Goldstone Announces Initial 2011 Key Lake Drilling Results
May 30 2011 - 9:00AM
Marketwired Canada
Goldstone Resources Inc. (TSX:GRC) (PINK SHEETS:GRSZF) today announced first
results from the 2011 drilling program at its Key Lake property where the
Company is focused primarily on obtaining enough drilling information for the
purposes of estimating a NI 43-101 compliant mineral resource and establishing
the viability of an open pit mining operation.
Located just west of Geraldton, Ontario, Key Lake is contiguous to the Hardrock
Project where eight rigs will be active in 2011 and where diamond drilling by
the Company's joint venture partner, Premier Gold Mines Ltd. (TSX:PG), as
operator, has established a significant gold resource near surface as well as
high grade intersections at depth. Goldstone holds a 30% carried interest in the
Hardrock Project and a 100% interest in Key Lake and its other properties.
To date in the 2011 Key Lake drilling program, 42 holes have been completed for
a total of 9,000 metres along a strike in excess of 800 metres. Complete assay
results have been received for 27 holes. Drilling is primarily focused on
identifying near surface gold mineralization amenable to open pit mining. All
holes drilled to-date have intersected gold mineralization, including hole
KL-11-92 which encountered gold grading 49.3 g/t over 0.65 metres (a photograph
of the core with visible gold is posted at www.goldstoneresourcesinc.com).
Additional holes not yet assayed have also encountered visible gold. Results for
these holes will be published in a future press release.
Drilling suggests the potential for defining open-pit style with wide zones such
as in KL-11-68 that intersected 24 m at 1.56 g/t Au. Approximately 30,000 metres
of drilling are planned for this year along the main Key Lake corridor,
including testing new anomalies identified by the IP geophysical survey carried
out earlier this year. The current program is capitalizing on the success of a
12,000-meter drilling program in 2010 which outlined significant gold
mineralization, including 3.17 g/t over 44 metres and 2.28 g/t over 42.7 metres.
2011 Significant results received to date are as follows:
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Hole UTM UTM From To Interval Au
No N 5E Azi Dip (m) (m) (m) (g/t)
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KL-11-57 5506133 492652 192 -60 36 43 7 0.80
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KL-11-59 5506226 492672 192 -48 126 137 11 1.60
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KL-11-61 5506168 492609 192 -48 62 68 6 1.57
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KL-11-62 5506222 492621 192 -48 44 52 8 1.00
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112 114 2 1.37
----------------------------
120 125 5 1.98
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KL-11-63 5506222 492621 192 -57 43 50 7 2.39
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129 133 4 1.62
----------------------------
168 179 11 1.24
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KL-11-64 5506222 492621 192 -68 161 176 15 2.08
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184 197 13 2.24
----------------------------
207 208.5 1.5 6.35
----------------------------
273 280 7 1.10
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KL-11-65 5506241 492574 192 -46 57 62 5 2.08
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96 99 3 2.52
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KL-11-66 5506281 492581 192 -45 91 97 6 1.26
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150 154 4 1.79
----------------------------
159 164 5 0.91
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KL-11-67 5506281 492581 192 -57 259 265 6 1.28
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269 272 3 1.25
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KL-11-68 5506205 492515 12 -45 51 75 24 1.56
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KL-11-69 5506094 492491 12 -48 105 110 5 1.55
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138 140 2 2.27
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KL-11-70 5506094 492491 12 -59 130 134 4 0.87
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162 173 11 1.12
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KL-11-71 5506094 492491 12 -67 49 52 3 1.22
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190 193 3 1.26
----------------------------
199 202 3 4.21
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KL-11-72 5506072 492433 12 -47 133 146 13 1.14
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KL-11-73 5506072 492433 12 -58 112 117 5 1.07
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KL-11-74 5506072 492433 12 -67 228 230 2 2.03
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241 244 3 2.44
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KL-11-75 5506127 492498 7 -47 43 65 22 1.18
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KL-11-76 5506310 492307 197 -47 54 59 5 2.46
