Results Include 0.5 Metres Grading 132.4 Grams
Per Tonne of Gold from 174.7m
TORONTO, Sept. 21, 2017 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) ("Golden
Star" or the "Company") is pleased to report the first four results
from the 2017 extension drilling program at its Prestea Underground
Gold Mine ("Prestea Underground") in Ghana. The Company also
announces seven results from the 2017 in-fill drilling program.
HIGHLIGHTS:
- Assay results for four diamond drill ("DD") holes in the 2017
extension drilling program received, confirming the West Reef ore
body extends to the north of the existing Mineral Reserves at
Prestea Underground
- This represents the potential to add additional ounces to the
short term mine plan and increase Prestea Underground's production
rate
- Significant intercepts included:
-
- 0.5 metres ("m") grading 132.4 grams per tonne ("g/t") of gold
("Au") from 174.7m in hole WR17-24-274S25
- 0.5m grading 67.20 g/t Au from 182.3m in hole
WR17-24-274S19
- 1.5m grading 13.7 g/t Au from 159.3m in hole
WR17-24-274S22
- Assay results for 7 DD holes from the 2017 Prestea
Underground in-fill drilling program also received
- Significant intercepts included:
-
- 0.5m grading 87.6 g/t Au from 141.1m in hole
WR17-24-274S16
- 1.5m grading 64.5 g/t Au from 144.2m in hole
WR17-24-274S17
- 1.1m grading 23.7 g/t Au from 152.7m in hole
WR17-24-274S18
- These in-fill drilling results confirm the previously modelled
high grade nature, simple geometry, strong continuity of gold
mineralization and thickness of the West Reef ore body (averaging
1.1 metres)
- Drill production is expected to increase during the remainder
of 2017 through the mobilization of a second underground DD
rig
- Exploration program is anticipated to ramp up further in 2018
to enable Golden Star to fully
assess Prestea Underground's longer term potential
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"We believe that Prestea Underground is one of the highest
grade gold development projects in West
Africa1. These initial results from our
extension drilling program indicate that the West Reef extends to
the north of the existing Mineral Reserves, representing the
potential to increase the annual production rate in the near
term. The in-fill drilling results have also further
increased our confidence in the grade, thickness and continuity of
the currently defined West Reef Mineral Reserve. I look
forward to releasing further extension drilling results during the
fourth quarter of 2017 and gaining a stronger understanding of
Prestea Underground's longer term potential as the drilling program
increases momentum in early 2018."
Notes
- Based on publicly available information of public
companies.
Extension Drilling Program Results
Five holes have been completed to date in the extension drilling
program, targeting the area to the north of the existing planned
stopes, with the results of the first four holes announced
today. These results confirm the extension of gold
mineralization into this area and represent the opportunity to add
new stopes, which have the potential to be mined during the next 18
months. The drilling was conducted from within Prestea
Underground's workings and comprised a total of 1,007m.
Golden Star intends to construct
a new drill chamber to the north of the current West Reef 24 Level
access. This is to enable the exploration team to access the
larger, longer term exploration target, which is the projected down
plunge extension of the high grade West Reef ore body (Mineral
Reserves of 1.09 million tonnes at 13.93 g/t Au for 490,000
ounces)1. The Company expects the drill chamber to
be completed during the fourth quarter of 2017, allowing for a
further increase in drill production from late 2017/early 2018
onwards.
If this drilling is successful, it represents the potential to
increase the mine's Mineral Reserves and Mineral Resources and
consequently, its planned annual production rate of 90,000 ounces
and the mine life from 5.5 years2.
A diagram showing the location of the drill holes is available
at: http://www.gsr.com/operations/prestea
Notes
- Numbers are derived from the Company's Mineral Reserves and
Mineral Resources estimate as of December
31, 2016
- Numbers are derived from the technical report entitled "NI
43-101 Technical Report on a Feasibility Study of the Prestea
Underground Gold Project in Ghana", effective November 3, 2015, filed under Golden Star's profile on SEDAR at
www.sedar.com
In-Fill Drilling Program Results
During the third quarter of 2017 Golden Star also
completed an in-fill stope definition drilling program to further
delineate the West Reef ore body. This work focused on assessing
flexures in the dip of the ore body ahead of raise development and
ultimately stope development.
The results of 23 holes have been received to date, with 14
holes announced in July 2017 and a
further seven holes announced today. The latest seven holes
comprised 947m of drilling and all the results received to date
confirm the previously modelled high grade nature, simple geometry
and thickness of the ore body and the strong continuity of gold
mineralization. The full set of results is listed in Appendix
A.
The results of the remaining two holes are not available as one
was abandoned due to technical issues and the other had poor
recovery of core within the ore zone.
Expected Drilling Results
The results of the pending extension hole and additional new
holes are anticipated to be released during the fourth quarter of
2017. Further results are also expected from the Wassa
Underground Gold Mine step out drilling program during the fourth
quarter of 2017.
Project Update
The first and second raise developments, which will enable the
mining of Prestea Underground, are now complete. The third
raise has advanced approximately 26 metres and the fourth nest is
under construction.
The rate of footwall waste development slowed during the second
quarter of 2017 but the operations team was able to accelerate
development during the third quarter and are now working to
plan. This has allowed for a successful breakthrough between
the north and south side of the footwall drive, enabling through
ventilation. It will also allow for ore and waste to be
excavated separately, creating a greater degree of flexibility
within the mine.
