PRESENTATION JUNE 2012 IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE - - PowerPoint PPT Presentation

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PRESENTATION JUNE 2012 IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE - - PowerPoint PPT Presentation

PRESENTATION JUNE 2012 IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING DISCLAIMER The following applies to the information contained in this document and to be communicated during the management presentation based upon the information


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SLIDE 1

PRESENTATION JUNE 2012

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SLIDE 2

DISCLAIMER

2

IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING

The following applies to the information contained in this document and to be communicated during the management presentation based upon the information contained in this document, including the talks given by the presenters and any question and answer sessions (collectively, the “Presentation”). The Presentation is the sole responsibility of Goldstone Resources Ltd (“Company”). Westhouse Securities Limited (“Westhouse”), which is authorised and regulated by the Financial Services Authority, is acting as the nominated adviser and joint-broker to the Company. Optiva Securities Limited (“Optiva” and, together with Westhouse, the “Brokers”) which is authorised and regulated by the Financial Services Authority, is acting as joint-broker to the Company. This Presentation comprises an institutional presentation which has been prepared in connection with a proposed placing of new ordinary shares in the Company (“Placing”) and the admission of such ordinary shares of the Company to trading on AIM (“Admission”). The information contained in the Presentation has not been verified by the Brokers, nor does this Presentation purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in the Company. The content of the Presentation has not been approved in terms of the Financial Services and Markets Act 2000. The Presentation is being distributed only to, and is directed only at (i) investment professionals within the meaning set out in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended and (ii) persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). The Presentation must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which the Presentation relates is available only to relevant persons and will be engaged in only with such persons. The Presentation is strictly private and confidential and is being provided to you solely for your information and may not be reproduced in any form or forwarded or further distributed to any other person or published, in whole or in part, for any purpose whatsoever. Any forwarding, distribution or reproduction of the Presentation in whole or part is unauthorised. The information in this Presentation does not constitute, or form part of, any offer to sell or issue, or any solicitation of an offer to purchase or subscribe for any shares in the Company nor shall this document, or any part of it, or the fact of its distribution, form the basis of, or be relied on, in connection with any contract. Recipients of the Presentation who intend to acquire shares in the Placing are reminded that any such purchase may only be made solely on the basis of the information contained in the placing letters. No reliance may be placed for any purpose whatsoever on the information contained in this document or on the completeness, accuracy or fairness thereof. Nothing in this Presentation (or part thereof) will be construed as an inducement to make a decision to purchase or subscribe for or enter into any contract

  • r make and other commitment in relation to the Company’s securities.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or its Directors, employees or advisers or the Brokers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted to places for any such information or opinions. Notwithstanding this, nothing in this paragraph shall exclude liability for any such representation or warranty made fraudulently. The Brokers are acting solely for the Company in relation to the Placing and Admission and are not acting for any other person, and neither Broker will regard any other person (whether or not a recipient of this document) as its customer in relation to the Placing and Admission, and the Brokers will not be responsible for providing the protections afforded to their customers to any other person or for providing advice to any other person in relation to the Placing and Admission. The distribution of the Presentation in certain jurisdictions may be restricted by law and therefore persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. Neither this document nor any copy of it may be taken or transmitted into the United States, Canada, Australia, South Africa, Japan and the Republic of Ireland or distributed to the United States, Canada, Australia, South Africa, Japan or the Republic of Ireland or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organised under the laws thereof.

