Goldstone Resources Inc.
TSX : GRC
PINK SHEETS : GRSZF

Goldstone Resources Inc.

February 03, 2011 08:00 ET

Goldstone to Begin 2011 Key Lake Drilling Program by February 15

$6.5 Million Committed to Geraldton-Beardmore for 2011

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2011) - Goldstone Resources Inc. (TSX:GRC)(PINK SHEETS:GRSZF) today announced that the first phase of a $6.5 million 2011 gold exploration program in the Geraldton-Beardmore region of Northwestern Ontario will begin by February 15 on its Key Lake property, where the Company is seeking to add to gold resources established through a limited program in 2010 and to establish the viability of an open pit mining operation.

2010 drilling at Key Lake delineated a mineralization zone with intersections such as 3.17 g/t Au over 44.0 metres and 2.28 g/t Au over 42.7 metres.

A contract has been signed with Orbit-Garant Drilling of Val d'Or, P.Q. and two rigs will actively drill an estimated 30,000 metres in 2011 at Key Lake. The property borders the Hardrock Project joint venture with Premier Gold Mines Limited (TSX:PG) in which Goldstone holds a 30% carried interest and where eight drill rigs will be active in 2011. Remaining assay results from the 2010 Hardrock drilling program by Premier as operator are expected soon, with an updated NI 43-101 report anticipated by the end of the first quarter of this year.

"Our objective for 2011 at Key Lake is to expand the current resource base through in-fill drilling—with hole targeting assisted by a recently completed preliminary pit model—as well as to continue expanding the mineralized corridor an additional kilometer to the west," said Philip Cunningham, Goldstone Chairman and Interim CEO.

"In addition, next week we will begin line-cutting and IP surveys on other favourable geological horizons on the Key Lake property to outline further drill targets," Cunningham added.

While full plans for the Beardmore camp will develop over the coming months, an additional drill rig will be added in March to drill promising extensions of the Northern Empire Mine and the Sand River-Leitch Mine complex, as well as the McWilliams showing on the Northern Empire Property, which was previously drilled in the fall of 2010 and intersected a favourable gold-bearing horizon in hole NE10-03.

Goldstone's objective in Beardmore is to develop more gold near the Northern Empire mill which could be developed sequentially with those identified at its Brookbank and Northern Empire properties. The Company recently hired Senior Project Geologist George Langstaff, whose primary mandate for 2011 will be to study and reinterpret past producing properties in the Beardmore camp, to identify additional promising drilling targets for this year and beyond.

In late December 2010, Goldstone commissioned a Fugro Airborne GEOTEM survey over its Faymar Mine property in Deloro Township in the Timmins gold camp. A former producer, Faymar is located just south of and adjacent to the Destor-Porcupine Fault. Results of the survey are currently being interpreted.

Mike Kilbourne. 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.

About Key Lake

The Key Lake property hosts the former Jelex Mine and has an approximate strike length of 2.5km, of which 1.5 Km has seen limited drilling. Historic drilling by Cyprus Canada in the mid-1990's outlined a 40-50m wide zone of disseminated gold with a higher grade core comprised of a quartz-feldspar porphyry. The most significant historical assay from the Cyprus drilling was for hole 195-94 which intersected 1.10 g/t over 86 metres.

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. Eight rigs will be active as part of the 2011 Hardrock Project exploration program.

NI 43-101-compliant resource estimates for the Company's Brookbank (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.

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.

Forward­Looking 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