Further Significant Resource Growth at Wassa
Underground
TORONTO, March 27, 2020 /CNW/ - Golden Star
Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE:
GSR) ("Golden Star" or the "Company") announces its
Mineral Reserves and Mineral Resources estimate as of December 31, 2019.
Highlights
- Measured and Indicated Mineral Resources increased by 5% to
contain 4.5 million ounces ("Moz") of gold
- Inferred Mineral Resources increased by 13% to 8.0Moz, driven
by Wassa underground
- Proven and Probable Mineral Reserves decreased by 4% or 77
thousand ounces ("koz") to 1.7Moz, due to 2019 mining depletion of
221koz exceeding the Reserve additions of 147koz
- Wassa underground delivered significant Mineral Resource growth
comprising of:
-
- Measured and Indicated Mineral Resources increased 18%, or
306koz to 2.03Moz
- Inferred Mineral Resources increased 19%, or 1.15Moz to
7.1Moz
- The Proven Mineral Reserve at Wassa increased 87% to 228koz due
to increased definition and infill drilling, resulting in more than
12 months of Mineral Reserves that are available in the highest
confidence Reserve category supporting production in 2020 and
2021.
Andrew Wray, Chief Executive
Officer of Golden Star,
commented:
"It is extremely encouraging to see another significant increase
in the overall Resource base at Wassa, which continues to gain real
scale and production growth. Through 2019 we focused on improving
our geological understanding and confidence in the areas to be
mined in 2020 and 2021 with increased definition drilling, which
has resulted in an 87% increase in the Proven Mineral Reserve.
We remain excited by the longer term potential at Wassa, and we
are focussed on continuing to deliver this potential. Our
exploration strategy for the mine in 2020 is transitioning away
from further growth of the overall Resource to infill drilling to
assist us in better understanding the likely mine plans for the
southern extension of the underground operation. We understand that
developing suitable drilling platforms from underground form a
critical path item to realizing this objective.
At Prestea, the focus of our drilling in 2019 and into 2020 has
been to better understand the geology of the ore body in order to
execute the revised mine plan with a modified Alimak method on 24
level and the introduction of the Long Hole Open Stoping ("LHOS")
method on 17 level. As a result, we have seen some depletion of the
Reserve and no overall additions to the Resource base, but this
remains a high grade asset and our focus is on the disciplined
mining of the identified Reserve."
MINERAL RESERVES AND MINERAL RESOURCES SUMMARY
The following table provides a summary of Golden Star's estimated Proven and Probable
Mineral Reserves, Measured and Indicated Mineral Resources and
Inferred Mineral Resources as of December
31, 2019:
|
Tonnes
|
Grade
|
Gold Content ('000
oz)
|
('000)
|
(g/t
Au)
|
Proven and
Probable Mineral Reserves1,3
|
19,261
|
2.76
|
1,712
|
Measured and
Indicated Mineral Resources1,2,3
|
53,936
|
2.62
|
4,539
|
Inferred Mineral
Resources1,3
|
64,085
|
3.90
|
8,042
|
|
Notes to
Table:
|
1.
|
Includes free-milling
material only (ie: excludes refractory material).
|
2.
|
Mineral Resources are
inclusive of Mineral Reserves.
|
3.
|
Mineral Reserves were
estimated using a gold price of $1,300 per ounce. Mineral Resources
were estimated using a gold price of $1,500/oz.
|
MINERAL RESERVE ESTIMATE: BREAKDOWN BY ASSET
During 2019, Golden Star's Proven
and Probable Mineral Reserves decreased by 77koz, primarily as a
result of the mining depletion of 221koz exceeding the Reserve
additions of 147koz.
At Wassa, mining depletion was 166koz with additions from
material mined out of Reserve during 2019 (18koz) and material
defined by definition drilling informed stope designs (87koz). The
material mined outside of the Reserves consisted of stope
extensions defined by drilling completed during 2019 and marginal
material taken as ore from development headings totalling 271kt at
2.1g/t.
At Prestea, mining depletion was 55koz with additions from open
pit mining out of Reserve during 2019 (28koz) and additional ore
now included in the mine plan due to mine design changes with the
introduction of the new stoping method.
