UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2015
Commission File Number 001-12284
GOLDEN STAR
RESOURCES LTD.
(Translation of registrant’s name into English)
150 King Street West
Suite 1200
Toronto,
Ontario
M5H 1J9, Canada
(Address of principal executive office)
Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Date: March 26, 2015
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| GOLDEN STAR RESOURCES LTD. |
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| By: |
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/s/ André van Niekerk |
| André van Niekerk |
| Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
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| Exhibit No. |
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Description of Exhibit |
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| 99.1 |
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Press Release of Golden Star Resources Ltd. dated March 26, 2015 (Golden Star Announces Wassa Mine Feasibility Study Results) |
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| 99.2 |
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Press Release of Golden Star Resources Ltd. dated March 26, 2015 (Golden Star Announces Mineral Reserves and Resources Estimates as at December 31, 2014; Open Pit and Underground Indicated Resources at Wassa Grow to 3.5 Million
Ounces) |
Exhibit 99.1
Golden Star Announces Wassa Mine Feasibility Study Results
TORONTO – March 26, 2014 - Golden Star is pleased to announce the results of its Feasibility Study on the development of an underground mining
operation (“Wassa Underground”) at its currently operating Wassa open pit mine (“Wassa Open Pit” and, together with Wassa Underground, the “Wassa Mine”) in Ghana. The Feasibility Study estimates the Wassa Mine will
produce an average of 163,000 ounces of gold per annum over its production life with average cash operating costs of $780 per ounce.
All references to
“$” in this news release are to United States dollars.
Highlights:
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• |
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Internal rate of return (“IRR”) of 83% estimated for the Wassa Mine at $1,200 per ounce gold price |
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• |
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Net present value, assuming a 5% discount rate (“NPV5%”), of $176 million estimated for Wassa Mine, at $1,200 per ounce gold price |
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• |
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Total Proven and Probable Mineral Reserves for Wassa Mine as of December 31, 2014 are 24.1 million tonnes at 2.04 grams per tonne of gold (“g/t Au”) for 1.6 million ounces of gold
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• |
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Total Measured and Indicated Mineral Resources as of December 31, 2014 are 49.5 million tonnes at 2.21 g/t Au for 3.5 million ounces of gold, inclusive of Mineral Reserves |
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• |
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Wassa Underground Mineral Reserves as of December 31, 2014 are 5.4 million tonnes at 4.26 g/t Au for 745,000 ounces of gold |
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• |
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Wassa Open Pit Mineral Reserves, including stockpiles, as of December 31, 2014 are 18.7 million tonnes at 1.39 g/t Au for 834,000 ounces of gold |
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Inferred Mineral Resources as of December 31, 2014 are 11.6 million tonnes at 3.79 g/t Au for 1.4 million ounces of gold |
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Pre-production incremental capital expenditure for Wassa Underground estimated at $39 million |
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• |
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First production from Wassa Underground expected early 2016 and estimated to continue into 2024 |
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LOM cash operating cost of $780 per ounce and all-in sustaining costs of $938 per ounce estimated for combined Wassa operation |
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Payback at $1,200 per ounce gold price of 3.25 years |
Sam Coetzer, President and CEO of Golden Star
commented:
“We are excited to announce this positive Feasibility Study on the combined existing Wassa Open Pit operation and the Wassa
Underground extension. The strong rate of return on investment suggested by the study validates the Preliminary Economic Assessment of Wassa Underground we published in 2014 and is a confirmation of the decisions made for the expenditures on
drilling and these studies of the last few years.
The Wassa Underground project has been underway since December 2014 when we purchased certain
underground mining equipment and received the exploration decline permit. The Wassa Underground deposit remains open down plunge and has great potential to grow and the Company plans to extend development. The Wassa Mine will help transform Golden
Star into a lower cost gold producer going forward.”
150 King Street West |
Sun Life Financial Tower | Suite 1200 | Toronto ON M5H 1J9
Introduction
The Wassa Mine is in the Western Region of Ghana. It has a carbon-in-leach processing plant with a rated capacity of 2.7 million tonnes per annum
(“Mtpa”). Golden Star has been mining the Wassa open pits since commissioning the plant in 2005. Mining is currently at the Wassa Open Pit, which is within 500 meters of the plant.
Drilling below the Wassa Open Pit has been ongoing since late 2011. This drilling has been successful in increasing the Wassa Mineral Resource.
In November 2014, SRK Consulting (UK) Ltd. (“SRK”) was awarded the contract to prepare a Feasibility Study to determine the economic viability of an
underground mine beneath the Wassa Open Pit. An underground mine is envisioned in the Feasibility Study that will operate in conjunction with the existing open pit mine into 2024.
The Feasibility Study assumes owner mining in the Wassa Open Pit and Wassa Underground. A gold price of $1,200 per ounce was used in the economic modeling as
well as the base case for the open pit and underground optimizations.
Mineral Reserve Estimate
The Feasibility Study is based on an updated mineral resource model completed in August 2014 which has incorporated all of the recent drilling, including
infill drilling at depth, in addition to step out fences over 600 meters to the south of the Wassa Open Pit.
Open pit optimization is conducted using
Whittle Optimization software with historic operating cost data for the mining, processing, and general and administration (“G&A”) costs; suitable dilution and recovery factors; stable pit slope estimates; and a gold price of $1,200
per ounce.
Open pit design is based on the $1,200 per ounce Whittle shell with modifications for the current pit mining and access strategy. Mineral
Reserves are reported in the open pit design using a cut-off grade of 0.77 g/t Au.
Underground stope optimization has been carried out using a cut-off
grade of 2.5 g/t Au estimated based on zero-based underground mining costs and historic processing and G&A costs. The Deswick Stope Optimizer software was used incorporating cut-off grade and various mineable stope parameters such as stope
height, width, footwall and hangingwall angles, and minimum distance between parallel stopes.
The underground mine design process utilized Surpac
software and included stope design based on the optimization results, stope access development, mine access development, and supporting infrastructure development.
A mining schedule was developed using MineSched software and includes realistic development and stoping productivity rates based on manpower and mining
equipment proposed, stope sequencing taking into account geotechnical considerations, backfill requirements, ventilation requirements, and emergency egress.
Economic modeling confirmed the viability of the Mineral Reserve estimate presented in the table below.
The Feasibility Study Mineral Reserve has been estimated by SRK Consulting (UK) Ltd. in accordance with 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 (“NI 43-101”).
The following table provides a breakdown of the Proven Mineral Reserves and Probable Mineral Reserves at the Wassa Mine as at December 31, 2014.
