AIM:GRL) is pleased to provide an operational update in respect of the Homase Gold Project in south-western Ghana ("Homase").

Highlights

·    Continuous operations maintained at Homase during H2 2023 and H1 2024:

o  Current operation achieving mining and stacking agglomerated ore at an average of 5,400 tonnes pcm

o  2024 production to date of 1,350 troy ounces of gold following last gold pour on 18 June 2024 (Figure 1)

o  Significant increase in gold recovery to 68% over the past six months

o  On track to increase production to deliver the planned 50,000 tonnes of stacked and agglomerated ore, targeting gold-production of 1,000oz pcm within six months

·    Exploration activities continue to demonstrate the potential to materially expand Homase's current JORC Code Compliant Resource of 602,000oz gold resource at an average grade of 1.77 g/t

Emma Priestley, CEO of Goldstone, commented:

"The Company remains focused on delivering Shareholder value, and this is why the difficult decision was taken in 2023 to halt production and review the design of the processing plant. Despite the many challenges associated with the Company's ordinary shares being suspended from trading for such a long period of time, the Board and management team have remained committed to building value for our Shareholders and are now pleased that the upgraded plant is delivering the improved heap-leaching gold recoveries we targeted. 

"Importantly, the capital-expenditure requirements to increase gold production are relatively minimal henceforth, merely requiring completion of leach pads 5, 6, and 7 and construction of an additional pond. These works will allow the Company to further realise the considerable potential of the Homase Mine's oxide resource base, with the key objective of increasing monthly gold production to 1,000 ounces within six months and achieving [increased operating] cash flow through optimising unit costs and decreasing G&A exposure.

"I would like to thank the Board and the Company's advisers for their support and to the management team in Ghana for maintaining the mining operations in good order - and especially the Shareholders for their patience as we focused on improving the gold recoveries and ensuring a long-life mining operation."

Homase Gold Project - Production

In 2023, the Company elected to suspend mining in order to evaluate processing options. This was facilitated by the £2.4 million investment, announced on 27 January 2023, which enabled engineering improvements and further test work to be undertaken.

As announced by the Company on 31 May 2023, the Company's process plant on site was extensively upgraded during 2023, with the acquisition of vibrating screens, improved cement feed, and the introduction of a radial stacker, resulting in a significant increase in gold recovery rate to 68% demonstrated over the past two months (2022 average of 34%). The Company is now on track to start increasing production to deliver the planned 50,000 tonnes of stacked and agglomerated ore within six months, and this level is expected to be maintained on a monthly basis to ensure that gold-production targets of 1,000oz pcm can be achieved.

The Company has now hired a 50-tonne excavator and three 45-tonne ADT trucks (Figure 2), which will allow a substantial increase in production from Homase's Pit 2, which is yielding an average grade of 1.1g/t.

On the heap leach pads, the Company has levelled and compacted Pads 1, 2 and 3 in readiness for the second lift - superimposition of the next layer of ore for leaching. Pad 4 is nearing completion, Pad 5 is being constructed, and civil engineering has begun for Pads 6 and 7.     

Another important achievement in 2023 was the commissioning of the on-site laboratory, allowing the Company to undertake continuous Column Leach test work and Fire Assays, with the appropriate microbalances and an Atomic Absorption machine to ensure accurate analysis. This facility now enables better grade control, critical for both mining and processing.  

Despite limited cash resources during 2023 and H1 2024, the Company remained focused on resuming mining and increasing production, and with the equity raise announced on 24 May 2024, the Company was able to return to trading and the Board now look forward to progressing operations. 

Figure 1. June 2024 Gold Doré Bar - 280 ounces

Figure 2. The 50-tonne excavator loading one of the three 45-tonne ADTs in Pit 2 at the Homase Mine

Figure 3.  The Company's Laboratory with the Muffle Furnace and Column Leach Test Work

Continued Desk Review for Exploration

Throughout 2023 and in H1 2024, the Company continued to review historical exploration datasets for the Homase mine and its extended mineralised trend, as described in the Company's announcement on 20 June 2018, that extends north-east and south-west of the current Homase Mine and is open at depth. Within the Homase mining lease, the mineralised zone extends over NNE-SSW distance of approximately 5km including a substantial deeper gold resource of c. 600,000 oz underlying and NNE of the Homase pit. There is also a parallel zone (Adubriem) around 800m in length within the exploration permit area that has yet to be systematically explored, as shown in Figure 4. 

Historical records show that there was significant close-spaced drilling undertaken beneath the former pit mined by Ashanti Goldfields Corporation ("AGC" - now AngloGold Ashanti) between 2002 and 2003, and it is evident that the grade improves markedly at depth with the transition through 5-10 m of transition ore to sulphide ore. This former AGC pit is referred to as Pit 4 under the current mine plan.

Notwithstanding the mineralogical changes with depth, the oxide cap that is currently being mined along the Homase trend is some 40-50 metres thick and averages 1.1g/t.

The Company is fortunate to have the feasibility study and metallurgical testwork data that was undertaken by AGC in the early 2000s and this shows that the primary sulphide ore is predominantly non-refractory. Drilling beneath the AGC pit (now Pit 4), in 2011 and 2012 was made in sections to 25m intervals along strike.  The results from the drilling programme were announced during the 2011 - 2012 period, concluding with the JORC Resource in announcement 22 November 2012.  Results recorded as announced 5 December 2011, showed mineralised zones over 10 metres wide on the vertical with a grades in excess of 6g/t.  The Company intends to undertake further drilling of this section of the Homase trend, including Pits 1-4, targeting the primary ore.

Figure 4.  Plan showing the target areas for exploration

For further information, please contact:

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted mining and development company with projects in Ghana that range from grassroots exploration to production.

The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts a JORC Code compliant 602,000oz gold resource at an average grade of 1.77 g/t. The existing resource is confined to a 4km zone of the Homase Trend, including Homase North, Homase Pit and Homase South.

The project hosts two former mines, the Akrokerri Ashanti Mine Ltd, which produced 75,000 oz gold at 24 g/t recovered grade in the early 1900s, and the Homase Pit which AngloGold Ashanti developed in 2002/03 producing 52,000 oz gold at 2.5 g/t recovered. Production is currently focussed on the Homase Mine however it is the Company's intention to build a portfolio of high-quality gold projects in Ghana, with a particular focus on the highly prospective Ashanti Gold Belt.