TORONTO, Feb. 23, 2016 /CNW/ - Golden Star Resources Ltd.
(NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") announces its Mineral Reserves and Mineral Resources
estimate as of December 31, 2015.
Highlights
- Mineral Reserves increased by over 10% to 2.1 million ounces
- Grade increased by 34% to 2.8 grams per tonne (g/t)
- Tonnage declined to 23.6 million tonnes
- Mineral Reserves are composed of only non-refractory
ounces
- Measured and Indicated Mineral Resources(1),
inclusive of Mineral Reserves, increased to 4.7 million ounces
- Grade remained relatively constant at 2.4 g/t
- Tonnage increased to 61.4 million tonnes
Sam Coetzer, President and CEO of
Golden Star, commented:
"The 2015 Mineral Reserve statement is a true reflection of our
transformation to become a low cost and far less complex
Company. Approximately 60% of the Company's Mineral Reserve
base is now contained in our two high grade underground mines. This
concentration allows for much greater predictability and
reliability of production and costs throughout our properties as
the underground operations will be impacted less by seasonal
changes and fuel price fluctuations."
Proven and Probable Mineral Reserves and Measured and
Indicated Mineral Resources summary as of December 31, 2015
|
Tonnes
(000)
|
Grade
(g/t)
|
Ounces
(000)
|
|
Proven and Probable
Mineral Reserves(1)
|
23,626
|
2.82
|
2,143
|
|
Measured and
Indicated Mineral Resources(1)(2)
|
61,360
|
2.38
|
4,700
|
(1) Includes only non-refractory material
(2) Mineral Resources are inclusive of Mineral
Reserves.
Mineral Reserves were estimates using $1,100 gold price per ounce. Mineral
Resources were estimated using a $1,300 gold price per ounce.
Mineral Reserves
Total Proven and Probable Mineral Reserves for the year ending
December 31, 2015, increased to over
2.1 million ounces from approximately 1.9 million ounces the
previous year. Grades increased by 34%, to 2.82 g/t offset by
a 17% decline in tonnage to 23.6 million. The gain was
achieved after depletion from production in 2015 and despite the
$100 lower gold price assumption used
in the estimation versus the gold price assumption used in the
prior year. This estimation does not include any refractory
material at Bogoso / Prestea as the refractory operation was
suspended in 2015.
Wassa
Total Proven and Probable Mineral Reserves at Wassa decreased
slightly to 1.5 million ounces from 2014 while grades increased by
11% to 2.27 g/t and tonnage decreased to 20.4 million
tonnes. Most notable is the increase in grade at the Wassa
Underground, from 4.26 g/t to 4.59 g/t. The gains at Wassa
Underground and in the Wassa stockpiles were offset by the
depletion from production of the Wassa Open Pit.
Bogoso / Prestea
Total Proven and Probable Mineral Reserves at Bogoso / Prestea
increased significantly to 656,000 ounces when comparing to 2014.
The increase was almost entirely driven by the newly declared
Mineral Reserves at Prestea Underground, which is expected
to commence production sometime in mid-2017. The increases
were slightly offset by the depletion due to production in
2015.