2
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| Mineral Reserves |
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Dec 31, 2014 Proven
Mineral Reserve |
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Dec 31, 2014 Probable
Mineral Reserve |
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Dec 31, 2014 Proven and
Probable Mineral Reserve |
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tonnes |
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grade |
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ounces |
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tonnes |
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grade |
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ounces |
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tonnes |
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grade |
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ounces |
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(000) |
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g/t Au |
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(000) |
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(000) |
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g/t Au |
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(000) |
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(000) |
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g/t Au |
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(000) |
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| Wassa Open Pit |
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— |
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— |
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— |
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17,831 |
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1.42 |
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812 |
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17,831 |
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1.42 |
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812 |
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| Wassa Underground |
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— |
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— |
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— |
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5,437 |
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4.27 |
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746 |
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5,437 |
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4.27 |
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746 |
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| Stockpiles |
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820 |
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0.73 |
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19 |
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— |
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— |
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— |
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820 |
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0.73 |
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19 |
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| Subtotal Wassa |
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820 |
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0.73 |
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19 |
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23,268 |
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2.08 |
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1,558 |
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24,089 |
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2.04 |
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1,578 |
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Notes to the Mineral Reserve statement:
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(1) |
The stated Mineral Reserves have been prepared in accordance with the requirements of NI 43-101 and are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM
Definition Standards – For Mineral Resources and Mineral Reserves”. Mineral Reserve estimates reflect the Company’s reasonable expectation that all necessary permits and approvals will be obtained and maintained. Mining dilution and
mining recovery vary by deposit and have been applied in estimating the Mineral Reserves. |
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(2) |
The 2014 Mineral Reserves were prepared under the supervision of Mr. Mike Beare, CEng BEng ACSM MIMMM, SRK Corporate Consultant (Mining Engineering). Mr. Beare is a “Qualified Person” as defined by
Canada’s NI 43-101 and is independent of the Company. |
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(3) |
The Mineral Reserves were estimated using a gold price assumption of $1,200 per ounce. |
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(4) |
The slope angles of all pit designs are based on geotechnical criteria as established by external consultants. The size and shape of the pit designs are guided by consideration of the results from a pit optimization
program. |
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(5) |
Cut off grades have been estimated based on operating cost projections, mining dilution and recovery, royalty payment requirements and applicable metallurgical recovery estimates as follows: Wassa Open Pit 0.77 g/t Au
and Wassa Underground 2.50 g/t Au. |
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(6) |
Numbers may not add due to rounding. |
Open Pit Mining
Golden Star has been mining the Wassa open pits since 2005. Prior to 2013, mining was in a number of smaller satellite pits which were combined into a single
large Wassa Open Pit in late 2013 allowing for operational efficiencies and cost savings.
Open pit mining is expected to continue in the Wassa Open Pit
area at a total material mined rate of approximately 1.2 million tonnes per month until 2021 when the strip ratio is expected to start to decrease. On average, we anticipate that the Wassa Open Pit will produce approximately 2.0 Mtpa of ore
feed, with the balance of the total plant capacity of 2.7 Mtpa being supplied by Wassa Underground.
Underground Mining
Access development to the underground stoping areas will be via a twin decline system from the north east wall of the current Wassa Open Pit. The twin decline
system will enable efficient ventilation during the early stages of the underground life and will remove the requirement for a raisebore ventilation raise and escape way close to the start of the decline. The main decline will be 5.8 meters high and
5.2 meters wide and developed using standard trackless mechanized mining methods.
3
The upper stopes will be mined using longitudinal longhole open stoping with waste rock fill. This will
enable efficient early production before a cemented rock fill preparation and delivery system is installed. The Wassa Open Pit will eventually mine down to the top of these upper stopes, but only towards the end of the life of mine.
In the deeper, wider areas of the deposit a transverse longhole open stoping method will be used. A primary-secondary mining sequence will be implemented with
the primary stopes filled with cemented rock fill and the secondary stopes with waste rock fill. The overall stoping sequence will be bottom-up to reduce the incidence of sill pillar development.
New surface infrastructure to support the underground mining will be constructed including electrical power supply from the grid with backup genset support,
surface mechanical and electrical workshops.
At steady state production, the Wassa Underground is expected to produce an average of approximately 2000
tonnes per day across the life of mine.
Mineral Processing
The Wassa processing plant was constructed in 2005 and is currently operating at its rated capacity of 2.7 Mtpa. The plant is 500 meters from the current Wassa
Open Pit mining operations. Processing currently includes a four stage crushing circuit, grinding, gravity recovery, carbon in leach circuits and a thickener. A final recovery circuit using electrowinning is also in place along with associated
secure gold room facilities. Average metallurgical recovery in fresh ore is currently 93% and future recovery from combined Wassa Open Pit and Wassa Underground operations is estimated to be the same.
Capital Expenditure
A summary of the estimated capital
costs and timing thereof from the Feasibility Study is presented below in $ millions:
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| Capital |
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Total |
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2015 |
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2016 |
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2017 |
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2018 |
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2019 |
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2020-2024 |
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| Underground Project Capital |
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38.5 |
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20.5 |
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13.0 |
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5.0 |
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— |
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— |
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— |
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| Underground Sustaining Capital |
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36.5 |
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— |
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— |
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5.3 |
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8.1 |
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10.8 |
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12.3 |
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| Plant & Open Pit Project Capital |
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5.7 |
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5.5 |
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0.2 |
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— |
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— |
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— |
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— |
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| Plant & Open Pit Sustaining Capital |
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89.8 |
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8.7 |
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18.9 |
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18.4 |
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14.0 |
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9.5 |
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20.3 |
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| Closure |
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18.9 |
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— |
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— |
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— |
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— |
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— |
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18.9 |
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| Total Capital |
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189.4 |
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34.7 |
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32.2 |
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28.7 |
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22.1 |
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20.3 |
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51.4 |
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Pre-production incremental capital costs for the underground mine are estimated to total $39 million, primarily comprised of
equipment purchase, infrastructure construction and underground development.
The construction of the new tailings impoundment and open pit mobile
equipment replacement make up the bulk of the plant and open pit sustaining capital.
