GoldStone Resources Ltd (GRL)

Sector:

Mining

Index:

FTSE AIM All-Share

6.75p
   
  • Change Today:
      0.65p
  • 52 Week High: 14.25p
  • 52 Week Low: 6.00p
  • Currency: UK Pounds
  • Shares Issued: 473.03m
  • Volume: 1,710,418
  • Market Cap: £31.93m
  • RiskGrade: 381

GoldStone surges after start of production at Homase

By Josh White

Date: Friday 25 Mar 2022

LONDON (ShareCast) - (Sharecast News) - GoldStone Resources updated the market on activities at the Homase mine and the former Akrokeri underground mine on Friday, confirming that following the start of gold production at Homase, 1,717 troy ounces had been produced and sold to-date.
The AIM-traded firm said it had realised an average price of $1,907 per ounce on that gold.

Gold loan repayments from first gold of $1.1m had been made, through the delivery of 610 troy ounces to Asia Investments Management Services (AIMS), resulting in the interest rate being taken out of default.

Construction was completed for the initial stage of the mine, which included the crushing, sizing, agglomeration and stacking unit, three heap leach pads, a carbon-in-column plant, and an elution and gold room, for a total investment of $15m including overheads.

Start-up agglomeration issues had been resolved, and gold recovery from the heap leach pads increased to over 65%, with the latest in-situ test work indicating that leach recovery of 82% would be achieved over a 12-month period.

An additional crushing, agglomeration and stacking circuit was currently being built to improve productivity and heap stacking flexibility, using existing cash resources.

GoldStone said it had a 2022 production target of around 20,000 ounces of gold.

Homase was continuing to progress its capital-efficient mine, the company reported, with a cash cost of around $840 per ounce pencilled in for the rest of 2022, and an all-in sustaining cost of $970 per ounce.

On the exploration front, GoldStone said it was "ramping up" within the Homase and Akrokeri licences, with diamond drilling set to start around the Akrokeri underground mine in 2022.

Grade control drilling, meanwhile, was now underway at the third pit along the Homase trend.

"Starting a new gold mine is never easy, and the team on site has worked tirelessly to achieve Homase's full potential to benefit our patient shareholders," said chief executive officer Emma Priestley.

"I am pleased to report that our efforts over the past few months have brought us to an important turning point in the evolution of our production process.

"Our team has re-engineered the mine and heap leach, focussing on enhancing production efficiencies and supervision to minimise dilution and improve gold recovery."

Priestley said the turnaround supported its previously-announced production target for 2022, and would provide a "very solid foundation" for production growth in the coming years.

"Looking forward to the longer-term delivery of our growth objectives, Akrokeri remains a key pillar of our strategy with a drill and trench programme finally underway - we look forward to developing the exploration in the coming weeks.

"As shareholders will recall, Akrokeri is a previously producing mine with demarcated targets for future shallow open pit mining, which we are confident will lead to future growth of production."

At 1116 GMT, shares in GoldStone Resources were up 30.5% at 10.44p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

GRL Market Data

Currency UK Pounds
Share Price 6.75p
Change Today 0.65p
% Change 10.66 %
52 Week High 14.25p
52 Week Low 6.00p
Volume 1,710,418
Shares Issued 473.03m
Market Cap £31.93m
RiskGrade 381

GRL Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
41.18% below the market average41.18% below the market average41.18% below the market average41.18% below the market average41.18% below the market average
47.54% below the sector average47.54% below the sector average47.54% below the sector average47.54% below the sector average47.54% below the sector average
Price Trend
74.64% below the market average74.64% below the market average74.64% below the market average74.64% below the market average74.64% below the market average
61.11% below the sector average61.11% below the sector average61.11% below the sector average61.11% below the sector average61.11% below the sector average
Income Not Available
Growth Not Available

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

GRL Dividends

No dividends found

Trades for 01-Jul-2022

Time Volume / Share Price
16:20 3,941 @ 6.80p
15:02 1,238 @ 6.82p
14:23 7,693 @ 6.50p
13:22 150,000 @ 6.70p
13:21 5,524 @ 6.50p

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