Goldstone Resources Inc.
TSX : GRC
PINK SHEETS : GRSZF

Goldstone Resources Inc.

January 18, 2011 15:42 ET

Goldstone Announces Eight-Rig Exploration Program Planned for Hardrock Project in 2011

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2011) - Goldstone Resources Inc. (TSX:GRC)(PINK SHEETS:GRSZF) today announced that the 2011 exploration program at the Hardrock Project joint venture by Premier Gold Mines Limited (TSX:PG) as operator will employ eight drill rigs and will be dedicated to further delineating resources.

Goldstone holds a 30% carried interest in the Hardrock Project, for which an updated NI43-101 resource estimate is expected late in the first quarter of 2011.

The more than 110,000 metres of drilling done at the Hardrock Project in 2010 was successful in identifying and delineating multiple open pit and underground style gold zones with the following highlights:

  • Early in 2010, a large NI43-101 compliant open pit resource was announced. It is anticipated that this resource will be updated in latter portion of Q1 2011 and include all drilling to the end of 2010.
  • Drilling has expanded the footprint of the North Zone, which hosted an historic production grade of 7.54 grams per tonne of gold (g/t Au) or 0.22 ounces per short ton (oz/ton) more than 600 metres down-plunge below the bottom level of the Hardrock Mine where it remains wide open for expansion.
  • Drilling successfully delineated and expanded the F-Zone deposit with intersections such as 7.92 g/t Au across 114.5 metres (m) (0.23 oz/t across 375.6 feet) including 23.56 g/t Au across 31.0 m (0.69 oz/ton across 101.7 feet) within the historic F-Zone resource area and 18.49 g/t Au across 20.5 m (0.54 oz/t across 67.2 feet) in step-out drilling approximately 400 metres west of the limits of previous exploration.
  • New discoveries were made including the K-Zone, located just below the F-Zone. A full summary of results will be released in the near future.

In 2011, permit submittals will be made for Advanced Exploration (de-watering and ramp construction).

"We are pleased with the continuing intensive pace of exploration and discovery at the Hardrock Project," said Philip Cunningham, Goldstone Chairman and Interim CEO. "In 2011, Goldstone will also be actively exploring next door on our 100%-owned Key Lake property where our objective is to establish a NI 43-101 resource that can be developed by open pit methods."

Located near Geraldton, Ontario, the Hardrock Project is host to several past-producing mines which collectively produced more than 3.0 million ounces of gold, primarily from shallow depths of 2000 feet or less (600 metres). The mined zones remained wide open at depth at the time mining ceased. Additionally, developed but unmined historic resources were left in place within the existing mine workings.

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, or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

About Goldstone

Goldstone Resources Inc. is a gold exploration and development company operating in the Geraldton-Beardmore camp of Northwestern Ontario, host to mines with historical production of more than 4.1 million ounces of gold from high grade ore - and to Goldstone's fully permitted Northern Empire mill. Goldstone is focused on exploration and deposit delineation at its 100%-owned Key Lake, Brookbank, Northern Empire, and Leitch-Sand River gold properties, and as a partner with a 30 percent carried interest in the Hardrock Project joint venture with operator Premier Gold Mines Limited.

NI 43-101-compliant resource estimates for the Company's Brookbank deposit (dated May 2009) and Northern Empire Mine properties (dated November 2008) contain combined indicated and inferred resources in excess of 800,000 ounces of gold.

Goldstone Resources Inc.

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

Forward-Looking Statements

This news release may contain forward-looking information under applicable securities laws concerning Goldstone's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward looking information is frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "intend" and similar words referring to future events and results. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, delay or inability to retain a senior exploration and/or operating officer, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions and changes in conditions in the financial markets. Readers are cautioned not to place undue reliance on this forward-looking information as actual results may differ materially from those expressed or implied in the forward looking information. Goldstone does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

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

Contact Information

  • Goldstone Resources Inc.
    Philip Cunningham
    Chairman and Interim CEO
    (416) 860-1636
    www.grcmines.com