3rd Apr 2014 11:40
LONDON (Alliance News) - Goldstone Resources Ltd Thursday said that it received a termination notice from Randgold Resources (Senegal) Ltd relating to the companies' joint venture over Goldstone's Sangola licence in Senegal.
The exploration company in West and Central Africa said that the subsidiary of Randgold Resources Ltd has given the company a notice period of 90 days but Goldstone does not expect the company to undertake any further work on the licence.
The news comes after Goldstone announced disappointing test results from Sangola in February, stating that results from drilling on the Baraboye and Ibel prospects at its Sangola site had not returned gold intercepts that justify an immediate follow-up programme.
Goldstone Resources said at the time that Randgold Resources would focus its exploration activities on the Gangara and Bandafassi prospects at the site by undertaking geological mapping and lithological sampling to identify additional drill targets.
"The Gangara and Bandafassi prospects are of particular interest because they cover an area where Randgold, through its recently completed work programme, identified a previously unknown extension of the MTZ structure which controlled the formation of Randgold's three million ounce Massawa gold deposit to the north-east," Goldstone said at the time.
However, Randgold has now opted to terminate the joint venture agreement at Sangola.
In April 2013 the two parties set up the joint venture in order for exploration, evaluation and, potentially, the development and mining of the Sangola project which meant Randgold holds a 51% interest in the site and agreed to fund all work up to and including a pre-feasibility study on the site.
Goldstone Resources shares were down 20.0% to 0.648 pence, putting it top of the AIM fallers, while Randgold Resources shares were down 0.1% to 4,611.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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