randgold and grades - implications, page-6

Bit long but worth reading below to give you an idea of what Randgold JV looks like and also how little they needed to get them interested in Goldstone Resources.

06 September 2012

FIRST RESULTS OF ROTARY AIR BLAST DRILLING ("RAB") PROGRAMME AT SANGOLA, SENEGAL

GoldStone (AIM: GRL), the AIM quoted company focused on gold in West and Central Africa, announces that the Company has received encouraging first assay results from its RAB drilling programme at Sangola, Senegal.

Highlights:

· Early drilling results, which cover the central part of the six kilometre long Thiabedji gold anomaly in the Sangola permit area, delineate a 1.2 km long mineralised trend which is up to 70 metres wide and remains open along strike

· Results include 9 metres @ 4.7 g/t gold (including 3 metres @ 11.8 g/t gold) and 3 metres @ 4.9 g/t gold

· The results of 1,468 samples from the north-eastern and south-western portions of the Thiabedji anomaly are still pending

Hendrik Schloemann, GoldStone's Exploration Director, commented: "We are very excited that early results from our first drilling campaign at Sangola are encouraging and that they confirmed the prospectivity of this permit. We are awaiting the remainder of the assay results and looking forward to drilling deeper at Thiabedji using a Reverse Circulation drill rig."

The RAB drilling programme was carried out from May to July 2012. A total of 418 holes were drilled along thirteen lines for a total of 11,358 metres. Drilling was carried out over various weathering environments which resulted in drill holes ranging in depth from 3 metres to 60 metres. The average drill hole depth was 27 metres. Gold concentrations were determined using the Fire Assay technique with an Atomic Absorption Spectroscopy finish. The lower limit of detection for gold was 0.01 g/t. Assay results for 293 drill holes (2582 samples) have been received to date and cover only the central part of six kilometre long Thiabedji surface gold anomaly while the results for the north-eastern and south-western portions of the anomaly are still pending.

Results received to date reveal that gold mineralisation exists in laterite and weathered meta-sedimentary rocks within a 1.2 kilometre long corridor varying in width from a few metres to 70 metres. This mineralised trend remains open along strike towards the north-east and the south-west.

Geological mapping and the results of a recently completed high-resolution airborne magnetic survey suggest that the mineralisation is controlled by two north-east trending secondary structures splaying off the regional Main Transcurrent Shear Zone which also controlled the formation of Randgold's 3.2 Moz Massawa gold deposit north-east of the Sangola permit.

A summary of the best drill results is shown below:

The programme also yielded a large number of low grade intersects; i.e. 101 intersects of 0.1 g/t gold or more over at least three metres including 40 intersects of 0.2 g/t gold or more over at least three metres. 11 of these intersects are wider than 6 metres.

The technical team of the Company is encouraged by the fact that the relatively inexpensive RAB drilling method, which only penetrates softer formations such as laterite and weathered rock and which is not suitable to the drilling of deep holes into fresh rock, has yielded these results. Notably the majority of the higher grade intersects occur in an area where a north-west trending interpreted structure intersects the mineralised corridor. The width of the mineralised zone in this area appears to be 70 metres and gold concentrations generally increase down-hole from the overlying laterite into the weathered rock, indicating that gold concentrations near the surface may have been depleted by supergene processes. The favourable structural setting of the detected gold mineralisation and the realisation that gold concentrations seem to increase with depth further elevate the significance of the first RAB drilling results. The remaining 1,468 drill samples have been submitted to a laboratory in Mali for assaying.

The exploration programme planned for the next dry season (December to July) will include Reverse Circulation drilling to test if the gold mineralisation detected in laterite and weathered rock at Thiabedji extends to depth into fresh rock. Additional surface gold anomalies, such as Baraboye, four kilometres to the north, and Tiobo, two kilometres to the east of Thiabedji, will be prioritised for RAB drilling testing.

08 April 2013

Joint Venture with Randgold over Sangola Project, Senegal

GoldStone Resources Ltd (AIM: GRL), the AIM quoted company focused on gold exploration in West and Central Africa, is pleased to announce that the Company has entered into a joint venture agreement with Randgold Resources (Senegal) Limited ("Randgold") over the Sangola gold project in Senegal.

