DENVER, December 7 /CNW/ - Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) ("Golden Star") today provided an update on the continuing exploration of its Benso concession in Ghana.
Results received from the 3,418 meters of combined Reverse Circulation ("RC") and Diamond Drilling ("DD") have been positive and Golden Star expects that a portion of the Inferred Mineral Resource below the current pit designs will be converted into Indicated Mineral Resources and may subsequently be converted into Mineral Reserves.
Mitch Wasel, Golden Star's Vice President Exploration, commented that, "The high grade shoot drilled at Subriso West exhibits grades and thicknesses that will likely deepen the existing $480 per ounce pit designs and could conceivably be mined underground. Therefore, in our efforts to enhance shareholder value, the drilling of the down dip extensions of this zone is a priority for Golden Star in 2008, which will help us to understand the full potential of the Benso deposits. This work is expected to be done in the second quarter of 2008, or possibly earlier depending on drill rig availability."
BACKGROUND
The Benso concessions form part of the Hwini-Butre and Benso project, which is currently being developed as a source of high grade ore for the Wassa processing plant. Development of the haul road to connect the Benso concession to the Wassa processing plant commenced in October 2007 following the receipt of the necessary environmental permits. The haul road and modifications to the Wassa processing plant are expected to be completed by the third quarter of 2008. The total cost of the project, including the cost of mining equipment, is expected to be $50 million and the first ore is expected to be mined at Benso and hauled to the Wassa processing plant in the third quarter of 2008. Mining at Hwini-Butre is expected to commence in 2009.
We previously estimated a total Probable Mineral Reserve for the Hwini-Butre and Benso project within $480 per ounce pit designs of 4.13 million tonnes grading 4.35 g/t for contained gold of 577,000 ounces, of which 2.30 million tonnes grading 3.41 g/t containing 252,000 ounces were contained within pits on the Benso concession. In addition to the Mineral Reserves at Benso, 0.41 million tonnes grading 2.47 g/t of Indicated Mineral Resource and 0.61 million tonnes grading 3.41 g/t of Inferred Mineral Resource were contained within the $560 per ounce Inferred Mineral Resource optimized pit shell.
BENSO DRILLING PROGRAM
The drilling at Benso was designed to test the $560 per ounce Inferred Mineral Resource optimized pit shells with the aim of converting this material into Measured and Indicated Mineral Resources and hence possible conversion into Mineral Reserves. Results received from the combined RC and DD programs have been positive and Golden Star expects the conversion of a portion of this tested Inferred Mineral Resource into Indicated Mineral Resources for subsequent possible conversion into Mineral Reserves.
The completed drilling program included 40 drill holes totaling 1,850 meters of RC drilling and 1,568 meters of DD drilling. The Subriso West pit shows the best potential for expansion with the majority of the drilling intersecting mineralized widths and grades that will likely have a positive affect on our next optimized pit shells. Of note, hole SWRC006, which is located on the southern end of the pit, drill intersected 5 meters grading 116 g/t gold, and hole SWZDD008, located 50 meters north of hole SWRC006, drill intersected 19 meters grading 2.3 g/t. Significant intersections are detailed in the table below.
