NYSE MKT: GSS

Price: 0.70 Volume: 2,654,706 Change: -0.02 % Change: -3.1% September 20, 2017

Gold

Price: 1,296.73 Volume: Change: -5.05 % Change: -0.39% September 21, 2017

Golden Star Reports Remaining High Grade In-Fill Drilling Results from Wassa Underground Gold Mine

03.06.2017

Results Include 30.2 Metres Grading 15.3 Grams Per Tonne of Gold

TORONTO, March 6, 2017 /PRNewswire/ - Golden Star Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the "Company") is pleased to report the remaining results from the in-fill drilling program at its Wassa Underground Gold Mine ("Wassa Underground") in Ghana. 

The program targeted the high grade B Shoot zone of Wassa Underground, focusing on the areas that are expected to be mined with transverse stoping (the "2016 B Shoot transverse stope drilling program"). 

HIGHLIGHTS:

  • Assay results for the remaining 15 diamond drill ("DD") holes from the 2016 B Shoot transverse stope drilling program have been received
  • Significant intercepts included:
    • 30.2 metres ("m") grading 15.3 grams per tonne ("g/t") of gold ("Au") from 270.0m in hole BS16DD013, including:
      • 4.6m grading 41.2g/t Au from 276.2m
      • 10.1m grading 21.8g/t Au from 286.2m
    • 24.5m grading 12.1g/t Au from 280.0m in hole BS16DD021, including:
      • 5.5m grading 30.0g/t Au from 300.0m
    • 25.2m grading 6.4g/t Au from 245.7m in hole BS16DD023, including:
      • 3.6m grading 10.5 g/t Au from 249.7m
      • 0.9m grading 65.5 g/t Au from 262.5m
  • These results confirm the high grade nature and continuity of gold mineralization within the B Shoot transverse stoping areas
  • Exploration strategy update is expected to be released later in the first quarter of 2017

 

Sam Coetzer, President and Chief Executive Officer of Golden Star, commented:

"This drilling program was designed to test the first B Shoot transverse stopes, which we expect to begin mining in the third quarter of this year.  As well as confirming the high grade nature and continuity of the B Shoot, the results from the most Northern holes of this program suggest that the high grade zones continue up plunge to the North.  As part of the design update work, which will be conducted with this new drilling data, we will assess the viability of adding additional stopes to the North of the current mine plan with the intention of increasing Wassa Underground's Mineral Reserves."

Drilling Results

During the second half of 2016 Golden Star conducted an in-fill drilling program to further delineate the first planned transverse stoping areas of the B Shoot zone.  In December 2016, Golden Star reported the first nine holes of this program and the results of the remaining 15 holes have now been received.  They continue to confirm the wide zones of high grade gold mineralization in this area.  This program has also defined the contacts and geometry of the high grade zones so that detailed mining plans and schedules can be assembled in advance of mining.

In addition, the drilling targeted gaps in the existing planned stopes to determine whether continuity between areas of higher grade mineralization exists.  The results of the most Northern holes from this program indicated that the ore body is open to the North and, therefore, Golden Star will be evaluating the viability of adding additional stopes to the mine plan in this area.

The full set of results is listed in Appendix A and includes several compelling intercepts, as set out below.  A long section showing the location of the drill holes is available at: http://www.gsr.com/operations/wassa/wassa-main/

Significant intercepts from Wassa Underground









HOLE ID

Azimuth
(°)

Dip

(°)

From
(m)

To

(m)

Drilled
Width
(m)

True
Width
(m)

Grade
(Au g/t)

BS16DD013

78.0

-79.0

270.0

303.1

33.1

30.2

15.3


Including


276.2

281.2

5.0

4.6

41.2


Including


286.2

297.3

11.1

10.1

21.8

BS16DD014

74.0

-82.5

281.0

325.3

44.3

39.3

3.1

BS16DD015A

94.8

-83.4

238.0

263.0

25.0

22.0

4.4

BS16DD015A

76.5

-84.6

305.0

317.0

12.0

10.4

12.2


Including


309.0

316.0

7.0

6.1

18.6

BS16DD021

84.9

-79.6

280.0

307.0

27.0

24.5

12.1


Including


300.0

306.0

6.0

5.5

30.0

BS16DD023

86.5

-79.5

192.2

210.8

18.6

16.9

3.5


Including


207.2

208.2

1.0

0.9

24.1

BS16DD023

79.4

-80.2

245.7

273.6

27.9

25.2

6.4


Including


249.7

253.7

4.0

3.6

10.5


Including


262.5

263.5

1.0

0.9

65.5

 

Next Key Milestones

Golden Star expects to announce its exploration strategy for 2017 later in the first quarter of 2017.

