Goldstone Resources Inc.
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Goldstone Resources Inc.

September 28, 2010 12:33 ET

Goldstone-Premier Joint Venture Drilling Expands Deep Gold Zones at Hardrock Project

5.49 g/t Au Across 53.0 m Including 11.34 g/t Au Across 19.5 m

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2010) - GOLDSTONE RESOURCES INC. (TSX:GRC)(PINK SHEETS:GRSZF) today announced that deep drilling by its joint venture partner Premier Gold Mines Ltd. as operator continues to delineate significant gold mineralization in multiple horizons below historically mined zones where more than 2.1 million ounces was produced to maximum depths of only 600 metres at the Hardrock Project in Northwestern Ontario. Goldstone holds a 30 percent carried interest in the Hardrock Project. 

Because of continued success, additional drills are being added such that eleven drill rigs will be operational on the property in the coming weeks. Recent highlights include:

  • Deep drilling in the F-Zone, following up a previously released intersection of 9.28 g/t Gold (Au) across 28.4 metres (m) (0.27 oz/t across 93.2 feet) in MM093, has returned 5.49 g/t Au across 53.0 m (0.16 oz/t across 173.9 feet) including 11.34 g/t Au across 19.5 m (0.33 oz/ton across 64.0 feet), and 4.36 g/t Au across 17.8 m (0.13 oz/ton across 58.4 feet) in MM172.
  • Deep drilling to the west of historical mine workings in the F-zone returned multiple gold intersections including 4.36 g/t Au across 17.8 m (0.13 oz/t across 58.4 feet) and including 8.36 g/t Au across 4.3 m (0.24 oz/t across 14.1 feet) in MM157. Of note, this intersection is located 300 metres west of, and 50 metres below the deepest and western-most mining.
  • Deep drilling in the North Zone and F-Zone continues to intersect strong gold values suggesting excellent resource potential proximal to and below existing mine workings.

"Our deep drilling below the historic mine workings is returning impressive results in three separate areas. This is very significant for the project because it confirms that the historic zones extend to depth and are wide open for expansion" stated Tim Twomey, Exploration Manager for Premier. "Drilling at Hardrock continues to deliver strong results in multiple zones that are expected to add materially to our current gold resource".

"We continue to be pleased with the progress at Hardrock and the excellent results obtained to date, which we believe underscore the unrealized value of both Goldstone and the Beardmore-Geraldton Camp", added Philip Cunningham, Goldstone Chairman and Interim CEO.

F Zone

The F-Zone is the largest of the past-producing mine zones at Hardrock which produced more than 1.4 million ounces utilizing bulk underground methods with widths often exceeding 30 metres (100 feet). Importantly, hole MM172 tested up-plunge of an area where high grade gold mineralization was identified below the F-Zone on the bottom mine level (Level 13) but was never mined. This target, which is interpreted to represent a second lense of the F-Zone, remains wide open for expansion. Current drilling is focusing on defining mineralization proximal to and below the lower levels of the mine. To-date, five holes have been drilled over a 250 metre strike length (complete results presented in Table 1), successfully intersecting high-grade gold mineralization including:

  • 9.28 g/t Au across 28.4 m (0.27 oz/ton across 93.2 feet) including 43.50 g/t Au across 3.0 m (1.27 oz/ton across 9.8 feet) in hole MM093.
  • 5.49 g/t Au across 53.0 m (0.16 oz/t across 173.9 feet) including 11.34 g/t Au across 19.5 m (0.33 oz/ton across 64.0 feet) in hole MM172. This intercept is located approximately 100 metres below the limits of mining of the F-Zone on this section.
Table 1 New Sub Zone Intercepts from F-Zone Deeps - * denotes previously released drill holes
Hole-ID UTM
Coordi-
nates (m)
Dip/
Azi-
muth
(de-
grees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM093* 5502754 N -66/360 564.1 592.5 28.4 9.28 93.2 0.27 F
including 503397 E   588.0 591.0 3.0 43.50 9.8 1.27 F
MM100* 5502754 N
503189 E
-65/360 660.0 694.5 34.5 2.10 113.2 0.06 F
  750.2 759.5 9.3 4.71 30.5 0.14 F
MM116
extension
5502675 N
503300 E
-65/360 816.0 817.5 1.5 9.70 4.9 0.28 F
 
MM025
extension 
 
 5502721 N

-65/360

709.1

732.4

23.3

2.08

76.4

0.06

F
including 503500 E   709.1 710.3 1.2 8.49 3.9 0.25 F
including     728.6 732.4 3.8 5.31 12.5 0.16 F
MM172 5502660 N 503600 E -66/360 640.5 693.5 53.0 5.49 173.8 0.16 F
including 674.0 693.5 19.5 11.34 64.0 0.33 F
True widths estimated at approximately 70% of intersection
Note that gaps in hole numbers in these tables are due to 10 different drill rigs assigned the next sequential drill-hole number as each hole is completed. These are being drilled in five separate areas within the Hardrock Project. Other hole numbers can be considered to carry no significant values or are included in other zones, some of which may have already been released.

Hardrock Western Deeps F Zone

One drill is currently testing for mineralization to the west of, and below the limits of historical mining at Hardrock which was mined to a maximum depth of 600 metres. This is considered to be shallow for an Archean gold deposit, with more than 2.1 million ounces having been recovered. The new drilling is located approximately 300 metres to the west of, and 50 metres below, the western-most mined area at Hardrock. Two gold zones were intersected in hole MM157 with assays of 4.36 g/t Au across 17.8 m (0.13 oz/ton across 58.4 feet) including 8.36 g/t Au across 4.3 m (0.24 oz/t across 14.1 feet) and a second zone that returned 5.44 g/t Au across 4.5 m (0.16 oz/t across 14.8 feet). Additional drilling in this new area is ongoing. New drill results from the western extension area are contained in Table 2.