The following table provides a breakdown of the Proven and
Probable Mineral Reserves:
|
Dec 31, 2015
Proven
Mineral Reserve
|
Dec 31, 2015
Probable
Mineral Reserve
|
Dec 31, 2015
Proven and
Probable Mineral Reserve
|
Dec 31, 2014
Proven and
Probable Mineral Reserve
|
|
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
|
257
|
1.56
|
13
|
13,922
|
1.46
|
654
|
14,179
|
1.46
|
667
|
17,831
|
1.42
|
815
|
|
Wassa
Underground
|
-
|
-
|
-
|
5,397
|
4.59
|
796
|
5,397
|
4.59
|
796
|
5,437
|
4.26
|
745
|
|
Stockpiles
|
789
|
0.93
|
24
|
-
|
-
|
-
|
789
|
0.93
|
24
|
820
|
0.73
|
19
|
|
Total
Wassa
|
1,046
|
1.09
|
37
|
19,319
|
2.33
|
1,450
|
20,365
|
2.27
|
1,486
|
24,089
|
2.04
|
1,579
|
|
Bogoso /
Prestea (refractory)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,954
|
2.52
|
158
|
|
Mampon
|
-
|
-
|
-
|
304
|
4.60
|
45
|
304
|
4.60
|
45
|
320
|
4.43
|
46
|
|
Prestea
South
|
-
|
-
|
-
|
1,892
|
2.30
|
140
|
1,892
|
2.30
|
140
|
1,697
|
2.24
|
122
|
|
Prestea
Underground
|
-
|
-
|
-
|
1,041
|
14.02
|
469
|
1,041
|
14.02
|
469
|
-
|
-
|
-
|
|
Stockpiles
|
25
|
2.69
|
2
|
-
|
-
|
-
|
25
|
2.69
|
2
|
405
|
1.82
|
24
|
|
Total Bogoso /
Prestea
|
25
|
2.69
|
2
|
3,237
|
6.29
|
654
|
3,261
|
6.26
|
656
|
4,376
|
2.49
|
350
|
|
Total
|
1,071
|
1.12
|
39
|
22,556
|
2.90
|
2,104
|
23,626
|
2.82
|
2,143
|
28,465
|
2.11
|
1,929
|
|
Total excl.
refractory
|
1,071
|
1.12
|
39
|
22,556
|
2.90
|
2,104
|
23,626
|
2.82
|
2,143
|
26,510
|
2.08
|
1,771
|
**Numbers may not add due to rounding. See the end of this
news release for additional notes.
Reconciliation of Mineral Reserves
The following graphs provide a reconciliation of the Company's
Proven and Probable Mineral Reserves from December 31, 2014 and December 31, 2015:
(Please see Figures 1-3)
** Numbers may not add due to rounding.
Mineral Resources
Total Measured and Indicated Mineral Resources, inclusive of the
Proven and Probable Mineral Reserves, of 6.1 million ounces as of
December 31, 2015 were slightly lower
than they were as of December 31,
2014, mostly driven by fewer tonnes with grade remaining
relatively consistent at 2.5 g/t. Given the Company's decision
to discontinue refractory operations in 2015 resulting in no
refractory mineral resource development in the year, the decline in
Mineral Resources can largely be attributed to the depletion in the
refractory ounces from production in 2015.
Mineral Resources, inclusive of Mineral Reserves but excluding
refractory material, as of December 31,
2015 increased slightly to 4.7 million ounces driven by
slightly lower grade, 2.38 g/t, and slightly more tonnes, 61.4
million tonnes, despite the lower gold price and the depletion from
production of the non-refractory ounces.
Wassa
Total Measured and Indicated Mineral Resources at Wassa have
increased slightly to 3.6 million ounces from December 31, 2014 resulting from a decline in
grade and increase in tonnage. Measured and Indicated Resources at
Wassa Underground increased by 10% to 1.6 million ounces, while
grade declined by 5% to 3.85 g/t and tonnage increased
slightly. First ore production from the Wassa Underground is
expected in the second half of 2016.
Bogoso / Prestea
Total Measured and Indicated Mineral Resource at Bogoso /
Prestea is 2.6 million ounces, a decrease of approximately 18% from
2014 attributed to the decline in refractory ounces due to
depletion from production during 2015. Much of the decline in
tonnage was offset by the 16% increase to average grades
attributable to the 5% increase in the grade at Prestea Underground
to 15.52 g/t.