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SLIDE 3

GOLDSTONE

SUMMARY

3 Focused on gold exploration in West and Central Africa Five projects in three stable African democracies Diverse portfolio of promising projects to minimise discovery risk Advanced:

  • Homase/Akrokerri (Ghana)

Grass roots:

  • Manso Amenfi (Ghana)
  • Sangola (Senegal)
  • Oyem (Gabon)
  • Ngoutou (Gabon)

Management team with good track record and experience in Africa JORC Compliant gold resource of 405,600 ounces (update pending) Drilling in three countries to:  Increase resource (Homase)  Potentially make a company transforming discovery (Gabon and Senegal) Ongoing exploration to generate news flow

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SLIDE 4

BOARD AND MANAGEMENT

4

EXECUTIVE

JURIE WESSELS Chief Executive Officer More than 15 years’ experience in the exploration industry Minerals lawyer and exploration entrepreneur

  • DR. HENDRIK SCHLOEMANN Director of Exploration

Geochemist with hands on field exploration experience in excess of 20 years Ex-Harmony Exploration Manager for Africa

NON-EXECUTIVE

GENNEN McDOWALL Non Executive Chairman Until June 2008 President and Chief Executive Officer of Xemplar Energy Corp Geophysicist ANDREW McIIWAIN Non Executive Director Chief Executive Officer of Unity Mining Limited Mining Engineer with over 25 years’ experience in the industry BILL GEIER Non Executive Director Finance professional with over 18 years' experience in accounting and finance covering the mining, oil and gas, manufacturing, FMCG and transportation sectors.

MANAGEMENT

OCKERT HUGO KRUGER JACQUES COETZER EDDIE ORTON JOHAN INGWERSEN Company Secretary General Manager Logistics Manager Exploration Manager Practising Attorney in Cape Town 20 years experience African experience Exploration Geologist with vast African Experience

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SLIDE 5

5

BACKGROUND

  • Current issued shares

318,356,738

  • Exec. Directors’ interest

5% on fully diluted basis

  • Unity’s interest

currently at 33.6%

  • Unity holds warrants 10.9

million shares 8.5p (exp. Oct 2012) and 10.9 million shares at 11.5p (exp. April 2013)

A - MAY 2009:

At a share price of 0.5p Jurie Wessels and Hendrik Schloemann took over the management of the company

B - OCTOBER 2009:

Homase joint venture agreement was concluded

C - APRIL 2010:

JORC compliant gold resource of 282,600 ounces in respect of Homase

D – OCTOBER 2010:

Acquisition of the Akrokerri license

E – APRIL 2011:

Gabon licenses granted

F – MAY 2011:

Drilling contract concluded for Homase/Akrokerri

G – JUNE 2011:

JORC compliant gold resource of 123,000 ounces in respect of Akrokerri, which increased the Homase /Akrokerri combined resource to 405,600 ounces

H – AUGUST 2011:

Homase high grade drill results and 65% earned in Homase

I - OCTOBER 2011:

Homase drill results

J - NOVEMBER 2011:

Placing of new ordinary shares at 5p

K - FEBRUARY 2012:

Homase high grade drill results

L – APRIL 2012:

Homase drill results

M – MAY 2012:

Drilling Commenced Sangola

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SLIDE 6

PERMIT LOCATION MAP

6

PROJECTS:

GHANA - HOMASE / AKROKERRI

Similar successful projects in Ghana

  • Chirano (Kinross)
  • Edukan (Perseus)
  • Kubi and Obotan (PMI)
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SLIDE 7

SALIENT FEATURES

  • Ownership structure:

Homase: JV 65%, right to take to 85% Akrokerri: 95.1%

  • Fiscal Regime:

Government 10% free carry Tax: 25% Withholding tax: 8% Royalty: 3%-6% Talk of windfall tax

  • Obuasi mine site and

satellite pits

  • Obuasi structure
  • Resource area along 4 km
  • f strike
  • Soil anomalies
  • Regional targets

7

PROJECTS:

