Goldstone Announces Additional Encouraging Key Lake Drilling Results
July 26 2011 - 8:00AM
Marketwired Canada
Goldstone Resources Inc. (TSX:GRC)(PINK SHEETS:GRSZF) today announced a third
set of results from the ongoing 2011 drilling program at its Key Lake property,
bordering on the Company's Hardrock Project joint venture with Premier Gold
Mines Limited (TSX:PG)(PINK SHEETS:PIRGF) near Geraldton, Ontario. The program
is dedicated primarily to obtaining sufficient drilling information to support a
NI 43-101 compliant mineral resource estimate, and to establishing the viability
of an open pit mining operation. Recently drilled holes encountered encouraging
deeper gold intersections, which will be followed up on by at least one deep
hole to test down plunge of the currently defined mineralized envelope.
To date in the 2011 Key Lake drilling program, 72 holes have been completed for
a total of 16,000 metres along a distance of more than 1,200 metres. Visible
gold continues to be encountered in several holes drilled in the western part of
the deposit, including KL-11-117 which intersected 420 g/t (12.25 oz/t Au) over
0.38 m; KL-11-108 (229 g/t - 6.68 oz/t Au - over 0.50 metre); and KL-11-87
(123.50 g/t - 3.60 oz/t Au - over 1.0 m).
The recently completed IP geophysical survey at Key Lake, conducted on two grids
outside the area currently being drilled, outlined three significant anomalies.
As a follow up to drill test these anomalies, Goldstone is planning a set of
eight holes to be drilled over the coming weeks for a total of 1,625 metres.
Current drilling is part of a planned 30,000-metre program for this property.
Overall, Goldstone's exploration budget for the year is approximately $6.5
million, covering approximately 50,000 metres of drilling at Key Lake and in the
Beardmore camp where a third drill rig is currently at work on the Leitch-Sand
River property. The Company is planning to add a fourth drill shortly at
Leitch-Sand River.
Additional 2011 significant results received to date for Key Lake are as
follows:
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Hole UTM UTM From To Interval Au
No. N E Azi Dip (m) (m) (m) (g/t)
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KL-11-60 5506226 492672 192 -60 38.00 40.00 2.00 1.50
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190.00 199.00 9.00 1.80
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270.00 274.00 4.00 1.52
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KL-11-87 5506361 492139 197 -60 129.00 133.00 4.00 3.84
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147.00 157.00 10.00 0.64
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169.50 172.50 3.00 1.81
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185.00 196.00 11.00 12.31
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includes 187.00 188.00 1.00 123.50
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includes 193.00 194.00 1.00 9.43
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202.00 207.00 5.00 0.81
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KL-11-108 5506531 491893 197 -62 67.00 69.00 2.00 1.52
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148.00 152.00 4.00 1.78
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190.00 192.00 2.00 1.60
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214.00 218.00 4.00 2.23
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222.00 229.00 7.00 18.09
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includes 227.00 227.50 0.50 229.00
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235.00 247.00 12.00 1.87
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258.00 267.00 9.00 1.51
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271.00 274.50 3.50 1.14
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KL-11-114 5506537 491845 197 -66 162.00 167.00 5.00 1.07
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200.50 246.00 45.50 1.19
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KL-11-116 5506568 491802 197 -47 153.00 158.50 5.50 1.10
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175.00 181.00 6.00 1.17
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196.00 200.50 4.50 2.10
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KL-11-117 5506568 491802 197 -59 212.00 234.00 22.00 0.78
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243.50 247.00 3.50 46.36
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includes 244.26 244.64 0.38 420.00
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259.50 261.00 1.50 3.36
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272.20 272.70 0.50 29.30
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KL-11-118 5506636 491815 197 -54 115.00 125.00 10.00 1.87
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324.70 330.70 6.00 2.07
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362.00 374.00 12.00 2.07
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381.55 393.50 11.95 1.09
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KL-11-122 5506462 491727 197 -88 70.00 72.00 2.00 3.90
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90.00 92.00 2.00 2.88
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121.00 122.00 1.00 7.74
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141.00 143.00 2.00 1.87
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191.00 206.00 15.00 3.07
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KL-11-123 5506522 491740 197 -58 84.00 87.75 3.75 0.86
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96.00 98.00 2.00 3.02
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103.00 106.00 3.00 0.84
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111.00 113.00 2.00 1.95
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136.50 141.00 4.50 1.09
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KL-11-124 5506566 491749 197 -52 141.00 143.00 2.00 4.20
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159.50 174.00 14.50 1.02
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KL-11-125 5506525 492713 197 -54 45.00 46.00 1.00 6.31
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79.00 104.00 25.00 5.33
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includes 85.50 86.50 1.00 117.00
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KL-11-126 5506366 491679 7 -58 30.00 33.00 3.00 1.13
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83.00 85.00 2.00 1.03
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154.00 157.50 3.50 4.09
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includes 155.65 156.10 0.45 27.80
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201.00 204.00 3.00 2.07
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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,
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.
We continue to progress toward establishment of what we believe will be an
important NI 43-101 compliant open pittable mineral resource at Key Lake," said
Philip Cunningham, Goldstone Chairman and Interim Chief Executive Officer. "In
addition, we are optimistic about prospects for deeper mineralization and - are
looking forward to seeing the results of upcoming exploration on the IP
anomalies we have identified."
About Key Lake
The Key Lake property hosts the former Jelex Mine which had historical
production of 5,675 oz of recovered gold. The Key Lake deposit is hosted in
altered greywackes, with a higher grade core comprised of quartz-feldspar
porphyry, with alteration, quartz veining, and disseminated arsenopyrite and
pyrite. 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.
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.
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. 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.
About Goldstone
Goldstone Resources Inc. is a gold exploration and development company operating
in the historically significant Geraldton-Beardmore camp of Northwestern
Ontario. On June 21, 2011, Goldstone and Premier Gold jointly announced that
they have entered into a definitive agreement whereby Premier will acquire, by
way of a plan of arrangement, all of the outstanding common shares of Goldstone.
Goldstone is focusing 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 mines which historically produced 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.
Further information is available on the Company's website at
www.goldstoneresourcesinc.com and on SEDAR under the Company's profile at
www.sedar.com.
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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