The following table provides a breakdown of the Measured and
Indicated Mineral Resources:
|
Dec 31,
2015
Measured
Mineral Resources
|
Dec 31,
2015
Indicated
Mineral Resources
|
Dec 31,
2015
Measured and Indicated Mineral
Resources
|
Dec 31,
2014
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
|
243
|
1.72
|
13
|
37,731
|
1.23
|
1,488
|
37,974
|
1.23
|
1,501
|
33,039
|
1.37
|
1,458
|
|
Wassa
Underground
|
-
|
-
|
-
|
13,090
|
3.85
|
1,621
|
13,090
|
3.85
|
1,621
|
11,248
|
4.07
|
1,471
|
|
Wassa
Other
|
-
|
|
-
|
3,583
|
3.76
|
434
|
3,583
|
3.76
|
434
|
5,199
|
3.53
|
590
|
|
Subtotal
Wassa
|
243
|
1.72
|
13
|
54,404
|
2.03
|
3,543
|
54,647
|
2.02
|
3,556
|
49,486
|
2.21
|
3,519
|
|
Bogoso / Prestea
(refractory)
|
-
|
-
|
-
|
14,740
|
3.00
|
1,420
|
14,740
|
3.00
|
1,420
|
23,245
|
2.77
|
2,071
|
|
Mampon
|
-
|
-
|
-
|
396
|
4.25
|
54
|
396
|
4.25
|
54
|
557
|
3.44
|
62
|
|
Prestea
South
|
-
|
-
|
-
|
2,568
|
2.12
|
175
|
2,568
|
2.12
|
175
|
3,710
|
2.03
|
243
|
|
Prestea
Underground
|
-
|
-
|
-
|
1,597
|
15.52
|
797
|
1,597
|
15.52
|
797
|
1,322
|
14.82
|
630
|
|
Bogoso / Prestea
Other
|
-
|
-
|
-
|
2,151
|
1.70
|
118
|
2,151
|
1.70
|
118
|
2,418
|
1.66
|
129
|
|
Subtotal Bogoso /
Prestea
|
-
|
-
|
-
|
21,452
|
3.72
|
2,564
|
21,452
|
3.72
|
2,564
|
31,253
|
3.12
|
3,135
|
|
Total
|
243
|
1.72
|
13
|
75,856
|
2.50
|
6,107
|
76,100
|
2.50
|
6,120
|
80,739
|
2.56
|
6,653
|
|
Total excl.
Refractory
|
243
|
1.72
|
13
|
61,116
|
2.39
|
4,687
|
61,360
|
2.38
|
4,700
|
57,494
|
2.48
|
4,583
|
** Numbers may not add due to rounding. See the end of this
news release for additional notes.
Inferred Mineral Resources
Total Inferred Mineral Resources increased by 28% to 3.3 million
ounces with increased grades and tonnage as the drivers. When
refractory material is excluded the increase improves to 34% or 3.1
million ounces. The increase in Inferred Mineral Resources can
largely be attributed to the 55% increase in ounces at
Wassa.
The following table provides a breakdown of the Inferred Mineral
Resources:
|
Dec 31,
2015
Inferred Mineral
Resources
|
Dec 31,
2014
Inferred Mineral
Resources
|
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
|
Wassa Open
Pit
|
286
|
1.37
|
13
|
137
|
1.47
|
6
|
|
Wassa
Underground
|
14,442
|
4.16
|
1,930
|
10,331
|
3.69
|
1,227
|
|
Wassa
Other
|
1,764
|
4.53
|
257
|
1,127
|
4.97
|
180
|
|
Subtotal
Wassa
|
16,492
|
4.15
|
2,200
|
11,596
|
3.79
|
1,414
|
|
Bogoso / Prestea
(refractory)
|
1,184
|
4.22
|
161
|
2,073
|
3.52
|
235
|
|
Mampon
|
103
|
2.08
|
7
|
257
|
1.72
|
14
|
|
Prestea
South
|
72
|
2.34
|
5
|
549
|
2.49
|
44
|
|
Prestea
Underground
|
3,249
|
8.74
|
913
|
3,253
|
8.05
|
842
|
|
Bogoso / Prestea
Other
|
389
|
1.54
|
19
|
510
|
1.48
|
24
|
|
Subtotal Bogoso /
Prestea
|
4,997
|
6.88
|
1,105
|
6,643
|
5.43
|
1,159
|
|
Total
|
21,486
|
4.78
|
3,305
|
18,238
|
4.39
|
2,573
|
|
Total excl.
