Mining company, Goldstone starts trading in London
-looking for local gold and bauxite deposits
Stabroek News
March 26, 2004
Goldstone Resources, which holds two permits for mineral exploration in Guyana, said yesterday that it has started trading on the London AIM after raising 5.6 million pounds sterling (GBP) by the placing of 22.4 million ordinary shares at 25 pence per share to institutional and other investors through broker Westhouse Securities.
According to business news website, Quicken, Goldstone ( ticker symbol GRL) has a market capitalisation at the placing price of GBP15.6 million. The AIM is the London Stock Exchange's global market for smaller, growing companies.
Goldstone will use the funds raised to conduct further exploration within the two areas covering 17,000 sq kms, covered by permits valid until July 2005, one of which is said to be in the Roraima area. Goldstone hopes to find economically mineable gold palaeoplacers similar to the Witwatersrand deposit in South Africa.
The exploration is led by Dr Lawrie Minter, the Company's Director of Exploration. Witwatersrand palaeoplacers have produced around 40% (an estimated 50,000 tonnes) of total world gold production.
Goldstone will carry out a systematic drilling programme which may last up to twelve months depending on meteorological and site conditions. Throughout the period progress will be assessed frequently. If appropriate, resources may be diverted to conduct detailed drilling on a specific target with the intention of bringing a potentially gold-bearing palaeoplacer to a feasibility stage earlier, Goldstone said.
In addition, the area covered by the permits contains a lateritic bauxite deposit. Preliminary sampling by Goldstone suggests the potential for the deposit is large and in excess of 100 million tonnes of 35% extractable alumina.
Although the company will utilise the funds raised to further its potential gold assets, it will seek to develop the bauxite asset by engaging the participation of major players in the bauxite industry.
Discussions are currently underway with two parties over potential joint ventures, the company said.