GHANA - HOMASE / AKROKERRI

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SLIDE 8

Drill Hole From (m) To (m) Apparent Width (m) Au Grade (g/t) True Width (m) 11HMRD001 159.0 172.6 13.6 5.9 11.2 Including 8.3 7.2 6.8 11HMRD002 158.0 171.0 13.0 6.4 10.1 Including 10.0 8.2 8.2 11HMRD003 181.0 189.5 8.5 9.5 5.8 11HMRD004 142.0 150.0 8.0 4.9 6.3 Including 6.0 6.5 4.7 11HMRD005 177.0 190.0 13.0 4.7 9.2 Including 6.5 8.9 4.6 11HMRD006 201.0 204.0 3.0 0.8 1.7 11HMRD007 226.0 231.5 5.5 4.6 3.6 11HMRD008 232.0 234.0 2.0 1.6 1.4 11HMRD009 190.0 98.0 8.0 3.4 5.5 11HMRD010 173.4 175.0 1.6 1.4 0.8 11HMRD011 157.0 225.4 68.4 1.5 28.9 Including 22.4 3.0 9.2 11HMRD012 212.0 219.8 7.8 0.9 5.6 11HMRD013 218.0 227.0 9.0 1.7 5.9 11HMRD014 Abandoned 11HMRD015 252.0 258.0 6.0 4.9 4.3 Including 3.2 8.4 2.3 11HMRD016 295.0 308.6 13.6 4.4 10.4 Including 5.4 7.9 4.1 11HMRD017 237.0 248.0 11.0 11.1 8.1 11HMRD018 Abandoned 11HMRD019 275.0 280.0 5.0 6.7 4.0 11HMRD020 268.0 281.0 13.0 6.1 9.7 11HMRD021 223.0 259.0 36.0 0.9 18.5 12HMRD001 187.0 201.0 14.0 3.8 6.4 Including 8.3 5.9 3.8 12HMRD002 211.0 225.0 14.0 1.6 9.3 12HMRD003 163.0 173.0 10.0 2.1 7.1 Including 6.0 3.0 4.2 12HMRD004* 229.0 231.0 2.0 0.8 1.4 12HMRD005 Assays Pending 12HMRD006 Assays Pending 12HMRD007* 133.4 157.8 24.4 1.4 15.7 Including 7.0 3.3 4.5 12HMRD008 Assays Pending 12HMRD009 Assays Pending 12AKDD001 Assays Pending 12AKDD002* 42.6 44.0 1.4 1.5 N/A 156.0 156.4 0.4 3.0 N/A 295.0 298.1 3.1 4.3 N/A 12AKDD003* 50.6 52.8 2.2 1.9 N/A 157.0 158.2 1.2 0.8 N/A 12AKDD004* 116.1 118.3 2.2 1.7 N/A 309.0 311.1 2.1 6.1 N/A

DRILL INTERSECTS

  • Confirm wide, medium &

high grade historical intersects

  • Demonstrate robust

geometry of ore body

  • Increase resource to depth
  • Underground and open pit

potential demonstrated

8

PROJECTS:

GHANA - HOMASE / AKROKERRI

* Latest Press Release

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SLIDE 9

PROJECTS:

GOLD RESOURCE HOMASE / AKROKERRI

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TONNAGE GRADE (g/t) CONTAINED GOLD (Ozs) Measured 3,032,617 1.61 157,298 Indicated 2,694,102 1.42 122,755 Measured & Indicated 5,726,719 1.52 280,053 Inferred 3,145,282 1.24 125,503 TOTAL 8,872,001 1.42 405,556

TONNAGE GRADE (g/t) CONTAINED GOLD (Ozs)

Oxide 2,681,244 1.49 128,543 Fresh 6,190,757 1.39 277,013 TOTAL 8,872,001 1.42 405,556 Identified Mineral Resource @ 0.5 g/t Au cut-off Mineral Resource Estimates by Material Type @ 0.5 g/t Au cut-off

RESOURCE HIGHLIGHTS

  • Open pit potential
  • 69% in measured and

indicated categories

  • Unmined ore

at surface: free dig

HOMASE METALLURGY

  • Oxide zone: 84%-93%
  • Primary zone: 80%-85%
  • Carbon in leach tests
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SLIDE 10

CROSS SECTION

10

PROJECTS:

GHANA - HOMASE / AKROKERRI

  • High grade shoots
  • GoldStone drilling
  • Underground

mining potential

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SLIDE 11

11

DRILLING PROGRESS ON LONGITUDINAL SECTION

PROJECTS:

GHANA - HOMASE / AKROKERRI

  • High grade shoot

confirmed and extended to depth

  • Pierce points of

GoldStone holes

  • Systematic drilling

underneath resource nearing completion

  • Resource potential

Homase License Akrokerri License

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SLIDE 12

AKROKERRI DRILLING PROGRESS

  • Colonial mine
  • Drilling of quartz vein and

granite

  • Artisanal activity
  • VTEM survey
  • Work programme

12

PROJECTS:

GHANA - HOMASE / AKROKERRI

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SLIDE 13

13

WORK PROGRAMME

1. Homase resource (to depth) 2. Homase extension 3. Akrokerri quartz vein 4. Akrokerri North 5. Adubrim 6. Esuoya

PROJECTS:

GHANA - HOMASE / AKROKERRI

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SLIDE 14

CURRENT EXPLORATION STATUS

  • Grassroots exploration

SALIENT FEATURES

  • Ownership structure

JV - 10%, right to take to 85%

  • Close to Bogoso

processing plant

  • Along strike of Ayanfuri

gold deposit

  • Artisanal gold workings
  • Historical gold

in soil anomalies

  • Various other regional

exploration targets exist

PROJECTS:

GHANA- MANSO AMENFI

14

  • Permit wide soil sampling programme completed:

2,200 samples

  • Results indicate robust elongated anomalies, trending

parallel to major structures

  • IP Orientation survey completed
  • Major artisanal activity in the south-western part
  • f the permit
  • Geophysical survey and trenching planned
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SLIDE 15

PROJECTS:

SENEGAL - SANGOLA

CURRENT EXPLORATION STATUS

  • Grassroots exploration in

fertile gold belt (+40 Moz)

SALIENT FEATURES

  • Wholly owned
  • Fiscal Regime:

Government 10% free carry

  • Beneficial tax regime
  • Size of permit: 471 km²
  • Along strike of

Randgold’s Massawa deposit

  • International juniors

and majors exploring along strike

  • Thiabedji, Baraboye and

Tiobo anomalies

  • Virgin ground and

potential for new large scale discoveries

15

Mali

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SLIDE 16

PROJECTS:

SENEGAL - SANGOLA

THIABEDJI RAB DRILLING

  • 6km long surface

anomaly coincident with prospective rocks

  • Results of outcrop

samples pending

  • In excess of 6,000m

drilling completed

  • MMI confirmation

16

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SLIDE 17

PROJECTS:

GABON – OYEM & NGOUTOU

17

CURRENT EXPLORATION STATUS

  • Grassroots Exploration

SALIENT FEATURES

  • Wholly Owned
  • Fiscal Regime:

Tax: 35 % Withholding tax: 20%

  • Mineral Code to change
  • Focused on best gold

anomalies resulting from SYSMIN survey

  • Two robust gold

anomalies

  • Each anomaly in excess
  • f 15km long and 300m wide
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SLIDE 18

18

GEOCHEMISTRY & AIRBORNE MAGNETICS

  • Gold in stream

sediments

  • 15 km robust gold

in soil anomaly confirmed with MMI

  • Prospective Archean

granitic and amphibolite terrain

  • Gold anomaly in direct

relationship with underlying shear zone

  • Initial drilling area (to

commence in June/July 2012)

PROJECTS:

GABON – OYEM

Gold in stream sediments Gold in soil anomaly Gold anomaly over airborne magnetic survey results

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SLIDE 19

19

DRILL TARGET AREA

PROJECTS:

GABON - OYEM

  • Drill locations
  • MMI confirmation of

Sysmin data

  • Easy access
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SLIDE 20

20

GEOCHEMISTRY

  • 15 km robust gold

in soil anomaly

  • Gold in stream

sediments

  • Artisanal workings
  • Prospective Archean

granitic and amphibolite terrain

  • Gold anomaly in direct

relationship with underlying rock

PROJECTS:

GABON – NGOUTOU

Geological Map Airborne Magnetics

Gold in soil anomaly and Artisanal workings

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SLIDE 21

Growing Golden Opportunities in Africa

THANK YOU