APPENDIX A

Full set of remaining 15 DD results from Wassa Underground









HOLE ID

Azimuth
(°)

Dip

(°)

From
(m)

To

(m)

Drilled
Width
(m)

True
Width
(m)

Grade
(Au g/t)

BS16DD001E

83.6

-70.5

59.0

62.0

3.0

2.9

1.9

BS16DD001E

84.0

-71.3

174.0

178.0

4.0

3.8

5.5

BS16DD001E

85.5

-71.5

193.0

196.0

3.0

2.9

24.9

BS16DD001E

85.5

-71.5

214.2

231.6

17.4

16.7

2.1

BS16DD002

88.5

-66.2

57.0

65.0

8.0

7.8

13.9

BS16DD003

85.8

-62.8

179.5

184.5

5.0

5.0

15.0

BS16DD004

85.9

-77.7

235.4

245.4

10.0

9.2

4.7

BS16DD004

82.8

-77.8

278.8

280.8

2.0

1.8

4.7

BS16DD004

85.5

-77.7

322.6

341.3

18.7

17.3

4.3

BS16DD004

Including


333.0

341.3

8.3

7.7

8.3

BS16DD005A

82.0

-78.8

238.0

248.5

10.5

9.6

3.6

BS16DD005A

81.2

-78.0

282.3

288.3

6.0

5.5

4.0

BS16DD006

90.5

-74.2

275.0

280.0

5.0

4.7

3.3

BS16DD006

89.5

-74.2

309.0

315.0

6.0

5.7

2.0

BS16DD007

359.0

-87.1

230.0

248.0

18.0

15.2

3.2

BS16DD007

349.0

-85.7

279.0

285.0

6.0

5.2

1.0

BS16DD007

346.2

-85.2

315.7

318.7

3.0

2.6

6.8

BS16DD007

348.8

-85.0

352.0

357.0

5.0

4.3

2.5

BS16DD008

76.7

-78.0

264.0

271.0

7.0

6.4

5.3

BS16DD008

75.0

-78.1

278.0

304.0

26.0

23.9

3.5

BS16DD008

Including


286.0

295.0

9.0

8.3

5.3

BS16DD009

77.9

-83.1

275.6

280.8

5.2

4.6

1.9

BS16DD009

68.8

-83.1

296.8

328.5

31.7

28.0

23.8

BS16DD009

Including


296.8

302.8

6.0

5.3

6.7

BS16DD009

Including


306.1

317.9

11.8

10.4

40.1

BS16DD009

Including


322.5

328.5

6.0

5.3

39.5

BS16DD009

75.0

-83.1

337.5

344.5

7.0

6.2

4.2

BS16DD010A

68.2

-85.4

196.0

210.0

14.0

12.1

3.9

BS16DD010A

62.8

-85.0

233.2

235.2

2.0

1.7

6.6

BS16DD010A

58.5

-85.1

252.0

272.0

20.0

17.3

2.6

BS16DD010A

49.4

-85.0

316.6

328.8

12.2

10.6

5.7


Including


316.6

321.6

5.0

4.3

9.3

BS16DD010A

49.4

-84.9

334.4

344.4

10.0

8.7

4.3

BS16DD011

13.2

-87.5

195.0

204.0

9.0

7.6

4.0

BS16DD011

349.4

-85.2

277.0

288.2

11.2

9.7

2.6

BS16DD011

347.8

-84.5

329.0

339.0

10.0

8.7

9.9


Including


335.0

337.0

2.0

1.7

41.5

BS16DD012A

90.8

-77.3

275.0

278.0

3.0

2.8

4.9

BS16DD012A

92.6

-77.6

308.8

313.0

4.2

3.9

3.9

BS16DD012A

92.6

-78.0

335.0

345.1

10.1

9.3

6.2


Including


338.0

341.0

3.0

2.8

17.4

BS16DD013

80.2

-79.5

194.0

198.0

4.0

3.6

3.7

BS16DD013

78.0

-79.0

270.0

303.1

33.1

30.2

15.3


Including


276.2

281.2

5.0

4.6

41.2


Including


286.2

297.3

11.1

10.1

21.8

BS16DD014

83.4

-82.1

235.9

241.0

5.1

4.5

3.7

BS16DD014

74.0

-82.5

281.0

325.3

44.3

39.3

3.1

BS16DD015A

92.4

-83.2

184.6

189.6

5.0

4.4

2.8

BS16DD015A

94.8

-83.4

238.0

263.0

25.0

22.0

4.4

BS16DD015A

76.5

-84.6

305.0

317.0

12.0

10.4

12.2


Including


309.0

316.0

7.0

6.1

18.6

BS16DD016

81.6

-76.2

228.9

233.9

5.0

4.7

9.3


Including


229.9

231.9

2.0

