8th Jul 2024 11:57
(Alliance News) - Goldstone Resources Ltd on Monday said work to improve processing at the Homase mine has produced improved operational performance.
Following the update, Goldstone shares more than doubled in price to 1.95 pence each in London on Monday morning from Friday's close at 0.68p.
The Ghana-focused gold producer and explorer owns a 90% stake in the Homase gold project.
Chief Executive Officer Emma Priestley said: "The difficult decision was taken in 2023 to halt production and review the design of the processing plant. Despite the many challenges associated with the company's ordinary shares being suspended from trading for such a long period of time, the board and management team have remained committed to building value for our shareholders and are now pleased that the upgraded plant is delivering the improved heap-leaching gold recoveries we targeted."
Goldstone's pretax loss widened to USD2.7 million in 2023 from USD674,413 in 2022, as revenue fell to USD2.2 million from USD8.9 million.
Current mining operations at the Homase site have achieved mining and stacking agglomerated ore at an average of 5,400 tonnes per calendar month. Mining and stacking recommenced in June 2023, with approximately 1,257 ounces produced that year.
To date, 2024 production stands at 1,350 troy ounces of gold following the last gold pour on June 18. Goldstone produced and sold 5,155 troy ounces of gold from Homase in 2022.
Over the past six months, there has been a 68% increase in gold recovery and the company is on track to increase production to deliver the planned 50,000 tonnes of stacked and agglomerated ore, targeting gold production of 1,000 ounces pcm within six months.
Action taken to improve the plant included the acquisition of vibrating screens, improved cement feed, and the introduction of a radial stacker. The commissioning of an on-site laboratory further allows the company to conduct continuous test work.
According to Goldstone, exploration activities continue to demonstrate the potential to materially expand Homase's current resource estimate of 602,000 ounces of gold resource at an average grade of 1.77 grams per tonne.
By Elijah Dale, Alliance News reporter
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