DENVER, Colo., June 20, 2002 (PRIMEZONE) -- Golden Star Resources Ltd. ("Golden Star" or the "Company") (AMEX:GSS) (TSE:GSC) is pleased to announce an increase in its Proven and Probable Mineral Reserves ("Mineral Reserves") at its Bogoso/Prestea property in Ghana. As at May 31, 2002 its Mineral Reserves comprised 20,637,454 tonnes at an average grade of 3.15 g Au/t for total contained gold of 2,090,793 ounces. This represents an increase of 263,467 ounces compared to the stated Mineral Reserves as at December 31, 2001.
The proportion of Mineral Reserves in the proven category has also increased from 56% to 69%, as a result of additional drilling.
This increase in the Mineral Reserves is a result of additional work and drilling programs at its Bogoso/Prestea property in Ghana on the deposits known as Buesichem, Brumase/Beposo and Plant-North. The Company had not previously published any reserves for Brumase/Beposo and the new Mineral Reserves for this deposit are the result of exploration on the Prestea property since September 2001. The Company had previously published reserves for its Plant-North and Buesichem deposits and the increase in Mineral Reserves for these deposits is a result of greater confidence resulting from infill drilling. At Plant-North, this work resulted in the delineation of wider zones at the southern end of the deposit. The Plant-North deposit remains open to the south and further exploration will be carried out during the current year.
Peter Bradford, President and Chief Executive Officer of Golden Star, said: "the increase in Mineral Reserves and Mineral Resources achieved at Prestea from the last six months is a very positive confirmation of the prospectivity of the Bogoso/Prestea area for additional reserves that can be processed in the existing processing plant, which defers the requirement to commit capital expenditure to upgrade the project to process refractory sulfides beyond 2007. Furthermore the work has resulted in an overall increase in average grade that will likely realize lower overall cash costs."
RECONCILIATION
The following table reconciles the net increase in the Mineral Reserves at Bogoso/Prestea since December 31, 2001:
Tonnes Grade Contained
Ounces
December 31, 2001
Mineral Reserves 19,096,546 2.97 1,827,326
plus Beposo/Brumase
new reserves 572,300 2.43 44,713
plus Buesichem reserve
increase 234,750 4.35 32,853
plus Plant-North
reserve increase 1,298,285 5.54 231,411
plus Stockpile increase 92,057 2.56 7,589
less mining depletion
thru May 2002 (656,484) 2.52 (53,099)
May 31, 2002 Mineral
Reserves 20,637,454 3.15 2,090,793
Net Increase in Mineral
Reserves 1,540,908 5.32 263,467
MINERAL RESERVES
The total Mineral Reserves at Bogoso/Prestea contained within $275 per ounce optimized pit shells total 20,637,454 tonnes at an average grade of 3.15 g Au/t, representing 2,090,793 ounces of contained gold. This represents a 14% increase in the Mineral Reserves reported by Golden Star as at December 31, 2001. The increase in Mineral Reserves is primarily the result of additional drilling and further analysis of existing data.
The Bogoso/Prestea Mineral Reserves are broken down as follows:
Classification Tonnes Grade Contained
Ounces
Proven Mineral Reserves 14,335,891 3.24 1,493,424
Probable Mineral Reserves 6,301,563 2.95 597,369
Total Mineral Reserves 20,637,454 3.15 2,090,793
The Bogoso/Prestea Mineral Reserves are comprised of the following mineral types:
Material Type Tonnes Grade Contained
Ounces
Oxide 5,463,196 2.22 389,275
Transition 1,467,372 3.18 149,988
Primary 4,135,007 3.77 500,897
Refractory Transition 1,831,660 3.10 182,330
Refractory Sulfide 7,740,219 3.49 868,303
Total 20,637,454 3.15 2,090,793
The stated Mineral Reserves have been prepared in accordance with Canada's National Instrument 43-101, Standards of Disclosure for Mineral Projects, and are equivalent to Proven and Probable Reserves as defined by the United States Securities and Exchange Commission.
The identified qualified person responsible for the preparation of the statement of Mineral Reserves is Mr. David Alexander, an employee of Golden Star, employed at the Bogoso/Prestea gold mine as Chief Mining Engineer. Mr. Alexander is a qualified mining engineer and chartered engineer and is a member of the UK Institute of Mining and Metallurgy.
MINERAL RESOURCES
As at May 31, 2002, the Measured and Indicated Mineral Resources ("Mineral Resources") at Bogoso/Prestea total 30,376,000 tonnes at an average grade of 3.25 g Au/t representing 3,175,000 ounces of gold, which is inclusive of the Mineral Reserves, stated above. This represents a 6% increase in the Mineral Resources reported by Golden Star as at December 31, 2001. The increase in Mineral Resources is primarily the result of additional infill and exploration drilling and further analysis of existing data.
The Bogoso/Prestea Mineral Resources are broken down as follows:
Classification Tonnes Grade Ounces Measured Mineral Resources 15,002,000 3.74 1,802,000 Indicated Mineral Resources 15,374,000 2.78 1,373,000 Total 30,376,000 3.25 3,175,000
The Bogoso/Prestea Mineral Resources are comprised of the following mineral types:
Material Type Tonnes Grade Ounces Oxide 5,774,000 2.53 470,000 Transition 1,645,000 3.29 174,000 Primary 8,604,000 3.21 888,000 Refractory Transition 2,214,000 3.29 234,000 Refractory Sulfide 12,139,000 3.61 1,409,000 Total 30,376,000 3.25 3,175,000
The stated Minerals Resources have been prepared in accordance with Canada's National Instrument 43-101, Standards of Disclosure for Mineral Projects, and are equivalent to Mineralized Material as defined by the United States Securities and Exchange Commission. The portion of mineralized material which has not been converted to the proven and probable reserves categories does not qualify under the United States Securities and Exchange Commission standards as being commercially mineable until further drilling, metallurgical work and other economic and technical feasibility factors based upon such work are resolved.
The identified qualified person responsible for the preparation of the statement of Mineral Resources is Mr. S. Mitchel Wasel an employee of Golden Star, who following the acquisition of the Bogoso gold mine in 1999 was appointed Exploration Manager for the Company. Mr. Wasel is a qualified geologist with 14 years of experience in gold and base metal exploration and is a Member of the Australasian Institute of Mining and Metallurgy.
Golden Star has a 90% interest in the Bogoso/Prestea open-pit gold mine in Ghana, a 45% managing interest in the Prestea underground mine in Ghana, and is in the process of acquiring a 90% interest in the Wassa gold project in Ghana. In addition, the Company has other gold exploration interests in the Guiana Shield in South America and in West Africa. Golden Star currently has approximately 65 million shares outstanding and is listed on the Toronto Stock Exchange under the symbol "GSC" and on The American Stock Exchange under the symbol "GSS".
The statements contained in this press release are both historical and forward-looking in nature. The forward-looking statements involve risks and uncertainties including those relating to exploration, the establishment of reserves, the recovery of any reserves, future gold production, future costs of production, future permitting and future operations. Please refer to a discussion of these and other risk factors in Golden Star's Form 10-K and other Securities and Exchange Commission filings.
NOTE: all currency is expressed in United States dollars
This release in its entirety, including Significant Drill Intersections -- Plant-North, Notes to the Statements, Exhibit "A", and Exhibit "B", can be found at the following link: http://www.primezone.com/media/temp_nr/goldenstar.pdf