GoldStone Resources has projected an initial planned mining rate of 60,000 tonnes per month for the first half of 2022, with a further increase expected in H2 2022.

The company has, to date, recovered approximately 37kg of gold, of which 14.46kg are held as gold doré and the remainder in gold concentrate, with a second pour expected in January 2022.

In the past year, GoldStone stacked 108,000 tonnes of ore onto the heap leach pad, which at the grade of approximately 1.7g/t, equates to approximately 184kg of contained gold. Approximately 20 per cent of the contained gold was recovered which is less than what was expected due to agglomeration issues.

The Company is in the process of carrying out detailed test work and cost analysis to understand the leach kinetics within the heap so as to optimise the recovery of the remaining contained gold.

Indeed, 2021 was riddled with various setbacks, the company adduced in its update report on its loan repayments and operations.

Despite the fact that the company’s production timetable for 2021 was delayed, it was an extraordinary year as well, with the company achieving a set of milestones which ended up in its transformation from a developer to a producer.

As with 2021, the Board expects this year to be very busy for GoldStone, as the Company progresses the development of the Homase Mine by optimising the heap leach process and ramping up production to achieve the previously planned production rate of 25,000 ounces of gold doré per annum.

Emma Priestley, the CEO of Goldstone, commented:

“Whilst 2021 was a difficult year in a number of respects, it was also a year of change, as the Company transformed into a gold producer in challenging circumstances. The Company nevertheless made good progress and has maintained its low cost base strategy, and the Board is grateful for the support of the Company’s existing shareholders and new investors.”
Emma Priestley, CEO, GoldStone

GoldStone’s Loan Repayments

The gold pour announced November, 30 2021, to the amount of 14.46kg of gold doré, has been held in stock to accommodate the October and November 2021 Gold Loan payments to Asia Investments Management Services Limited (“AIMS”), which totalled 11 kilogrammes of gold bullion, as announced on September 20, 2021.

A further gold pour is targeted for early January 2022, and it has been agreed with AIMS that, in order to minimise shipment costs, the October and November 2021 payments will be shipped in January 2022, with no additional interest incurred. The December 2021 Gold Loan Payment, 8kg of gold bullion, due to AIMS will accrue interest until shipment.

The final engineering stages for Cell 3 of the heap leach pad, approximately 7,000m², is being completed, and the geofabric and geomembrane will be laid, the company said. The test work being undertaken on the existing leach pads, including our understanding of the previously encountered agglomeration issues, will feed into the stacking process design for Cell 3, so as to optimise recovery and ensure the cell is ready for stacking late in January 2022.

Exploration Activity

The Company undertook a further geochemical soil sampling programme within the Homase and Akrokeri Licence areas as infill and seeking parallel zones of mineralisation, following the programme carried out in 2018.

In addition, soil sampling was undertaken at a former artisanal mining area in the far north of the Homase licence area. At the former Akrokeri underground mine, a drilling programme has been set out, subject to availability of a rig. The exploration drilling is expected to start as soon as practicable.

The company’s success with its first gold production in 2021, while also ensuring that it remained a low-cost developer is a big milestone. GoldStone has one of the lowest debt to equity ratios with full planned production of 2000oz and expected all-in-sustaining cost (AISC) of less than $600oz for mid-2022.