4
Economic Summary and Sensitivity to Gold Price and Discount Rate
The following table is a summary of Wassa Underground’s sensitivity of Net Present Value (NPV) to changes in gold prices and discount rates, as well as
the sensitivity of IRR to gold prices:
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| Post – Tax ($M) |
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NPV5% |
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NPV10% |
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IRR |
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$ |
1,000 |
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38 |
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-5 |
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8 |
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$ |
1,100 |
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99 |
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70 |
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37 |
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| Gold Price |
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$ |
1,200 |
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176 |
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136 |
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83 |
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$ |
1,300 |
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252 |
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201 |
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505 |
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$ |
1,400 |
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327 |
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265 |
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— |
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Operating Metrics
A
summary of the projected production and operating metrics for the combined Wassa Open Pit and Wassa Underground mines and resulting operating costs from the Feasibility Study are summarized below:
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| FS baseline metrics |
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Total |
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2015 |
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2016 |
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2017 |
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2018 |
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2019 |
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2020-2024 |
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| Average pit Run of Mine (“ROM”) (tpd1) |
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5,603 |
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7,444 |
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6,854 |
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5,896 |
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4,274 |
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5,518 |
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4,945 |
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| Average underground ROM (tpd1) |
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1,870 |
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N/A |
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1,498 |
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1,913 |
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2,241 |
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2,364 |
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1,961 |
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| Daily tonnes processed (tonnes) |
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7,448 |
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7,465 |
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7,485 |
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7,465 |
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7,465 |
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7,465 |
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7,465 |
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| Average mill feed grade (g/t Au) |
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2.04 |
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1.47 |
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1.51 |
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2.14 |
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2.53 |
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2.76 |
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1.98 |
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| Average gold recoveries |
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93 |
% |
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93 |
% |
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93 |
% |
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93 |
% |
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94 |
% |
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94 |
% |
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93 |
% |
| Average annual gold production (k oz.2) |
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1,470 |
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116 |
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120 |
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170 |
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201 |
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220 |
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159 |
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| Cost Summary
($/ounce) |
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Total |
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2015 |
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2016 |
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2017 |
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2018 |
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2019 |
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2020-2024 |
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| Cash operating cost |
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|
780 |
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|
929 |
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|
1,024 |
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|
844 |
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|
747 |
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|
673 |
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|
736 |
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| All-in sustaining cost3 |
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|
938 |
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1,064 |
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1,242 |
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1,043 |
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916 |
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|
826 |
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|
876 |
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| All-in Cost3 |
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|
968 |
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1,288 |
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1,353 |
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1,073 |
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|
916 |
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|
826 |
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|
876 |
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| (1) |
“tpd” means tonnes per day. |
| (2) |
“k oz” means thousand ounces. |
| (3) |
See non-GAAP Measures |
Near Term Development Plans and Ongoing Exploration
The majority of underground equipment for the development of the exploration decline was ordered late 2014 and delivery is expected over the next three months.
An owner operated team
5
has been assembled and the team is currently being formed at Wassa. The starter-pit mining which will host the two portals has been completed and the preparations that will form the platform and
the sumps for the declines have been established.
The Wassa Mine has received the necessary permits to commence with the exploration decline. The Wassa
Open Pit mine is now fully established as a single large pit which will operate separately from the two declines resulting in little impact of one on the other.
Management believes that with additional drilling from underground there is an opportunity to firstly optimize the mine plan and secondly to potentially add
more ounces to the resource base. However there is no certainty that additional drilling would result in all or any such ounces being included in a mine plan.
Technical Information and Quality Control
The technical
contents of this press release have been reviewed and approved by Mike Beare CEng BEng ACSM MIMMM, a Qualified Person pursuant to National Instrument 43-101. Mr. Beare is a Corporate Consultant (Mining Engineering) with SRK Consulting (UK) Ltd.
and is independent of the Company.
Company Profile
Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR) (“Golden Star” or the “Company”) is an established gold mining company that holds
a 90% interest in the Wassa, Prestea and Bogoso gold mines in Ghana. In 2014, Golden Star produced 261,000 ounces of gold and is expected to produce 250,000 – 275,000 ounces in 2015. The Company is pursuing brownfield development projects at
its Wassa and Prestea mines that are expected to transform these mines into lower cost producers from 2016 onwards. As such, Golden Star offers investors leveraged exposure to the gold price in a stable African mining jurisdiction with significant
development upside potential.
For further information, please contact:
André van Niekerk, Executive Vice President and Chief Financial Officer
Angela Parr, Vice President Investor Relations
+1 416 583 3800
investor@gsr.com
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 “forward looking information” within the meaning of Canadian securities laws. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as
“plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words
and phrases (including negative or grammatical variations) or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved” or the negative connotation thereof. Investors are cautioned that forward-looking statements and information are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such
statements and information include comments regarding: operating metrics, including estimated gold production, tonnes processed, grade, gold recoveries and operating costs; estimated pre-tax and post-tax internal rate of return and net present value
of Wassa Underground (including assumed discount rates); the timing for first production from Wassa Underground; the life of mine at Wassa and Wassa Underground; cash operating costs per ounce; all-in sustaining costs per ounce; the use of mining
contractors at Wassa Underground; timing for the delivery of underground exploration and development equipment; mining methods and estimated recovery at Wassa Underground; capital costs, including pre-production capital costs, for Wassa Underground
and the timing thereof;
6
metallurgical recovery rates; potential to extend the Wassa Underground deposit; required investments in mine infrastructure; the mining sequence and backfilling at Wassa Underground; the amount
and priority of materials to be processed at the Wassa processing plant; the impact on mining operations at Wassa Underground and Wassa Open Pit on each other; estimates and expectations for Mineral Reserves and Mineral Resources; total gold
production in 2015; and the transformation of Golden Star into a lower cost producer and the timing thereo Factors that could cause actual results to differ materially include timing of and unexpected events at the Wassa processing plant; variations
in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power;
timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues, including difficulties in establishing the infrastructure for Wassa Underground; changes in U.S. and Canadian securities markets;
and fluctuations in gold price and input costs and general economic conditions. 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 Annual Information Form for the year ended December 31, 2013. Our Annual Information Form for the year ended December 31, 2013 will be superseded by our Annual Information From for the year ended December 31, 2014,
which will contain similar information and will be made available on SEDAR at www.sedar.com. 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.
Cautionary Note to US Investors Concerning Estimates of Measured and Indicated Mineral Resources
This press release uses the terms “Measured Mineral Resources” and “Indicated Mineral Resources”. The Company advises US investors that
while these terms are recognized and required by National Instrument 43-101, the US Securities and Exchange Commission (“SEC”) does not recognize them. Also, disclosure of contained ounces is permitted under Canadian regulations; however
the SEC generally requires Mineral Resource information to be reported as in-place tonnage and grade. 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.
