Goldstone Resources Inc.

Goldstone Resources Inc.

February 04, 2010 11:18 ET

Goldstone Reports Encouraging Results From Preliminary Drilling at Leitch Gold Mine Property

High grade mineralization, bulk potential confirmed in #16 vein system

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2010) - Goldstone Resources Inc. (TSX:GRC) (PINK SHEETS:GRSZF) today announced encouraging results from preliminary shallow drilling carried out on its 100%-owned Leitch-Sand River Mine property in the Beardmore-Geraldton area of Northwestern Ontario. Completed in late December 2009 without the benefit of airborne survey data and consisting of nine holes for a total of 966 metres, the limited program was designed to explore the #16 vein system and validate previous exploration carried out in the late 1980s.

Results confirmed the existence of both high-grade gold mineralization (48.3 g/t Au -1.41oz/t- over 0.30 metre in hole 16-2009-04, approximately 45 metres down plunge from an intersection of 102.5 g/t -2.99 oz/t - over 0.30 metre in hole L16-12-81) and bulk tonnage potential (0.53 g/t over 15 metres in hole 16-2009-05). The latter zone has an estimated strike length of 200 metres, extending from current hole 16-2009-08 to hole H16-23-81 completed in 1981, and is open at both ends. Infill core samples are currently being taken for assay.

For 2010, Goldstone is assessing the drill results along with information now available from the recent aeromagnetic survey and anticipates an aggressive drilling program to evaluate at least 14 targets on the Leitch-Sand River property, including the #16 vein which was originally exposed on the 8th level (900 feet) and graded 1.53 oz/t Au over 0.63 feet, with a strike length of 805 feet. Historical mine records indicate that a total of nearly 3,600 tons grading 0.56 oz/t were mined and milled from the #16 vein.

"We are, quite literally, barely scratching the surface at the Leitch-Sand River property," said J. Patrick Sheridan, Goldstone CEO. "On the strength of historical records, what we can see from current drilling and airborne survey results, and on the results posted by Premier Gold from drilling on our joint venture lands in the area, we believe that a great deal of gold—at all depth horizons—was left behind decades ago by operators at the Leitch and other mines in the Geraldton and Beardmore camps."

Highlights assays from drill holes, based on assays received to date:

Hole-ID Dip From To Length (m) Au (g/t) Au (oz/t) Notes
-45 107.50 108.00 108.70 108.30 1.20
Trench 16-1 assays: 0.959 oz/t Au over 0.68' for strike 95'
L16 – 12 - 81
-45 40.60 41.40 41.70 41.70 1.10
45 m above 16-09-04
16-2009-08 -45 60.60 72.00 60.90 72.50 0.30
Trench 16-3 assays: 0.139 oz/t Au over 0.27' for strike 85'
87 – 19 -45 14.20 16.75 14.45 17.15 0.25
Trench 16-3
16-2009-09 -45 119.50 120.50 1.00 2.44 0.07 Trench 16-5 assays: 0.667 oz/t Au over 1.09' for strike 78'
16-2009-05 -45 43.00 58.00 15.00 0.53 0.02 Potential for bulk tonnage
NOTE: True widths estimated at approximately 70% of intersection width

The Leitch-Sand River Mine is located seven kilometres from Goldstone's Northern Empire mill in Beardmore, Ontario and encompasses the Leitch Mine, once Canada's richest. Historically, the mine produced 847,900 oz with an average ore grade of 0.92 ounces per ton. The Leitch Mine was shut down in 1965 as a result of US$35/oz gold and boundary disputes which Goldstone has eliminated by acquiring the Sand River Mine. The Leitch Mine was shallow by the standards of top producers in nearby camps. It never ran out of gold at depth and both ore grade and vein width increased with depth. Mining records of the time record several drill assays of more than two ounces per ton over two feet located 100 feet below the 30th level.

Peter Bevan, P. Eng., consulting geologist, 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 samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Thunder Bay, 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 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 Camp, 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 and on SEDAR under the Company's profile at

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.

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