Golden Star expects to blast the
first stoping ore at Prestea Underground before the end of the
third quarter of 2017 and remains on track to commence commercial
production during the fourth quarter of 2017.
APPENDIX A
11 DD results reported today
Hole
ID
|
Azimuth
(°)
|
Dip
(°)
|
From
(m)
|
To
(m)
|
Drilled
Width
(m)
|
~ True
Width
(m)
|
Grade
g/t
|
Extension drilling
results
|
WR17-24-274S19
|
325
|
38
|
182.3
|
183.2
|
0.9
|
0.5
|
67.2
|
WR17-24-274S20
|
324
|
25
|
192.4
|
193.7
|
1.3
|
0.8
|
11.6
|
WR17-24-274S22
|
308
|
23
|
159.3
|
161.2
|
1.9
|
1.5
|
13.7
|
WR17-24-274S25
|
304
|
8.7
|
174.1
|
174.7
|
0.6
|
0.5
|
132.4
|
In-fill drilling
results
|
WR17-24-274S08A
|
301
|
47
|
152.8
|
154.4
|
1.6
|
1.3
|
17.0
|
WR17-24-274S11
|
292
|
39
|
143.0
|
143.9
|
0.9
|
0.8
|
5.2
|
WR17-24-274S13
|
278
|
34
|
138.5
|
139.0
|
0.5
|
0.5
|
12.5
|
WR17-24-274S15
|
274
|
27
|
138.1
|
139.2
|
1.1
|
1.1
|
12.9
|
WR17-24-274S16
|
273
|
42
|
141.1
|
141.6
|
0.5
|
0.5
|
87.6
|
WR17-24-274S17
|
256
|
20
|
144.2
|
145.7
|
1.6
|
1.5
|
64.5
|
WR17-24-274S18
|
251
|
47
|
152.7
|
153.9
|
1.2
|
1.1
|
23.7
|
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 American, 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 Q4 2017. Gold production in 2017 is expected to be
255,000-280,000 ounces with cash operating costs of $780-860 per ounce.
Cautionary note regarding forward-looking information
Some statements contained in this news release are
forward-looking statements or forward looking information
(collectively "forward looking statements") within the meaning of
the Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws. Such statements include: the ability of
the Company to increase Prestea Underground's Mineral Reserves and
Mineral Resources and consequently, its annual production rate and
the mine life; the ability of drill production to increase and the
timing thereof; the timing of the release of the pending extension
drilling results; the timing of the release of further drilling
results from the Wassa Underground Gold Mine; the ability of
Golden Star to increase its
exploration program in 2018; the construction of a new drill
chamber at the West Reef and the timing for completion thereof; the
timing of the blasting of the first stoping ore from Prestea
Underground; the timing of commercial production at Prestea
Underground; and the production guidance for 2017. Investors are
cautioned that forward-looking statements are inherently uncertain
and involve risks and uncertainties. Factors that could cause
actual results to differ materially include timing of and
unexpected events during exploration; variations in ore grade;
variations in relative amounts of refractory, non-refractory and
transition ores; technical or permitting issues; fluctuations in
gold price and costs; availability of capital and/or external
financing on acceptable terms; changes in U.S. and Canadian
securities markets; 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 risks and other factors in the Company's Annual Information
Form for the year ended December 31, 2016 and other
filings of the Company with the United States Securities and
Exchange Commission and the applicable Canadian securities
regulatory authorities. 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 to update any estimate at any particular time
or in response to any particular event.
Technical Information
The technical contents of this press release have been reviewed
and approved by S. Mitchel Wasel, BSc Geology, a Qualified Person
pursuant to National Instrument 43-101. Mr. Wasel is Vice President
of Exploration for Golden Star and
an active member and Registered Chartered Professional of
the Australasian Institute of Mining and Metallurgy.
The results for Prestea Underground stated herein are based on
the analysis of saw-split HQ/NQ diamond half core. Sample
preparation and analysis have been carried out at SGS or
Intertek Laboratories in Tarkwa, which are independent from
Golden Star, using a 500 to 1000
gram pulverized sample. The sample is brush screened through
a 75 micron nylon screen. The plus and minus sized fractions
are then analyzed by fire assay. The plus fraction is fired to
extinction and the minus fraction is fired twice. The results of
these analyses are then weight averaged to determine overall gold
content. Detection limit to 0.01 ppm.
All analytical work is subject to a systematic and rigorous
Quality Assurance-Quality Control (QA-QC). At least 5% of samples
are certified standards and the accuracy of the analysis is
confirmed to be acceptable from comparison of the recommended and
actual "standards" results. The remaining half core is stored on
site for future inspection and detailed logging, to provide
valuable information on mineralogy, structure, alteration patterns
and the controls on gold mineralization.
Additional information on earlier drilling results and Mineral
Reserve and Mineral Resource estimates at Prestea are available in
the Company's National Instrument 43-101 compliant Technical Report
titled "NI 43-101 Technical Report on a Feasibility Study of
the Prestea Underground Gold Project in Ghana" with
an effective date of November 3, 2015.
SOURCE Golden Star Resources Ltd.