Cautionary Note to US Investors concerning estimates of Inferred Mineral Resources
This press release uses the term “Inferred Mineral Resources”. The Company advises US investors that while this term is recognized and required by
National Instrument 43-101, the SEC 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 Inferred Mineral Resources will ever be upgraded to a higher category. 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 any part or all of the Inferred Mineral Resource exists, or is economically or legally mineable.
Non-GAAP Financial
Measures
In this press release, we use the terms “cash operating cost per ounce” and “all-in sustaining costs per ounce”. These
terms should be considered as Non-GAAP Financial Measures as defined in applicable Canadian and United States securities laws and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
“Cash operating cost per ounce” for a period is equal to the cost of sales excluding depreciation and amortization for the period less royalties and production taxes, minus the cash component of metals inventory net realizable value
adjustments divided by the number of ounces of gold sold
7
during the period. “All-in sustaining costs per ounce” commences with cash operating costs and then adds sustaining capital expenditures, mine site exploratory drilling and greenfield
evaluation costs and environmental rehabilitation costs. This measure seeks to represent the total costs of producing gold from operations. These measures are not representative of all cash expenditures as they do not include income tax payments or
interest costs. These measures are not necessarily indicative of operating profit or cash flow from operations as would be determined under International Financial Reporting Standards. Changes in numerous factors including, but not limited to,
mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar
to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance.
Source: Golden Star Resources
Ltd.
8
Exhibit 99.2
Golden Star Announces Mineral Reserves and Resources Estimates as at December 31, 2014
Open Pit and Underground Indicated Resources at Wassa Grow to 3.5 Million Ounces
Toronto, ON – March 26, 2015 - Golden Star is pleased to announce its Mineral Reserves and Mineral Resources as at December 31, 2014.
Highlights:
| |
• |
|
Total Proven and Probable Mineral Reserves at year end are estimated to be 1.9 million ounces primarily as a result of the removal of the high cost refractory material, in addition to: |
| |
• |
|
removal of Prestea Underground Mineral Reserves pending completion of the Prestea Underground Feasibility Study on non-mechanized mining in mid-2015; |
| |
• |
|
a lower gold price assumption of $1,200 per ounce; |
| |
• |
|
the introduction of an underground mining concept at Wassa, which greatly accelerates access to high grade ore and thus improves the mine economics, but reduces overall reserve ounces; and |
| |
• |
|
Total Measured and Indicated Mineral Resources increased by 5% to 6.6 million ounces using a gold price assumption of $1,400 per ounce |
| |
• |
|
Wassa Mineral Reserves grade increased 16% resulting in 24.1 million tonnes at 2.04 grams per ton of gold (“g/t Au”) for 1.58 million ounces |
| |
• |
|
Wassa Measured and Indicated Mineral Resources increased 6% to 3.5 million ounces at a 10% higher average grade of 2.21 g/t Au |
| |
• |
|
Mineral Reserves at Bogoso decreased to 356,000 ounces. |
Sam Coetzer, President and CEO of Golden Star,
commented:
“Since 2013 we have focused on developing our lower cost non-refractory targets and have moved our efforts away from the development
of the Bogoso refractory production. The results of the latest reserves estimation are in line with this strategy as can be seen in the first two tables.
The results of the Wassa Underground Feasibility Study recently released have, as expected, brought about a reserve reduction and a grade increase with the
change in mining concept from one large pit with slow return to a smaller pit and a high grade underground mine. The Wassa Underground deposit remains open down plunge and has great potential to grow. The Company plans to extend development as funds
permit to enable conversion from Inferred Mineral Resources to Measured and Indicated Mineral Resources, and to do more exploration drilling south of existing drilling to determine the extent of the deposit.
Our focus continues to be on developing our high return non-refractory projects. The published results of the Wassa Underground Feasibility Study are
positive and we expect to release the results of the Prestea Underground Feasibility Study in the second quarter, which will allow the Company to update its 2014 Mineral Reserves with the material from Prestea Underground.”
150 King Street West |
Sun Life Financial Tower | Suite 1200 | Toronto ON M5H 1J9
The following tables provide a breakdown of the non-refractory Mineral Reserves and the refractory Mineral
Reserves, respectively, at Wassa and Bogoso as at December 31, 2014 and December 31, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-refractory Reserves |
|
Dec 31, 2014 Proven
Mineral Reserve |
|
|
Dec 31, 2014 Probable
Mineral Reserve |
|
|
Dec 31, 2014 Proven and
Probable Mineral Reserve |
|
|
Dec 31, 2013 Proven and
Probable Mineral Reserve |
|
| |
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
| |
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
| Wassa Open Pit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,831 |
|
|
|
1.42 |
|
|
|
812 |
|
|
|
17,831 |
|
|
|
1.42 |
|
|
|
812 |
|
|
|
33,721 |
|
|
|
1.72 |
|
|
|
1,863 |
|
| Wassa Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,437 |
|
|
|
4.27 |
|
|
|
746 |
|
|
|
5,437 |
|
|
|
4.27 |
|
|
|
746 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Stockpiles |
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
497 |
|
|
|
0.67 |
|
|
|
11 |
|
| Wassa Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
694 |
|
|
|
4.31 |
|
|
|
96 |
|
| Subtotal Wassa |
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
23,268 |
|
|
|
2.08 |
|
|
|
1,558 |
|
|
|
24,089 |
|
|
|
2.04 |
|
|
|
1,578 |
|
|
|
34,911 |
|
|
|
1.75 |
|
|
|
1,970 |
|
| Bogoso |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Dumasi |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
545 |
|
|
|
1.66 |
|
|
|
29 |
|
| Mampon |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
320 |
|
|
|
4.43 |
|
|
|
46 |
|
|
|
320 |
|
|
|
4.43 |
|
|
|
46 |
|
|
|
433 |
|
|
|
3.86 |
|
|
|
54 |
|
| Prestea South |
|
|
315 |
|
|
|
2.00 |
|
|
|
20 |
|
|
|
1,381 |
|
|
|
2.30 |
|
|
|
102 |
|
|
|
1,697 |
|
|
|
2.24 |
|
|
|
122 |
|
|
|
2,014 |
|
|
|
2.18 |
|
|
|
141 |
|
| Prestea Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,434 |
|
|
|
9.61 |
|
|
|
443 |
|
| Stockpiles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Subtotal Bogoso |
|
|
315 |
|
|
|
2.00 |
|
|
|
20 |
|
|
|
1,702 |
|
|
|
2.70 |
|
|
|
148 |
|
|
|
2,017 |
|
|
|
2.59 |
|
|
|
168 |
|
|
|
4,427 |
|
|
|
4.69 |
|
|
|
667 |
|
| GSR Total |
|
|
1,135 |
|
|
|
1.08 |
|
|
|
40 |
|
|
|
24,970 |
|
|
|
2.13 |
|
|
|
1,706 |
|
|
|
26,106 |
|
|
|
2.08 |
|
|
|
1,746 |
|
|
|
39,338 |
|
|
|
2.08 |
|
|
|
2,637 |
|
* Prestea Underground is pending completion of a non-mechanized Feasibility Study in mid-2015 which we expect will be added to
the above non-refractory Mineral Reserves
The Company has down-graded most of the refractory reserves to resources, other than material remaining in the
Bogoso pits and on the stockpiles, based on current gold prices.
