June 22, 2004--Golden Star Resources Ltd. today announced that it has increased the total mineral resource at its 90%-owned Wassa gold project in Ghana by approximately 33% after completing a drilling program targeted at potential extensions to its planned open pits at the project. The work has resulted in an increase in the total mineral resources at Wassa to 14.8 million tonnes at an average grade of 1.19 g/t Au of indicated mineral resource (which includes the 3.8 million tonnes of heap leach material at 0.52 g/t Au) and to 38.4 million tonnes at an average grade of 1.20 g/t of inferred mineral resource. These mineral resources are in addition to the mineral reserves at Wassa, which at year-end 2003 were estimated at 16.2 million tonnes grading 1.28 g/t gold for 665,000 contained ounces. Recalculation of the mineral reserves is underway and is expected to be available early in the third quarter.
"This is a major step forward for the Wassa project," said Peter Bradford, President and CEO of Golden Star. "We have a target to increase our reserves at Wassa to one million ounces prior to the commencement of mining in early 2005. We anticipate that a portion of this 33% increase in the mineral resource will be converted to reserves once processing and mining parameters have been assessed, which we expect to increase reserves at Wassa to close to our target. These newly defined resources have been delineated through drilling in the existing pit areas, both down dip and along strike of the delineated reserves. Additional drilling programs will now test the open ended strike extensions of the mineralized zones as well as the higher grade Akyempim South deposit, located approximately two kilometers southwest of the Wassa processing plant, where we first drilled holes in late 2003 (as described in our press release of December 5, 2003). Also, we will soon start drilling the six other anomalies over two parallel gold-in-soil anomalies extending over a six kilometer strike length southwest of the planned open pits at Wassa."
The just-completed drilling program comprised 10,250 meters of reverse circulation drilling and 1,600 meters of diamond drilling. The assaying was carried out by Transworld Laboratories in Tarkwa, using a BLEG Leachwell analytical technique with a 1,000-gram assay charge to help minimize the nugget effect on the assay results. The total cost of the 2004 drilling program used for this resource update was approximately $1.8 million, equating to a discovery cost of $3.70 per ounce of resource. The cumulative discovery cost at Wassa since Golden Star commenced resource delineation drilling on the project is $3.68 per ounce of indicated and inferred mineral resource.
The revised summary statement of mineral resources for Wassa as at June 22, 2004, which does not include the Wassa mineral reserves, showing the increase in resources since December 31, 2003, is as follows:
Measured & Measured Indicated Indicated Inferred ---------------------------------------------------------------------- Gold Gold Gold Gold Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade (000) (g/t) (000) (g/t) (000) (g/t) (000) (g/t) ---------------------------------------------------------------------- June 21, 2004 - - 14,798 1.19 14,798 1.19 38,411 1.20 December 31, 2003 - - 9,363 0.96 9,363 0.96 30,768 1.27 ---------------------------------------------------------------------- Net Increase 5,434 1.59 5,434 1.59 7,643 0.92 --------------
U.S. investors should read the cautionary statements relating to Measured and Indicated Mineral Resources and Inferred Mineral Resources below and in our Form 10-K for the year ended December 31, 2003.
Our mineral resources were determined at a gold price of $375 per ounce and were estimated in accordance with the definitions and requirements of Canada's National Instrument 43-101. Additional detail on the estimation procedures and our quality assurance and quality control programs are contained in our Form 10-K for the year ended December 31, 2003, and our technical reports filed in April and August 2003 on www.sedar.com, pursuant to National Instrument 43-101.
