Goldstone Resources Ltd on Friday said there ‘remains room for improvement’ in recovery rates, after it failed to meet its production target for the year.

Goldstone Resources is a Jersey, UK-based gold development company with projects in West Africa.

The company has produced and sold 5,153 troy ounces of gold to date from the Homase Mine, realising an average price of $1,794 per ounce for revenues of $9.3 million.

During the year, loan repayments from gold via the delivery of 675 troy ounces to Asia Investments Management Services Ltd were also delivered.

However, Goldstone Resources failed to meet its production target of 7,000 ounces of gold, though it noted that shortfall ounces remain within the heap at various stages of recovery.

‘We have seen significant volatility in the supply and pricing of consumables, reagents, structural steel, heavy equipment, and fuel, all of which are required for constructing and maintaining a modern mining operation,’ said Chief Executive Officer Emma Priestley.

‘This creates challenges in estimating capital and operating costs, particularly when estimating future costs. We think it is well understood that the current unreliable situation has arisen largely from a combination of Covid-19, the war in Ukraine, and global inflation. While we are all growing increasingly frustrated by citing these as factors which prompt manufacturing and delivery delays, it appears to be a reality that we must accept in the short term at least,’ Priestley added.

In better news, further improvements are being made to the dry plant to improve gold recovery from the current recovery rate of approximately 65%.

Golstone said that an increase in available mineable resources at Pits 1 and 2, as demonstrated from geotechnical drilling, would strongly improve economic performance.

Further drill results from the fourth quarter diamond drill programme at the former high grade Akrokeri Mine are expected in early 2023.

Goldstone shares closed 12% lower at 3.02 pence each in London on Friday.

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