The following table provides a breakdown of Golden Star's estimated Proven and Probable
Mineral Reserves as of the dates set forth therein:
Mineral
Reserves
|
December 31,
2019
Proven Mineral
Reserve
|
December 31,
2019
Probable Mineral
Reserve
|
December 31,
2019
Proven and
Probable Mineral
Reserve
|
December 31,
2018
Proven and
Probable
Mineral
Reserve
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
Wassa Open
Pit
|
-
|
-
|
-
|
9,920
|
1.57
|
500
|
9,920
|
1.57
|
500
|
9,920
|
1.57
|
500
|
Wassa
Underground
|
1,723
|
4.11
|
228
|
5,701
|
3.61
|
661
|
7,424
|
3.72
|
889
|
7,481
|
3.95
|
949
|
Stockpiles
|
1,062
|
0.62
|
21
|
-
|
-
|
-
|
1,062
|
0.62
|
21
|
1,205
|
0.63
|
24
|
Subtotal
Wassa
|
2,785
|
2.78
|
249
|
15,621
|
2.31
|
1,160
|
18,405
|
2.38
|
1,410
|
18,606
|
2.46
|
1,473
|
Prestea Open
Pit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Prestea
Underground
|
-
|
-
|
-
|
856
|
11.00
|
302
|
856
|
11.00
|
302
|
826
|
11.91
|
316
|
Stockpiles
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Subtotal
Prestea
|
-
|
-
|
-
|
856
|
11.00
|
302
|
856
|
11.00
|
302
|
826
|
11.91
|
316
|
GSR
Total
|
2,785
|
2.78
|
249
|
16,476
|
2.76
|
1,463
|
19,261
|
2.76
|
1,712
|
19,432
|
2.86
|
1,789
|
|
Notes to the
Mineral Reserve Estimate:
|
1.
|
The stated Mineral
Reserves comply with the requirements of National Instrument 43-101
– Standards of Disclosure for Mineral Projects ("NI 43-101") and
are classified in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum's "CIM Definition Standards – For Mineral
Resources and Mineral Reserves". Mineral Reserve estimates reflect
the Company's reasonable expectation that all necessary permits and
approvals will be obtained and maintained. Mining dilution and
mining recovery vary by deposit and have been applied in estimating
the Mineral Reserves.
|
2.
|
Mineral Reserves are
the economic portion of the Measured and Indicated Mineral
Resources. Mineral Reserve estimates include mining dilution at
grades assumed to be zero.
|
3.
|
The Mineral Reserves
at December 31, 2019 were prepared under the supervision of Matt
Varvari, VP Technical Services for the Company. Mr. Varvari is a QP
as defined by NI 43-101.
|
4.
|
The Mineral Reserves
at December 31, 2019 were estimated using a gold price assumption
of $1,300 per ounce.
|
5.
|
The slope angles of
all pit designs are based on geotechnical criteria as established
by external consultants. The size and shape of the pit designs are
guided by consideration of the results from a pit optimization
program.
|
6.
|
Cut-off grades have
been estimated based on operating cost projections, mining dilution
and recovery, royalty and stream payment requirements and
applicable metallurgical recovery.
|
7.
|
Marginal cut-off
grade estimate for the Wassa open pit is 0.7 grams per tonne
("g/t") of gold ("Au").
|
8.
|
Break-even cut-off
grade estimates for the underground mines are as follows: Wassa
Underground 2.4 g/t Au; and the Prestea Underground Gold Mine
("Prestea Underground") 7.5 g/t Au.
|
9.
|
Prestea Underground
Proven Mineral Reserve includes underground broken
stocks.
|
10.
|
Numbers may not add
due to rounding.
|
11.
|
Only non-refractory
material is included in Mineral Reserves.
|
RECONCILIATION OF MINERAL RESERVES
The following illustrations provide a reconciliation of the
Company's Proven and Probable Mineral Reserves at Wassa (Figure 1)
and Prestea (Figure 2) from December 31,
2018 to December 31, 2019.
WASSA MINERAL RESERVE
65% of the 2019 mining depletion of the Wassa Mineral Reserve
was offset by additions, limiting the decrease of the Mineral
Reserve to only 4%. Definition drilling increased the component of
the Mineral Reserve in the Proven category from 88 koz last year,
to 228 koz at a grade of 4.1g/t. This is the result of ongoing
investment into increased drill density with the target of having
12 months of production defined to the highest confidence
classification.
