Goldstone Resources Inc.
TSX : GRC
PINK SHEETS : GRSZF

Goldstone Resources Inc.

February 09, 2011 08:53 ET

Goldstone Provides Hardrock Joint Venture Exploration Update

Includes Final Assay Results From 2010 Drilling

TORONTO, ONTARIO--(Marketwire - Feb. 9, 2011) - Goldstone Resources Inc. (TSX:GRC)(PINK SHEETS:GRSZF) today released a summary of the 114,000-metre 2010 Hardrock Project Joint Venture exploration program carried out by Premier Gold Mines Limited (TSX:PG) as operator, along with an update on the 2011 exploration campaign.

Goldstone holds a 30% carried interest in the Hardrock Project which is contiguous to the Company's Key Lake property where an estimated 30,000 metres of drilling will be carried out in 2011. Hardrock is host to several past-producing mines which collectively produced more than 3.0 million ounces of gold, from shallow depths within 600 metres of surface. The mined zones remained wide open at depth at the time mining ceased and developed historic resources were left in place within the existing mine workings. 

Since the acquisition of the core part of the Project late in 2008, numerous successes have been realized including new discoveries and the delineation of significant mineralization in both open pit and underground style gold zones. Highlights include:

  • Early in 2010, a large resource was announced based solely on open pit style mineralization. This resource is currently being updated, including underground style mineralization and is expected to be completed in late Q1 2011.
  • Drilling has expanded the footprint of the North Zone (historic production grade of 0.22 oz/ton (7.54g/t Au)) more than 300 metres below the bottom level of the Hardrock Mine where it remains wide open for expansion.
  • Drilling has successfully delineated and expanded the F-Zone with intersections up to 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
  • Drilling intersected mineralization in the SP Zone over a plunge length of more than 3.5 kilometres.

In March of 2010, an initial NI 43-101 compliant Mineral Resource estimate was completed following one year of extensive drilling at Hardrock. This resource, calculated solely from mineralization contained within conceptual open pit shells, is presented in Table 1 below.

Table 1 – Initial Resource Estimate
 
Indicated Resources
 
Cut-off
Grade
Tonnes
(Millions)
Grade
gpt
Au
(cut)
Grams
Au Cut
(Millions)
Ounces
Au Cut
Grade
gpt Au
(uncut)
Grams
Au uncut
(Millions)
Ounces
Au Uncut
0.6 gpt Au 22.9 1.30 29.7 955,000 1.65 37.8 1,215,000
0.8 gpt Au 16.1 1.56 25.0 805,000 2.03 32.5 1,045,000
1.0 gpt Au 11.6 1.82 21.1 675,000 2.43 28.1 905,000
1.2 gpt Au 8.5 2.08 17.7 570,000 2.86 24.3 780,000
1.4 gpt Au 6.3 2.35 14.9 475,000 3.33 21.0 675,000
               
 
Inferred Resources
 
               
Cut-off
Grade
Tonnes
(M)
Grade
gpt
Au
(cut)
Grams
Au Cut
(Millions)
Ounces
Au Cut
Grade
gpt Au
(uncut)
Grams
Au uncut
(Millions)
Ounces
Au Uncut
0.6 gpt Au 16.1 1.25 20.1 645,000 2.39 38.4 1,085,000
0.8 gpt Au 11.0 1.51 16.5 530,000 3.03 33.1 955,000
1.0 gpt Au 7.4 1.81 13.2 425,000 3.92 28.8 830,000
1.2 gpt Au 4.9 2.15 10.6 340,000 5.06 24.9 730,000
1.4 gpt Au 3.3 2.57 8.6 275,000 6.49 21.7 640,000
               
  1. The above table includes an adjustment to account for excavation voids by subtracting 975,000 T @ 1.8 gpt (1.1M grams) from the Indicated material reported and by subtracting 625,000 T @ 1.8 gpt (1.7 M grams) from the Inferred material reported. All drilling used for the estimate was done subsequent to mining and there are no drillhole intervals used for the estimates that are from mined out areas.

In 2010, 114,611 metres of drilling was completed at Hardrock. This drilling was focused on further defining open pit style resource in addition to defining underground style resources in preparation for an updated resource estimate that is in the process of being completed and is expected to be released late in Q1 2011.

The primary focus of the 2010 drilling campaign, and the ongoing program, was to delineate significant underground resources in preparation for advanced exploration including underground definition drilling. Mineralization is being defined in multiple zones including below the historic mine workings. Since the acquisition, several new discoveries have been made including the recent discovery of the K Zone. 

The K Zone represents a new discovery in an area that has no previous drilling below, and parallel to, the historic F Zone. Early indications suggest mineralization over a plunge length of some 750 metres and the zone is open both up and down dip. 

Highlights from drilling to-date include 13.59 g/t Au across 3.0 metres (m) (0.40 oz/t across 9.8 feet) and 10.92 g/t Au across 5.8 m (0.32 oz/ton across 19.0 feet). Further K Zone results are presented in Table 2.

Table 2 – Selected Recent K Zone Results
Hole-
ID
UTM
Coordinates
(m)
Dip/
Azimuth
(degrees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM179D 5502965 N
502300 E
-82/360 783.7 790.0 6.3 4.87 20.7 0.14 K
MM184 5502950 N
502100 E
-80/360 844.8 847.8 3.0 13.59 9.8 0.40 K
MM184B 5502950 N
502100 E
-80/360 882.0 886.0 4.0 6.34 13.1 0.19 K
MM187E 5502945 N
502000 E
-81/360 881.4 887.2 5.8 10.92 19.0 0.32 K
MM192C 5502957 N
502200 E
-75/360 857.0 861.0 4.0 6.19 13.1 0.18 K
* True widths are estimated at approximately 60-70% of intersection widths

The SP Zone was partially mined in the upper levels at Hardrock with 264,354 tonnes (291,428 tons) of ore extracted at an average grade of 8.37g/t Au (0.244 oz/t). 

