TORONTO, Feb. 27, 2017 /PRNewswire/ - 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, 2016.
HIGHLIGHTS
- Proven and Probable Mineral Reserves of 1.9 million ounces of
gold
- 8% increase in head grade of Proven and Probable Mineral
Reserves to 3.05 grams per tonne ("g/t") compared to 2015
estimate
- 11% decrease in gold content due to mining depletion during
2016 compared to December 31, 2015
estimate
- Measured and Indicated Mineral Resources of 4.4 million ounces
of gold
- Exploration strategy update expected to be released later in
the first quarter of 2017
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"It is pleasing to see from the 2016 Mineral Reserve estimate
that despite the reduction in ounces due to mining depletion, the
head grade has increased by 8%. This reflects our mine plan,
which sees Golden Star mining higher
grade, more profitable ore going forward and underlines our
strategy to become a high grade, low cost producer. During
2016 we conducted limited exploration as we focused on advancing
our two high grade underground mines. However following the
achievement of commercial production at our Wassa Underground Gold
Mine, our exploration team's focus in 2017 will be on defining
additional Mineral Reserves at both of our operations. I look
forward to providing an update on our exploration strategy later
this quarter."
Mineral Reserves and Mineral Resources Summary
The following table provides a summary of Golden Star's estimated Proven and Probable
Mineral Reserves and Measured and Indicated Mineral Resources as of
December 31, 2016.
|
Tonnes
('000)
|
Grade
(g/t
Au)
|
Gold
Content
('000
oz)
|
Proven and
Probable Mineral Reserves1
|
19,456
|
3.05
|
1,910
|
Measured and
Indicated Mineral Resources1,2
|
49,741
|
2.74
|
4,382
|
Notes to
Table
|
1.
|
Includes
non-refractory material only
|
2.
|
Mineral Resources are
inclusive of Mineral Reserves
|
Mineral Reserves were estimated using a gold price of
$1,100 per ounce. Mineral
Resources were estimated using a gold price of $1,300 per
ounce.
Mineral Reserve Estimate: Breakdown by Asset
The following table provides a breakdown of Golden Star's estimated Proven and Probable
Mineral Reserves as of the dates set forth therein.
Mineral
Reserves
|
Dec 31, 2016
Proven
Mineral
Reserve
|
Dec 31, 2016
Probable
Mineral
Reserve
|
Dec 31, 2016
Proven and
Probable Mineral
Reserve
|
Dec 31, 2015
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
|
-
|
-
|
-
|
11,264
|
1.56
|
565
|
11,264
|
1.56
|
565
|
14,179
|
1.46
|
667
|
Wassa
Underground
|
-
|
-
|
-
|
5,477
|
4.21
|
742
|
5,477
|
4.21
|
742
|
5,397
|
4.59
|
796
|
Stockpiles
|
695
|
0.96
|
21
|
-
|
-
|
-
|
695
|
0.96
|
21
|
789
|
0.93
|
24
|
Subtotal Wassa
|
695
|
0.96
|
21
|
16,741
|
2.43
|
1,307
|
17,436
|
2.37
|
1,328
|
20,365
|
2.27
|
1,486
|
Mampon
|
-
|
-
|
-
|
301
|
4.64
|
45
|
301
|
4.64
|
45
|
304
|
4.60
|
45
|
Prestea
South
|
-
|
-
|
-
|
510
|
2.31
|
38
|
510
|
2.31
|
38
|
1,892
|
2.30
|
140
|
Prestea
Underground
|
-
|
-
|
-
|
1,094
|
13.93
|
490
|
1,094
|
13.93
|
490
|
1,041
|
14.02
|
469
|
Stockpiles
|
115
|
2.55
|
9
|
-
|
-
|
-
|
115
|
2.55
|
9
|
25
|
2.69
|
2
|
Subtotal
Prestea
|
115
|
2.55
|
9
|
1,905
|
9.35
|
573
|
2,020
|
8.96
|
582
|
3,261
|
6.26
|
656
|
TOTAL
|
810
|
1.18
|
31
|
18,646
|
3.13
|
1,879
|
19,456
|
3.05
|
1,910
|
23,626
|
2.82
|
2,143
|
Notes to the
Mineral Reserve Estimate:
|
1.
|
The Mineral Reserves
as of December 31, 2016, 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 shape and size 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: 0.7g/t; Mampon
(part of the Prestea Mineral Reserves): 1.5g/t; and Prestea South:
1.2g/t. Break-even cut-off grade estimates for the
underground mines are as follows: Wassa Underground: 2.4g/t; and
Prestea Underground: 7.7g/t.
|
4.
|
Numbers may not add
correctly due to rounding.
|
5.
|
Only non-refractory
ore is included in Golden Star's Mineral Reserves.
|
Reconciliation of Mineral Reserves
The attached graphs in Figure 1 provide a reconciliation of the
Company's Proven and Probable Mineral Reserves from December 31, 2015 to December 31, 2016.