In 2019, 1.4Mt of ore was mined at a grade of 3.57g/t. This is
below the 2018 Reserve grade of 3.95g/t due to the inclusion of
271kt at an average grade of 2.12g/t of material from outside of
the 2018 Reserves, comprising of both stope extensions and material
from development headings. When adjusting for the ore mined from
outside of Reserves, the ore mined from within the 2018 Reserve
totalled 1.15Mt at a grade of 3.91g/t, in line with the Reserve
grade estimate.
The 2019 underground Reserve grade at Wassa is 3.72g/t Au, which
is 6% lower than the 2018 Reserve estimate. The 2019 drilling
programme improved our understanding of the ore body to better
inform stope designs by identifying lower grade material around the
planned stopes, which is closer to, but still above the cut-off
grade.
There has been no change to the open pit reserve, but this will
be reviewed during 2020 to re-asses this material, in the context
of the underground mine extending south of the current Reserve, to
extract the large Inferred Mineral Resource.
PRESTEA MINERAL RESERVE
At Prestea, the open pit Mineral Reserve was depleted in 2018
and therefore all of the 28koz of open pit production during 2019
came from outside the Reserve.
The Prestea underground Mineral Reserve has reduced by 14 koz,
with 55 koz of mining depletion offset by 14 koz additions. The
additions result from an 18koz decrease due to higher cost
resulting in an increased cut-off grade to 7.5g/t Au (was 7.0g/t
Au) and addition of 32koz of contained gold due to mine design
changes (new method and new blocks between 24 and 29L).
The 2019 Performance at Prestea was below the 2017 Technical
Report forecast. The reviews completed during 2019 have resulted in
a new life-of-mine plan, which shows improved productivity and
reduced unit costs that can be achieved through revised
geotechnical design parameters for Alimak stopes, introduction of
Long Hole Open Stoping (LHOS) mining method and achieving improved
operational efficiencies through the initiatives being implemented
as part of Project Okode, the optimisation project at Prestea.
These changes to the mine plan directly result from the
operational review undertaken by Golden
Star and consultant CSA Global during 2019. The current
changes include LHOS introduction on 17 level and optimisation of
the existing Alimak mining methodology on 24 level and are the
basis for the 2019 Mineral Reserve assumptions.
MEASURED AND INDICATED MINERAL RESOURCES: BREAKDOWN BY
ASSET
Golden Star's Measured and
Indicated Mineral Resources at its two assets, Wassa and Prestea,
increased by 5% in 2019. This increase was predominantly due to
increases at Wassa underground where the Company added ounces
through the approximately 100,000 metre surface and underground
drilling campaigns completed in 2019. The drilling at Wassa
underground was successful in converting 2.8Mt of material into the
Measured Mineral Resource category, which results in an improved
level of confidence in the Company's ability to deliver on the 2020
budget and short-term mine plan.
