GOLDSTONE RESOURCES LTD

GOLDSTONE RESOURCES LTD

Previous company name
MIGRATE MINING LIMITED
Name change date
2/10/2004
Company Overview
GoldStone Resources Limited, formerly known as Migrate Mining Limited, is a United Kingdom-based mineral exploration company. Incorporated in 1998, the company was admitted to trading on the Alternative Investment Market (AIM) of the London Stock Exchange in March 2004.
GoldStone Resources explores a geological formation known as the Roraima that covers an area of 73,000 square kilometers across Venezuela, Brazil, Suriname, French Guiana and Guyana. The company operates from a head office in Cape Town (South Africa) and a branch office in Georgetown, Guyana. Its strategic plans and purchasing and administrative functions are performed and executed from the Cape Town office. Its logistical and exploration functions and subordinated administrative and financial functions are executed from the Georgetown office.
Having undertaken an extensive exploration and evaluation programme, GoldStone Resources successfully discovered 21 palaeoplacers exhibiting similar geological characteristics to the Witwatersrand, an area in South Africa from which an estimated 50,000 tonnes of gold, or more than 40 per cent of total worldwide gold production, has been derived.
In March 2007, GoldStone Resources announced that it had conditionally agreed to acquire a 70 per cent interest in Xanadu Mining. Xanadu Mining has, through its wholly-owned subsidiaries GrindStone Mining and Multi-Direct Mining, filed applications for prospecting rights over the Swartdoring Project, all of which have been accepted by the Department of Minerals and Energy in South Africa.
Business Summary
The Company s principal activity is exploration for sediment hosted mineral deposits, containing gold, diamonds and other minerals.
Description and history
The Company’s principal activity is exploration for sediment hosted mineral deposits, containing gold, diamonds and other minerals.

The Company holds two permits for mineral exploration in Guyana where it has undertaken exploration in order to find economically mineable gold palaeoplacers. The Company is seeking to raise GBP5.6 million in order to conduct further exploration work and is applying for its shares to be admitted to trading on AIM.

HISTORY

The Company was incorporated in Jersey under the provisions of the Companies (Jersey) Law 1991 (the ‘Law’) on 17 April 1998.

GeoQuest is a holding company for gold and diamond exploration and mining companies. GeoQuest acquired GoldStone in 1999.

The name of the Company was changed to GoldStone Resources Limited on 12 February 2004. and the Company was incorporated in 17 March 2004 on London Stock Exchange.

The Company is focused on palaeoplacer gold exploration in South America. Since 1998, it has been exploring a geological formation known as the Roraima, the largest remaining block of which covers an area of 73,000 km2 across Venezuela, Brazil, Suriname, French Guiana and Guyana. The objective of the exploration has been to discover a Witwatersrand-type deposit. The exploration is led by Dr Lawrie Minter, Company’s Director of Exploration, who is an internationally recognised placer sedimentologist and Witwatersrand expert. Witwatersrand palaeoplacers have produced around 40 per cent. (an estimated 50,000 tonnes) of total world gold production.

Artisanal miners have for many years exploited gold and diamond-bearing river alluvium in Guyana, but little attempt has been made to identify the source of the minerals. Company’s exploration programme has been directed at locating the source. The Directors now believe that the source was the Roraima and that the sediments from which the Roraima was formed were derived from the erosion of gold-bearing granite-greenstone rocks located in basement source terrain in north-east Guyana.

Measurements by the Company indicated that the shoreline of the Roraima basin was located across the Pakaraima plateau in Guyana and, accordingly, because shoreline deposits are more prospective for placers, the Company, in 1999, decided to focus its exploration programme in Guyana.

Gold assays of over 1,700 channel samples of Roraima quartz-pebble conglomerates collected during Company’s exploration programme have demonstrated the anomalously high gold content of the Roraima and confirmed that the gold was derived from basement source terrain. Compnay has inferred from this information that significant quantities of gold may be found in the Roraima and that it is likely to be concentrated in palaeoplacer layers.

Significant to the exploration programme was a shallow borehole intersection of a palaeoplacer with a gold grade of 3 g/t over 45 cm. This falls within the range of gold grades mined in Witwatersrand mines. The Directors believe, however, that if gold deposits are found in the Roraima they will be near the surface and probably could be mined through open cast and shallow underground mining, in contrast to the Witwatersrand deposits, many of which lie more than 2 km beneath the surface.

Formerly known as Migrate Mining Limited

Business Line
Mineral exploration company
Subsidiary

Advisor
DELOITTE LLP
IPO date
3/25/2004
US SIC Code
1041
Company Address
P.O. Box 560
11-15, Seaton Place
City province or state postal code
JE4 8XP, ST HELIER
Phone: +44 27217944004
Fax:
Country address: UNITED KINGDOM
Website url: www.goldstoneresources.com