Golden Star Resources Publishes Positive Preliminary Economic Assessment for Prestea Underground Mine


DENVER, CO, May 03, 2012 (MARKETWIRE via COMTEX) --Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC) (GSE: GSR) ("Golden Star" or the "Company") is pleased to announce the completion of a Company authored Preliminary Economic Assessment ("PEA") of the West Reef area of the Prestea Underground Mine. The Golden Star Board of Directors has approved the PEA and has directed management to proceed to a full feasibility study. All references herein to "$" are to United States dollars. Full text of the PEA is posted on, and the Company's website at or access the following link and scroll down to the Prestea Underground section of the page:


--  West Reef has an Indicated Mineral Resource of 874,000 tonnes grading
    18.07 grams per tonne (g/t) for 508,000 ounces of gold and the orebody
    is open along strike and down dip
--  West Reef has an Inferred Mineral Resource of 510,000 tonnes grading
    11.58 g/t for 190,000 ounces of gold and the orebody is open along
    strike and down dip
--  Factoring in mining recovery, dilution, stope and development design,
    and based on the Indicated Mineral Resources and Inferred Mineral
    Resources; the potentially mineable resources total 1.84 million
    tonnes at a grade of 7.8 g/t
--  The PEA contemplates a 1,200 tonnes per day mining operation
    (including mineralized material from development) using the AVOCA
    mechanized mining method
--  Material will be processed at the Bogoso oxide processing plant to
    produce up to 97,000 ounces of gold per year at full operation and a
    life-of-mine gold production of 437,000 ounces
--  Life-of-mine cash operating costs (before royalty and taxes) are
    estimated at $600 to $700 per ounce
--  Capital costs, including a decline and hoisting shaft, are estimated
    at approximately $115 million
--  Net present value at $1,500/oz gold price and 5% discount rate is $107
    million (post-tax)
--  Internal rate of return of 21%

Tom Mair, President and Chief Executive Officer, commented, "Further to our March 21, 2012, news release, we are pleased to announce the publication of the PEA and our commitment to completing the West Reef feasibility study later this year. We are also investigating the possibility of obtaining all necessary permits for a re-start of limited underground mining operations at the Prestea Mine by the end of 2012. This production would be sourced from existing infrastructure in the upper levels of the mine. Once full-scale underground mining operations commence, we expect West Reef to provide a new source of lower cost gold production for Golden Star. Viable underground operations are expected to enable us to continue to explore the Prestea Underground complex thoroughly -- not only in previously unexplored areas between surface and 1,400 meters but also depth extensions of the orebodies below all historic workings."

Prestea Underground Resources:

Cautionary Note to Investors Concerning Estimates of "Indicated Mineral Resources" and "Inferred Mineral Resources"

This section uses the terms "Indicated Mineral Resources" and "Inferred Mineral Resources". The Company advises US investors that while these terms are recognized and required by National Instrument 43-101, the US Securities and Exchange Commission ("SEC") does not recognize them. US Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category or into mineral reserves. Inferred Mineral Resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. US investors are cautioned not to assume that any part or all of the Inferred Mineral Resource exists, or is economically or legally mineable. 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. The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, there is no assurance that the PEA will be realized and mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Indicated Mineral Resources and Inferred Mineral Resources reported below have been estimated in compliance with definitions set out in National Instrument 43-101 of the Canadian Securities Administration.

The Indicated Mineral Resources and Inferred Mineral Resources have been estimated at an economic cut-off grade based on a gold price of $1,500 per ounce for December 31, 2011, and on economic parameters deemed realistic.

The following table summarizes Prestea Underground Mine's estimated Indicated Mineral Resources and Inferred Mineral Resources as of December 31, 2011:

a Underground         Tonnes   Gold Grade   Ounces
Resources                     (M)       (g/t)     (000's)
Indicated                      1.641      12.63        666
Inferred                       5.243       7.28      1,228

Of these resources, the West Reef orebody has estimated Indicated and Inferred Mineral Resources as of December 31, 2011:

West Reef                   Tonnes   Gold Grade   Ounces
Resources                     (M)       (g/t)     (000's)
Indicated                      0.874      18.07        508
Inferred                       0.510      11.58        190

Notes to the Indicated Mineral Resources and Inferred Mineral Resources:

(1) The Prestea Underground resource was estimated using a $1,500 per ounce gold price and an economic gold cut-off of 2.3 g/t. (2) The Qualified Person reviewing and validating the estimation of the Mineral Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration.

