Price: 0.71 Volume: 1,297,473 Change: -0.00 % Change: -0.42% April 27, 2017


Price: 1,266.25 Volume: Change: -3.55 % Change: -0.28% April 27, 2017

Prestea Key Facts

In operation over 100 years and recorded to have produced over 9 million ounces to date Established underground infrastructure with adjacent undeveloped surface deposit
Measured and Indicated Mineral Resources of 2.5 million oz at average grade of 3.85 g/t Au Prestea Underground Feasibility Study results show NPV of $124 million
2017 production of 110-120,000 ounces at a cash operating cost of $715-780 expected High grade underground deposit with in situ grade of 19 g/t Au


Prestea Mine, which is named after its neighbouring town, consists of an established underground mine and adjacent surface deposits. The underground mine was in production throughout the 20th century on an intermittent basis and has historically produced in excess of 9 million ounces. The mine was acquired by Golden Star in 2002 and placed on care and maintenance while evaluation and exploration activities continued.

Prestea Underground is located 16 km south of the existing Bogoso processing plant and is accessible by road from Accra as well as via the port city of Takoradi 150 kilometers away. The surface deposits lie to southwest of the town of Prestea. These have historically been exploited by artisanal miners.

Extensive drilling of the deeper deposit at the underground mine identified and defined a new zone called the West Reef. This is a high-grade, narrow vein deposit that is host to non-refractory free milling gold. In October 2014, a positive PEA of the development of the West Reef was released. The subsequent Feasibility Study for Prestea Underground confirmed the findings in the PEA. At a gold price of US$1,150, the Feasibility Study shows positive economics for the extraction of the West Reef using shrinkage stoping and indicates an after tax IRR of 42% and after tax NPV of $124 million. The initial capital expenditure is estimated at $63 million and a payback period of 2.9 years.

Prestea Underground mine has Probable Mineral Reserves of 490,000 ounces at an average grade of 13.9 g/t Au and Indicated Resources of 792,000 ounces at an average grade of 15.7 g/t Au.

The Prestea surface deposits are also non-refractory and currently have a Proven and Probable Mineral Reserves of 140,000 ounces of gold at an average grade of 2.30 g/t Au and Measured and Indicated Mineral Resources of 175,000 at 2.12 g/t Au inclusive of Mineral Reserves. Mining of the surface pits began in mid 2015.

Dr. Martin Raffield is a "Qualified Person" as defined by Canada's NI 43-101. Mineral Reserves for Bogoso & Prestea were prepared under the supervision of Martin Raffield, Senior Vice President Project Development and Technical Services for Golden Star Resources.

Mr. S. Mitchel Wasel is a "Qualified Person" as defined by Canada's NI 43-101. Mineral Resources were prepared under the supervision of S. Mitchel Wasel, Vice President of Exploration for Golden Star Resources.

 To view Golden Star’s latest Technical Report of Prestea West Reef, please click here.

Prestea Technical Report
(NI 43-101)

Prestea Targets for 2017 and Beyond

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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.

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