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Refractory Reserves |
|
Dec 31, 2014 Proven
Mineral Reserve |
|
|
Dec 31, 2014 Probable
Mineral Reserve |
|
|
Dec 31, 2014 Proven and
Probable Mineral Reserve |
|
|
Dec 31, 2013 Proven and
Probable Mineral Reserve |
|
| |
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
| |
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
| Wassa Open Pit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Wassa Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Stockpiles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Wassa Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Subtotal Wassa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Bogoso |
|
|
1,251 |
|
|
|
2.51 |
|
|
|
101 |
|
|
|
703 |
|
|
|
2.54 |
|
|
|
57 |
|
|
|
1,954 |
|
|
|
2.52 |
|
|
|
158 |
|
|
|
4,662 |
|
|
|
2.63 |
|
|
|
394 |
|
| Dumasi |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,396 |
|
|
|
2.42 |
|
|
|
653 |
|
| Mampon |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
700 |
|
|
|
6.09 |
|
|
|
137 |
|
| Prestea South |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,124 |
|
|
|
3.33 |
|
|
|
120 |
|
| Prestea Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Stockpiles |
|
|
405 |
|
|
|
1.82 |
|
|
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
405 |
|
|
|
1.82 |
|
|
|
24 |
|
|
|
106 |
|
|
|
1.79 |
|
|
|
6 |
|
| Subtotal Bogoso |
|
|
1,656 |
|
|
|
2.34 |
|
|
|
125 |
|
|
|
703 |
|
|
|
2.54 |
|
|
|
57 |
|
|
|
2,359 |
|
|
|
2.40 |
|
|
|
182 |
|
|
|
14,989 |
|
|
|
2.72 |
|
|
|
1,310 |
|
| GSR Total |
|
|
1,656 |
|
|
|
2.34 |
|
|
|
125 |
|
|
|
703 |
|
|
|
2.54 |
|
|
|
57 |
|
|
|
2,359 |
|
|
|
2.40 |
|
|
|
182 |
|
|
|
14,989 |
|
|
|
2.72 |
|
|
|
1,310 |
|
2
Mineral Reserve and Mineral Resource Estimation
The Mineral Reserve and Mineral Resource estimates have been compiled by the Company’s technical personnel in accordance with definitions and guidelines
set out in the Definition Standards for Mineral Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy, and Petroleum and as required by Canada’s National Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”).
Mineral Reserves and Mineral Resources were estimated using a gold price of $1,200 and $1,400 per ounce,
respectively, as well as the other assumptions described below in this news release.
Mineral Reserves
Total Mineral Reserves as at December 31, 2014 declined to approximately 1.9 million ounces from approximately 3.9 million ounces as at
December 31, 2013. The reduced gold price assumption of $1,200 per ounce used in 2014 compared to $1,300 per ounce used in 2013 has resulted in the exclusion of the Dumasi pit from Mineral Reserves as it showed very low returns on the capital
invested at these gold prices. This exclusion of almost 9 million tonnes of refractory material means that the refractory plant is scheduled to be placed on care and maintenance from the end of 2015 when mining at our current Bogoso pits is
expected to be complete. With this plant on care and maintenance, the additional refractory material from Mampon and Prestea South pits has also been removed from the Mineral Reserves.
Prestea Underground is currently undergoing a Feasibility Study for non-mechanized shrinkage mining. The Mineral Reserves for mechanized mining reported at
the end of 2013 have been removed pending completion of the new Prestea Underground Feasibility Study in mid-2015.
The removal of the refractory
material, combined with the new strategy for non-mechanized mining at Prestea Underground, which is awaiting completion of a Feasibility Study, and the mining depletion during 2014, resulted in a reduction in the total Bogoso Mineral Reserve of 82%.
At the end of 2014, the Wassa Mineral Reserve ounces decreased by 20% and tonnes decreased by 31%, while grade increased by 16%. This reduction in
Mineral Reserve ounces is a result of changing our strategy from mining the deep, high grade material from a large open pit, as was the case in 2013, to developing a combined open pit and underground mining operation. Underground mining should
enable us to access the high grade material much earlier in the life of the mine and will significantly improve the cash flow and mine economics compared to an open pit only operation.
The following table provides a breakdown of the Mineral Reserves at Wassa and Bogoso as at December 31, 2014 and December 31, 2013.
