Shares in AIM-listed exploration company GoldStone plunged 15 per cent on Tuesday morning after the group said results from the drilling programme on the Baraboye and Ibel prospects did not justify an immediate follow-up programme.
GoldStone, which partnered Randgold Resources on the project, said the company would consequently focus its exploration activities on the Gangara and Bandafassi prospects where it would identify additional drill targets.
These prospects cover an area where Randgold, through its recently completed work programme, identified a previously unknown extension of the MTZ structure, which controlled the formation of Randgold's 3m ounce Massawa gold deposit to the north-east.
GoldStone's Exploration Director, Hendrik Schloemann, said: "Exploration is ongoing and we are expecting Randgold's experience in this geological environment to firm up additional drill targets along the newly identified extension of the MTZ structure at Gangara and Bandafassi."
NR
UML Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
