Goldstone Resources Inc.
TSX : GRC
PINK SHEETS : GRSZF

Goldstone Resources Inc.

February 22, 2010 11:32 ET

Goldstone Reports Best Intercept To-Date From Deep Drilling at Hardrock Project

5.37 g/t (0.16 oz/t) gold across 57.1m (187.3 feet)

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2010) - Goldstone Resources Inc. (TSX:GRC) (PINK SHEETS:GRSZF) today announced that deep step-out drilling at the Hardrock Project, including the deepest hole ever drilled to test the North Zone horizon, has returned multiple zones of gold mineralization including the best intercept drilled to date.

The Hardrock Project is a joint venture with Premier Gold Mines Limited (TSX:PG) as operator in which Goldstone holds a 30% carried interest. Drilling there continues to define high-grade gold within several sub-zones within the main North Zone below the bottom level which was historically mined.

Drill Hole MM092, representing the initial hole from which additional wedge holes will be drilled, and hole MM092A (the first wedge hole) have intersected multiple lenses of gold mineralization. Combined the three zones assayed 5.37 grams per tonne gold (g/t Au) across 57.1 metres (m) or 0.16 oz/ton across 187.3 feet, with sub-zone intervals that include 7.79 g/t Au (0.23 oz/ton) across 13.9 m (45.6 feet), 8.92 g/t Au (0.26 oz/ton) across 6.0 m (19.7 feet) and 7.56 g/t Au (0.22 oz/ton) across 16.0 m (52.5 feet). MM092A intersected multiple zones including 7.59 g/t Au (0.22 oz/ton) across 23.3 m (76.4 feet) with a higher grade interval of 11.36 g/t Au (0.33 oz/ton) across 9.4 m (30.8 feet). This drilling tested the North Zone deeper and along strike from initial deep drilling that returned multiple high-grade intersections that include 39.20 g/t Au across 4.8 m, 8.41 g/t Au across 22.9 m and 10.05 g/t Au across 24.2 m, further confirming that the North Zone is wide open for expansion at depth. 

"We are pleased with continuing excellent results at the Hardrock Project," said J. Patrick Sheridan, Goldstone Chief Executive Officer. "They are a strong evidence to support our longstanding belief that the Beardmore-Geraldton camp is underexplored."

The first seven holes drilled by Premier to test the down-dip potential of the mined portion of the North Zone have all intersected multiple zones of gold mineralization up to 125 metres below the bottom mine level and are profiled on longitudinal section in Figure 1.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/hardrockprojectFig1.pdf

The North Zone was previously mined to a depth of 616 metres (2,022 feet) with production of three (3) million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). The North Zone had been mined along a total plunge length of one kilometre (km) and mineralization has now been extended another 250 m along that plunge below the bottom of the McLeod Mine. For comparison, the F Zone is also open at depth and is indicated in mining and historic underground drilling for over 3.5 km along its plunge

Table 1 summarizes the gold intercepts in holes MM092 and 92A in addition to previously announced results from the first section drilled some 50 metres to the east:

 Table 1 – Detailed Results of Deep North Zone Drilling

Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To   (m) Interval (m) Grade     (g/tonne) Interval         (ft) Grade (oz/ton) Zone
MM050* 5503375 E 503714 N -73/180 662.7 667.5 4.8 39.20 15.7 1.14 North A
681.0 684.0 3.0 3.64 9.8 0.11 North A
703.9 710.8 6.9 4.03 22.6 0.12 North B
including 703.9 706.5 2.6 7.90 8.5 0.23 North B
  742.5 744.0 1.5 3.06 4.9 0.09 North D
MM050A*  (wedge hole) 5503375 E 503714 N -73/180 651.4 654.7 3.3 18.86 10.8 0.55 North A
667.5 669.8 2.3 2.58 7.5 0.08 North B
767.5 768.5 1.0 5.46 3.3 0.16 North D
737.5 739.0 1.5 3.63 4.9 0.11 North C
MM079* 5503376 E 503714 N -78/180 716.0 717.0 1.0 21.30 3.3 0.62 North A
728.0 729.4 1.4 7.58 4.6 0.22 North B
740.0 743.7 3.7 7.79 12.1 0.23 North C
767.0 768.5 1.5 6.55 4.9 0.19 North D
782.5 784.0 1.5 21.90 4.9 0.64 North E
MM079A* (wedge hole) 5503376 E 503714 N -78/180 676.6 699.5 22.9 8.41 75.1 0.25 North A
including 687.4 695.5 8.1 15.95 26.6 0.47 North A
  714.6 727.0 12.4 5.66 40.7 0.17 North B
733.0 746.0 13.0 3.68 42.6 0.11 North C
including 741.7 743.2 1.5 10.70 4.9 0.31 North C
  759.0 760.5 1.5 5.17 4.9 0.15 North D
MM079B* (wedge hole) 5503376 E 503714 N -78/180 679.1 703.3 24.2 10.05 79.4 0.29 North A
including 679.1 681.3 2.2 39.69 7.2 1.16 North A
including 697.0 700.5 3.5 18.73 11.5 0.55 North A
  712.5 717.2 4.7 4.79 15.4 0.14 North B
  727.5 729.0 1.5 3.83 4.92 0.11 North C
  751.5 753 1.5 2.62 4.92 0.08 North D
MM092 503650E 5503375N -78/180 719.6 776.7 57.1 5.37 187.3 0.16 North
including 719.6 733.5 13.9 7.79 45.6 0.23 North A
including 744.0 750.0 6.0 8.92 19.7 0.26 North B
including 760.7 776.7 16.0 7.56 52.5 0.22 North C
  783 784.5 1.5 7.62 4.9 0.22 North D
MM092A(wedge hole) 503650E 5503375N -78/180 712.7 736.0 23.3 7.59 76.4 0.22 North A
including 712.7 722.1 9.4 11.36 30.8 0.33 North A
  742.9 754.8 11.9 8.71 39.0 0.25 North B
including 742.9 748.8 5.9 13.58 19.4 0.40 North B
  759.5 762.0 2.5 12.52 8.2 0.37 North C
  770.9 774.1 3.2 8.84 10.5 0.26 North D
  778.0 783.0 5.0 5.13 16.4 0.15 North E

