4th Jan 2022 12:01
(Alliance News) - Goldstone Resources Ltd on Tuesday said that the contained gold it recovered was below the expected rate, leading to a drop in the company's share price.
Shares in Goldstone Resources were down 15% at 9.80 pence each on Tuesday morning in London.
The gold explorer with projects in West Africa said it recovered 37 kilogrammes of gold to date in 2022, only 20% of contained gold.
The 20% recovery rate was less than expected due to an "agglomeration issues".
"The company is in the process of carrying out detailed test work and cost analysis to understand the leach kinetics within the heap so as to optimise the recovery of the remaining contained gold," Goldstone Resources said.
Goldstone said it has stacked 108,000 tonnes of ore onto the heap leach pads which, at the grade of approximately 1.7 grams per tonne, equates to around 184kg of contained gold.
The initial planned mining rate for the first half of this year is expected to be around 60,000 tonnes per month.
Goldstone Resources also expects this to increase in the second half.
The gold explorer expects this year to be "very busy", as it is progressing on the development of its Homase mine and will ramp up production to achieve its previously planned production rate of 25,000 ounces of gold dore per year.
Goldstone Resources also undertook a geochemical soil sampling programme within its Homase and Akrokeri licence areas.
Additionally, it undertook soil sampling at a former artisanal mining area in the far north of its Homase licence area.
A drilling programme has been set out at the former Akrokeri underground mine and subject to the availability of a rig, exploration drilling is expected to start as soon as possible.
"Whilst 2021 was a difficult year in a number of respects, it was also a year of change, as the company transformed into a gold producer in challenging circumstances," Chief Executive Emma Priestley commented.
She added: "The company nevertheless made good progress and has maintained its low-cost base strategy, and the board is grateful for the support of the company's existing shareholders and new investors."
By Abby Amoakuh; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Goldstone Resources