3
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Dec 31, 2014 Proven
Mineral Reserve |
|
|
Dec 31, 2014 Probable
Mineral Reserve |
|
|
Dec 31, 2014 Proven and
Probable Mineral Reserve |
|
|
Dec 31, 2013 Proven and
Probable Mineral Reserve |
|
| |
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
|
tonnes |
|
|
grade |
|
|
ounces |
|
| |
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
|
(000) |
|
|
g/t Au |
|
|
(000) |
|
| Wassa Open Pit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,831 |
|
|
|
1.42 |
|
|
|
812 |
|
|
|
17,831 |
|
|
|
1.42 |
|
|
|
812 |
|
|
|
33,721 |
|
|
|
1.72 |
|
|
|
1,863 |
|
| Wassa Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,437 |
|
|
|
4.27 |
|
|
|
745 |
|
|
|
5,437 |
|
|
|
4.27 |
|
|
|
746 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Stockpiles |
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
497 |
|
|
|
0.67 |
|
|
|
11 |
|
| Wassa Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
694 |
|
|
|
4.31 |
|
|
|
96 |
|
| Subtotal Wassa |
|
|
820 |
|
|
|
0.73 |
|
|
|
19 |
|
|
|
23,268 |
|
|
|
2.08 |
|
|
|
1,558 |
|
|
|
24,089 |
|
|
|
2.04 |
|
|
|
1,578 |
|
|
|
34,911 |
|
|
|
1.75 |
|
|
|
1,970 |
|
| Bogoso |
|
|
1,251 |
|
|
|
2.51 |
|
|
|
101 |
|
|
|
703 |
|
|
|
2.54 |
|
|
|
57 |
|
|
|
1,954 |
|
|
|
2.52 |
|
|
|
158 |
|
|
|
4,662 |
|
|
|
2.63 |
|
|
|
394 |
|
| Dumasi |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,941 |
|
|
|
2.37 |
|
|
|
682 |
|
| Mampon |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
320 |
|
|
|
4.43 |
|
|
|
46 |
|
|
|
320 |
|
|
|
4.43 |
|
|
|
46 |
|
|
|
1,133 |
|
|
|
5.24 |
|
|
|
191 |
|
| Prestea South |
|
|
315 |
|
|
|
2.00 |
|
|
|
20 |
|
|
|
1,381 |
|
|
|
2.30 |
|
|
|
102 |
|
|
|
1,697 |
|
|
|
2.24 |
|
|
|
122 |
|
|
|
3,139 |
|
|
|
2.59 |
|
|
|
261 |
|
| Prestea Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,434 |
|
|
|
9.61 |
|
|
|
443 |
|
| Stockpiles |
|
|
405 |
|
|
|
1.82 |
|
|
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
405 |
|
|
|
1.82 |
|
|
|
24 |
|
|
|
106 |
|
|
|
1.79 |
|
|
|
6 |
|
| Subtotal Bogoso |
|
|
1,971 |
|
|
|
2.29 |
|
|
|
145 |
|
|
|
2,405 |
|
|
|
2.65 |
|
|
|
205 |
|
|
|
4,376 |
|
|
|
2.49 |
|
|
|
350 |
|
|
|
19,415 |
|
|
|
3.17 |
|
|
|
1,977 |
|
| GSR Total |
|
|
2,791 |
|
|
|
1.83 |
|
|
|
164 |
|
|
|
25,673 |
|
|
|
2.14 |
|
|
|
1,763 |
|
|
|
28,465 |
|
|
|
2.11 |
|
|
|
1,928 |
|
|
|
54,327 |
|
|
|
2.26 |
|
|
|
3,947 |
|
Notes to the Mineral Reserve Statement:
| |
(1) |
The stated Mineral Reserves have been prepared in accordance with the requirements of NI 43-101 and are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM
Definition Standards – For Mineral Resources and Mineral Reserves”. Mineral Reserve estimates reflect the Company’s reasonable expectation that all necessary permits and approvals will be obtained and maintained. Mining dilution and
mining recovery vary by deposit and have been applied in estimating the Mineral Reserves. |
| |
(2) |
The 2014 Mineral Reserves for Bogoso were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Project Development and Technical Services for the Company. Dr. Raffield is a
“Qualified Person” as defined by Canada’s NI 43-101. |
| |
(3) |
The 2014 Mineral Reserves for Wassa were prepared under the supervision of Mr. Mike Beare, Ceng Beng ACSM MIMMM, SRK Corporate Consultant (Mining Engineering). Mr. Beare is a “Qualified Person” as
defined by Canada’s NI 43-101 and is independent of the Company. |
| |
(4) |
The Mineral Reserves at December 31, 2014 were estimated using a gold price assumption of $1,200 per ounce. |
| |
(5) |
The slope angles of all pit designs are based on geo-technical criteria as established by external consultants. The size and shape of the pit designs are guided by consideration of the results from a pit optimization
program. |
| |
(6) |
Cut-off grades have been estimated based on operating cost projections, mining dilution and recovery, royalty payment requirements and applicable metallurgical recovery and estimates are as follows: Wassa pit 0.77 g/t;
Wassa underground 2.50 g/t; Bogoso refractory pits 1.60 g/t; Mampon and Prestea South oxide pits 1.00 g/t. |
| |
(7) |
Numbers may not add due to rounding. |
4
| |
(8) |
Further information regarding the Company’s Mineral Reserves as at December 31, 2013 can be found in the Company’s annual information form for the year ended December 31, 2013, which is available
under the Company’s profile at www.sedar.com. |
Reconciliation of Mineral Reserves
The following graphs present the Wassa, Bogoso and total combined Mineral Reserve reconciliation on an ounces basis between the December 31, 2013 and
December 31, 2014:
5
Notes to the reconciliation of Mineral Reserves:
| |
(1) |
Gold price change represents changes resulting from a decrease in gold price used in the Mineral Reserve estimates from $1,300 per ounce as at December 31, 2013 to $1,200 per ounce as at December 31, 2014.
|
| |
(2) |
Exploration changes include changes due to geological modeling, data interpretation, resource block modeling methodology and completion of Feasibility Studies as well as exploration discovery of new mineralization.
|
| |
(3) |
Mining depletion represents the material mined during 2014 with adjustments to account for stockpile addition and depletion and therefore does not correspond exactly with 2013 actual gold production. |
| |
(4) |
Engineering includes changes as a result of changes in operating costs, mining dilution and recovery assumptions, metallurgical recoveries, pit slope angles and other mine design and permitting considerations. The
reduction at Bogoso is due to the temporary removal of Prestea Underground until completion of the Feasibility Study. |
| |
(5) |
Numbers may not add due to rounding. |
Mineral Resources
The Measured Mineral Resources and Indicated Mineral Resources reported below are inclusive of the Proven and Probable Mineral Reserves as shown above and have
been estimated in accordance with the requirements of NI 43-101. All comparisons made are to December 31, 2013 Measured Mineral Resources and Indicated Mineral Resources.
The total Measured Mineral Resources and Indicated Mineral Resources as well as the Inferred Mineral Resources have been estimated on a gold price assumption
of $1,400 per ounce for December 31, 2014; the same gold price assumption that was used for the December 31, 2013 estimate. The economic cut-off grades for Mineral Resources are lower than those for Mineral Reserves and are indicative of
the fact that the Mineral Resource estimates include material that may become economically viable under more favorable conditions including increases in gold price.
Wassa’s total Measured and Indicated Mineral Resource has increased by 6% to 3.52 million ounces from December 31, 2013. This is largely due to
the increase and conversion of Mineral Resources from the Wassa Main pit to Wassa Underground. Measured and Indicated Resources at Wassa Underground now stand at 1.47 million ounces, a 409% increase over the 289,000 ounces of Measured and
Indicated Mineral Resource disclosed at December 31, 2013. Overall, the Measured and Indicated Mineral Resource grade for Wassa has increased from 2.02 g/t Au as at December 31, 2013 to 2.21 g/t Au as at December 31, 2014.
