GoldStone Expands Sierra Leone Operations as Early Processing Identifies Coarse Gold (GRL)

GoldStone Resources (LSE:GRL) has reported further progress at its Sierra Leone joint venture, MinCorp SL, where the company owns a 50% interest in a number of small-scale gold mining licences located adjacent to the significant Baomahun gold deposit.

The venture enhances GoldStone’s presence in West Africa alongside its producing Homase mine in Ghana and supports the company’s strategy of increasing exposure to prospective gold-producing regions across the area.

Initial Processing Results Deliver Encouraging Signs

Since making its investment in March 2026, MinCorp SL has advanced several key operational activities, including the commissioning of a wash plant and the launch of test trenching work using excavator equipment.

During initial gravity recovery operations, visible coarse gold was identified, a development the company considers a positive indication of the mineral potential within the licence areas. GoldStone has also deployed local technical and management personnel to support the project’s advancement.

Under the terms of its memorandum of understanding, the company expects to receive initial revenues from early gold sales. Looking ahead, management intends to implement more structured processing programmes aimed at improving recovery rates, refining mining methods and supporting future mine planning activities.

The project continues to receive support from Sierra Leone’s National Minerals Agency as development work progresses.

Strong Market Momentum Offsets Financial Challenges

GoldStone’s investment outlook remains constrained by ongoing financial pressures, including continued losses, weaker margins, negative free cash flow and increasing leverage.

However, these concerns are partially balanced by strong technical performance, with the shares trading above key moving averages and maintaining positive price momentum. Valuation metrics remain challenging due to the company’s loss-making status, reflected in a negative price-to-earnings ratio and the absence of dividend support.

More About GoldStone Resources

GoldStone Resources Limited is an AIM-listed gold exploration, development and production company focused on assets in Ghana.

Its flagship Akrokeri-Homase project, located in southwestern Ghana, contains a JORC-compliant gold resource of 602,000 ounces across a 4-kilometre section of the Homase Trend. The project incorporates two historic high-grade gold mines and forms the cornerstone of the company’s strategy to build a broader portfolio of assets along the highly prospective Birimian Gold Belt.