Wassa Underground drilling is primary focus in
2018
Five new underground targets under review
TORONTO, Feb. 22, 2018 /CNW/ - Golden Star Resources (NYSE
American: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the "Company")
is pleased to announce its exploration strategy for 2018.
HIGHLIGHTS
- Primary focus of 2018 exploration strategy is to gain a
stronger understanding of the scale of the Wassa Underground Gold
Mine ("Wassa Underground") deposit at depth (B Shoot South and F
Shoot South)
- Secondary focus is to continue Mineral Resource expansion
drilling at the Prestea Underground Gold Mine ("Prestea
Underground") and to investigate five new underground targets
- The objective of the exploration strategy is to investigate the
potential to increase Golden Star's
high grade, low cost production profile and to extend the life of
mine of the Wassa and Prestea complexes
- First phase of 2018 exploration program is expected to comprise
approximately 46,000 metres ("m") of drilling – further drilling
may be conducted subject to the results received
- $6.6 million budgeted for first
phase of 2018 exploration program, including $2.4 million allocated to Wassa Underground
(36%)
- 2018 drilling has commenced at Wassa Underground, Prestea
Underground and the South Gap
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"The initial results from the 2017 exploration program
demonstrated that Wassa Underground remains open to the south and
in 2018 we will be doing further work to assess the scale of the
deposit at depth. We believe that Wassa Underground
represents a significant exploration upside opportunity and we are
excited to further investigate its potential. We will also
continue to explore Prestea Underground's potential for Mineral
Resource expansion and to review five new underground
targets, which may be able to provide additional high margin
ore to fill our two mills. I look forward to releasing the
drilling results during the course of the year as our focus turns
to expanding our high margin production profile and increasing the
lives of our mines."
2018 Budget
Phase one of the 2018 exploration strategy comprises
approximately 46,000m of
drilling. If the results are positive, it is expected that
further drilling will be conducted. Golden Star stated in its 2018 guidance for
capital expenditures that $6.6
million would be allocated to exploration. The
breakdown by asset is as follows:
Breakdown of 2018 exploration budget by
asset1,2
Asset
|
Planned
Drilling
(m)
|
Expected
Cost
($
million)
|
Wassa
Underground
|
|
|
B Shoot and F Shoot
South Step Out
|
11,665
|
2.4
|
Prestea
Underground
|
|
|
West Reef
|
18,825
|
2.3
|
Main Reef
|
4,155
|
0.5
|
Five underground
targets
|
|
|
242 FW, South Gap and
Mansiso
|
11,550
|
1.4
|
TOTAL
|
46,195
|
6.6
|
Notes
|
1. This budget
includes drilling and assay costs but excludes exploration fixed
costs.
|
2. The above table
shows the Company's current plans with respect to its planned
drilling targets,
the metres planned to be drilled and the approximate costs thereof.
However, the Company may determine it
appropriate to change the above drilling plan for various
business reasons.
|
Wassa Underground
Golden Star believes there is
strong exploration upside potential at Wassa Underground as the
deposit remains open to the south. As previously announced,
drilling results have confirmed that the B Shoot extends
approximately 50m to the north of the
current planned stoping area and that the B Shoot and F Shoot
extend approximately 180m to the
south of Wassa's Inferred Mineral Resources1.
If additional Mineral Resources are delineated at depth there is
expected to be potential to increase near-term production and to
extend Wassa Underground's mine life, without the requirement for
significant additional capital expenditures. This is
due to the twin decline and processing plant, which both have
excess capacity. Exploration at Wassa Underground represents
36% of the 2018 budget and it is the Company's primary exploration
focus in 2018.
2018 Targets
The objective of the 2018 drilling program is to further
delineate the southern, down plunge extensions of the B Shoot and F
Shoot's Inferred Mineral Resources. This is designed to
increase Golden Star's understanding
of the geometry of the down plunge extensions of the higher grade
zones and to increase Wassa Underground's Inferred Mineral
Resources. The total cost of the phase one deep drilling at
Wassa, is expected to be $2.4
million.
Notes
|
1. See press release
entitled 'Golden Star extends high grade B Shoot zone through step
out drilling at
Wassa Underground Gold Mine', dated September 19, 2017, and press
release entitled 'Golden Star reports
further high grade drilling results from Wassa Underground Gold
Mine', dated February 14, 2018
|
Prestea Underground
Golden Star's secondary
exploration focus in 2018 is to expand Prestea Underground's
Mineral Resources as this would provide compelling potential for
increasing near-term production.
2018 Targets
Phase one of the 2018 exploration program will target both the
West Reef and the Main Reef at Prestea Underground. The objective
of the West Reef drilling is to demonstrate that the ore body
extends beyond the current Mineral Resource estimate, targeting the
projected up and down plunge extensions of the West Reef Mineral
Reserve.
Similarly, the objective of the Main Reef drilling is to test
the ore body for potential Mineral Resource addition.
Golden Star has not tested the Main
Reef thoroughly between 17 and 24 Levels, due to the lack of
underground infrastructure historically. If the drilling is
successful it presents the opportunity to include material from the
Main Reef into the mine plan in the medium term.
The total cost of phase one at Prestea Underground is expected
to be approximately $2.8 million.
Five New Underground Targets
The other element of Golden
Star's exploration strategy in 2018 is to investigate five
potential new underground targets. The Company's transition
into an underground-focused gold miner has led the exploration team
to review its 9561 square kilometre concession area in a
different way: previously known exploration targets were
re-evaluated for underground mining potential, as well as surface
mining. As a result of this change in approach, five targets
have been generated, all of which are within trucking distance of
either the Wassa or Prestea plants.
