Goldstone Resources Inc.

Goldstone Resources Inc.

March 08, 2010 07:30 ET

Goldstone Resources Plans Aggressive 2010 Exploration Program

Supplements joint venture program operated by Premier Gold

TORONTO, ONTARIO--(Marketwire - March 8, 2010) - Goldstone Resources Inc. (TSX:GRC) (PINK SHEETS:GRSZF) today announced an aggressive 2010 exploration program on its 100%-owned properties − including Brookbank, Leitch-Sand River, Northern Empire and Key Lake − in the Geraldton-Beardmore Greenstone Belt in Northwestern Ontario.

In addition to extensive data evaluation and surface exploration across the area, Goldstone plans to carry out drilling on targets currently being identified from a review of historic records and correlation of recent drilling with analysis of the 2009 aeromagnetic survey results. A significant portion of this first phase of drilling will be directed at targets identified on the Leitch-Sand River property.

Operated continuously over a period of nearly 30 years and producing 861,980 oz with an average recovered grade of 0.92 ounces per ton, the Leitch Mine was shut down in 1965 as a result of $35 gold and boundary disputes which Goldstone eliminated by acquiring the neighbouring Sand River Mine. 

Like other mines in the Geraldton-Beardmore Belt, The Leitch Mine was shallow by the standards of top producers in nearby camps and never ran out of gold at depth, with both ore grade and vein width increasing with depth. Also typically, existing historic resources were left in place within the workings when mine production ceased. For example, mine 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.

The Leitch-Sand River Property is located within seven kilometres of Goldstone's Northern Empire mill and contains several prime targets for additional exploration. The initial program will be directed to drill the #16 Vein System, the Creek Vein Zone, the Hanging Wall Vein No. 2 and other untested geophysical and geochemical targets.

Historical drilling in 1987 on the Creek Vein has outlined a strike length exceeding 800 feet. Significant intersections are:
Hole 87-34 intersected 0.156 oz/t Au over 56.0 ft;
    including intersection of 0.250 oz/t Au over 43.2 ft;
Hole 87-24 intersected 0.123 oz/t Au over 25.3 ft;
Hole 87-37 intersected 0.131 oz/t Au over 11.9 ft.
The #16 Vein system contains five areas of interest which were exposed on surface and drilled to a shallow depth. Significant hole No. 16-12 returned 0.495 oz/t over 4.80 feet at a vertical depth of 50 feet below the surface.

Reconnaissance prospecting and geological mapping are being considered for other areas within the Brookbank property, located 11 km from Goldstone's fully permitted mill. Prime targets include the Hillside Showing, Oxaline Lake, Nordic Lake and Patter Lake. The Oxaline area is located east of Solomon's Pillars and was covered in Quantec's airborne geophysical survey. Gold mineralization within the Brookbank deposit was outlined in an NI 43-101 report issued in 2009. (See National Instrument 43-101 technical report –"Technical Report on the Brookbank Gold Deposit" by Scott Wilson RPA Inc. dated May 4, 2009, as filed on SEDAR.) 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. 

Additional studies will be carried out during the year to further expand the value of the Northern Empire mine and the Key Lake property. The Key Lake is located in Geraldton adjoining the Hardrock Project. The property contains the Jelex Mines and has an historical production of 5,675 oz of recovered gold from milling 14,722 tons with an average grade of 0.38oz/t. Placer Dome Canada and Cyprus Canada completed a drilling program in excess of 34,000 metres outlining an open pit-style mineralization. In 1998, S. E. Malouf Consulting Geologists calculated historical resources of 149,900 ozs of gold from 4,563,000 tons grading 0.03 oz/t Au.

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. 

"We have a large number of high grade potential targets on our 100%-owned properties," said J. Patrick Sheridan Jr., Goldstone CEO. "We are exhaustively analyzing databanks in order to prioritize these targets for the 2010 field program."

Goldstone also holds a 30 percent carried interest in the Hardrock Project, a joint venture in the Geraldton Camp with Premier Gold Mines Limited (TSX:PG). In 2009, more than 90,000 metres of drilling was completed at Hardrock, successfully identifying multiple gold zones. 

As operator, Premier has also announced its intention to drill an additional 70,000 metres on Goldstone Properties in the Hardrock Project in 2010. Drilling will continue to focus on delineating both open pit and underground zones with the goal of identifying gold resources that can be advanced quickly toward development. An NI 43-101 compatible estimate for shallow gold resources discovered at the Hardrock Project is expected soon; a separate estimate for resources at deeper horizons will be released later in the year.

The Geraldton-Beardmore Greenstone Belt offers development advantages through the presence of existing infrastructure including the Trans-Canada Highway, Trans-Canada Pipeline, and the electric power grid—as well as above ground and underground mine workings. 

About Goldstone:

Formed by a 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 from high grade ore before being shut down primarily as a result of a $35 gold price.

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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