The technical contents of this press release have been reviewed and approved by Dr. Martin Raffield, P.Eng., a Qualified Person pursuant to National Instrument 43-101. Dr. Raffield is Senior Vice President Technical Services for Golden Star.


Golden Star Resources holds the largest land package in one of the world's largest and most prolific gold producing provinces. The Company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in Brazil in South America. Golden Star has approximately 259 million shares outstanding. Additional information is available at

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 other applicable securities laws. Such statements include plans and timing for a definitive feasibility study, and plans and timing for development of and commencement of operations at the Prestea Underground Mine; significance of drilling results and the impact on mine development plans; estimates and expectations for ore types and indicated and inferred resources; estimates of potentially mineable resources; estimates concerning cash operating costs, gold prices, recovery rates, ounces of gold produced, net present values (including assumed discount rates), the internal rate of return, levels of investment and capital cost necessary to bring the Prestea Underground Mine into a development phase; the impact of operations at the Prestea Underground Mine on overall cash operating costs and on exploration at the Prestea Underground complex; mining methods at the Prestea Underground Mine and expected processing of mined material. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual facts to differ materially, including timing of and unexpected events at the Prestea Underground Mine; variations in ore grade; delay or failure to receive government approvals and permits; the availability and cost of electrical power and key inputs; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; fluctuations in gold price and costs; 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 and other factors in our Form 10-K for 2011. 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.

For further information, please contact:

Bruce Higson-Smith
Senior Vice President Finance and Corporate Development

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.

SOURCE: Golden Star Resources

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Neither Golden Star Resources Ltd. nor its affiliates, subsidiaries, officers, directors or agents (collectively, “Golden Star” or the “Company”) have any control over (a) the External Site or any linked websites accessible through any External Site, or (b) any data or other content contained, or accessible, therein or in or through any such linked websites. The link to the External Site is provided for convenience purposes only. The information and other content on the External Site is not meant to modify, qualify, supplement or amend information disclosed by or on behalf of the Company under corporate, securities or other legislation in any jurisdiction, and should not be used to make investment decisions involving the Company’s securities.

By clicking “Accept” below you acknowledge and agree that neither Golden Star nor the third party provider of the External Site, Virtua Research, Inc. (“Virtua”), is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data contained in or accessible on or through, or the technical operation of the External Site. Golden Star and Virtua are not liable to you for, and take no responsibility for, third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably forever waive, and release Golden Star from, any and all rights and claims against Golden Star and Virtua and further acknowledge and agree that in no event shall Golden Star or Virtua, its officers, employees, directors and agents be liable for any (i) direct or indirect, consequential, incidental, special, compensatory, punitive or other damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site or any linked websites.

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if Golden Star and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is determined to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent necessary to comply with such determination and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is given as at the date and the time of its original release. Changes in such historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

Golden Star also uses certain non-International Financial Reporting Standards (“IFRS”) financial measures as defined in applicable Canadian and United States securities laws ("non-GAAP measures"), including the terms “cash operating cost per ounce”, “all-in sustaining costs”, “cash generated from operations before working capital changes”, “adjusted net (loss)/income attributable to Golden Star shareholders and “adjusted net (loss)/income per share attributable to Golden Star shareholders”. Golden Star believes that these measures are similar to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance. In addition, changes in numerous factors including, but not limited to, Golden Star’s share price, risk free interest rates, gold prices, mining rates, milling rates, ore grade, gold recovery, costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease.

Golden Star believes these measures are useful non-GAAP operating measures and supplement the IFRS disclosures made by the Company. These non-GAAP measures are not representative of all of Golden Star's cash expenditures and there are material limitations associated with the use of such non-GAAP measures. Since these non-GAAP measures do not incorporate all non-cash expense and income items, changes in working capital and non-operating cash costs, they are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.

The non-GAAP information is not prepared in accordance with IFRS and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed in isolation or as a substitute for, or superior to, other data prepared in accordance with IFRS. For an explanation of the Non-GAAP financial measures used by the Company, please refer to the heading “Non-GAAP Financial Measures” in the Company’s Management Discussion and Analysis of Financial Condition and Results of Operations for the Three Months ended March 31, 2014 and the Company’s Management Discussion and Analysis of Financial Condition and Results of Operations for the Year Ended December 31, 2013, available at

© Golden Star | All Rights Reserved