Highlights

· Joint venture with Randgold for the exploration and potential development of a mine at Sangola

· Randgold to fund all costs up to and including the completion of a pre-feasibility study indicating that the mining of at least 1Moz of gold is feasible

· Joint venture to be owned 51% by Randgold and 49% by GoldStone with GoldStone having the election to contribute towards a feasibility study or dilute to 35%

Jurie Wessels, Chief Executive Officer of GoldStone, said: "We are delighted to have entered into this joint venture with our neighbour Randgold, who have an exceptional track record of finding and developing gold projects in West Africa. We are retaining a material interest in the project whilst removing any funding requirement until the project has advanced significantly. We are looking forward to moving ahead at Sangola with our new partners."

Details of the Joint Venture

On 5 April 2013 GoldStone entered into a joint venture agreement with Randgold, a wholly owned subsidiary of FTSE 100-quoted Randgold Resources Limited, in relation to the exploration, evaluation and, potentially, the development and mining of the Sangola project in Senegal (the "Joint Venture"). Randgold will hold 51% of the Joint Venture and GoldStone 49% and a committee comprising three representatives from Randgold and two from GoldStone will manage the project.

Under the terms of the Joint Venture, Randgold has agreed to undertake exploration over the Sangola permit and fund all work up to and including the completion of a pre-feasibility study ("PFS") on the project. The committed work includes the execution of at least 10,000 metres of reverse circulation (or equivalent) drilling per annum up to the completion of a PFS which indicates that mining of at least 1Moz of gold is economically feasible.

Subject to the PFS satisfying this condition, GoldStone will have the option to maintain its 49% interest through funding its share of the costs of a feasibility study (the "FS"). In the event that GoldStone elects not to fund its share of the FS, its interest in the Joint Venture would reduce to 35%. If, following completion of the FS, the decision is taken to develop a mine, GoldStone will have the right to retain its interest through funding its share of the costs.

If the PFS indicates that the mining of at least 1Moz of gold will not be economically and commercially feasible, the Joint Venture will cease to have effect. In addition, Randgold may terminate the Joint Venture at any time by giving GoldStone 90 days' notice.

Background on Sangola

The 471 km² Sangola permit lies in the south-eastern corner of Senegal in a prolific gold province where more than 30 Moz of gold have been discovered in the past 10 years. The Sangola permit area is bisected by a major gold bearing shear zone known as the Main Transcurrent Shear Zone ("MTZ"). This shear zone is host to Randgold's 3 Moz Massawa deposit, which lies 30km towards the north-east of the licence area.

Three major elongated gold-in-soil anomalies, Baraboye, Tiabedji and Tiobo, all of which are associated with underlying structures related to the MTZ, have been identified and explored by the Company. The Thiabedji anomaly was investigated by a 11,350m RAB ("Reverse Air Blast") drilling programme between May and July 2012 and yielded very encouraging results with the recognition of a mineralised trend up to 70 metres wide and 2km in extent. Initial geological interpretation suggests that the mineralisation is controlled by two north-east trending secondary structures splaying off the regional MTZ and indicates a bedrock gold source is likely in the south-western portion of the six kilometre long Thiabedji gold anomaly.

18 February 2014

SANGOLA EXPLORATION UPDATE

GoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West and Central Africa, is pleased to provide an update of progress at the Company's Sangola project in Senegal, where it has a joint venture with Randgold Resources Ltd ("Randgold").

All assay results of the drilling programme completed by Randgold on the Baraboye and Ibel prospects have been received. Best gold intercepts included 7m @ 1.5 g/t, including 1m @ 8.3 g/t, 6m @ 0.7 g/t including 1m @ 2.2 g/t and 11m @ 0.5 g/t, including 1m @ 1.9 g/t.

These results do not justify an immediate follow-up programme and Randgold will now focus its exploration activities on the Gangara and Bandafassi prospectsby undertaking geological mapping and lithological sampling to identify additional drill targets. The Gangara and Bandafassi prospects are of particular interest because they 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 3 million ounce Massawa gold deposit to the north-east.

GoldStone's Exploration Director Dr. Hendrik Schloemann commented: "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."

The joint venture received assay results for 98 reverse circulation drill holes which were drilled along four lines on the Baraboye prospect and two lines on the Ibel prospect for a total of 5,310 metres. Best gold intercepts are listed in the table below.

03 April 2014

TERMINATION OF JOINT VENTURE AGREEMENT

GoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West and Central Africa, announces that on 2 April 2014 it received notice of termination from Randgold Resources (Senegal) Limited ("Randgold") in relation to the Company's joint venture with Randgold over the Sangola licence in Senegal. The notice period is 90 days and the Company does not expect Randgold to undertake any further work on the licence.


All this information is on the Goldstone Website.