Significant intersections for this phase of drilling at Wassa are summarized below and the detailed drill results and a location map are available on the Golden Star website at www.gsr.com:
Est. true Inter- Thick- Grade East- North- Elev- From To val ness (Au HOLE-ID ing ing ation Dip(meters)(meters)(meters)(meters) g/t) ---------------------------------------------------------------------- BSDD036 39876 20114 995 -50 64.0 71.5 7.5 6.50 1.06 ---------------------------------------------------------------------- -50 130.0 134.0 4.0 3.46 5.29 ---------------------------------------------------------------------- BSDD038 39905 19925 1030 -55 143.1 156.8 13.7 11.22 1.56 ---------------------------------------------------------------------- -55 146.5 158.0 11.5 9.42 3.67 ---------------------------------------------------------------------- BSDD039 39887 19875 1036 -50 161.9 170.5 8.6 7.45 2.27 ---------------------------------------------------------------------- BSRC026 40075 20300 1018 -48 93.0 103.0 10.0 8.83 8.35 ---------------------------------------------------------------------- FSRC024 40119 20350 1018 -45 9.0 13.0 4.0 3.63 2.04 ---------------------------------------------------------------------- -45 22.0 28.0 6.0 5.44 3.17 ---------------------------------------------------------------------- -45 69.0 91.0 22.0 19.94 1.74 ---------------------------------------------------------------------- FSRC025 40043 20325 1017 -60 77.0 84.0 7.0 5.36 1.39 ---------------------------------------------------------------------- -60 95.0 97.0 2.0 1.53 7.72 ---------------------------------------------------------------------- FSRC027 40084 20300 1018 -50 3.0 6.0 3.0 2.60 6.01 ---------------------------------------------------------------------- FSRC027A 40086 20300 1018 -50 7.0 15.0 8.0 6.93 1.28 ---------------------------------------------------------------------- -50 111.0 118.0 7.0 6.06 1.80 ---------------------------------------------------------------------- FSRC028 40093 20325 1018 -48 2.0 7.0 5.0 4.41 2.13 ---------------------------------------------------------------------- -48 77.0 82.0 5.0 4.41 1.95 ---------------------------------------------------------------------- -48 89.0 95.0 6.0 5.30 2.34 ---------------------------------------------------------------------- -48 103.0 109.0 6.0 5.30 3.75 ---------------------------------------------------------------------- -48 113.0 119.0 6.0 5.30 5.01 ---------------------------------------------------------------------- FSRC029 40129 19850 1034 -50 84.0 86.0 2.0 1.73 2.45 ---------------------------------------------------------------------- FSRC030 40102 19875 1035 -48 102.0 106.0 4.0 3.53 1.83 ---------------------------------------------------------------------- -48 112.1 118.0 5.9 5.21 8.59 ---------------------------------------------------------------------- -48 159.2 163.0 3.8 3.36 11.64 ---------------------------------------------------------------------- -48 171.0 184.0 13.0 11.48 1.95 ---------------------------------------------------------------------- -48 188.0 192.6 4.6 4.06 5.96 ---------------------------------------------------------------------- -48 195.5 197.5 2.0 1.77 3.76 ---------------------------------------------------------------------- M2NDD011 39823 20192 998 -55 33.0 36.8 3.8 3.11 17.84 ---------------------------------------------------------------------- -55 159.0 168.0 9.0 7.37 1.22 ---------------------------------------------------------------------- M2NDD012 39920 20269 1008 -42 147.6 164.0 16.4 15.21 0.90 ---------------------------------------------------------------------- M2NDD013 39785 20142 1018 -45 61.0 75.0 14.0 12.69 27.42 ---------------------------------------------------------------------- M2NDD014 39816 20245 1000 -53 15.0 24.0 9.0 7.55 6.53 ---------------------------------------------------------------------- -53 30.0 57.0 27.0 22.64 1.26 ---------------------------------------------------------------------- M2NRC014 39782 20337 1017 -45 46.0 49.0 3.0 2.72 3.86 ---------------------------------------------------------------------- M2NRC015 39749 20122 1018 -45 40.0 50.0 10.0 9.06 3.60 ---------------------------------------------------------------------- -45 78.0 85.0 7.0 6.34 1.03 ---------------------------------------------------------------------- M2NRC016 39847 20341 1012 -50 3.0 10.0 7.0 6.06 1.71 ---------------------------------------------------------------------- -50 92.0 95.0 3.0 2.60 5.04 ---------------------------------------------------------------------- MERC012 40067 20991 1003 -45 9.0 18.0 9.0 8.16 2.58 ---------------------------------------------------------------------- MERC024 40242 20942 1033 -55 18.0 39.0 21.0 17.20 1.63 ---------------------------------------------------------------------- MERC028 40361 20780 1025 -55 33.0 42.0 9.0 7.37 2.55 ---------------------------------------------------------------------- SAKDD005 38649 19125 1006 -45 66.5 75.5 9.0 8.16 2.65 ---------------------------------------------------------------------- -45 78.0 82.0 4.0 3.63 2.59 ---------------------------------------------------------------------- SAKDD006 38631 19099 1006 -50 51.0 68.0 17.0 14.72 3.67 ---------------------------------------------------------------------- SAKDD008 38648 19076 1006 -50 80.0 93.0 13.0 11.26 1.72 ---------------------------------------------------------------------- SAKDD009 38555 19350 1024 -50 29.0 35.0 6.0 5.20 1.25 ---------------------------------------------------------------------- -50 50.0 68.2 18.2 15.76 2.11 ---------------------------------------------------------------------- -50 82.0 97.0 15.0 12.99 1.05 ---------------------------------------------------------------------- -50 119.0 126.0 7.0 6.06 6.96 ---------------------------------------------------------------------- SAKDD010A 38559 19375 1024 -48 98.0 108.0 10.0 8.83 1.72 ---------------------------------------------------------------------- -48 117.0 129.0 12.0 10.60 4.31 ---------------------------------------------------------------------- SAKDD011A 38529 19398 1027 -50 87.0 99.0 12.0 10.39 3.26 ---------------------------------------------------------------------- SAKRC013 38623 19150 1007 -50 38.0 46.0 8.0 6.93 2.30 ---------------------------------------------------------------------- SAKRC014 38606 19178 1008 -50 18.0 23.0 5.0 4.33 2.68 ---------------------------------------------------------------------- SERC061 40166 19450 997 -50 54.0 59.0 5.0 4.33 9.04 ---------------------------------------------------------------------- -50 72.0 77.0 5.0 4.33 0.96 ---------------------------------------------------------------------- SERC064 40331 19950 1023 -45 0.0 7.0 7.0 6.34 1.18 ---------------------------------------------------------------------- -45 28.0 40.0 12.0 10.88 0.77 ---------------------------------------------------------------------- -45 83.0 94.0 11.0 9.97 1.50 ---------------------------------------------------------------------- -45 97.0 101.0 4.0 3.63 7.17 ---------------------------------------------------------------------- SERC068 40459 20400 1025 -50 48.0 56.0 8.0 6.93 6.23 ---------------------------------------------------------------------- SERC069 40318 20375 1013 -50 7.0 34.0 27.0 23.38 1.25 ---------------------------------------------------------------------- -50 47.0 54.0 7.0 6.06 1.34 ---------------------------------------------------------------------- SERC070 40352 20375 1018 -50 49.0 53.0 4.0 3.46 4.97 ---------------------------------------------------------------------- SERC071 40308 20300 1014 -51 27.0 32.0 5.0 4.29 1.36 ---------------------------------------------------------------------- -51 42.0 55.0 13.0 11.14 1.55 ---------------------------------------------------------------------- SERC074 40343 20050 1024 -50 1.0 15.0 14.0 12.12 0.78 ---------------------------------------------------------------------- -50 87.0 96.0 9.0 7.79 2.20 ---------------------------------------------------------------------- -50 113.0 115.0 2.0 1.73 1.72 ---------------------------------------------------------------------- SERC075 40384 20100 1019 -50 15.0 48.0 33.0 28.58 1.56 ---------------------------------------------------------------------- -50 73.0 75.0 2.0 1.73 5.22 ---------------------------------------------------------------------- -50 87.0 96.0 9.0 7.79 1.07 ---------------------------------------------------------------------- SERC076 40319 20350 1014 -50 0.0 17.0 17.0 14.72 3.02 ---------------------------------------------------------------------- SERC082 40316 20326 1014 -50 0.0 30.0 30.0 25.98 2.18 ---------------------------------------------------------------------- SERC083 40146 19900 1034 -50 15.0 21.0 6.0 5.20 3.77 ---------------------------------------------------------------------- SERC084 40311 20348 1013 -50 0.0 24.0 24.0 20.78 1.39 ---------------------------------------------------------------------- -50 27.0 33.0 6.0 5.20 1.06 ---------------------------------------------------------------------- SERC085 40438 20225 1020 -50 45.0 51.0 6.0 5.20 2.90 ---------------------------------------------------------------------- -50 81.0 90.0 9.0 7.79 1.59 ---------------------------------------------------------------------- SERC088 40144 19950 1035 -50 138.0 141.5 3.5 3.03 7.15 ---------------------------------------------------------------------- SERC089 40183 19425 996 -50 36.0 42.0 6.0 5.20 4.96 ---------------------------------------------------------------------- SERC092 40195 19875 1021 -50 66.0 75.0 9.0 7.79 2.76 ---------------------------------------------------------------------- -50 93.0 105.0 12.0 10.39 1.77 ---------------------------------------------------------------------- SERC093 40196 19775 1023 -50 60.0 66.0 6.0 5.20 1.63 ----------------------------------------------------------------------Notes to the results:
1. Approximate true thickness has been calculated assuming an average 85 degree dip in the mineralized zones at B-Shoot, Southeast, F-Shoot and Akyempim South, while a 45 degree dip has been assumed for Main Two North and Mid-East.2. No high grade cutting has been done on the assays.
About Golden Star
Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine and the Wassa gold project both of which are located in Ghana. These mines are expected to reach an annualized production rate of approximately 350,000 ounces per year in 2005. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground gold mine in Ghana as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America. Golden Star has approximately 139 million common shares outstanding.
Note regarding Canada's National Instrument 43-101: The Qualified Person for the release of this exploration information is Mr. S. Mitchel Wasel, Golden Star's Exploration Manager.
Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Mineral Resources: U.S. investors are advised that while the terms "measured mineral resources" and 'indicated mineral resources" are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.
Cautionary Note to U.S. Investors concerning estimates of Inferred Mineral Resources: U.S. investors are advised that while the term "inferred mineral resources" is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission 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 an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources could not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include estimates of mineral reserves and resources, comments regarding future expenditures on exploration and anticipated results of exploration, anticipated conversion of resources to reserves, and expected annualized production rates. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration; construction and start-up; variations in grade and in tons mined, crushed or milled; results of the assessments of processing and mining parameters; delay or failure to receive board or government approvals; technical or permitting issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other risk factors in our Form 10-K for 2003.
Golden Star Resources Ltd. Peter Bradford, President and CEO, 303-894-4613 Allan Marter, Chief Financial Officer, 303-894-4631 or 800-553-8436
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