* Previously Released - True widths estimated at 50-70% of intersection widths

Four drills are currently active at Hardrock, testing both open pit and underground type targets. Several potential open pit zones have been delineated and will be included into a NI43-101 compliant resource estimate that is expected to be completed in the near future (initial open pit resource). Drilling will continue to expand the open pit zones and delineate underground-style zones of mineralization that will be included in an updated resource at the end of the 2010 drill program. 

At Hardrock, significant potential exists for developing resources in several areas including: 

  • Open pit-style mineralization in the main areas, the Tenacity, EP (includes NN) and Kailey Zones. Significant results to-date include 15.97g/t Au across 32.1 m and 4.13g/t Au across 18.9 m in the Tenacity Zone, 5.2g/t Au across 37.0 m and 19.0g/t Au across 11.3 m in the EP Zone, 6.4g/t Au across 22.4 m and 52.9g/t Au across 7.9 m in the NN Zone, and 1.47 g/t Au across 162.0 m and 2.16g/t Au across 92.2 m in the Kailey Zone;

  • Underground-style mineralization in the SP Zone where drilling has returned numerous significant intercepts including 6.6g/t Au across 32.6 m and 9.7g/t Au across 11.8 m;

  • New high-grade, narrow-vein targets, including the HGN discovery where recent drilling has intersected significant visible gold with intercepts that include 1,141.5g/t Au (33.3 oz/ton) across 2.0 m and 49.8g/t Au across 6.0 m, and potentially three new recently intersected zones where assays are pending;

  • Historical (non NI 43-101 compliant) resource blocks that reside within the mine workings; and

  •  Main mined zones which are open below the 600m Level as tested by holes MM050, MM079 and MM092.

The Hardrock Project is host to several past-producing mines, which collectively produced nearly 3.0 million ounces of gold primarily from shallow depths within 600 metres of surface between 1938-1968. The area benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

About Goldstone:

Formed by late 2009 merger of Ontex Resources and Roxmark Mines, Goldstone Resources is a well funded gold exploration and development company operating in the historically significant Geraldton-Beardmore area of Northwestern Ontario and focused on gold exploration and deposit delineation at its Brookbank, Northern Empire, Leitch-Sand River and Key Lake gold properties in the Geraldton-Beardmore Camp. The Camp is host to several past producers in a district that has historical production of more than 4.1 million ounces of gold.

At a 3.4 g gold per tonne cut-off grade, with assays uncut, drilling has established 1.33 million tonnes grading 9.8 g gold per tonne containing 418,500 ounces of indicated resource and 1.09 million tonnes grading 8.0 g gold per tonne containing 260,000 ounces of inferred resource at Brookbank. (See National Instrument 43-101 technical report –"Technical Report on the Brookbank Gold Deposit, Beardmore-Geraldton Area, Northern Ontario, Canada" by Scott Wilson RPA Inc. dated May 4, 2009, as filed on SEDAR.)

In addition, Goldstone has a 30% carried interest in the Hardrock Project in the Geraldton area, a joint venture with Premier Gold Limited, with Premier as operator. NI 43-101 resource estimates for both open pit and underground resources at the Hardrock Project are expected in 2010. Both Goldstone and Premier will be mounting aggressive exploration programs over the coming year.

Further information is available on the Company's website at www.goldstoneresourcesinc.com and on SEDAR under the Company's profile at www.sedar.com.

Forward-Looking Statements

This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Neither Toronto Stock Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Goldstone Resources Inc.
    J. Patrick Sheridan, Jr.
    Chief Executive Officer
    (416) 864-6332
    Fax: (416) 628-5935