The following table provides a breakdown of Golden Star's estimated Measured and Indicated
Mineral Resources as of the dates set forth therein:
|
December 31,
2019
|
December 31,
2019
|
December 31,
2019
|
December 31,
2018
|
Measured
Mineral
Resources
|
Indicated
Mineral
Resources
|
Measured &
Indicated
Mineral
Resources
|
Measured &
Indicated
Mineral
Resources
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
Wassa Open
Pit
|
-
|
-
|
-
|
29,179
|
1.29
|
1,206
|
29,179
|
1.29
|
1,206
|
28,042
|
1.39
|
1,254
|
Wassa
Underground
|
2,831
|
4.99
|
454
|
13,371
|
3.66
|
1,573
|
16,202
|
3.89
|
2,027
|
12,507
|
4.28
|
1,721
|
Father Brown Adoikrom
UG
|
-
|
-
|
-
|
913
|
8.67
|
254
|
913
|
8.67
|
254
|
981
|
7.54
|
238
|
Wassa
Other
|
-
|
-
|
-
|
2,512
|
2.32
|
187
|
2,512
|
2.32
|
187
|
2,308
|
2.36
|
175
|
Subtotal
Wassa
|
2,831
|
4.99
|
454
|
45,975
|
2.18
|
3,221
|
48,806
|
2.34
|
3,675
|
43,839
|
2.40
|
3,388
|
Bogoso / Prestea
(refractory)
|
-
|
-
|
-
|
19,812
|
2.76
|
1,760
|
19,812
|
2.76
|
1,760
|
17,677
|
2.85
|
1,619
|
Mampon
|
-
|
-
|
-
|
106
|
1.61
|
5
|
106
|
1.61
|
5
|
83
|
1.71
|
5
|
Prestea
South
|
-
|
-
|
-
|
1,707
|
2.08
|
114
|
1,707
|
2.08
|
114
|
1,521
|
2.15
|
105
|
Prestea
Underground
|
-
|
-
|
-
|
1,136
|
17.15
|
626
|
1,136
|
17.15
|
626
|
1,308
|
16.82
|
707
|
Bogoso / Prestea
Other
|
-
|
-
|
-
|
2,181
|
1.68
|
118
|
2,181
|
1.68
|
118
|
2,387
|
1.66
|
128
|
Subtotal Bogoso /
Prestea
|
-
|
-
|
-
|
24,942
|
3.27
|
2,624
|
24,942
|
3.27
|
2,624
|
22,975
|
3.47
|
2,564
|
TOTAL
|
-
|
-
|
-
|
70,917
|
2.56
|
5,845
|
73,749
|
2.66
|
6,299
|
66,814
|
2.77
|
5,952
|
TOTAL (excluding
refractory)
|
-
|
-
|
-
|
51,105
|
2.49
|
4,084
|
53,936
|
2.62
|
4,539
|
49,137
|
2.74
|
4,333
|
INFERRED MINERAL RESOURCES: BREAKDOWN BY ASSET
Golden Star's Inferred Mineral
Resources increased by 13% to 8.0Moz during 2019, even after the
conversion of some of 2018 Inferred Mineral Resources into the
Indicated category. The increase was delivered primarily at Wassa
through step out and infill drilling.
The Inferred Mineral Resource increase at Wassa was
predominantly in the southern section of the deposit where the 2019
deep directional drilling focused on stepping out 200 metres and
infill definition of the 2018 Inferred Mineral Resources. The
2019 drilling was successful in extending the mineralization 200
metres to the south where the deposit remains open to the south and
down dip. The infill drilling also confirmed the continuity
of higher grades and helped with the structural understating of the
gold mineralization which in turn was applied to the updated
resource model estimation on which the Inferred Mineral Resource is
based.
The following table provides a breakdown of Golden Star's estimated Inferred Mineral
Resources as of the dates set forth below:
|
December 31,
2019
Inferred Mineral
Resources
|
December 31,
2018
Inferred Mineral
Resources
|
Tonnes
|
Grade
|
Oz
|
Tonnes
|
Grade
|
Oz
|
(000)
|
g/t Au
|
(000)
|
(000)
|
g/t Au
|
(000)
|
Wassa Open
Pit
|
616
|
1.31
|
26
|
23
|
0.74
|
1
|
Wassa
Underground
|
58,820
|
3.75
|
7,097
|
50,661
|
3.65
|
5,945
|
Father Brown Adoikrom
UG
|
1,879
|
6.07
|
367
|
2,313
|
6.38
|
475
|
Wassa
Other
|
421
|
2.11
|
29
|
382
|
2.10
|
26
|
Subtotal
Wassa
|
61,737
|
3.79
|
7,518
|
53,379
|
3.76
|
6,446
|
Mampon
|
17
|
1.66
|
1
|
14
|
1.68
|
1
|
Prestea
South
|
73
|
1.87
|
4
|
68
|
8.42
|
4
|
Prestea
Underground
|
1,585
|
9.54
|
486
|
2,488
|
1.50
|
674
|
Bogoso / Prestea
Other
|
673
|
1.47
|
32
|
468
|
7.18
|
23
|
Subtotal Bogoso /
Prestea
|
2,348
|
6.93
|
523
|
3,038
|
7.18
|
701
|
Bogoso / Prestea
(refractory)
|
826
|
2.69
|
71
|
916
|
2.61
|
77
|
TOTAL (including
refractory)
|
64,910
|
3.89
|
8,113
|
57,333
|
3.92
|
7,224
|
TOTAL NON
REFRACTORY
|
64,085
|
3.90
|
8,042
|
56,417
|
3.94
|
7,147
|
|
Notes to Mineral
Resource Estimates
|
1.