Hole ID Section East North Elevation Azimuth
(m) (m) (m) (degrees)
----------- ---------- --------- ---------- --------- ------------
SEZRC071 58300N 176752 58300 59 90
----------- ---------- --------- ---------- --------- ------------
SEZRC072 58300N 176781 58300 60 90
----------- ---------- --------- ---------- --------- ------------
SEZRC073 58250N 176779 58250 64 90
----------- ---------- --------- ---------- --------- ------------
SEZRC074 58250N 176807 58250 65 90
----------- ---------- --------- ---------- --------- ------------
SEZRC075 57475N 176721 57475 59 90
----------- ---------- --------- ---------- --------- ------------
SEZRC076 57475N 176674 57475 61 90
----------- ---------- --------- ---------- --------- ------------
SEZRC077 57525N 176724 57525 68 90
----------- ---------- --------- ---------- --------- ------------
SEZRC078 57525N 176682 57525 70 90
----------- ---------- --------- ---------- --------- ------------
SEZRC079 57575N 176750 57575 75 90
----------- ---------- --------- ---------- --------- ------------
SEZRC080 57575N 176713 57575 78 90
----------- ---------- --------- ---------- --------- ------------
SEZRC081 58025N 176579 58025 72 90
----------- ---------- --------- ---------- --------- ------------
SEZDD006 58225N 176741 58225 61 90
----------- ---------- --------- ---------- --------- ------------
SEZDD007 58250N 176744 58250 61 90
----------- ---------- --------- ---------- --------- ------------
SEZDD008 58275N 176730 58275 59 90
----------- ---------- --------- ---------- --------- ------------
SWZRC005 12SW 175318 58553 62 40
----------- ---------- --------- ---------- --------- ------------
SWZRC006 13SW 175272 58537 59 40
----------- ---------- --------- ---------- --------- ------------
SWZRC007 14SW 175251 58551 57 40
----------- ---------- --------- ---------- --------- ------------
SWZRC008 15SW 175228 58563 56 40
----------- ---------- --------- ---------- --------- ------------
SWZRC009 17SW 175213 58623 58 40
----------- ---------- --------- ---------- --------- ------------
SWZRC010 17SW 175151 58549 68 40
----------- ---------- --------- ---------- --------- ------------
SWZRC011 19SW 175160 58638 66 40
----------- ---------- --------- ---------- --------- ------------
SWZRC012 20SW 175119 58628 65 40
----------- ---------- --------- ---------- --------- ------------
SWZRC013A 18SW 175140 58583 66 40
----------- ---------- --------- ---------- --------- ------------
SWZRC014 19SW 175111 58579 69 40
----------- ---------- --------- ---------- --------- ------------
SWZRC015 22SW 175090 58671 60 40
----------- ---------- --------- ---------- --------- ------------
SWZRC016 23SW 175090 58710 56 40
----------- ---------- --------- ---------- --------- ------------
SWZRC017 15SW 175187 58514 59 40
----------- ---------- --------- ---------- --------- ------------
SWZRC018 12SW 175281 58510 171 40
----------- ---------- --------- ---------- --------- ------------
SGZRC020 58250N 174759 58257 58 90
----------- ---------- --------- ---------- --------- ------------
SGZRC021 58650N 174532 58652 54 90
----------- ---------- --------- ---------- --------- ------------
SGZRC022 58450N 174691 58450 62 90
----------- ---------- --------- ---------- --------- ------------
SGZRC023 19SW 174943 58379 64 40
----------- ---------- --------- ---------- --------- ------------
SGZRC024 18SW 174974 58378 65 40
----------- ---------- --------- ---------- --------- ------------
SGZRC025 17SW 175009 58381 64 40
----------- ---------- --------- ---------- --------- ------------
SGZRC026 17SW 175028 58404 65 40
----------- ---------- --------- ---------- --------- ------------
SGZRC027 58600N 174559 58600 54 90
----------- ---------- --------- ---------- --------- ------------
SGZRC028 58550N 174673 58550 54 90
----------- ---------- --------- ---------- --------- ------------
SGZDD010 58500N 174577 58500 70 90
----------- ---------- --------- ---------- --------- ------------
SGZDD011 58200N 174766 58200 56 90
----------- ---------- --------- ---------- --------- ------------
SGZDD012 58600N 174507 58600 61 90
----------- ---------- --------- ---------- --------- ------------
Dip Drill From To Interval Grade
(degrees) Type (m) (m) (m)(1) (Au g/t)
---------- --------- -------------- ---------- ----------- ----------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC 35 40 5 1.8
---------- --------- -------------- ---------- ----------- ----------
-50 RC 13 18 8 1.2
---------- --------- -------------- ---------- ----------- ----------
-50 RC 7 9 2 1.1
---------- --------- -------------- ---------- ----------- ----------
-50 RC 53 55 2 2.0
