NYSE MKT: GSS

Price: 0.86 Volume: 4,437,010 Change: -0.13 % Change: -13.83% February 27, 2017

Gold

Price: 1,253.45 Volume: Change: -3.44 % Change: -0.27% February 27, 2017
 

Wassa Key Facts

Mineral Reserves of 1.5 milion oz at average grade of 2.27 g/t Au Measured and Indicated Mineral Resources of 3.6 Million oz at average grade of 3.12 g/t Au
Recent Feasibility Study of Wassa Mine indicates after tax NPV of $176 million 2017 production of 145 – 160,000 ounces at a cash operating cost of $830-915 per ounce excepted
Wassa Underground achieved commercial production January 2017 Single plant with processing capacity of 2.7 mtpa

Golden Star owns and operates the Wassa mine and the processing operations through a 90% held subsidiary. The mine is located in the southwestern region of Ghana approximately 35 km northeast of the town of Tarkwa. It lies in the Birimian Province of the West African Precambrian shield, within the southern portion of the Ashanti Greenstone Belt. The mine is accessible by a combination of paved and gravel roads and electric power to the site is available locally from the Ghana power grid.

The mine hosts a 2.7 mtpa carbon-in-leach (“CIL”) processing plant and ore is currently sourced from the single large Wassa Main pit.

Wassa is undergoing an expansion into high grade underground mining beneath the Main pit where drilling has been ongoing since late 2011. This drilling was successful in increasing the Wassa Mineral Resource. In late 2014, a Feasibility Study to determine the economic viability of an underground mine, operating in conjunction with the existing open pit mine, commenced. The results of the study support the Company’s decision to proceed with this development which is expected to improve the mine’s total after tax NPV to $176 million and provides an after tax IRR of 83% on initial capital expenditure of $39 million. A gold price of $1,200 per ounce was assumed in the Feasibility Study.

In 2014, Wassa was successful in securing a debt facility from a local Ghanaian bank that will provide the funding necessary to develop the underground mine. Construction started in mid 2015 and commercial production at Wassa Underground was achieved in January 2017. The development of the Wassa deposit is expected to provide a long term, high grade, low operating cost ore source for the Company going forward.

Recent drill campaigns have been successful in growing Wassa’s Mineral Reserves and Resources. At December 31, 2015, Wassa had mineral Proven and Probable Mineral Reserves of 1.5 million ounces at an average grade of 2.27 g/t Au, and 3.6 million ounces at an average grade of 2.02 g/t Au in Measured and Indicated Mineral Resources inclusive of Mineral Reserves. 

Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the Company. Dr. Raffield is a "Qualified Person" as defined by Canada's NI 43-101.

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 for Wassa, please click here.

Wassa Technical Report
(NI 43-101)

WASSA 2016 PLANS AND SECTIONS

Wassa 2014 plans and sections

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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.