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Golden Star Resources Continues to Generate Encouraging Intercepts at Wassa Mine Site

Date : 10/15/2012 @ 10:15PM
Source : Marketwired
Stock : Golden Star (GSC)
Quote : 0.67  -0.04 (-5.63%) @ 12:41AM
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Golden Star Resources Continues to Generate Encouraging Intercepts at Wassa Mine Site

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2 Years : From Apr 2012 to Apr 2014

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Golden Star Resources Ltd. (NYSE MKT: GSS) (TSX: GSC) (GHANA: GSR)

  • 54.3m (meters) grading 4.8 g/t (grams per tonne) gold up-plunge from previous high-grade intercepts at B Shoot, including 27.5m at 8.8 g/t (from 373.0m drilled depth)
  • 33.2m grading 2.2 g/t (from 59.0m drilled depth) and 9.9m grading 3.6 g/t (from 163.2m drilled depth) beneath the current operating Starter Pit
  • 29.5m grading 1.7 g/t from 42.0m drilled depth beneath the current operating SE Pit

Denver, CO Golden Star Resources Ltd. (NYSE MKT: GSS) (TSX: GSC) (GHANA: GSR) ("Golden Star" or the "Company") today provided an update on exploration activities at its Wassa mine in Ghana. Full drill results, plans and sections are available at the Company's website at www.gsr.com or by clicking the following link: http://www.gsr.com/Operations/Wassa.asp.

The addition of three contractor rigs at the end of July 2012 enabled Golden Star to accelerate drilling beneath the current Wassa pit designs. The Company completed an additional 49 drill holes in the third quarter of 2012 totaling 16,485 meters comprising approximately 67% HQ sized drill core and 33% RC (reverse circulation).

Drilling focused on the up and down-plunge extensions of the higher-grade intersections in holes BSDD090 and BSDD113 (please refer to the Company's press releases of February 6 and May 2, 2012) These holes were drilled in the B Shoot area of the Wassa pits. Hole BSDD137, drilled approximately 40m up-dip of hole BSDD113 (18m @ 32 g/t), intersected a high grade pod of gold mineralization with a true thickness of 54.3m grading 4.8 g/t, including 27.5m grading 8.8 g/t. BSDD135A intersected the interpreted down-plunge extension of the high-grade shoot approximately 70m from previous hole BSDD090 (21.2m @ 15.8 g/t).

Hole BSDD135A cut several zones of significant mineralization including an upper zone from 369m drilled depth with an estimated true width of 17m grading 2.5 g/t and a lower zone from 506.5m with an estimated true width of 10.9m grading 6.3 g/t.

Hole BSDD131 intersected several zones of mineralization approximately 60m down-dip of hole BSDD090, including 17.1m grading 3.2 g/t from 353m drilled depth and 14.4m grading 6.1 g/t from 446m drilled depth.

The B Shoot high-grade pod of mineralization has been interpreted to be associated with a folded zone of mineralization that plunges approximately 30 degrees to the southwest. The plunge and down-dip extensions of this mineralization are still open and the Company continues to prioritize the drilling of this zone. Significant intersections for the third quarter of 2012 are summarized in the table below.


               B Shoot Q3 2012 significant drill intersections

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                                                                   ~
          Easting Northing  Elev  Az    Dip   From   To  Drilled  True  Gold
 Hole ID    (m)      (m)    (m) (deg.) (deg.) (m)   (m)   Width  Width Grade
                                                           (m)    (m)   g/t
============================================================================
 BSDD130   39919    19750   1015   90   -62  117.9 129.9   12.0   8.2   3.3
 BSDD130   39919    19750   1015   90   -62  348.4 380.0   31.6   21.6  1.2
 BSDD131   39756    19850   1032   90   -64  353.0 379.0   26.0   17.1  3.2
 BSDD131   39756    19850   1032   90   -64  446.0 468.0   22.0   14.4  6.1
 BSDD131   39756    19850   1032   90   -64  525.2 545.0   19.8   13.0  2.2
 BSDD133   39819    19675   1034   90   -55  470.0 493.9   23.9   18.3  1.5
 BSDD135A  39760    19825   1033   93   -60  331.0 339.0   8.0    5.7   1.9
 BSDD135A  39760    19825   1033   93   -60  369.0 393.0   24.0   17.0  2.5
 BSDD135A  39760    19825   1033   93   -60  506.5 521.9   15.4   10.9  6.3
 BSDD137   39769    19925   1030   90   -56  322.7 335.0   12.3   9.3   1.4
 BSDD137   39769    19925   1030   90   -56  373.0 445.0   72.0   54.3  4.8
 BSDD138   39843    20050   994    90   -60  229.8 240.3   10.5   7.4   4.5
 BSDD139   39774    19775   1035   90   -60  214.0 238.0   24.0   17.0  2.5
 BSDD139   39774    19775   1035   90   -60  435.3 446.2   10.9   7.7   3.6
 BSDD140   40004    19900   982    90   -57   0.0   28.0   28.0   20.8  1.2
 BSDD140   40004    19900   982    90   -57  108.0 133.0   25.0   18.6  2.5
 BSDD144   40072    20200   979    90   -53  164.2 183.0   18.8   14.8  5.4
 BSDD144   40072    20200   979    90   -53  195.0 225.5   30.5   24.0  2.1
 BSDD145   40087    20225   979    90   -50  181.0 190.0   9.0    7.4   5.9
 BSRC070   40060    20150   979    90   -60   52.0 116.0   64.0   45.3  1.2
----------------------------------------------------------------------------

Drilling during the third quarter also continued in the hinge of the Wassa fold. A parallel zone to the main B Shoot/242 Pit mineralization (referred to as "F Shoot") returned higher than average grades at depth, which should have a positive effect on the optimized pit shells in the hinge area. Holes STDD020 and STDD023 intersected 9.9m grading 3.6 g/t and 6.9m grading 2.5 g/t, respectively, confirming the continuity of the gold mineralization intersected in STDD019 (6.1m @ 5.8 g/t) and STDD018 (20.6m @ 2.7 g/t), which were drilled in the second quarter.