Recent drilling has intersected multiple lenses down-plunge from this, with highlights including 55.80 g/t Au across 4.5 meters (1.63 oz/ton across 14.8 feet) and 6.14 g/t Au across 12.0 meters (0.18 oz/ton across 39.4 feet). Table 3 details some previously unreleased intercepts from the SP Zone. 

Table 3 – Selected Recent SP Zone Results
Hole-
ID
UTM
Coordinates
(m)
Dip/
Azimuth
(degrees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM182C 5502790 N
503430 E
-80/360 522.0 526.3 4.3 7.42 14.1 0.22 SP
MM184C 5502949 N
502100 E
-78/360 651.5 656.0 4.5 55.80 14.8 1.63 SP
MM189C 5502941 N
501900 E
-80/360 738.0 747.0 9.0 5.47 29.5 0.16 SP
MM192F 5502957 N
502200 E
-75/360 659.9 668.4 8.5 6.04 27.9 0.18 SP
MM192G 5502957 N
502200 E
-75/360 629.0 641.0 12.0 6.14 39.4 0.18 SP
* True widths are estimated at approximately 60-70% of intersection widths

The F-Zone was the most prolific of the past-producing mine zones at Hardrock with more than 1.4 million ounces produced utilizing bulk underground mining methods with widths often exceeding 30 metres (100 feet). Importantly, when the mine closed in 1960's, a 600-metre plunge length of developed historic resources was left unmined. Numerous holes have been drilled to confirm this mineralization and upgrade it to NI43-101 resource standards. 

Highlight results from recent drilling include 8.43g/t Au across 22.5 meters (0.25 oz/ton across 73.8 feet) and 6.22 g/t across 27.2 meters (0.18 oz/ton across 89.2 feet). Table 4 provides selected, previously unreleased results from the F Zone.

Table 4 – Selected Recent F Zone Results
Hole-
ID
UTM
Coordinates
(m)
Dip/
Azimuth
(degrees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM182D 5502790 N
503430 E
-80/360 750.0 772.5 22.5 8.43 73.8 0.25 F
including 768.0 772.5 4.5 28.09 14.8 0.82
MM187D 5502945 N
502000 E
-80/360 805.0 814.0 9.0 4.23 29.5 0.12 F
MM189G 5502941 N
501900 E
-80/360 737.5 759.0 21.5 5.53 70.5 0.16 F
MM192D 5502957 N
502200 E
-75/360 727.5 745.5 18.0 3.56 59.0 0.10 F
including 727.5 730.0 2.5 16.79 8.2 0.49
MM192F 5502957 N
502200 E
-75/360 698.8 726.0 27.2 6.22 89.2 0.18 F
including 714.8 719.0 4.2 23.30 13.8 0.68
* True widths are estimated at approximately 60-70% of intersection widths

The North Zone was previously mined to a depth of 610 metres (2,000 feet) with production of 2.97 million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). The 2010 drilling has demonstrated that the North Zone continues up to 300 meters below the historical mine workings, intersecting mineralization over a strike length of 700 meters down plunge. This zone remains wide open at depth for expansion. 

Recent highlights include 6.97g/t Au across 22.5 meters (0.20 oz/ton across 73.8 feet). Table 5 provides selected, previously unreleased results from the North Zone.

Table 5 – Selected Recent North Zone Results
Hole-ID UTM
Coordinates
(m)
Dip/
Azimuth
(degrees)
From
(m)
To
(m)
Inter-
val
(m)
Grade
(g/
tonne)
Inter-
val
(ft)
Grade
(oz/
ton)
Zone
MM164F 5503409 N 503289 E -82/180 838.5 843.0 4.5 9.09 14.8 0.27 North
MM171A 5503400 N 503430 E -82/180 1017.0 1021.5 4.5 10.10 14.8 0.29 North
MM175E 5503388 N 503357 E -83/180 811.0 814.0 3.0 11.75 9.8 0.34 North
MM182D 5502790 N 503430 E -80/360 845.0 867.5 22.5 6.97 73.8 0.20 North
MM190A 5503400 N 503430 E -79/180 896.2 903.0 6.8 4.99 22.3 0.15 North
* True widths are estimated at approximately 60-70% of intersection widths

Drilling continues to intersect narrow, high-grade vein zones as highlighted in:

drill hole MM192G that intersected 199.0 g/t Au across 1.0 m (5.80 oz/ton across 3.3 feet) and hole MM204 that intersected 251.0 g/t Au across 1.0m (7.32 oz/ton across 3.3 feet). Full results from 2010 drilling can be seen at www.grcmines.com.

"We look forward to seeing the results of active 2011 drilling programs on both the Hardrock Project and our neighbouring Key Lake property, "said Goldstone Chairman and Interim CEO Philip Cunningham. "We believe that this will be an important year in the development of the Geraldton camp—and for our other 100 percent owned properties in the Beardmore camp."

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, 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 well-financed 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, and as a partner in the Hardrock Project joint venture with Premier Gold. A preliminary assessment of the Brookbank deposit is being carried. 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—and to Goldstone's fully permitted, expandable 200-TPD Northern Empire mill.

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