Bogoso’s Measured and Indicated Mineral Resource increased 3% to 3.1 million ounces from December 31, 2013, primarily due to the lower cost
assumptions used to constrain the Measured and Indicated Resources with the largest increase observed at the Prestea South project. Overall grades of the Bogoso Measured and Indicated Mineral Resource decreased by 5% to 3.12 g/t Au from
December 31, 2013.
The following table provides a breakdown of the Measured and Indicated Mineral Resources at Wassa and Bogoso as at
December 31, 2014 and December 31, 2013.
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Dec 31, 2014
Measured
Mineral Resources |
|
|
Dec 31, 2014
Indicated
Mineral Resources |
|
|
Dec 31, 2014
Measured and Indicated
Mineral Resources |
|
|
Dec 31, 2013
Measured and Indicated
Mineral Resources |
|
| |
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
|
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
|
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
|
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
| Wassa Open Pit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,039 |
|
|
|
1.37 |
|
|
|
1,458 |
|
|
|
33,039 |
|
|
|
1.37 |
|
|
|
1,458 |
|
|
|
45,082 |
|
|
|
1.78 |
|
|
|
2,580 |
|
| Wassa Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,248 |
|
|
|
4.07 |
|
|
|
1,471 |
|
|
|
11,248 |
|
|
|
4.07 |
|
|
|
1,471 |
|
|
|
2,446 |
|
|
|
3.67 |
|
|
|
289 |
|
| Wassa Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,199 |
|
|
|
3.53 |
|
|
|
590 |
|
|
|
5,199 |
|
|
|
3.53 |
|
|
|
590 |
|
|
|
3,807 |
|
|
|
3.74 |
|
|
|
458 |
|
| Subtotal Wassa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,486 |
|
|
|
2.21 |
|
|
|
3,519 |
|
|
|
49,486 |
|
|
|
2.21 |
|
|
|
3,519 |
|
|
|
51,336 |
|
|
|
2.02 |
|
|
|
3,327 |
|
| Bogoso |
|
|
1,975 |
|
|
|
2.56 |
|
|
|
163 |
|
|
|
2,022 |
|
|
|
2.67 |
|
|
|
173 |
|
|
|
3,997 |
|
|
|
2.62 |
|
|
|
336 |
|
|
|
4,553 |
|
|
|
2.94 |
|
|
|
431 |
|
| Dumasi |
|
|
3,505 |
|
|
|
2.49 |
|
|
|
281 |
|
|
|
10,685 |
|
|
|
2.39 |
|
|
|
820 |
|
|
|
14,190 |
|
|
|
2.41 |
|
|
|
1,102 |
|
|
|
13,123 |
|
|
|
2.45 |
|
|
|
1,032 |
|
| Mampon |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,859 |
|
|
|
4.37 |
|
|
|
261 |
|
|
|
1,859 |
|
|
|
4.37 |
|
|
|
261 |
|
|
|
1,553 |
|
|
|
4.79 |
|
|
|
239 |
|
| Prestea South |
|
|
1,292 |
|
|
|
2.59 |
|
|
|
108 |
|
|
|
4,430 |
|
|
|
2.43 |
|
|
|
346 |
|
|
|
5,722 |
|
|
|
2.47 |
|
|
|
454 |
|
|
|
4,304 |
|
|
|
2.67 |
|
|
|
370 |
|
| Prestea Underground |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,322 |
|
|
|
14.82 |
|
|
|
630 |
|
|
|
1,322 |
|
|
|
14.82 |
|
|
|
630 |
|
|
|
1,356 |
|
|
|
14.50 |
|
|
|
632 |
|
| Bogoso Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,153 |
|
|
|
2.63 |
|
|
|
351 |
|
|
|
4,153 |
|
|
|
2.63 |
|
|
|
351 |
|
|
|
3,835 |
|
|
|
2.64 |
|
|
|
325 |
|
| Subtotal Bogoso |
|
|
6,772 |
|
|
|
2.53 |
|
|
|
551 |
|
|
|
24,471 |
|
|
|
3.28 |
|
|
|
2,583 |
|
|
|
31,243 |
|
|
|
3.12 |
|
|
|
3,134 |
|
|
|
28,724 |
|
|
|
3.28 |
|
|
|
3,029 |
|
| GSR Total |
|
|
6,772 |
|
|
|
2.53 |
|
|
|
551 |
|
|
|
73,957 |
|
|
|
2.57 |
|
|
|
6,101 |
|
|
|
80,730 |
|
|
|
2.56 |
|
|
|
6,653 |
|
|
|
80,060 |
|
|
|
2.47 |
|
|
|
6,356 |
|
Inferred Mineral Resources
Wassa’s Inferred Mineral Resource has increased by 428% from December 31, 2013 to a total of 1.41 million ounces. This increase is largely due
to the addition of the Wassa Underground project where the 2014 drill programs focused on extending the high grade mineralization at depth and to the South of the Wassa Underground Feasibility Study area.
Bogoso’s Inferred Mineral Resource increased by 9% to 1.2 million ounces from December 31, 2013, primarily due to lower cost assumptions used
for 2014. Overall grades decreased by 13% compared to 2013.
