LONDON (ShareCast) - GoldStone Resources has joined forces with Randgold Resources for the exploration of the Sangola gold project in Senegal.

As part of the joint venture agreement, Randgold will hold 51% of the project and GoldStone will own 49%.

Randgold will fund all costs up to and including the completion of a pre-feasibility study (PFS).

Work includes the execution of at least 10,000 metres of reverse circulation drilling per annum up to the completion of the PFS, which should indicate that mining of at least one million ounce (Moz) of gold is feasible.

GoldStone will have the option to maintain its 49% interest through funding its share of the costs of the feasibility study should it satisfy the condition of 1Moz. Otherwise the joint venture will be ceased.

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."

The 471-km Sangola permit lies in the south-eastern corner of Senegal in a productive gold province where more than 30m ounces of gold has been discovered in the past 10 years.

GoldStone’s shares rose 6.76% to 1.98p at 12:13 on Monday, while Randgold climbed 0.76% to 5,330p.

RD

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