News Out!!
Golden Star Increases Prestea South Gold Unconstrained Indicated Mineral Resources to 525,000 Ounces
10:23a ET January 11, 2008 (Business Wire)
Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC) ("Golden Star") today announced that it has received an updated resource model for the Bondaye and Tuapim deposits located in the Prestea South area of the Bogoso/Prestea concession approximately 20 kilometers south of the Bogoso processing plants. New drill results and the application of an amended resource model yielded a total of 525,000 ounces of gold in the Mineral Indicated Resource category. This corresponds to a net increase of 409,000 ounces of gold in unconstrained Indicated Mineral Resources.
Mitch Wasel, Golden Star's Vice President Exploration, commented that, "The increase in the unconstrained Indicated Mineral Resource and the overall grade of this material is expected to have a positive effect on our year-end Mineral Reserves for these two deposits. Our mining engineers are busy finalizing the economic open pit parameters and subsequent designs to determine the extent of the anticipated additions to the Mineral Reserves for inclusion in our Annual Mineral Reserve Statements, which are expected to be finalized in the first quarter of 2008."
BACKGROUND
The Bondaye and Tuapim deposits have been incorporated into our Prestea South Project which is currently being permitted. The permitting of this project is well advanced and we expect to receive environmental and mining licenses during 2008 in preparation for mining scheduled for 2009.
BONDAYE--TUAPIM DRILLING AND UNCONSTRAINED RESOURCE UPDATE Difference from 2004 2007 2004 to 2007 ---------------------------------------------------------------------- Indicated Tonnes Gold Grade Tonnes Gold Grade Tonnes Gold Grade (M) (g/t) (M) (g/t) (M) (g/t) ---------------------------------------------------------------------- Oxide 2.67 2.2 0.96 2.2 1.71 2.2 ---------------------------------------------------------------------- Transition 0.86 2.5 0.24 2.3 0.62 2.6 ---------------------------------------------------------------------- Fresh 2.96 2.8 0.39 2.5 2.57 2.8 ---------------------------------------------------------------------- Total Indicated 6.48 2.5 1.59 2.3 4.89 3.3 ---------------------------------------------------------------------- Differences in figures may be due to rounding error.
We expect to increase the Mineral Reserves at Bondaye and Tuapim, 1.6 million tonnes grading 2.7 g/t at December 2006, when we complete the open pit designs for the Mineral Resources update in the first quarter of 2008. We believe this can be accomplished due to the fact that a majority of the contained gold from the previously delineated Inferred Mineral Resources was converted into the Indicated Mineral Resource category. The October 2007 Mineral Resources have not been constrained within an economic pit shell but are based on cut off grades of 0.84 g/t, 1.28g/t, and 1.18 g/t for the oxide, transition and fresh material, respectively and assuming a $560 gold price and the 2006 year-end processing and mining cost estimates and recoveries. The November 2004 Mineral Resource estimate for Bondaye-Tuapim assumed a gold price of $430 per ounce and oxide, transition and sulfide average cut-off grades of 0.72 g/t, 1.27 g/t and 1.21 g/t, respectively. Mineral Resources calculated for our final year-end 2007 statements will be constrained by economic pit shells based on the same parameters as our Mineral Reserves using a gold price of $640 per ounce.
The Bondaye and Tuapim deposits occur along two mineralized structures located at the southern end of the Ashanti Trend. Tuapim occurs along the northeast-southwest trending Ashanti lineament while Bondaye parallels the Birimian Tarkwaian contact and strikes roughly north-south. Neither of these deposits has been extensively exploited via historical underground mining, unlike the adjacent Prestea mine. Both Bondaye and Tuapim exhibit widths and grades that, under current economic conditions, are likely to be amenable to both open pit underground mining.
The new drilling results utilized for the updated mineral resource estimates have increased the overall grade of the Indicated Mineral Resource from 2.27 g/t to 2.52 g/t. Significant drill intersections are summarized in the table below with the full details of the drill results and a location map provided on the Company's website at www.gsr.com.