To view further diagrams of the five targets, please visit:
http://www.gsr.com/operations/exploration
The targets are detailed below in order of priority to
Golden Star's exploration
strategy:
1. Father Brown/Adiokrom
The Father Brown and Adiokrom deposits are located approximately
85 kilometres, south of the Wassa processing plant, with an
existing haul road in place. Father Brown and Adiokrom were
last mined by Golden Star in 2014,
however, high grade Mineral Resources remain within the two
deposits, which may have the potential to be mined via underground
techniques.
Golden Star is in the process of
reviewing the drill database to assess the deposits' underground
mining potential and it is expected that the Inferred Mineral
Resources could be increased substantially through additional
drilling. This drilling is not included in the 2018 budget
however the Company plans to build a conceptual block model, which
will eventually form the basis of a mining plan, and drilling may
be scheduled as a result of that work.
2. 242 FW
The 242 trend occurs in the western limb of the Wassa deposit
scale fold. As announced on February
14, 20182, the 242 FW target was discovered in
2017 and it is the first time that Golden
Star has investigated the potential of the footwall
horizon.
The objective of the 2018 drilling is to define the extents of
the 242 FW target. The 2018 exploration budget includes
5,250m of drilling and this is
estimated to cost approximately $660,000.
3. South Gap
The South Gap is a two kilometre portion of the Ashanti Gold
Belt, located on the extreme southern end of the nine kilometre
strike of the historical Prestea Underground workings, between the
Bondaye and Tuapim shafts.
Seven holes were drilled in this target in 2017 to test the
continuity of the area. The results for these holes are
expected to be released later in the first quarter of 2018.
Initial metallurgical test work indicates gold recoveries in excess
of 85%, which confirms that the material is non-refractory.
An additional 2,500m of drilling
is planned for the South Gap in 2018, with the objective of further
testing the extents of economic gold mineralization.
4. Mansiso
Mansiso is located approximately 30 kilometres to the north-east
of the Bogoso processing plant and 12 kilometers south of the
previously-mined Mampon deposit.
Golden Star plans to drill
3,800m at Mansiso in 2018 and conduct
initial metallurgical test work. The objective of this
drilling is to define Inferred Mineral Resources in order to assess
the viability of underground mining. Mansiso is a high grade
quartz vein target, which was drilled by the previous concession
holders but has not been explored extensively by Golden Star.
5. Subriso West
Subriso West is located approximately 50 kilometres along the
existing Hwini-Butre Benso (HBB) haul road, south of the Wassa
processing plant. As with Father Brown and Adiokrom,
Golden Star's exploration team plans
to construct a conceptual block model, based on the current
drilling information, to determine if the target could support an
underground mining operation. If the results are positive, a
detailed drilling program is expected to be conducted.
Notes
|
1. Golden Star chose
to relinquish two exploration licences in 2017 as a result of the
high cost of maintaining
them. The Company is in the process of relinquishing one
further exploration licence so the total 956 square
kilometres quoted above excludes these three licence
areas.
|
2. See press release
entitled 'Golden Star reports further high grade drilling results
from Wassa Underground
Gold Mine', dated February 14, 2018
|
All monetary amounts refer to United States dollars
unless otherwise indicated.
Company Profile:
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines in Ghana, West Africa. Listed on the NYSE American, the
Toronto Stock Exchange and the Ghanaian Stock Exchange,
Golden Star is focused on delivering
strong margins and free cash flow from its two high grade, low cost
underground mines. Gold production guidance for 2018 is
230,000-255,000 ounces at a cash operating cost per ounce of
$650-730. As the winner of the
PDAC 2018 Environmental and Social Responsibility Award,
Golden Star is committed to leaving
a positive and sustainable legacy in its areas of operation.
Cautionary note regarding forward-looking information
This press release contains "forward looking information" within
the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995, concerning
the business, operations and financial performance and condition of
Golden Star. 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. Forward-looking information
and statements in this press release include, but are not limited
to, information or statements with respect to: the number of metres
of drilling planned and the cost of such drilling; the ability of
Golden Star to gain a stronger
understanding of the Wassa Underground ore body through
exploration; the ability of Golden
Star to extend the mine lives of its operations and increase
near-term production through exploration; the ability of
Golden Star to delineate new targets
to provide high margin ore to its two processing plants; the
ability of Golden Star to
demonstrate that the West Reef ore body extends beyond the current
Mineral Reserve at Prestea Underground; the potential to mine
Father Brown/Adiokrom via underground mining techniques; the
viability of mining Mansiso via underground mining techniques; the
ability of Subriso West to support an underground mining operation;
the timing for obtaining and releasing drilling results; and the
Company's 2018 production and cash operating cost per ounce
guidance.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which
Golden Star will operate in the
future, including the price of gold, anticipated costs and ability
to achieve goals. Forward-looking information and statements are
subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, performance or
achievements of Golden Star to be
materially different from those expressed or implied by such
forward-looking information and statements, including but not
limited to: risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Golden Star operates; risks
related to current global financial conditions; risks related to
joint venture operations; actual results of current exploration
activities; environmental risks; future prices of gold; possible
variations in Mineral Reserves, grade or recovery rates; mine
development and operating risks; accidents, labor disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities and risks related to
indebtedness and the service of such
indebtedness. Although Golden Star has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information and statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Forward-looking information and
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company's
operating environment. Golden Star
does not undertake to update any forward-looking information or
forward looking statements that are included in this news release
except in accordance with applicable securities laws.
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 ("NI 43-101"). Mr. Wasel is
Vice President Exploration for Golden
Star and an active member and Chartered Professional of the
Australasian Institute of Mining and Metallurgy.
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.
SOURCE Golden Star Resources Ltd.