Goldstake grabs South African stockpile

Goldstake Explorations (GXP-T) has acquired a stockpile of processed, but still rich, gold ore in South Africa.

Production has started on the Gold Stockpile 1 project, a joint venture between Goldstake (with 80%) and a private South African firm.

The project was acquired by Goldstake’s partner in May, and Goldstake acquired its interest earlier this month, as one of a complex series of ongoing transactions involving stockpiled ore in South Africa. Goldstake has not released financial details regarding acquisition of Gold Stockpile 1, except to say that no Goldstake shares are involved, and that acquisition costs will be paid out of income from the operation.

The project involves the processing of stockpiled ore in the rich Klerksdorp goldfield region, which contains some of South Africa’s largest gold mining operations.

The project’s first stage comprises the treatment of 700,000 tonnes of untreated stockpile material, of which 20% has a recoverable gold grade of over 2.1 grams per tonne. The plant has the capacity to process 5,000 tonnes per week, producing 1,000 tonnes of ore with the above grade, at a cost of US$150 per oz. gold.

The company plans to increase production to 2,000 tonnes per week as increased crusher capacity comes on-stream in the near future.

The joint-Venture partners have completed negotiations regarding two additional stockpiles totalling 2.25 million tonnes and are currently negotiating to acquire more reserves in the area.

“This acquisition fits in perfectly with Goldstake’s strategy,” says Goldstake President Robert Cleaver. “The cash-flow from this operation and from future acquisitions will help finance our exploration projects around the world while reducing the need for external financing.”

Meanwhile, Goldstake’s drills are once again turning on the Indonesian island of Java, at the Soreang gold project.

The company plans to drill-Test the downdip potential of defined anomalies on Zones 1 through 8 on Soreang East, and complete an intensive program of mapping, trenching and soil sampling on the Soreang East and Soreang Central areas.

At Soreang East, results to date from trench TRA on Zone 2 have revealed 26 metres grading 1.03 grams gold per tonne, including 2 metres of 4.74 grams.

Results from trench TRB indicate 16 metres of 1.02 grams gold, including 2 metres of 3.84 grams.

Results from trench TRC on Zone 4 revealed 18 metres at 1.4 grams gold, including 2 metres of 2.38 grams, 2 metres of 1.42 grams and 2 metres of 5.13 grams. Trenches TRA and B have been extended, and assays are awaited.

Seven additional trenches, covering a total of 700 metres in Zones 1 through 8, should be completed this dry season.

Results of trenching at Soreang Central included 5 metres grading 2.24 grams gold and 1.46% arsenic.

On July 10, the Indonesian mines department in Jakarta initialed Goldstake’s seventh-generation contract of work (CoW) application regarding the company’s 278,500-ha. property in Kalimantan. The CoW was unchanged from the draft document presented to Goldstake in late 1996 and will be presented to the Indonesian Parliament for approval.