Measured and Indicated Mineral Resources: Breakdown by
Asset
The following table provides a breakdown of Golden Star's estimated Measured and Indicated
Mineral Resources as of the dates set forth therein.
|
December 31,
2016
Indicated
Mineral Resources
|
December 31,
2016
Measured and
Indicated
Mineral
Resources
|
December 31,
2015
Measured and
Indicated
Mineral
Resources
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
tonnes
0
|
grade
g/t Au
|
ounces
0
|
Wassa Open
Pit
|
27,500
|
1.43
|
1,265
|
27,500
|
1.43
|
1,265
|
37,974
|
1.23
|
1,501
|
Wassa
Underground
|
13,499
|
3.82
|
1,656
|
13,499
|
3.82
|
1,656
|
13,090
|
3.85
|
1,621
|
Wassa
Other
|
3,348
|
3.78
|
407
|
3,348
|
3.78
|
407
|
3,583
|
3.76
|
434
|
Subtotal
Wassa
|
44,347
|
2.33
|
3,328
|
44,347
|
2.33
|
3,328
|
54,647
|
2.02
|
3,556
|
Bogoso/Prestea
Refractory
|
14,424
|
3.01
|
1,396
|
14,424
|
3.01
|
1,396
|
14,740
|
3.00
|
1,420
|
Mampon
|
418
|
4.11
|
55
|
418
|
4.11
|
55
|
396
|
4.25
|
54
|
Prestea
South
|
1,176
|
2.28
|
86
|
1,176
|
2.28
|
86
|
2,568
|
2.12
|
175
|
Prestea
Underground
|
1,570
|
15.69
|
792
|
1,570
|
15.69
|
792
|
1,597
|
15.52
|
797
|
Bogoso/Prestea
Other
|
2,230
|
1.69
|
121
|
2,230
|
1.69
|
121
|
2,151
|
1.70
|
118
|
Subtotal
Bogoso/Prestea
|
19,818
|
3.85
|
2,451
|
19,818
|
3.85
|
2,451
|
21,452
|
3.72
|
2,564
|
Total (Including
Refractory)
|
64,165
|
2.80
|
5,778
|
64,165
|
2.80
|
5,778
|
76,099
|
2.50
|
6,120
|
TOTAL NON
REFRACTORY
|
49,741
|
2.7
|
4,382
|
49,741
|
2.74
|
4,382
|
61,359
|
2.38
|
4,700
|
Inferred Mineral Resources: Breakdown by Asset
The following table provides a breakdown of Golden Star's estimated Inferred Mineral
Resources as of the dates set forth therein.
|
31-Dec-16
Inferred Mineral
Resources
|
31-Dec-15
Inferred Mineral
Resources
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
tonnes
(000)
|
grade
g/t Au
|
ounces
(000)
|
Wassa Open
Pit
|
149
|
1.43
|
7
|
286
|
1.37
|
13
|
Wassa
Underground
|
14,450
|
4.16
|
1,931
|
14,442
|
4.16
|
1,930
|
Wassa
Other
|
982
|
5.18
|
164
|
1,764
|
4.53
|
257
|
Subtotal
Wassa
|
15,581
|
4.20
|
2,102
|
16,492
|
4.15
|
2,200
|
Bogoso/Prestea
Refractory
|
1,112
|
2.78
|
99
|
1,184
|
4.22
|
161
|
Mampon
|
100
|
2.10
|
7
|
103
|
2.08
|
7
|
Prestea
South
|
40
|
1.97
|
3
|
72
|
2.34
|
5
|
Prestea
Underground
|
3,203
|
8.78
|
905
|
3,249
|
8.74
|
913
|
Bogoso/Prestea
Others
|
380
|
1.55
|
19
|
389
|
1.54
|
19
|
Subtotal
Bogoso/Prestea
|
4,835
|
6.64
|
1,032
|
4,997
|
6.88
|
1105
|
Total (including
refractory)
|
20,417
|
4.77
|
3,134
|
20,305
|
4.82
|
3,144
|
TOTAL NON
REFRACTORY
|
19,305
|
4.89
|
3,034
|
20,305
|
4.82
|
3,144
|
Notes to Mineral
Resource Estimates
|
1.
|
The Mineral Resources
for Wassa Other include Father Brown, Benso and
Chichiwilli.
|
2.
|
The Mineral Resources
for "Bogoso/Prestea Others" 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 1.81g/t,
which the Company believes would be the lower cut-off grade for
underground mining.
|
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
3.17g/t, which the Company believes would be the lower cut-off
grade for underground mining.
|
5.
|
Prestea Underground
Mineral Resource has been estimated below the $1,300 pit shell of
Prestea South down to 3,800 metres elevation using a gold cut-off
grade at 5.43g/t.
|
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.
|
7.
|
Mineral Resources are
inclusive of Mineral Reserves.
|
8.
|
Numbers may not add
correctly due to rounding.
|
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 Ghana, West 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 its two high grade, low cost underground
mines both in conjunction with existing open pit operations. The
Wassa Underground Gold Mine commenced commercial production in
January 2017 and the Prestea
Underground Gold Mine is expected to achieve commercial production
in mid-2017. Gold production in 2017 is expected to be
255,000-280,000 ounces with cash operating costs of $780-860 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 commercial production at Prestea
Underground; the timing of the release of the exploration strategy
update; the focus of Golden Star's
exploration team in 2017; the realization of Golden Star's plan to mine higher grade ore
going forwards; 2017 production guidance; 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 Management's Discussion and Analysis of financial
conditions and results of operations for the year ended
December 31, 2016. Additional
and/or updated factors will be included in our annual information
form for the year ended December 31,
2016 which will be filed 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 2016 and 2015 estimates of
Mineral Resources were prepared under the supervision of Mr.
Wasel. The Mineral Reserve technical contents of this press
release, and the 2016 and 2015 estimates of Mineral Reserves, have
been reviewed and approved by and 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 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.