|
The Mineral Resources
for "Bogoso/Prestea Others" include Chujah, Dumasi, Bogoso North,
Buesichem, Opon and Ablifa.
|
2.
|
The Wassa Underground
Mineral Resource has been estimated below the $1,500 per ounce of
gold pit shell using an economic gold grade cut-off of 1.89 g/t Au,
which the Company believes would be the lower cut-off grade for
underground mining and constrained to a 0.4 g/t Au mineralized
grade shell.
|
3.
|
The 2019 Mineral
Resources were prepared under the supervision of Mitchel Wasel, VP
Exploration for the Company. Mr. Wasel is a QP as defined by NI
43-101.
|
4.
|
The Father Brown
Underground Mineral Resource has been estimated below the deepest
mined topography using an economic gold grade cut-off of 3.1 g/t
Au, which the Company believes would be the lower cut-off grade for
underground mining.
|
5.
|
Prestea Underground
Mineral Resource has been estimated below the $1,500 per ounce pit
shell of Prestea South down to 3,800 m elevation using a gold
cut-off grade at 6.84 g/t Au.
|
6.
|
Mineral Resources
were estimated using optimized pit shells at a gold price of $1,500
per ounce. Other than gold price, the same optimized pit shell and
underground parameters and modifying factors used to determine the
Mineral Reserves were used to determine the Mineral
Resources.
|
7.
|
Mineral Resources are
inclusive of Mineral Reserves.
|
8.
|
Numbers may not add
due to rounding.
|
9.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability
|
FATHER BROWN
The 2019 Resource update has resulted in the Measured and
Indicated Mineral Resource grade increasing by 15% to 8.67g/t of
gold and the contained ounces increasing by 7% to 254koz. Despite
the improved grade (as stated in the Q3 2019 results) the review of
the asset showed that the project, as it currently stands, does not
deliver sufficient returns to move into a feasibility study.
Further development steps on Father Brown will be considered
alongside other exploration targets and development projects in the
Wassa land package.
Company Profile:
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
underground 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
underground mines. Gold production guidance for 2020 is
195,000-210,000 ounces at a cash operating cost per
ounce1 of $790-$850. Since
winning the PDAC 2018 Environmental and Social Responsibility
Award, Golden Star has remained
committed to leaving a positive and sustainable legacy in its areas
of operation.
Note
|
|
1
|
See Non-GAAP
Financial Measures disclaimer.
|
2
|
All monetary amounts
refer to United States dollars unless otherwise
indicated.
|
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 "forward looking
information" within the meaning of Canadian securities laws and
include but are not limited to, statements and information
regarding: likely mine plans for the southern extension of the
Wassa underground operation; mining of the identified Mineral
Reserve at Prestea Underground; having 12 months of production
defined to the highest confidence classification at Wassa;
obtaining all necessary permits; the continued implementation
of new mining methods in connection with Project Okode; improved
productivity and reduced unit costs that can be achieved at
Prestea; consideration of further development steps on Father Brown
and other exploration targets and development projects in the Wassa
land package; and gold production of 195-210koz and a cash
operating cost of $790-$850 per ounce in 2020. 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. Investors are cautioned that
forward-looking statements and information are inherently uncertain
and involve risks, assumptions and uncertainties that could cause
actual facts to differ materially. 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, including financial
and other risks resulting from the impact of the COVID-19 global
pandemic; volatility of the Golden Star's stock price; foreign
exchange rate fluctuations; risks related to streaming agreements
and joint venture operations; future production; project
development; actual results of current exploration activities;
environmental risks; future prices of gold; possible variations in
Mineral Reserves or Mineral Resources, grade or recovery rates;
mine development and operating risks; accidents, labor disputes and
other risks of the mining industry; delays in obtaining permitting,
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 future developments
affecting the Company will be those anticipated by management.
Please refer to the discussion of these and other factors in
Management's Discussion and Analysis of financial conditions and
results of operations for the year ended December 31, 2019 and in our annual information
form for the year ended December 31,
2019 as filed on SEDAR at www.sedar.com. 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 any estimate at
any particular time or in response to any particular event.
