AUS
NZ
UK
CA
USA
IND
_10_04_2024_16_38_50_427275.jpg)
Goldstone Resources Limited (AIM:GRL) has provided a comprehensive operational update regarding its Homase Gold Project located in south-western Ghana, highlighting significant achievements and future prospects. The company has successfully maintained continuous operations through the second half of 2023 and the first half of 2024, showcasing its commitment to enhancing shareholder value and operational efficiency.
Operational Achievements
Since resuming operations, GoldStone has achieved notable milestones:
The current operational phase is focused on mining and stacking agglomerated ore, achieving an average of 5,400 tonnes per calendar month (pcm). As of mid-2024, the project has yielded 1,350 troy ounces of gold following the latest gold pour on 18 June 2024, marking a substantial step forward in production output (Figure 1).
There has been a remarkable improvement in gold recovery, reaching 68% over the past six months, compared to an average of 34% in 2022. This increase underscores the effectiveness of recent upgrades and operational adjustments.
GoldStone is on track to ramp up production significantly, aiming to deliver 50,000 tonnes of stacked and agglomerated ore. The target is to achieve a monthly production rate of 1,000 ounces of gold within the next six months, bolstering operational cash flow and optimizing unit costs.
Exploration and Resource Expansion
GoldStone continues to explore the potential for expanding the Homase Gold Project's resource base. Currently, the project boasts a JORC Code Compliant Resource of 602,000 ounces of gold at an average grade of 1.77 grams per tonne. Exploration efforts are ongoing, with promising results suggesting potential increases in the resource size and grade, which could further enhance the project's long-term viability and profitability.
Strategic Decisions and Capital Investments
Emma Priestley, CEO of GoldStone, emphasized the company's strategic decisions and investments aimed at operational enhancement and value creation for shareholders. In 2023, the company took the decision to suspend mining temporarily to reevaluate processing options. Subsequent investments, including a £2.4 million upgrade of the processing plant, have yielded significant improvements in efficiency and gold recovery rates.
Infrastructure and Equipment Expansion
To support increased production capacity, GoldStone has bolstered its infrastructure with key additions, such as a 50-tonne excavator and three 45-tonne ADT trucks. These additions are crucial for optimizing operations at Pit 2, which has been yielding an average grade of 1.1 grams per tonne. Moreover, ongoing construction and expansion of heap leach pads (Pads 4, 5, 6, and 7) underscore the company's commitment to scaling up production capabilities.
A pivotal achievement in 2023 was the commissioning of an on-site laboratory, enhancing the company's ability to conduct rigorous testing and analysis. This facility now supports continuous column leach tests and fire assays, ensuring precise grade control crucial for both mining activities and processing operations.
Financial Resilience and Future Outlook
Despite financial constraints during parts of 2023 and H1 2024, GoldStone's focused approach and recent equity raise in May 2024 have enabled the company to overcome challenges and resume trading. Looking ahead, the company remains optimistic about further optimizing operational efficiencies, increasing production levels, and unlocking the full potential of the Homase Gold Project.