Table 2 New Sub Zone Intercepts from Western Extension drilling
Hole-ID  UTM
Coordi-
nates
(m)
 Dip/
Azi-
muth
(de-
grees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM157     899.5 924.0 24.5 3.21 80.4 0.09 F
including  5502887  N -80/360  904.7 922.5 17.8 4.36 58.4 0.13 F
including  501427 E   904.7 909.0 4.3 8.36 14.1 0.24 F
      938.5 943.0 4.5 5.44 14.8 0.16 F
True widths estimated at approximately 70% of intersection

North Zone

Drilling is also focused on expanding mineralization below the bottom level of the historically mined North Zone which remained open at the time of closure. New drill results from the North Zone are contained in Table 3. Of note, hole MM164A, which represents the deepest hole drilled to-date within the North Zone target approximately 570 metres down plunge of the bottom level of the mine (13th Level), has returned 12.25 g/t Au across 2.4 m (0.36 oz/t across 7.9 feet). Ongoing drilling with four drill rigs is continuing to expand mineralization in this area. An X-Zone in MM155D that grades 29.10 g/t over 1.5 m is a quartz vein that will require close-spaced drilling, likely from underground, to measure its potential. It is nearby to MM073, which returned 17.70 g/t over 1.5 m.

Table 3 New Sub Zone Intercepts from North Zone and F-Zone Deeps
Hole-ID UTM
Coordi-
nates
(m)
Dip/
Azi-
muth
 (de-
grees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM106E     776.5 781.9 5.4 3.61 17.7 0.11 North A
including 5503397 N   781.0 781.9 0.9 7.29 3.0 0.21 North A
   503577 E -80/180  790.5 792.7 2.2 4.24 7.2 0.12 North B
      799.8 801.0 1.2 5.17 3.9 0.15 North C
      807.4 811.7 4.3 4.53 14.1 0.13 North D
MM155 5503404 N -82/180 551.3 554.8 3.5 42.00 11.5 1.23 X
503500 E
MM155A 5503404 N   722.0 724.0 2.0 10.66 6.6 0.31 X
-82/180  908.5 911.5 3.0 5.97 9.8 0.17 North D
503500 E   917.5 919.2 1.7 3.84 5.6 0.11 North E
MM155B 5503404 N -82/180 hole
abandoned
        North
503500 E
MM155C     839.8 840.9 1.1 5.12 3.6 0.15 North A
  5503404 N -82/180  853.5 855.0 1.5 4.05 4.9 0.12 North B
  503500 E   877.5 885.5 8.0 4.83 26.2 0.14 North C
including     882.5 884.0 1.5 15.90 4.9 0.46 North C
      534.0 535.5 1.5 29.10 4.9 0.85 X
  5503404 N  
MM155D  503500 E -82/180  849.3 850.4 1.1 6.41 3.6 0.19 North A
      863.8 865.5 1.7 6.68 5.6 0.20 North C
   5503404 N   800.0 801.5 1.5 5.38 4.9 0.16 North A
MM155E  503500 E -82/180  849.1 850.5 1.4 6.72 4.6 0.20 North C
      857.7 858.3 0.6 7.66 2.0 0.22 North D
      862.0 865.5 3.5 4.71 11.5 0.14 North E
  5503404 N   825.7 829.1 3.4 5.95 11.2 0.17 North B
MM155F  503500 E -82/180  840.4 844.5 4.1 3.21 13.4 0.09 North C
      854.4 855.4 1.0 12.40 3.3 0.36 North D
MM164A 5503409 N   951.4 953.8 2.4 12.25 7.9 0.36 North A
including 503289 E -82/180  951.4 952.8 1.4 19.94 5.2 0.58 North A
      962.5 964.0 1.5 14.00 4.9 0.41 North B
MM165 5502820 N  -56/360 403.0 406.7 3.7 8.23 12.1 0.24 North A
  504250 E   513.0 517.0 4.0 16.66 13.1 0.49 North D
True widths estimated at approximately 70% of intersection
Missing holes can be considered to carry no significant value or will be included with other zones

NN Zone Drilling

Recent drilling continues to define mineralization within the NN Zone, down-plunge and at depth below the previously announced, near-surface, NI43-101 resource estimate at Hardrock. Drilling in the NN Zone is shifting from a focus on open-pit style mineralization to defining narrower, underground style resources. Recent drilling has returned numerous significant intersections (previously released) including 9.62 g/t Au across 5.8 m (0.28 oz/t across 19.0 feet) in hole MM160, 4.93 g/t Au across 10.5 m (0.14 oz/t across 34.4 feet), 22.97 g/t Au across 24.8 m (0.67 oz/t across 81.4 feet) and 8.14 g/t Au across 9.0 m (0.24 oz/t across 29.5 feet). Follow-up drilling down-plunge of these intersections is underway. 

The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier holds a 70% interesting the project). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 million ounces of gold from 1938-1968 primarily from shallow depths within 600 metres of surface.. The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property. A revised resource calculation is expected to be completed following the 2010 drill program containing both open pit and underground style resources.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press 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 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 camp of Northwestern Ontario and focused on gold exploration and deposit delineation at its Key Lake, Brookbank, Northern Empire and Leitch-Sand River gold properties. A preliminary economic assessment of the Brookbank deposit is being finalized by Micon International. 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. Goldstone's fully permitted 200-TPD Northern Empire mill is expandable to 1000 TPD.

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 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.
    Philip Cunningham
    Chairman and Interim CEO
    (647) 401-8965
    www.grcmines.com