---------- --------- -------------- ---------- ----------- ----------
-50 RC 5 8 3 5.9
---------- --------- -------------- ---------- ----------- ----------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 No significant intersections
---------- --------- ------------------------------------------------
-50 54 58 4 1.8
---------- --------- -------------- ---------- ----------- ----------
-50 No significant intersections
---------- --------- ------------------------------------------------
-50 RC 20 23 3 1.3
---------- --------- -------------- ---------- ----------- ----------
RC 80 83 3 5.6
-50 RC 102 107 5 116.1
---------- --------- -------------- ---------- ----------- ----------
-50 DD 98 114 16 1.7
---------- --------- -------------- ---------- ----------- ----------
-50 DD 122 141 19 2.3
---------- --------- -------------- ---------- ----------- ----------
-50 DD 124 134 10 2.4
---------- --------- -------------- ---------- ----------- ----------
DD 220 223 3 2.1
-50 DD 234 240 6 1.0
---------- --------- -------------- ---------- ----------- ----------
-50 DD 131 138 6 3.7
---------- --------- -------------- ---------- ----------- ----------
DD 175 180 5 3.3
DD 213 218 5 1.9
-50 DD 234 238 4 1.4
---------- --------- -------------- ---------- ----------- ----------
-50 DD 218 224 6 8.2
---------- --------- -------------- ---------- ----------- ----------
-50 DD 279 282 3 1.7
---------- --------- -------------- ---------- ----------- ----------
DD 161 164 3 1.4
DD 202 207 5 1.7
-50 DD 220 223 3 1.5
---------- --------- -------------- ---------- ----------- ----------
DD 126 129 3 2.8
DD 140 148 8 1.6
DD 167 186 19 3.6
Including 168 175 7 6.5
DD 196 200 4 1.9
-50 DD 207 217 10 3.1
---------- --------- -------------- ---------- ----------- ----------
-50 DD 203 211 7 2.6
---------- --------- -------------- ---------- ----------- ----------
-50 DD No significant intersections
---------- --------- ------------------------------------------------
RC 81 86 5 1.1
-50 RC 92 95 3 1.7
---------- --------- -------------- ---------- ----------- ----------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC 79 83 4 1.0
---------- --------- -------------- ---------- ----------- ----------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC Assays pending
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC No significant intersections
---------- --------- ------------------------------------------------
-50 RC 106 108 2 1.4
---------- --------- -------------- ---------- ----------- ----------
-50 RC 26 30 4 5.8
---------- --------- -------------- ---------- ----------- ----------
-50 DD 170 182 12 1.3
---------- --------- -------------- ---------- ----------- ----------
-50 RC 105 118 13 2.2
---------- --------- -------------- ---------- ----------- ----------
DD 170 176 6 2.4
-50 DD 181 187 6 1.4
---------- --------- -------------- ---------- ----------- ----------
(1) Drill intervals do not represent true widths.
Hole SWZDD016, located at the north end of the Subriso West pit and below the current $560 per ounce Inferred Mineral Resource pit shell, is of particular interest since it has intersected several zones of potentially economic gold mineralization at depth, including a drilled width of 19 meters grading 3.6 g/t with a central core of 7 meters grading 6.5 g/t. This zone was intersected at a vertical depth of 145 meters demonstrating that the high grade mineralization continues at depth and may therefore support deepening of the current pit design. Further extensions at depth of the high grade zone may potentially support underground mining.
The Subriso West high grade shoot has been intersected in previous drilling. Including holes SJB-120 and SJB-99, located on the same section as SWZDD016 and 40 meters up dip, which intersected 11 meters grading 5.6 g/t and 4 meters grading 4.7 g/t respectively. Hole SJB-91, further up dip, intersected 7 meters grading 7.3 g/t and hole SJB-62, approximately 80 meters up dip from hole SWZDD016 drill intersected 6 meters grading 148.9 g/t. On the next section, 25 meters to the north, the high grade zone has not been extensively tested down dip with results from previously reported drilling contained within the current $480 pit design returning widths and grades similar to those described above, including hole SJB-63, which drill intersected 6 meters grading 23.5 g/t, hole SJB-92 located 25 meters down dip, which intersected 3 meters grading 10.9 g/t, and hole SJB-93, located another 25 meters further down dip which drill intersected 5 meters grading 13.6 g/t. Full details on this past work are set out in the following table.
