DENVER, April 30, 2003 (PRIMEZONE) -- Golden Star Resources Ltd. ("Golden Star" or the "Company") (AMEX:GSS) (TSE:GSC) is pleased to announce the filing of an independent technical report on the Wassa gold property located in Ghana, West Africa ("Wassa") in accordance with Canada's National Policy Instrument 43-101.
The indicated mineral resource at Wassa is estimated at 17.8 million tonnes @ 1.29 g/t, for a contained gold content of 735,000 ounces. In addition, the total inferred mineral resource at Wassa is estimated at 28.8 million tonnes @ 1.15 g/t. None of the mineral resource has yet been classified as measured. No mineral reserves have yet been estimated for the Wassa gold property, as the feasibility study has not yet been completed.
The Company expects to finalize the feasibility study in mid-2003 and the progress of the work is on track to achieve this milestone. Prior to the completion of the feasibility study the Company has made a partial commitment to the development of a gold mine at Wassa with the purchase and transport of two ball mills to Wassa and the commencement of design and construction of the powerline and the site foundations. These commitments represent about 20% of the estimated total project construction cost of approximately $14 million. (This and all currency is expressed in United States dollars.)
BACKGROUND
Golden Star completed the acquisition of its 90% interest in Wassa, which is located approximately 35 kms east of the Company's Bogoso/Prestea gold mine, in September 2002.
From March 2002 to January 2003, Golden Star completed an exploration program, which comprised 295 reverse circulation and diamond drill holes totaling 29,770 meters, 765 rotary air blast holes totaling 18,710 meters and 467 holes drilled in the existing heap leach pads totaling 6,355 meters. This exploration program forms part of a feasibility study, scheduled to be completed in mid-2003, which is being conducted to evaluate the technical and economic viability of mining and treating the Wassa resource (including the resource remaining in the heap leach pads) through a conventional carbon-in-leach process.
TECHNICAL REPORT PREPARATION
Golden Star retained Associated Mining Consultants Ltd. ("AMCL") to prepare an independent technical report, conforming to the requirements of Canada's NI 43-101, reviewing its estimate of the mineral resources for Wassa.
The Company's estimate of the "in-ground" mineral resources at Wassa is based on an independent report dated February 2003 by Steffen Robertson and Kirsten (South Africa) (Pty) Ltd. ("SRK"). In addition the Company completed its own assessment of the low-grade mineral resource contained in heap leach pads at Wassa.
AMCL reported that they concurred with the basis of the Company's mineral resource estimate, although they reported that there is some evidence that modeling procedures may have underestimated the grade. The AMCL report on the Wassa mineral resource in accordance with NI 43-101 was filed on April 30, 2003 and is available for download from SEDAR at www.sedar.com or the Company's website at www.gsr.com.
NON-RESERVE MINERAL RESOURCE ESTIMATES
Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Mineral Resources
This news release uses the terms "measured mineral resources" and 'indicated mineral resources". We advise U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.
Cautionary Note to U.S. Investors concerning estimates of Inferred Mineral Resources
This news release uses the term "inferred mineral resources". We advise U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "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 the inferred mineral resources will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable.
The mineral resource estimates reviewed by AMCL conform to the terminology for resource and reserve estimation developed by the Canadian Institute of Mining, Metallurgy and Petroleum as required under NI 43-101, and are as follows:
Resource Cut-off Tonnes Grade Gold Content
Grade (g/t) (millions) (g/t) (ounces)
Indicated Mineral Resource
Oxide 0.50 3.3 1.13 120,000
Fresh 0.60 9.3 1.64 489,000
Heap Leach
Pads 5.2 0.75 126,000
Total Indicated 17.8 1.29 735,000
Inferred Mineral Resource
Oxide 0.50 3.3 1.07
Fresh 0.60 25.5 1.16
Total Inferred 28.8 1.15
Note some rounding variations may exist between the numbers reported in this table and those reported in the AMCL Technical Report.
The total indicated mineral resource of 17.8 million tonnes @ 1.29 g/t corresponds to "mineralized material" as defined by the U. S. Securities and Exchange Commissions. No measured mineral resources have yet been identified at Wassa. No mineral reserves have yet been estimated at Wassa, as the feasibility study has not yet been finalized.
NOTES TO THE STATEMENT OF MINERAL RESOURCE ESTIMATES
1. The statement of mineral resource estimates has been prepared in accordance with the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum definitions and guidelines in National Policy Instrument 43-101.2. The Company filed an independent technical report as required by the Canadian Securities Administrators in compliance with NI 43-101 with SEDAR on April 30, 2003. This technical report, dated as of April 30, 2003, was prepared under the supervision of Mr. Keith McCandlish, P.Geol. of Associated Mining Consultants Ltd. ("AMCL"). Mr. McCandlish is a Qualified Person as defined in NI 43-101 for the filing of such report. 3. The "oxide", "fresh" and "heap leach pad" portions of the mineral resource estimates are amenable to processing in a CIL processing plant. 4. The mineral resource estimates have been determined using a cut-off grade based on (i) a gold price of $325 per ounce, and (ii) estimated mining costs and recoveries, preliminary metallurgical recoveries and processing costs, and estimated general and administrative costs. The mineral resource estimates are reported as in situ mineral resource estimates with no allowance for mining dilution or mining loss.5. One-meter drill-hole assay results have been composited into three-meter averages for geostatistical modeling using either ordinary Kriging or inverse distance squared algorithms. 6. The statement of mineral resource estimates incorporate work that was undertaken by Golden Star and work carried out by its consultants and previous owners of the Wassa gold property. Golden Star's sample collection and subsequent quality control measures are detailed in the technical report submitted by AMCL with SEDAR. Monthly sample checks re-analyzing approximately 10% of samples collected during that time frame were used in conjunction with standard control samples to ensure laboratory repeatability and accuracy. Most samples, approximately 90%, were processed in independent laboratories with the remaining samples analyzed at Golden Star's on-site laboratory at Bogoso. All analysis was done using a fire assay pre-concentration with either atomic absorption or gravimetric finishes.7. A comprehensive tabulation of drill intersections will be available on the Company's webpage at www.gsr.com.8. The geology of Wassa is as reported in Golden Star's Form 10-K for the year ended December 31, 2002 filed with the U. S. Securities and Exchange Commission.
Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine in Ghana, an approximately 57% managing equity interest in the currently inactive Prestea underground gold mine in Ghana, and a 90% equity interest in the Wassa gold project, also in Ghana. In addition, the Company has other gold exploration interests in the Guiana Shield in South America as well as elsewhere in West Africa. Golden Star currently has approximately 107 million common shares outstanding and is listed on the Toronto Stock Exchange under the symbol "GSC" and on the American Stock Exchange under the symbol "GSS".
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 establishment and estimates of mineral reserves and non-reserve mineral resources, the recovery of any mineral reserves or resources, grade, the timing and results of feasibility studies, development, costs, expenditures, mine re-opening and exploration. Factors that could cause actual results to differ materially include variations in ore grade, tons mined, crushed or milled; delay or failure to receive board or government approvals; technical, permitting, mining or processing 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 discussed in our Form 10-K for 2002. 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 and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.