1.9

20.5

BS16DD016

77.2

-76.3

244.0

245.0

1.0

0.9

38.7

BS16DD016

81.1

-80.6

341.0

353.0

12.0

10.8

1.7

BS16DD017

93.2

-81.1

251.0

261.0

10.0

9.0

8.7

BS16DD017

93.2

-81.2

274.5

280.4

5.9

5.3

4.3

BS16DD017

88.8

-81.2

284.3

287.3

3.0

2.7

4.7

BS16DD018

86.4

-78.8

284.8

286.8

2.0

1.8

10.6

BS16DD018

84.0

-78.8

333.8

342.8

9.0

8.2

4.2

BS16DD019

98.2

-69.9

233.2

235.0

1.8

1.7

3.0

BS16DD020

88.3

-77.8

274.7

279.7

5.0

4.6

5.0

BS16DD021

84.9

-79.6

280.0

307.0

27.0

24.5

12.1


Including


300.0

306.0

6.0

5.5

30.0

BS16DD022

80.1

-79.1

280.4

285.3

4.9

4.5

5.3

BS16DD022

80.2

-79.0

331.0

338.0

7.0

6.4

2.8

BS16DD023

86.5

-79.5

192.2

210.8

18.6

16.9

3.5


Including


207.2

208.2

1.0

0.9

24.1

BS16DD023

79.4

-80.2

245.7

273.6

27.9

25.2

6.4


Including


249.7

253.7

4.0

3.6

10.5


Including


262.5

263.5

1.0

0.9

65.5

BS16DD024

84.4

-83.8

230.5

237.5

7.0

6.1

8.5

BS16DD024

81.5

-83.8

282.5

285.5

3.0

2.6

6.9

 

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.

Cautionary note 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; the timing for releasing the exploration strategy for 2017; the timing of the commencement of transverse stoping of the B Shoot; the impact of future B Shoot drilling programs on Wassa Underground planned stopes; the ability to increase Wassa Underground's Mineral Resources; the wide, high grade zones of gold mineralization at Wassa Underground; the viability of adding additional stopes to the mine plan; 2017 gold production and cash operating costs; and the ability to mine and access B Shoot zone grades and thicknesses by way of underground mining. 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, 2015 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 Wassa Underground stated herein are based on the analysis of saw-split HQ/NQ diamond half core or a three kilogram single stage riffle split of a nominal 25 to 30 kg Reverse Circulation chip sample which has been sampled over nominal one meter intervals (adjusted where necessary for mineralized structures). Sample preparation and analyses have been carried out at SGS Laboratories in Tarkwa using a 1,000 gram slurry of sample and tap water which is prepared and subjected to an accelerated cyanide leach (LEACHWELL). The sample is then rolled for twelve hours before being allowed to settle. An aliquot of solution is then taken, gold extracted into Di-iso Butyl Keytone (DiBK), and determined by flame Atomic Absorption Spectrophotometry (AAS). Detection Limit is 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.

SOURCE Golden Star Resources Ltd.

Please visit www.gsr.com or contact: Katharine Sutton, Director, Investor Relations and Corporate Affairs, 1 416 583 3800, investor@gsr.com

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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 www.sedar.com.