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includes 54 55 1 8.72
----------------------------
123.5 132 8.5 1.89
----------------------------
140 143 3 1.22
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KL-11-77 5506310 492307 197 -57 59 62 3 1.52
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KL-11-78 5506276 492275 197 -47 43.25 46.40 3.15 1.44
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97.5 99 1.5 1.26
----------------------------
103.5 105 1.5 10.60
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KL-11-79 5506276 492275 197 -65 17.6 25 7.4 1.05
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104 108.9 4.9 2.43
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117 121 4 2.72
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KL-11-80 5506310 492287 197 -60 151 160 9 1.16
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KL-11-81 5506310 492230 197 -60 38 47 9 0.92
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54 59 5 1.87
----------------------------
115 120 5 1.33
----------------------------
139 147 8 1.24
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KL-11-83 5506319 492180 197 -47 50 57 7 1.74
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66 72 6 1.92
----------------------------
includes 68 69 1 4.03
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KL-11-84 5506319 482180 197 -72 100 102 2 10.94
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137 141 4 1.56
----------------------------
145 154 9 2.17
----------------------------
168 185 17 1.03
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202 205 3 1.25
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KL-11-85 5506387 492170 197 -47 106.5 115 8.5 1.72
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124.5 133.5 9 2.79
----------------------------
143.6 147 3.4 6.43
----------------------------
includes 145 146 1 17.20
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KL-11-88 5506375 492115 197 -53 99 103 4 2.65
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121 125 4 1.55
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KL-11-92 5506263 491991 7 -63 197.5 200 2.5 1.05
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219.6 221 1.4 2.60
----------------------------
235.1 235.75 0.65 49.30
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(i)True width of the zone is between approximately 20 to 85% of drilled
interval.
(ii) Holes not drilled in sequence, (iii)Samples are typically 1 m lengths
of NQ core
Tracy Armstrong, P.Geo. is the Qualified Person for the technical information
contained in this news release and is a Qualified Person within the meaning of
National Instrument 43-101.
"These are early days for 2011 exploration, but what we have seen so far-in
drilling results and identification of additional targets-is very encouraging."
said Philip Cunningham, Goldstone Chairman and Interim Chief Executive Officer.
"Goldstone's previously-stated objective is to establish the viability of an
open pit mining operation at Key Lake and to build a NI 43-101 compliant
resource," Cunningham added. "Our program is also seeking to extend the zone
another kilometer to the west of the 2010 drilling where, in addition to open
pit potential, we believe there may be higher grade underground potential as
indicated by historical drilling completed by Cyprus in the 1990s." (The exact
nature of the historical drilling remains to be verified by Goldstone.)
About Key Lake
The Key Lake property hosts the former Jelex Mine which had historical
production of 5,675 oz of recovered gold. The gold mineralization is hosted by
greenschist facies metagreywacke and is associated with alteration, quartz
veining, and disseminated arsenopyrite and pyrite. Mineralization boundaries are
generally gradational and not visually distinctive. By the end of 2010, over 200
holes had been drilled over a 3 km long north-northwest trending zone to a depth
of about 200 m with horizontal spacing of 25-50 m in the eastern two-thirds and
spacing of 25-100 m in the western third.
The Key Lake deposit is hosted in altered greywackes, with a higher grade core
comprised of quartz-feldspar porphyry. The deposit dips sub-vertically, and is
currently defined in multiple mineralized envelopes along a strike in excess of
2.5 km. While visible gold is a frequent occurrence, the majority of
mineralization is disseminated.
On-site Quality Assurance/Quality Control Measures
All samples were shipped to Activation Laboratories ("Actlabs") for analysis.
Actlabs has laboratories internationally, and its Quality System is accredited
to international quality standards through the International Organization for
Standardization /International Electrotechnical Commission (ISO/IEC) 17025
(ISO/IEC 17025 includes ISO 9001 and ISO 9002 specifications) with CAN-P-1758
(Forensics), CAN-P-1579 (Mineral Analysis) and CAN-P-1585 (Environmental) for
specific registered tests by the SCC. The accreditation program includes ongoing
audits which verify the QA system and all applicable registered test methods.