Hole ID Easting Northing Elevation Azimuth Dip (m) (m) (m) (degrees) (degrees) ---------------------------------------------------------------------- BDYDD002 12438.9 5538.978 5155.165 70 -50 ---------------------------------------------------------------------- BDYDD004 12469.3 5530.373 5155.938 70 -50 ---------------------------------------------------------------------- BDYDD004 ---------------------------------------------------------------------- BDYDD004 ---------------------------------------------------------------------- BDYDD005 12435.2 5596.99 5154.877 70 -50 ---------------------------------------------------------------------- BDYDD008 12481.6 4925.995 5107.507 70 -50 ---------------------------------------------------------------------- BDYDD008 ---------------------------------------------------------------------- BDYDD008 ---------------------------------------------------------------------- BDYRC119 12400.9 5050.39 5137.917 70 -50 ---------------------------------------------------------------------- BDYRC119 ---------------------------------------------------------------------- BDYRC120 12423.2 5085.328 5143.707 70 -50 ---------------------------------------------------------------------- BDYRC120 ---------------------------------------------------------------------- BDYRC121 12458 5073.249 5141.826 70 -50 ---------------------------------------------------------------------- BDYRC122 12442.1 5040.93 5135.479 70 -50 ---------------------------------------------------------------------- BDYRC124 12444.7 5015.491 5129.821 70 -50 ---------------------------------------------------------------------- BDYRC129 12437.4 4959.692 5117.907 70 -50 ---------------------------------------------------------------------- BDYRC129 ---------------------------------------------------------------------- BDYRC131 12429.8 4930.295 5112.088 70 -50 ---------------------------------------------------------------------- BDYRC132 12456.4 4833.408 5122.98 70 -50 ---------------------------------------------------------------------- BDYRC135 12434.6 5566.274 5154.817 70 -50 ---------------------------------------------------------------------- BDYRC137 12518 5628.243 5154.097 70 -50 ---------------------------------------------------------------------- BDYRC138 12545.2 5557.438 5150.972 70 -50 ---------------------------------------------------------------------- BDYRC139 12509.8 5518.072 5154.557 70 -50 ---------------------------------------------------------------------- BDYRC140 12535 5500.839 5150.076 70 -50 ---------------------------------------------------------------------- BDYRC143 12544.8 5344.761 5160.595 70 -50 ---------------------------------------------------------------------- BDYRC145 12534.9 5447.606 5154.168 70 -50 ---------------------------------------------------------------------- BDYRC146 12515.1 5574.145 5154.124 70 -46 ---------------------------------------------------------------------- BDYRC147 12606.2 5260.698 5157.012 70 -50 ---------------------------------------------------------------------- Hole ID Easting Northing Elevation Azimuth Dip (m) (m) (m) (degrees) (degrees) ---------------------------------------------------------------------- ---------------------------------------------------------------------- BDYRC151 12464.8 4863.91 5117.93 70 -50 ---------------------------------------------------------------------- BDYRC151 ---------------------------------------------------------------------- BDYRC152 12358.9 5463.255 5145.989 70 -50 ---------------------------------------------------------------------- BDYRC152 ---------------------------------------------------------------------- BDYRC156 12386.1 4861.201 5124.511 70 -50 ---------------------------------------------------------------------- BDYRC156 ---------------------------------------------------------------------- BDYRC157 12508.7 4852.702 5113.073 70 -50 ---------------------------------------------------------------------- BDYRC157 ---------------------------------------------------------------------- BDYRC157 ---------------------------------------------------------------------- BDYRC160 12828.9 5315.283 5141.372 70 -50 ---------------------------------------------------------------------- BDYRC162 12865.5 5280.043 5143.436 70 -50 ---------------------------------------------------------------------- BDYRC166 13173.3 4882.132 5169.252 70 -50 ---------------------------------------------------------------------- BDYRC166 ---------------------------------------------------------------------- BDYRC167 13161.4 4824.501 5166.908 70 -50 ---------------------------------------------------------------------- BDYRC167 ---------------------------------------------------------------------- BDYRC176 12517.5 4909.042 5104.35 70 -50 ---------------------------------------------------------------------- BDYRC177 12454.9 4887.897 5109.901 70 -50 ---------------------------------------------------------------------- BDYRC177 ---------------------------------------------------------------------- TUPDD003 11275.8 4449.859 5068.545 90 -50 ---------------------------------------------------------------------- TUPDD004 11318.1 4474.637 5078.123 90 -50 ---------------------------------------------------------------------- TUPDD005 11240.6 4650.046 5111.871 90 -50 ---------------------------------------------------------------------- TUPDD006 11271.1 4625.301 5114.818 90 -50 ---------------------------------------------------------------------- TUPDD009 11322.5 4750.32 5079.967 90 -50 ---------------------------------------------------------------------- TUPDD010 11452.6 4900.204 5078 90 -50 ---------------------------------------------------------------------- TUPRC170 11297.3 3950.473 5088 90 -50 ---------------------------------------------------------------------- TUPRC172 11287.5 3925.261 5090.153 90 -50 ---------------------------------------------------------------------- TUPRC174 11083.3 3900.195 5085.024 90 -50 ---------------------------------------------------------------------- TUPRC177 11316.7 4500.368 5078.67 90 -50 ---------------------------------------------------------------------- TUPRC177 ---------------------------------------------------------------------- TUPRC177 ---------------------------------------------------------------------- TUPRC179 11136.2 3949.793 5091.767 90 -50 ---------------------------------------------------------------------- TUPRC188 11316.4 4675.303 5107.585 90 -50 ---------------------------------------------------------------------- TUPRC189 11309.7 4700.287 5097.95 90 -50 ---------------------------------------------------------------------- TUPRC190 11306.3 4725.36 5088.527 90 -50 ---------------------------------------------------------------------- TUPRC192 11389.5 4775.301 5066.339 90 -50 ---------------------------------------------------------------------- TUPRC193 11460.9 4800.11 5083.448 90 -50 ---------------------------------------------------------------------- TUPRC194 11478.7 4875.061 5086.916 90 -50 ---------------------------------------------------------------------- TUPRC195 11514.4 4927.08 5070.342 90 -50 ---------------------------------------------------------------------- TUPRC196 11494.1 4900.338 5078.164 90 -50 ---------------------------------------------------------------------- Hole ID Drill From To Drilled approx. True Grade Type (m) (m) Width Width Au (m) (m) (g/t) ---------------------------------------------------------------------- BDYDD002 RC 23 31 8.0 6.6 4.7 ---------------------------------------------------------------------- BDYDD004 RC 45 50 5.0 4.1 13.7 ---------------------------------------------------------------------- BDYDD004 42 52 10.0 9.7 7.7 ---------------------------------------------------------------------- BDYDD004 94 98 4.4 4.3 4.8 ---------------------------------------------------------------------- BDYDD005 DD 114 119 4.2 3.4 2.6 ---------------------------------------------------------------------- BDYDD008 RC 36 47 11.0 9.0 3.0 ---------------------------------------------------------------------- BDYDD008 67 72 5.0 4.8 26.8 ---------------------------------------------------------------------- BDYDD008 76 82 6.0 5.8 3.2 ---------------------------------------------------------------------- BDYRC119 RC 18 26 8.0 6.6 2.9 ---------------------------------------------------------------------- BDYRC119 57 63 6.0 5.8 2.7 ---------------------------------------------------------------------- BDYRC120 RC 54 57 3.0 2.5 26.6 ---------------------------------------------------------------------- BDYRC120 54 60 6.0 5.8 14.3 ---------------------------------------------------------------------- BDYRC121 RC 1 16 15.0 12.3 2.0 ---------------------------------------------------------------------- BDYRC122 RC 18 27 9.0 7.4 3.0 ---------------------------------------------------------------------- BDYRC124 