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RNS Number : 7483U

Golden Saint Resources Ltd

20 January 2017

20 January 2017

Golden Saint Resources Ltd

("Golden Saint" or the "Company")

Operational Update

Golden Saint Resources Ltd (AIM: GSR), the West African-focused diamond and gold exploration company quoted on AIM, is pleased to provide the market with the following operational updates, relating to two of the Company's exploration licence areas in Sierra Leone, being Baja and Tongo. No exploration is currently being undertaken on the Moa licence due to logistical constraints.

Baja licence area

The alluvial bulk sampling operation on the Sewa River low terrace currently in progress at Baja site 2 recovered a further 6 diamonds weighing 2.06 carats (cts) from some 91 tonnes (t) of basal gravels (bottom screen size = 3mm). The stones ranged from 0.17 to 0.70 carats per stone (cts/stn). Together with the 13 stones weighing 5.75 cts from this bulk sample site announced on 12 December 2016, the total number of diamonds recovered from the 271 t of basal gravels processed up to 19 December 2016 is some 19 stones weighing 7.81 cts and ranging from 0.17 to 1.57 cts/stn (bottom screen size = 3mm). In addition, some 4.07 grams (g) of alluvial gold were also recovered from the 91 t of basal gravels treated at Baja site 2, bringing the total alluvial gold recovered from this bulk sample to some 7.97 g up to the 19 December 2016. The bulk sampling operation at Baja site 2 on this Sewa River exploration target is expected to continue for another two months and any further alluvial diamond and gold recoveries will be reported in subsequent operational updates.

The bulk sampling localities at Baja site 3 and Baja site 4 have been cleared to allow for the excavation of these sample trenches which will enable the team to systematically develop the exploration targets in the selected alluvial terrace deposits along the Sewa River towards an inferred resource level of confidence. At Baja site 4, the team has completed a 50 m long by 12 m wide bulk sample trench, where, as at the date of this announcement, the overburden has been completely stripped and some 550 t of basal gravels extracted for processing through the Baja sampling plant.

Tongo licence area

At Tongo site 1, the original bulk sample trench on the low terrace of the Woa River had, by the end of December 2016, been extended with the overburden stripped completely and some 131 t of basal gravels extracted for processing through the Tongo Dove sampling plant.

Site visit report from Rock Forage Consulting Services ("Rock Forage")

Rock Forage conducted a site visit to the Company's field operations in the Tongo and Baja licences between 30 November 2016 to 11 December 2016 with the primary objective to align the exploration programmes in these two licences such that their respective alluvial exploration targets can be developed into inferred resources. This site visit focused on the Sewa River alluvial terrace deposits within the Baja licence and similar low terrace deposits along the Woa River within the Tongo licence. Each exploration target in their respective licence was critically analysed with proposed solutions to lift these targets to the required inferred resource level of confidence. From the field investigations, preliminary mapping undertaken to date and assumptions detailed in the Rock Forage report, the estimated provisional alluvial diamond and gold inventories for the exploration targets identified in the said report are as follows:

Baja Exploration Targets

-- The estimated tonnes of basal mineralized gravel are approximately 2,100,000 tonnes (range some 1,800,000 t to 2,400,000 t), which could host between 210,000 to 525,000 carats of diamonds and some 63 to 105 kgs of alluvial gold. Please see table below for further details:

Sewa North & Sewa South Provisional Inventory (Exploration Targets)

 
           Length     Width      Gravel        50%        Possible     Possible     Possible     Possible 
             (m)       (m)      thickness    Remaining      Carat        Carat        Gold         Gold 
                                   (m)        Target      Inventory    Inventory    Inventory    Inventory 
                                             (tonnes)       at 10        at 25        (kg)         (kg) 
                                                            cpht         cpht        at 0.03      at 0.05 
                                                                                       g/t          g/t 
--------  --------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
  Sewa 
  North      4,000     200        0.5        400,000       40,000      100,000         12           20 
--------  --------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
                      200x2 
                      (east 
  Sewa                & west 
  South     8,500     banks)      0.5       1,700,000     170,000      425,000         51           85 
--------  --------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
                                 Total 
                                    =       2,100,000     210,000      525,000         63          105 
                              -----------  -----------  -----------  -----------  -----------  ----------- 
 

Notes: 1. The figures set out above are Exploration Targets and are merely guidelines for potential mineralisation. These figures are not to be regarded as any category of Resource under an AIM acceptable Standard.