Samples were shipped to the Actlabs' facility in Geraldton, Ontario for
preparation. Pulps were forwarded from the Geraldton lab to the Thunder Bay lab,
where analyses were performed using fire assay with Atomic Absorption (AA)
finish. Samples yielding in excess of 3.0 g/t Au were reanalyzed using fire
assay with a gravimetric finish. Samples with visible gold were analyzed using
the metallic screen method, which separates out the coarse and fine fractions,
and weighs and analyzes them separately before recombining for a weighted
average gold grade.
All core samples were selected by the Goldstone site geologist, and were cut in
half by diamond core saw. Individual samples were labeled, placed in plastic
sample bags and sealed. Groups of samples were then placed into durable rice
bags that were secured for shipping.
Independent Quality Assurance and Quality Control Protocol
A QA/QC program was implemented in 2010, and continues to monitor all assays
from the current drilling program. Samples are assembled in numbered batches.
Included in each batch of 38 are 32 core samples, two certified reference
standards, one coarse reject and one pulp duplicate, one blank sample comprised
of silica sand and one core duplicate sample. This QC program was set up for
Goldstone by Tracy Armstrong, P. Geo, of T.J. Armstrong Geological Consulting
Inc. Ms. Armstrong is a qualified geologist in the Provinces of Ontario, Quebec
and British Columbia.
Beardmore Camp Drilling
A third drill has recently been relocated from Key Lake to begin the 2011
drilling program on Goldstone's 100%-owned Beardmore camp properties, beginning
with Leitch-Sand River. Overall, Goldstone's exploration budget for the year is
approximately $6.5 million, covering approximately 50,000 metres of drilling at
Key Lake and Beardmore.
About Goldstone
Goldstone Resources Inc. is a gold exploration and development company operating
in the historically significant Geraldton-Beardmore camp of Northwestern Ontario
and focused on gold exploration and deposit delineation at its Key Lake,
Brookbank, Northern Empire and Leitch-Sand River gold properties, and as a
partner in the Hardrock Project joint venture with Premier Gold. Goldstone's
100%-owned NI 43-101 compliant resources in the Beardmore area total more than
800,000 ounces. In April 2011, Premier announced an updated NI 43-101resource
estimate for the Hardrock Project in the Geraldton area of 3.6 million ounces of
gold of which Goldstone has a 30% interest, or more than 1 million ounces. The
camp is host to several past producers in a district that has historical
production of more than 4.1 million ounces of gold from high grade ore-before
being shut down primarily as a result of a $35 gold price-and to Goldstone's
fully permitted, expandable 200-TPD Northern Empire mill.
Forward-Looking Statements
This news release may contain forward-looking information under applicable
securities laws concerning Goldstone's business, operations, financial
performance, condition and prospects, as well as management's objectives,
strategies, beliefs and intentions. Forward looking information is frequently
identified by such words as "may", "will", "plan", "expect", "anticipate",
"intend" and similar words referring to future events and results. This
forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially from those
implied by the forward-looking information. Factors that may cause actual
results to vary materially include, but are not limited to, inaccurate
assumptions concerning the exploration for and development of mineral deposits,
delay or inability to retain a senior exploration and/or operating officer or to
obtain additional financing, unanticipated operational or technical
difficulties, changes in laws or regulations, the risks of obtaining necessary
licenses and permits, changes in general economic conditions and changes in
conditions in the financial markets. Readers are cautioned not to place undue
reliance on this forward-looking information as actual results may differ
materially from those expressed or implied in the forward looking information.
Goldstone does not assume the obligation to revise or update this
forward-looking information after the date of this release or to revise such
information to reflect the occurrence of future unanticipated events, except as
may be required under applicable securities laws.
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