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Dec 31, 2014
Inferred
Mineral Resources |
|
|
Dec 31, 2013
Inferred
Mineral Resources |
|
| |
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
|
Tonnes
(000) |
|
|
Grade
g/t Au |
|
|
Ounces
(000) |
|
| Wassa Open Pit |
|
|
137 |
|
|
|
1.47 |
|
|
|
6 |
|
|
|
313 |
|
|
|
1.28 |
|
|
|
13 |
|
| Wassa Underground |
|
|
10,331 |
|
|
|
3.69 |
|
|
|
1,227 |
|
|
|
646 |
|
|
|
3.10 |
|
|
|
64 |
|
| Wassa Other |
|
|
1,127 |
|
|
|
4.97 |
|
|
|
180 |
|
|
|
1,006 |
|
|
|
5.88 |
|
|
|
190 |
|
| Subtotal Wassa |
|
|
11,596 |
|
|
|
3.79 |
|
|
|
1,414 |
|
|
|
1,964 |
|
|
|
4.23 |
|
|
|
267 |
|
| Bogoso |
|
|
1,293 |
|
|
|
2.43 |
|
|
|
101 |
|
|
|
288 |
|
|
|
2.08 |
|
|
|
19 |
|
| Dumasi |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Mampon |
|
|
344 |
|
|
|
1.67 |
|
|
|
19 |
|
|
|
221 |
|
|
|
1.79 |
|
|
|
13 |
|
| Prestea South |
|
|
843 |
|
|
|
4.79 |
|
|
|
130 |
|
|
|
581 |
|
|
|
6.00 |
|
|
|
112 |
|
| Prestea Underground |
|
|
3,253 |
|
|
|
8.05 |
|
|
|
842 |
|
|
|
3,289 |
|
|
|
8.02 |
|
|
|
848 |
|
| Bogoso Other |
|
|
908 |
|
|
|
2.32 |
|
|
|
68 |
|
|
|
892 |
|
|
|
2.37 |
|
|
|
68 |
|
| Subtotal Bogoso |
|
|
6,642 |
|
|
|
5.43 |
|
|
|
1,159 |
|
|
|
5,271 |
|
|
|
6.25 |
|
|
|
1,060 |
|
| GSR Total |
|
|
18,238 |
|
|
|
4.39 |
|
|
|
2,573 |
|
|
|
7,236 |
|
|
|
5.71 |
|
|
|
1,327 |
|
Notes to the Measured and Indicated Mineral Resources and the Inferred Mineral Resources (collectively, the “Mineral
Resources”):
| |
(1) |
The Mineral Resources were estimated in accordance with the requirements of NI 43-101. |
| |
(2) |
The Mineral Resources for Wassa Other include Father Brown, Benso and Chichiwilli. |
| |
(3) |
The Mineral Resources for Bogoso Other include Buesichem and Ablifa. |
| |
(4) |
The Wassa Underground Mineral Resource has been estimated below the $1,400 per ounce of gold pit shell using an economic gold grade cut-off of 2.08 g/t Au, which the Company believes would be the lower cut-off for
underground. |
| |
(5) |
The Father Brown Underground Mineral Resource has been estimated below the $1,400 per ounce of gold pit shell using an economic gold grade cut-off of 2.81 g/t Au, which the Company believes would be the lower cut-off
for underground. |
| |
(6) |
Prestea Underground Mineral Resource has been estimated below the $1,400 pit shell of Prestea South down to 3800m elevation using a gold cut-off at 4.94 g/t Au |
| |
(7) |
Mineral Resources were estimated using optimized pit shells at a gold price of $1,400 per ounce. Other than gold price, the same optimized pit shell and underground parameters and modifying factors used to determine the
Mineral Reserves were used to determine the Mineral Resources. |
| |
(8) |
The Qualified Person reviewing and validating the estimation of the Mineral Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration. |
| |
(9) |
Numbers may not add due to rounding. |
| |
(10) |
Further information regarding the Company’s Mineral Resources as at December 31, 2013 can be found in the Company’s annual information form for the year ended December 31, 2013, which is available
under the Company’s profile at www.sedar.com. |
Mineral Resource and Mineral Reserve Development
The Company’s strategy is to grow production from low cost non-refractory ore sources while reducing overall operating costs. The expansion of the Wassa
orebody and the potential development of an underground mine at Wassa are central to this strategy. The current Wassa Measured and Indicated Mineral Resource of 3.5 million ounces includes 1.47 million ounces reflected as Wassa Underground
Measured and Indicated Mineral Resource.
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Company Profile
Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR) (“Golden Star” or the “Company”) is an established gold mining company that holds
a 90% interest in the Wassa, Prestea and Bogoso gold mines in Ghana. In 2014, Golden Star produced 261,000 ounces of gold and is expected to produce 250,000 – 275,000 ounces in 2015. The Company is pursuing brownfield development projects at
its Wassa and Prestea mines that are expected to transform these mines into lower cost producers from 2016 onwards. As such, Golden Star offers investors leveraged exposure to the gold price in a stable African mining jurisdiction with significant
development upside potential.
For further information, please contact:
André van Niekerk, Executive Vice President and Chief Financial Officer
Angela Parr, Vice President Investor Relations
+1 416 583 3800
investor@gsr.com
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 “forward looking information” within the meaning of Canadian securities laws. Forward looking statements and information include but are not limited to, statements and information
regarding: conversion of Inferred Mineral Resources to Measured and Indicated Mineral Resources; Mineral Reserve and Mineral Resource estimates and underlying assumptions; drilling and exploration at Wassa underground; timing for completion and
release of the Prestea Underground Feasibility Study; timing for completing updated Mineral Reserve Estimates at Prestea Underground; access to higher grade material at Wassa Underground; cash flow improvements at Wassa Underground; the timing of
accessing the high grade material at Wassa; placing the Bogoso refractory plant on care and maintenance; timing for completing mining at Bogoso; anticipated production in 2015; and transformation of Wassa and Prestea to lower cost mines. Generally,
forward-looking information and statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Investors are cautioned that forward-looking statements and information are
inherently uncertain and involve risks, assumptions 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 Annual Information Form for the year ended December 31, 2013. Our Annual Information Form for the year ended December 31, 2013 will be superseded by our Annual Information From for the
year ended December 31, 2014, which will contain similar information and will be made available on SEDAR at www.sedar.com . 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.
Technical Information and Quality Control
The technical contents of this press release have been reviewed and approved by S. Mitchel Wasel, BSc Geology, a Qualified Person pursuant to NI 43-101.
Mr. Wasel is Vice President Exploration for Golden Star and an active member of the Australasian Institute of Mining and Metallurgy. The 2014 estimates of Mineral Resources were prepared under the supervision of Mr. Wasel. The 2014
estimates of Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the Company. Dr. Raffield is a “Qualified Person” as defined by NI 43-101.
9
The results for Wassa quoted herein are based on the analysis of saw-split HQ/NQ diamond half core or a three
kilogram (“kg”) 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, which is independent of the Company, 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 Ketone (DiBK), and determined by flame Atomic Absorption Spectrophotometry (AAS). Detection Limit 0.01ppm.
The results for Bogoso 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. 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.
Cautionary Note to US Investors Concerning Estimates of Measured and Indicated Mineral Resources
This press release uses the terms “Measured Mineral Resources” and “Indicated Mineral Resources”. The Company advises US investors that
while these terms are recognized and required by National Instrument 43-101, the US Securities and Exchange Commission (“SEC”) does not recognize them. Also, disclosure of contained ounces is permitted under Canadian regulations; however
the SEC generally requires Mineral Resource information to be reported as in-place tonnage and grade. 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.
Cautionary Note to US Investors Concerning Estimates of Inferred Mineral Resources
This press release uses the term “Inferred Mineral Resources.” The Company advises US investors that while this term is recognized and required by
National Instrument 43-101, the SEC 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 Inferred Mineral Resources will ever be upgraded to a higher category. 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 any part or all of the Inferred Mineral Resource exists, or is economically or legally mineable.
Source: Golden Star
Resources Ltd.
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