Golden Star Announces Signing of the Negotiated Resettlement Agreement for the Community of Dumasi
TORONTO -- (Marketwire) -- 03/05/13 -- Golden Star Resources Ltd. (NYSE MKT: GSS) (TSX: GSC) (GHANA: GSR) ("Golden Star" or the "Company") is pleased to announce the signing of the negotiated resettlement agreement (the "Agreement") which will enable the relocation of the community of Dumasi to a new site.
The community of Dumasi is located upon the Dumasi deposit, which is a key orebody for the Company's Bogoso Mine. The orebody is Bogoso's largest undeveloped open pit mine on the concession and, as at December 31, 2012, contained National Instrument 43-101 compliant Proven and Probable Mineral Reserves of 15.3 million tonnes grading 2.19 g/t for 1.08 million ounces of gold (refer to Golden Star's press release from February 5, 2013 titled "Golden Star Announces Mineral Reserves and Resources Estimates as at December 31, 2012"). Dumasi is located approximately 4 kilometres north of the Bogoso processing plant complex. Production from the Dumasi deposit is expected to begin in early 2015 and will feed both the non-refractory and the refractory plants at Bogoso for several years to come.
Proven and Probable Reserves at Dumasi
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Tonnes Grade (g/t Au) Cont. oz Au
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Category
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Proven 3,412,000 2.32 254,000
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Probable 11,919,000 2.15 824,000
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TOTAL P&P 15,331,000 2.19 1,080,000
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Sam Coetzer, President and CEO of Golden Star, commented: "The signing of this Agreement is the next step in our strategy of unlocking value for shareholders from the Bogoso concession. We have worked diligently with the community and the government to arrive at this Agreement that satisfies the needs of the community, the Ghanaian regulators, and the Company. The Dumasi Pit is an important element of the Company's future and will provide both refractory and non-refractory ore sources for at least 6 years from 2015. We are also pleased to announce that ground is already being cleared at the new Dumasi community site in anticipation of construction beginning in the next quarter. The signing of this Agreement is a testament to the dedication and hard work on the part of our employees and the community, combined with the people of Dumasi's goodwill and belief in development for the benefit of the community at large and the cooperation and assistance of the Environmental Protection Agency of the Government of Ghana."
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 259 million shares outstanding.
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 under Canadian securities laws. Such statements include the Company's expectations regarding the effect of the negotiated resettlement agreement, Dumasi Pit reserves, the timing of construction of the new Dumasi community, the timing of the start of mining at the Dumasi Pit and the types of ore and the duration of mining at Dumasi. Factors that could cause actual results to differ materially include timing of and unexpected events at Dumasi or at the Bogoso processing plants; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; the availability and cost of electrical power; timing and availability of external financing on acceptable terms; technical, mining or processing issues; changes in U.S. and Canadian securities markets; and fluctuations in gold price and costs and general economic conditions. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual facts to differ materially. 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 2012. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake any estimate at any particular time or in response to any particular event.
Dr. Martin Raffield, Senior Vice President of Technical Services for the Company, approved the technical information contained in this press release. Dr. Raffield is a "Qualified Person" as defined by Canada's National Instrument 43-101.
For Further Information, Please Contact:
GOLDEN STAR RESOURCES LTD.
Bruce Higson-Smith
Senior Vice President Corporate Strategy
1-800-553-8436
INVESTOR RELATIONS
Belinda Labatte
The Capital Lab, Inc.
647-427-0208
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
www.gsr.com