2. Strip ratio expected to be in the range of 8:1 to 12:1.

Tongo Exploration Targets

-- The estimated tonnes of basal mineralized gravel are approximately 1,200,000 tonnes (range some 900,000 t to 1,500,000 t) which could host between 120,000 to 300,000 carats of diamonds and some 36 to 60 kgs of alluvial gold. Please see table below for further details:

Tongo North & Tongo South Provisional Inventory (Exploration Targets)

 
           Length    Width      Gravel        50%        Possible     Possible     Possible     Possible 
             (m)      (m)      thickness    Remaining      Carat        Carat        Gold         Gold 
                                  (m)        Target      Inventory    Inventory    Inventory    Inventory 
                                            (tonnes)       at 10        at 25        (kg)         (kg) 
                                                           cpht         cpht        at 0.03      at 0.05 
                                                                                      g/t          g/t 
--------  -------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
  Tongo 
  North    4,000      200        0.5        400,000       40,000      100,000         12           20 
--------  -------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
                     200x2 
                     (east 
                       & 
  Tongo               west 
  South    4,000     banks)      0.5        800,000       80,000      200,000         24           40 
--------  -------  --------  -----------  -----------  -----------  -----------  -----------  ----------- 
                                Total 
                                   =       1,200,000     120,000      300,000         36           60 
                             -----------  -----------  -----------  -----------  -----------  ----------- 
 

Notes: 1. The figures set out above are Exploration Targets and are merely guidelines for potential mineralisation. These figures are not to be regarded as any category of Resource under an AIM acceptable Standard.

2. Strip ratio expected to be in the range of 8:1 to 12:1.

The Rock Forage report also listed the observations made during the site visit and their recommendations for the Company to improve operations and undertake the programmes required to move the exploration targets to inferred resource levels of confidence.

The site visit report submitted by Rock Forage (which includes a glossary of technical terms) can be downloaded from the Company's website at www.goldensaintresources.com and can also be accessed through the link on this announcement.

http://www.rns-pdf.londonstockexchange.com/rns/7483U_-2017-1-20.pdf

The information in this announcement that relates to the site visit by Rock Forage is based upon information compiled by Dr John D Ward (Pr. Sci. Nat; PhD) who is an Independent Consultant employed by Rock Forage Mining Limited and is a Fellow of The Geological Society of South Africa. Dr Ward has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity in which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Dr Ward consents to the inclusion in a release of the matters based on his information in the form and context in which it appears.

Executive Chairman David McDonald commented:

"The estimated provisional inventories of the diamond and gold deposits in our Baja and Tongo licenced areas as reported by Rock Forage are very encouraging and we will now consider the work necessary to establish an inferred resource within the Baja and Tongo licence areas."

Next site visit by Rock Forage Consulting Services ("Rock Forage")

The next site visit by Rock Forage and key individuals from the GSR management team will commence on 9 February 2017. This visit will focus on considering the recommendations contained in the said Rock Forage report and ensuring their implementation where practicable. The work programmess necessary for Baja and Tongo to attain the inferred resource levels will also be further reviewed.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information please contact:

 
Golden Saint Resources Ltd   Keng Hock Seah          +618 6145 4400 
Beaumont Cornish Limited     Roland Cornish          +44 (0) 20 7628 3396 
SVS Securities Plc           Tom Curran / Ben Tadd   +44 (0)203 700 0093 
Cassiopeia Services LTD      Stefania Barbaglio      +44 (0)7949690338 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 20, 2017 06:51 ET (11:51 GMT)