Golden Star Increases Buesichem Resource by 378%
DENVER, COLORADO -- (Marketwire) -- 07/22/10 -- Golden Star Resources Ltd. (TSX: GSC)(NYSE Amex: GSS)(GSE: GSR) is pleased to announce preliminary mineral resource estimate and pit optimization results from the new discovery at Buesichem (now called Buesichem South deposit) which we reported March 4, 2010. The Buesichem South discovery added approximately 500,000 ounces of gold to the Buesichem resource base bringing the Buesichem total to 134,000 ounces of Measured and Indicated Mineral Resources and 497,000 ounces of Inferred Mineral Resource that with further drilling will extend the life of the Buesichem pit by several years. The Buesichem South discovery is open ended to the south and drilling is continuing. To date, an additional 62 holes totaling 14,700 meters (m) have been drilled on a nominal 50 m X 50 m grid interval.
Tom Mair, President and CEO, stated, 'We are excited about the results of the new Buesichem South discovery. Drill rigs are currently busy drilling at Buesichem South to firm up the mineral resource as well as determine the strike extent to the south. This new discovery yet again demonstrates how focused exploration on an existing mining camp can deliver significant results, and we are continuing this approach along our 85 kilometer strike length of the prolific Ashanti Trend.'
At the end of 2009, the Measured and Indicated Mineral Resources at Buesichem, before the discovery of Buesichem South, were 0.95 million tonnes grading 2.68 g/t gold totaling 82,000 ounces of gold with an additional Inferred Mineral Resource of 0.46 million tonnes grading 3.40 g/t gold for 50,000 ounces of gold. The revised resource estimates are tabulated below. Golden Star reports resources constrained within an optimized pit shell which uses operating costs and recoveries based on our current operations at the Bogoso Processing facility and a gold price of $1,100 per ounce. Most of the additional Mineral Resources are currently classified as inferred and are attributed to the new Buesichem South discovery.
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July 2010 Buesichem Constrained Mineral Resource--$1,100/Oz Gold Price
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Tonnes Grade
Resource Classification (000) (g/t) Contained Gold (000's oz)
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Measured 25 2.63 2
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Indicated 1,559 2.64 132
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Total M&I 1,584 2.64 134
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Inferred 5,302 2.92 497
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Please note: Assumptions and disclosure statements for the constrained
Mineral Resource at Buesichem are listed on the Golden Star website
located at www.gsr.com.
The additional constrained resources have been added to an area along trend and south of the existing mining operations with a small proportion of the additional resources being located beneath existing open pits. Currently two multi-purpose drill rigs are infill drilling on 25 m spaced drill fences. A third drill rig will be redirected to the Buesichem South Zone to accelerate this Inferred Mineral Resource conversion so that we can fully assess the potential of this material for Mineral Reserve conversion and extend the Buesichem pit mine life.
Mitch Wasel, Vice President Exploration, commented, 'With the completion of the preliminary Mineral Resource estimates and optimizations on this new discovery, we will focus our infill drilling here to increase the confidence in the mineral resource for eventual conversion to Mineral Reserves. Drilling will also continue to test this zone to the south where it remains open along strike as well as test an eastern splay off this main structure where our initial Rotary Air Blast drilling has delineated a sub-parallel gold-bearing structure. The Buesichem area with the recent discoveries to the south and now to the east is turning into a major deposit which will be the focus of our drilling efforts at Bogoso for the second half of this year.'
The Buesichem deposit has been known since the 1930's when high grade oxide material was mined from a small open pit over a 20-year period. Golden Star acquired the deposit in 2001 as part of the Prestea Mining Lease acquisition and Buesichem provided a source of oxide ore for the Bogoso oxide plant for nearly two years. Sulfide ore mining commenced at Buesichem in May 2006 and approximately 500,000 ounces of gold have been mined and processed from this single pit thus far. With the discovery of Buesichem South, this deposit could exceed one million ounces of production, becoming the largest single open pit reserve and resource at Bogoso/Prestea to date.
QA-QC
The technical contents of this press release have been reviewed and verified by S. Mitchel Wasel, BSc Geology, a Qualified Person pursuant to Canada's National Instrument 43-101. Mr. Wasel is Vice President Exploration for Golden Star and an active member of the Australasian Institute of Mining and Metallurgy.
The results herein are based on the analysis of saw-split HQ sized (64mm) diamond half core or a three kilogram single stage riffle split of a nominal 25 to 30 kg 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 SGS 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.
The Mineral Resource estimates have been estimated by our technical personnel in accordance with definitions and guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves published by the Canadian Institute of Mining, Metallurgy, and Petroleum and as required by Canada's National Instrument 43-101.
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/HBB 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 Brazil in South America. Golden Star has approximately 258 million shares outstanding.
Cautionary Note to US Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources
This section uses the terms 'Measured Mineral Resources', 'Indicated Mineral Resources' and 'Inferred Mineral Resources'. We advise US investors that while those terms are recognized and required by NI 43-101, the US Securities and Exchange Commission does not recognize them. US investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to their economic and legal feasibility. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot 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. Disclosure of 'contained ounces' in a Mineral Resource is permitted disclosure under Canadian regulations, however the SEC normally only permits issuers to report mineralization that does not constitute 'reserves' by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject to NI 43-101.
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 and other applicable securities laws. 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, focus, and results of future drilling and development activities; the impact on mine life of Buesichem South; the results of completion of pit parameter, shells and designs; the conversion of resources to reserves; and the timing of reserve and resource statements and estimates. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration; 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 2009.
Contacts:
Golden Star Resources Ltd.
Bruce Higson-Smith
Vice President Corporate Development
+1 800 553 8436
Golden Star Resources Ltd.
Anne Hite
Investor Relations Manager
+1 800 553 8436