Benso Subriso West Deposit Previously Released Drill Hole Intersects
Hole ID Section East North Elevation Azimuth
(m) (m) (m) (degrees)
---------- --------- -------- ------- ---------- ----------
BEGT08(2) 23SW 175120 58764 54 40
---------- --------- -------- ------- ---------- ----------
SJB-109 25SW 175108 58801 54 40
---------- --------- -------- ------- ---------- ----------
SJB-110 25SW 175073 58765 54 40
SJB-110 25SW 175073 58765 54 40
---------- --------- -------- ------- ---------- ----------
SJB-119 24SW 175075 58731 54 40
SJB-119 24SW 175075 58731 54 40
---------- --------- -------- ------- ---------- ----------
SJB-120 23SW 175106 58733 55 40
SJB-120 23SW 175106 58733 55 40
SJB-120 23SW 175106 58733 55 40
---------- --------- -------- ------- ---------- ----------
SJB-62 23SW 175143 58767 55 40
SJB-62 23SW 175143 58767 55 40
---------- --------- -------- ------- ---------- ----------
SJB-63 24SW 175127 58786 54 40
---------- --------- -------- ------- ---------- ----------
SJB-92 24SW 175110 58769 54 40
---------- --------- -------- ------- ---------- ----------
SJB-93 24SW 175092 58749 54 40
---------- --------- -------- ------- ---------- ----------
SJB-99 23SW 175107 58731 55 40
---------- --------- -------- ------- ---------- ----------
SJB-91 23SW 175125 58748 54 40
---------- --------- -------- ------- ---------- ----------
Dip Drill From To Interval Grade
(degrees) Type (m) (m) (m)(1) (Au
g/t)
---------- ------- ------- -------- --------- ----------
-45 DD 90 98 8 5.7
---------- ------- ------- -------- --------- ----------
-70 RC 140 144 4 4.7
---------- ------- ------- -------- --------- ----------
-60 RC 109 112 3 104.9
-60 RC 191 195 4 4.5
---------- ------- ------- -------- --------- ----------
-45 RC 130 133 3 6.9
-45 RC 172 180 8 2.1
---------- ------- ------- -------- --------- ----------
-45 RC 85 87 2 7.4
-45 RC 123 127 4 7.4
-45 RC 136 147 11 5.6
---------- ------- ------- -------- --------- ----------
-45 RC 70 76 6 148.9
-45 RC 80 82 2 9.4
---------- ------- ------- -------- --------- ----------
-45 RC 66 72 6 23.5
---------- ------- ------- -------- --------- ----------
-45 RC 99 102 3 10.9
---------- ------- ------- -------- --------- ----------
-45 RC 141 146 5 13.6
---------- ------- ------- -------- --------- ----------
-45 RC 133 137 4 4.7
---------- ------- ------- -------- --------- ----------
-45 RC 105 112 7 7.3
---------- ------- ------- -------- --------- ----------
(1) Drill intervals do not represent true widths.
(2) BEGT08 is a Geotech hole that has not been previously released.
VERIFICATION AND QA-QC
The technical contents of this press release have been reviewed and verified 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 SGS Laboratories in Tarkwa using a 1,000 gram slurry of sample and tap water which is prepared and subjected to an accelerated cyanide leach (LEACHWELL). The sample is then rolled for twelve hours before being allowed to settle. An aliquot of solution is then taken, gold extracted into Di-iso Butyl Keytone (DiBK), and determined by flame Atomic Absorption Spectrophotometry (AAS). Detection Limit is 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 valuable 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 timing for the completion of the haul road from Benso to Wassa; the timing for the commencement of mining at Benso and haulage of ore from Benso to Wassa; and the timing for the commencement of mining at Hwini-Butre; future operations and development at the Hwini-Butre and Benso properties and total cost of the Hwini-Butre and Benso project. 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.