Two of the B Shoot holes have also confirmed this zone at depth, possibly the down plunge extension of an early fold structure: BSDD144 intersected two zones -- an upper zone with an estimated true width of 14.8m grading 5.4 g/t and a lower, wider zone of 24m grading 2.1 g/t; and BSDD145 intersected 7.4m grading 5.9 g/t. This lower zone is not contained within the initial pit shell optimizations and should enlarge the shells to the north and east, which in turn should have a positive effect on the ultimate pit depths where the high grades have been intersected at B Shoot and SE Pit. Drilling programs have been adjusted to follow up on the F Shoot zone to add more confidence to the higher grades previously intersected. Significant results drilled in the Starter Pit fold hinge zone area in the third quarter of 2012 are summarized in the table below.


             Starter Pit Q3 2012 significant drill intersections

----------------------------------------------------------------------------
                                                                   ~
          Easting Northing  Elev  Az    Dip   From   To  Drilled  True  Gold
 Hole ID    (m)      (m)    (m) (deg.) (deg.) (m)   (m)   Width  Width Grade
                                                           (m)    (m)   g/t
============================================================================
STDD020  40005    20300   958   90     -55  163.2 176.0   12.8    9.9   3.6
STDD021  40058    20325   958   90     -50  131.5 155.6   24.1    20.0  1.0
STDD021  40058    20325   958   90     -50  161.6 167.6    6.0    5.0   2.4
STDD022  39989    20310   958   90     -57   15.0  32.0   17.0    12.8  1.2
STDD022  39989    20310   958   90     -57   59.0 103.0   44.0    33.2  2.2
STDD023  39989    20275   961   90     -53   0.0   19.0   19.0    15.2  2.1
STDD023  39989    20275   961   90     -53  228.0 236.7    8.7    6.9   2.5
----------------------------------------------------------------------------

Drilling along the SE trend during the third quarter of 2012 predominantly tested the eastern most zones along the trend and the continuity of the previously drilled high grade SE shoot. Holes SEDD065 (29.5m @ 1.7 g/t) and SEDD066 (9.9m @ 1.8 g/t) were drilled along the eastern most mineralized trend and have confirmed the previously interpreted zones but with slightly higher grades. The effect of these holes on the overall grade of this eastern zone will be further assessed once new models have been completed and pit optimizations rerun. Hole SEDD063 has extended the higher grade SE mineralization approximately 50m down-dip, intersecting three zones (tabulated below). However, hole BSDD144, which extends at depth below the SE mineralization on the same drill section, did not intersect any significant gold mineralization 100m down-dip of hole SEDD063, and this zone was closed off at depth. Further drilling is planned for down-plunge of the SE high-grade shoot as the geometry of the gold mineralization is controlled by folding and continues along these trends.


             South East Q3 2012 significant drill intersections

----------------------------------------------------------------------------
                                                                   ~
          Easting Northing  Elev  Az    Dip   From   To  Drilled  True  Gold
 Hole ID    (m)      (m)    (m) (deg.) (deg.) (m)   (m)   Width  Width Grade
                                                           (m)    (m)   g/t
============================================================================
SEDD062  40381    19900   100   90     -50   93.3  103.4   10.1   8.4   1.1
SEDD063  40062    19900  1011   90     -58  211.0  233.0   22.0   16.3  2.6
SEDD063  40062    19900  1011   90     -58  250.8  264.5   13.7   10.2  2.0
SEDD063  40062    19900  1011   90     -58  318.0  330.0   12.0   8.9   1.1
SEDD065  40367    20075  1003   90     -51   42.0  78.0    36.0   29.5  1.7
SEDD066  40327    20125  1009   90     -49  102.9  114.7   11.8   9.9   1.8
SEDD066  40327    20125  1009   90     -49  129.0  139.6   10.6   8.9   1.0
----------------------------------------------------------------------------

Mitchel Wasel, Vice President of Exploration, commented, "Based on increasingly positive drilling results and with five rigs now committed to the program, we expect to gain a much clearer view of the expansion potential at Wassa over the next six to nine months. The drilling will be prioritized to target higher-grade gold mineralization on 50 to 100 meter drill hole spacing. At year end we will update our grade block models and pit optimizations so that we can make a decision on initiating the Wassa expansion feasibility study in 2013."

COMPANY PROFILE

Golden Star Resources holds the largest land package in one of the world's largest and most prolific gold producing regions. 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 www.gsr.com.

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: our expectations regarding our planned drilling and exploration activities for 2012 and 2013 and the timing thereof; our ability to evaluate expansion potential; the potential for a feasibility study to commence in 2013; and the timing of updates of our resource models. 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, and fluctuations in gold price and costs. 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 our Form 10-K for 2011 and subsequent Form 10-Qs for 2012 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.

QA/QC:

The technical contents of this press release have been reviewed 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 quoted 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 0.01ppm.

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.

Additional information on earlier drilling results at Wassa are available in our February 6, 2012 press release.

For further information, please contact: GOLDEN STAR RESOURCES LTD. Bruce Higson-Smith Senior Vice President Finance and Corporate Development 1-800-553-8436 INVESTOR RELATIONS Jay Pfeiffer Pfeiffer High Investor Relations, Inc. 303-393-7044



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