Further to the announcement dated 4 May 2004 regarding the Groblersdal Platinum Project, the Company advises that the vendor has terminated the agreement and the Company will now not proceed with the acquisition.
LEONORA GOLD PROJECT RC DRILLING
Golden State and partner/operator Newmont Operations Ltd have completed Reverse circulation drilling on our two joint venture areas at Leonora to test four kilometres of strike of the prospective Crawford Trend.
On the Mertondale Joint Venture (Newcrest operating, GSR carried at 20%) two deep RC holes to depths of 250 metres assessed the Crawford and Eva Prospects.
On the Iron Tank Well Joint Venture (Newcrest operating, GSR funding 20%) four RC holes totalling approximately 1,000 metres investigated the southern extension of the Crawford trend onto the Iron Tank Well JV.
Complete assay results are awaited and will be announced shortly.
MENZIES NICKEL PROJECT RC DRILLING
Heron Resources has completed the RC drilling programme on the Menzies Lateritic Nickel Project that was a condition of the sale to Heron of Golden State’s interest in the project.
Following the calculation of a new resource estimate, now underway, Heron will make Golden State an additional cash payment of $0.07 per tonne of resource at a 1.0% nickel cut-off exceeding an aggregate of 5,000,000 tonnes and exceeding an average grade of 1.2% nickel.
Neville Bassett Director
GDN Price at posting:
0.0¢ Sentiment: None Disclosure: Held