refractory
|
20,305
|
4.82
|
3,144
|
16,166
|
4.50
|
2,338
|
** Numbers may not add due to rounding. See the end of this
news release for additional notes.
|
Notes to the Mineral
Reserve Statement:
|
|
(1)
|
The Mineral Reserves
as of December 31, 2015 were estimated using a gold price
assumption of $1,100 per ounce.
|
|
(2)
|
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.
|
|
(3)
|
Cut-off grades have
been estimated based on operating cost projections, mining dilution
and recovery, government royalty payment requirements and
applicable metallurgical recovery. Marginal cut-off grade estimates
for the open pits are as follows: Wassa 0.70 g/t; Mampon 1.52 g/t;
and Prestea South 1.23 g/t. Break-even cut-off grade estimates for
the underground mines are as follows: Wassa Underground 2.39 g/t;
and Prestea Underground 7.50 g/t.
|
|
Notes to the Measured
and Indicated Mineral Resource and the Inferred Mineral
Resources:
|
|
(1)
|
The Mineral Resources
for Wassa Other include Father Brown, Benso and
Chichiwilli.
|
|
(2)
|
The Mineral Resources
for Bogoso / Prestea Other include Chujah, Dumasi, Bogoso North,
Buesichem, Opon, and Ablifa.
|
|
(3)
|
The Wassa Underground
Mineral Resource has been estimated below the $1,300 per ounce of
gold pit shell using an economic gold grade cut-off of 1.81 g/t Au,
which the Company believes would be the lower cut-off for
underground.
|
|
(4)
|
The Father Brown
Underground Mineral Resource has been estimated below the $1,300
per ounce of gold pit shell using an economic gold grade cut-off of
3.17 g/t Au, which the Company believes would be the lower cut-off
for underground.
|
|
(5)
|
Prestea Underground
Mineral Resource has been estimated below the $1,300 pit shell of
Prestea South down to 3800m elevation using a gold cut-off at 5.43
g/t Au.
|
|
(6)
|
Mineral Resources
were estimated using optimized pit shells at a gold price of $1,300
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.
|
Company Profile
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines situated on the prolific Ashanti Gold
Belt in western Ghana,
Africa. Listed on the NYSE MKT,
the TSX, and the GSE, Golden Star is
strategically focused on increasing operating margins and cash flow
through the development of two high grade, low cost underground
mines both beneath existing open pit operations. The Wassa
Underground is expected to commence production in 2016 with the
Prestea Underground commencing production in 2017. Both
projects are fully funded and on track to begin production as
expected. Production in 2016 is expected to be between 180,000 –
205,000 ounces of gold with costs between $815 - $925 per ounce.
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: Mineral Reserve
and Mineral Resource estimates and underlying assumptions; the
timing of the commencement of production at Prestea Underground and
at Wassa Underground and as to both projects being fully funded;
the impact of the underground resource base on the predictability
and reliability of production; underground operations being less
impacted by seasonal changes and fuel price fluctuations;
anticipated production and associated costs in 2016; and the
transformation of Wassa and Prestea to lower cost mines and the
Company into a lower cost producer. 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, 2014. Our
Annual Information Form for the year ended December 31, 2014 will be superseded by our
Annual Information From for the year ended December 31, 2015, 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
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 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.
The Mineral Resource 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 2015 estimates of Mineral Resources
were prepared under the supervision of Mr. Wasel. The 2015
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.
Additional scientific and technical information relating to the
mineral properties referenced in this news release are contained in
the following current technical reports for those properties
available at www.sedar.com: (i) Wassa - "NI 43-101 Technical Report
on feasibility study of the Wassa open pit mine and underground
project in Ghana" effective date
December 31, 2014; (ii) Prestea
Underground - "NI 43-101 Technical Report on a Feasibility Study of
the Prestea Underground Gold Project in Ghana" effective date November 3, 2015; and (iii) Bogoso - "NI 43-101
Technical Report on Resources and Reserves Golden Star Resources
Ltd., Bogoso Prestea Gold Mine, Ghana" effective date December 31, 2013.
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 NI
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 NI 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.