Non-GAAP Financial Measures
In this news release, we use the terms "cash operating
cost", "cash operating cost per ounce".
"Cash operating cost" for a period is equal to "cost
of sales excluding depreciation and amortization" for the
period less royalties, the cash component of metals inventory net
realizable value adjustments, materials and supplies write-off and
severance charges and "cash operating cost per ounce" is
that amount divided by the
"Cost of sales excluding depreciation and amortization"
includes all mine-site operating costs, including the costs of
mining, ore processing, maintenance, work-in-process inventory
changes, mine-site overhead as well as production taxes, royalties,
severance charges and by-product credits, but excludes exploration
costs, property holding costs, corporate office general and
administrative expenses, foreign currency gains and losses, gains
and losses on asset sales, interest expense, gains and losses on
derivatives, gains and losses on investments and income tax
expense/benefit.
We use "cash operating cost per ounce" as a key operating
metric. We monitor this measure monthly, comparing each month's
values to prior periods' values to detect trends that may indicate
increases or decreases in operating efficiencies. We provide this
measure to investors to allow them to also monitor operational
efficiencies of the Company's mines. We calculate this measure for
both individual operating units and on a consolidated basis. Since
cash operating costs do not incorporate revenues, changes in
working capital or non-operating cash costs, they are not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Changes in numerous factors
including, but not limited to, 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. We believe 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.
For additional information regarding 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
year ended December 31, 2019, which
are available at www.sedar.com
Technical Information
The Mineral Reserve and Mineral Resource estimates have been
compiled by the Company's technical personnel in accordance with
definitions and guidelines set out in the Definition Standards for
Mineral Resources and Mineral Reserves adopted by the Canadian
Institute of Mining, Metallurgy, and Petroleum and as required
by Canada's National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mineral Reserve
estimates reflect the Company's reasonable expectation that all
necessary permits and approvals will be obtained and maintained.
Mining dilution and mining recovery vary by deposit and have been
applied in estimating the Mineral Reserves.
The Mineral Resource technical contents of this press release
have been reviewed and approved by S. Mitchel Wasel, BSc Geology, a
"Qualified Person" pursuant to NI 43-101. Mr. Wasel is Vice
President Exploration for Golden
Star and an active member of the Australasian Institute
of Mining and Metallurgy. The 2019 and 2018 estimates of Mineral
Resources were prepared under the supervision of Mr. Wasel. The
Mineral Reserve technical contents of this press release, have been
reviewed and approved by and were prepared under the supervision of
Matt Varvari, Vice President,
Technical Services for the Company. Mr. Varvari is a "Qualified
Person" as defined by NI 43-101. The 2018 estimates of Mineral
Reserves, were prepared under the supervision of Dr. Martin Raffield, a former employee of the
Company.
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 Resources and Reserves, Golden Star Resources,
Wassa Gold Mine, Ghana" effective December 31, 2018; (ii) Bogoso Prestea - "NI
43-101 "Technical Report on Resources and Reserves, Golden Star
Resources, Bogoso/Prestea Gold Mine, Ghana"" effective date December 31, 2017.
Cautionary Note to US Investors Concerning Estimates of
Measured and Indicated Mineral Resources
This press release uses the terms "Measured Mineral Resources"
and "Indicated Mineral Resources". The Company advises US investors
that while these terms are recognized and required by NI 43-101,
the US Securities and Exchange Commission ("SEC") does
not recognize them. 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. US Investors are
cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into Mineral
Reserves.
Cautionary Note to US Investors Concerning Estimates of
Inferred Mineral Resources
This press release uses the term "Inferred Mineral Resources".
The Company advises US investors that while this term is recognized
and required by NI 43-101, the SEC does not recognize it.
"Inferred Mineral Resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of
Inferred Mineral Resources will ever be upgraded to a higher
category. In accordance with Canadian rules, estimates of Inferred
Mineral Resources cannot form the basis of feasibility or other
economic studies. US investors are cautioned not to assume that any
part or all of the Inferred Mineral Resource exists, or is
economically or legally mineable.
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SOURCE Golden Star Resources Ltd.