26th Aug 2005 07:00
Goldstone Resources Ltd26 August 2005 GOLDSTONE RESOURCES LIMITED ("GoldStone" or the "Company") ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2005 Chief Executive's Statement I am pleased to provide a review of GoldStone's activities during the year ended28 February 2005. The gold reconnaissance drilling programme was completed in June 2005. A totalof 12,285 metres of core was recovered from 56 drill sites. All assay resultshave been received and indicate that fifty two gold-bearing palaeoplacer layershave been intersected. Assay values obtained range from 0.10 to 3.78 g/t overan average sample thickness of 27 centimetres. These exploration values,although not commercially viable, are significantly anomalous and indicatepalaeoplacer surfaces for further exploration. Visual and geophysical logs of the drill holes are being integrated with themineralised palaeosurface sites to produce three-dimensional stratigraphicmodels of prospective targets. Two layers already identified indicate distalpalaeoplacer surfaces that each extend laterally over areas exceeding 100 squarekilometres. Follow-up drilling has confirmed their continuity. This successful identification of the location of subsurface mineralised layerswithin a 700 metre section of the vast two-kilometre thick Roraima sequence hasenabled the Company to project their likely surface expression, hidden beneathdense vegetation. This now permits the design of a soil geochemistry andsurface mapping programme that could highlight, although not certain, bettermineralised zones for selective follow-up drilling. Bauxite exploration work undertaken on deposits in the Kopinang Basin hasindicated a potential resource in excess of 1,100 million metric tonnes. Weexpect shortly to sign a contract with a major player in the alumina industry tocarry out further exploration on the area in more detail and work is expected tocommence during this third quarter of 2005. Further financing of the Company The Company will be seeking additional equity funding during the next two monthswhich will be required to provide sufficient working capital to maintain thevarious mineral rights and to carry out the next phase of exploration on thegold project. At the same time, we will continue to explore the possibility ofentering into an agreement with a suitable partner to assist in the funding ofthe gold project. Nico van der HovenChief Executive Officer25 August 2005 PROFIT AND LOSS ACCOUNTS Note Year ended Year ended 28 29 February February 2005 2004 $ $ TURNOVER - -Exploration expenses (4,336,090) (130,607) Gross loss (4,336,090) (130,607) Other operating expenses (2,158,287) (343,663)Interest receivable 166,912 27 OPERATING LOSS FOR THE FINANCIAL YEAR (6,327,465) (474,243) Balance brought forward - (deficit) (2,932,097) (2,457,854) Balance carried forward - (deficit) (9,259,562) (2,932,097) Loss per ordinary shareBasic (cents per share) 1 (8.8) (35,657) BALANCE SHEETS 28 29 February February 2005 2004 $ $ FIXED ASSETSTangible assets 461,468 8,426 CURRENT ASSETSDebtors and prepayments 2,529 318,938Cash at bank 3,866,591 1,183 3,869,120 320,121CREDITORS: amounts falling due within one year Amounts due to group companies (40,499) (18,938)Creditors and accruals (485,005) (257,060) (525,504) (275,998) Net current assets 3,343,616 44,123 TOTAL ASSETS LESS CURRENT LIABILITIES 3,805,084 52,549 CAPITAL AND RESERVESShare capital 1,122,982 2,082Share premium 11,386,554 1,912,362Capital contribution reserve 555,110 1,070,202Profit and loss account - (deficit) (9,259,562) (2,932,097) EQUITY SHAREHOLDERS' FUNDS 3,805,084 52,549 NOTES 1. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares in issue after the placing on AIM. Diluted earnings per share is calculated using the weighted average number of ordinary shares in issue as adjusted to assume conversion of all dilutive potential ordinary shares. FRS 14: Earnings Per Share ('EPS'), requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. For a loss making company with outstanding warrants, net loss per share would only be increased by the exercise of out-of the-money warrants. Since it seems inappropriate to assume that option holders would act irrationally, no adjustments has been made to diluted EPS for out-of-the-money warrants. 2005 2004 $ $ Earnings per share Loss attributable to share holders (6,327,465) (474,243) No. No. Weighted average number of ordinary shares 62,400,000 1,330 Basic loss per share (cents) (8.8) (35,657) 2. The financial statements incorporated in the annual report and accounts for the year ended 28 February 2005, from which the information in this announcement has been extracted, have been prepared in United States Dollars under the historical cost convention and in accordance with accounting standards applicable in the United Kingdom. 3. The annual report and accounts is expected to be posted to shareholders during the course of the next week. Copies of the annual report and accounts will be available for a period of one month from the offices of Westhouse Securities LLP, Clements House, 14-18 Gresham Street, London EC2V 7NN. 4. Because the Company will require additional funding during the year ending 28 February 2006 in order to continue its existence, the directors believe that there is a material uncertainty regarding the ability of the Company to continue as a going concern. In the independent Auditors' report, the Auditors mention that they have considered the adequacy of this disclosure and believe that, in view of the significance of this uncertainty, this fact should be drawn to the attention of the Company's members. The Auditors have not qualified their opinion in this respect. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Goldstone Resources