RC 40 44 4.0 3.3 21.4 ---------------------------------------------------------------------- BDYRC129 RC 24 28 4.0 3.3 11.0 ---------------------------------------------------------------------- BDYRC129 42 50 8.0 7.7 10.8 ---------------------------------------------------------------------- BDYRC131 RC 84 112 28.0 22.9 4.2 ---------------------------------------------------------------------- BDYRC132 RC 40 48 8.0 6.6 3.4 ---------------------------------------------------------------------- BDYRC135 RC 80 85 5.0 4.1 9.3 ---------------------------------------------------------------------- BDYRC137 RC 35 43 8.0 6.6 2.9 ---------------------------------------------------------------------- BDYRC138 RC 25 29 4.0 3.3 4.0 ---------------------------------------------------------------------- BDYRC139 RC 42 49 7.0 5.7 2.5 ---------------------------------------------------------------------- BDYRC140 RC 12 38 26.0 21.3 2.6 ---------------------------------------------------------------------- BDYRC143 RC 47 54 7.0 5.7 3.1 ---------------------------------------------------------------------- BDYRC145 RC 2 16 14.0 11.5 2.4 ---------------------------------------------------------------------- BDYRC146 RC 19 22 3.0 2.6 6.4 ---------------------------------------------------------------------- BDYRC147 RC 52 58 6.0 4.9 9.4 ---------------------------------------------------------------------- Hole ID Drill From To Drilled approx. True Grade Type (m) (m) Width Width Au (m) (m) (g/t) ---------------------------------------------------------------------- ---------------------------------------------------------------------- BDYRC151 RC 0 10 10.0 8.2 7.7 ---------------------------------------------------------------------- BDYRC151 48 62 14.0 13.5 2.0 ---------------------------------------------------------------------- BDYRC152 RC 67 70 3.0 2.5 36.7 ---------------------------------------------------------------------- BDYRC152 60 71 11.0 10.6 11.0 ---------------------------------------------------------------------- BDYRC156 RC 53 58 5.0 4.1 3.4 ---------------------------------------------------------------------- BDYRC156 67 93 26.0 25.1 2.8 ---------------------------------------------------------------------- BDYRC157 RC 17 33 16.0 13.1 2.9 ---------------------------------------------------------------------- BDYRC157 71 83 12.0 11.6 6.0 ---------------------------------------------------------------------- BDYRC157 52 83 31.0 29.9 4.3 ---------------------------------------------------------------------- BDYRC160 RC 76 79 3.0 2.5 4.4 ---------------------------------------------------------------------- BDYRC162 RC 5 12 7.0 5.7 22.8 ---------------------------------------------------------------------- BDYRC166 RC 27 35 8.0 6.6 13.7 ---------------------------------------------------------------------- BDYRC166 25 42 17.0 16.4 8.0 ---------------------------------------------------------------------- BDYRC167 RC 59 64 5.0 4.1 6.5 ---------------------------------------------------------------------- BDYRC167 56 71 15.0 14.5 4.1 ---------------------------------------------------------------------- BDYRC176 RC 7 19 12.0 9.8 2.9 ---------------------------------------------------------------------- BDYRC177 RC 54 59 5.0 4.1 6.7 ---------------------------------------------------------------------- BDYRC177 66 81 15.0 14.5 3.2 ---------------------------------------------------------------------- TUPDD003 RC 65 74 9.0 7.4 2.5 ---------------------------------------------------------------------- TUPDD004 RC 77 81 4.0 3.3 11.1 ---------------------------------------------------------------------- TUPDD005 DD 141 148 6.8 5.6 3.0 ---------------------------------------------------------------------- TUPDD006 DD 100 105 4.7 3.9 3.4 ---------------------------------------------------------------------- TUPDD009 DD 108 130 21.8 17.9 2.1 ---------------------------------------------------------------------- TUPDD010 DD 105 108 3.8 3.1 4.7 ---------------------------------------------------------------------- TUPRC170 RC 54 59 5.0 4.1 4.5 ---------------------------------------------------------------------- TUPRC172 RC 71 76 5.0 4.1 9.4 ---------------------------------------------------------------------- TUPRC174 RC 51 55 4.0 3.3 3.8 ---------------------------------------------------------------------- TUPRC177 RC 33 38 5.0 4.1 5.0 ---------------------------------------------------------------------- TUPRC177 54 59 5.0 4.8 4.5 ---------------------------------------------------------------------- TUPRC177 79 82 3.0 2.9 6.1 ---------------------------------------------------------------------- TUPRC179 RC 21 38 17.0 13.9 2.0 ---------------------------------------------------------------------- TUPRC188 RC 82 89 7.0 5.7 2.7 ---------------------------------------------------------------------- TUPRC189 RC 83 96 13.0 10.6 2.4 ---------------------------------------------------------------------- TUPRC190 RC 75 108 33.0 27.0 3.0 ---------------------------------------------------------------------- TUPRC192 RC 36 67 31.0 25.4 2.1 ---------------------------------------------------------------------- TUPRC193 RC 75 78 3.0 2.5 7.1 ---------------------------------------------------------------------- TUPRC194 RC 63 73 10.0 8.2 2.9 ---------------------------------------------------------------------- TUPRC195 RC 30 36 6.0 4.9 4.5 ---------------------------------------------------------------------- TUPRC196 RC 54 62 8.0 6.6 3.5 ----------------------------------------------------------------------
QA-QC
The technical information set forth in this press release has been prepared under the supervision of, and the contents of this press release have been reviewed by Mr. S. Mitchel Wasel, BSc Geology, a Qualified Person pursuant to National Instrument 43-101 of the Canadian Securities Administration. Mr. Wasel is Vice President Exploration for Golden Star and an active member of the Australasian Institute of Mining and Metallurgy.
The results quoted herein are based on the analysis of saw-split HQ/NQ diamond half core or a three kilogram single stage riffle split of a nominal 25 to 30 kilogram Reverse Circulation chip sample which has been sampled over nominal one-meter intervals (adjusted where necessary for mineralized structures). Sample preparation and analyses have been carried out at Transworld Laboratories in Tarkwa using a 50 gram assay charge with a flame Atomic Absorption Spectrophotometry (AAS) finish and a detection limit of 0.01 ppm. All analytical work is subject to a systematic and rigorous Quality Assurance-Quality Control (QA-QC). At least 5% of samples are certified standards and the accuracy of the analysis is confirmed to be acceptable from comparison of the recommended and actual 'standards' results. The remaining half core is stored on site for future inspection and detailed logging, to provide information on mineralogy, structure, alteration patterns and the controls on gold mineralization.
COMPANY PROFILE
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million shares outstanding.
Cautionary Note to US Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources: US investors are advised that while the term "Measured, Indicated and Inferred Mineral Resources" are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules estimates of Inferred Mineral Resources could not form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the Inferred Mineral Resource exists, or is economically or legally mineable.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding: the timing and results of future drilling and development activities and the ability to convert Inferred Mineral Resources to Indicated Mineral Resources and the possible subsequent conversion to Mineral Reserves, the results of completion of pit parameters and designs, the effect of the increase in Indicated Mineral Resources on year-end mineral reserves; the timing of annual reserve statements; the timing for the receipt of environmental and mining licenses; increases in mineral reserves at Bondaye and Tuapim; and the potential methods of mining at Bondaye and Tuapim. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration, development and construction; variations in ore grade; variations in relative amounts of refractory, non-refractory and transition ores; technical or permitting issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2006, as amended.
For further information, please contact: GOLDEN STAR RESOURCES LTD. +1 800 553 8436 Bruce Higson-Smith, Vice President Corporate Development Anne Hite, Investor Relations Manager
SOURCE: Golden Star Resources Ltd.
Golden Star Resources Ltd. Bruce Higson-Smith, Vice President Corporate Development +1-800-553-8436 Anne Hite, Investor Relations Manager +1-800-553-8436
