Joint Venture Agreement and Location

The Company entered into a joint venture agreement with Asasemu Mining, a Ghanaian company, to develop the Manso Amenfi Prospecting License.  Through the agreement GoldStone has the right to earn up to 85% interest in the permit.  The Manso Amenfi License is situated in the Wasa Amenfi West District of the Western Region in Ghana, approximately 30 km from the town of Tarkwa and approximately 250 km west of the capital Accra (Figure 1).  The permit is approximately 83 square kilometres in extent.

Prospectivity

The Manso Amenfi License is prospective because it lies along strike of a zone of intense artisanal gold mining and the Ayanfuri gold deposit, where Perseus Mining Limited defined a gold resource of 5.3 Moz (Figure 2). The intersection of the Salman structure, which controlled the formation of Adamus Resources Ltd's Salman gold deposit (2.1 Moz), and the Ayanfuri structure abuts the eastern boundary of the License and will be a priority exploration target. Other exploration targets include the margins of two granitic intrusions which straddle the northern and southern concession boundaries. Similar intrusions are known to have controlled the formation of gold mineralisation elsewhere in the gold belt. Also of interest are two large gold in soil anomalies in the concession.

Exploration within Trucking Distance of Existing Gold Plant

The license area is within trucking distance (25 km) of Golden Star Resources' ("GSR") Bogoso processing plant.  The viability of ore trucking in the area has been demonstrated by GSR who truck ore from their Pampe gold mine, six kilometres from the Manso Amenfi License, to their Bogoso plant.  The proximity of the Manso Amenfi permit to the processing plant increases the chances of any discovered gold deposit being economically viable. Future exploration of the concession will therefore be guided by the principles of "brown fields exploration"; i.e. directed not only to discover large, stand alone, gold deposits but also to define smaller gold resources that could serve as satellite feeders to the Bogoso plant.  This strategy will significantly reduce the discovery risk.

Exploration Programme

The first exploration steps will include an interpretation of remotely sensed images and government geophysical data to update and improve the structural map in the area of interest.  Artisanal mining activity and the geology will field mapped.  Follow-up soil sampling surveys will be carried out over any identified exploration targets and to verify the known gold in soil anomalies.  Gold in soil anomalies will be followed up with a trenching programme.

Figure 1: The Manso Amenfi permit is approximatelly 110 km south-west of the Homase permit and
along strike of the Salman (2.1 Moz) and Ayanfuri (5.3 Moz) gold deposits. The rocks in the permit
area belong to the vocano-sedimentary sequence of the lower Birimian.



Figure 2: The prospectivity of the Manso Amenfi License. The permit area contains two gold in soil
anomalies and is close to the intersection of two major, fertile structures. The margins of two granite
intrusions form additional exploration targets. The permit is also within trucking distance of Golden Star
Resources' Bogoso processing plant.