Golden Star Resources Ltd.
TSX : GSC
NYSE Amex : GSS

Golden Star Resources Ltd.

February 18, 2010 09:15 ET

Golden Star Increases Mineral Reserves 14% in 2009

DENVER, COLORADO--(Marketwire - Feb. 18, 2010) - Golden Star Resources Ltd. (TSX:GSC)(NYSE Amex:GSS)(GSE:GSR) today announced its Proven and Probable Minerals Reserves (collectively "Mineral Reserves") and Mineral Resources as at December 31, 2009.

Mineral Reserves, net of mining depletion, increased by 450,000 ounces or 14%, during 2009 to 48.3 million tonnes grading 2.40 grams per tonne (g/t) for contained gold of 3.73 million ounces at year end. The increase was a result of successful exploration efforts, cost reduction and other engineering changes, and gold price increase. Mining depletion totaled 470,000 ounces and therefore the total reserve addition was 920,000 ounces of gold or a 28% increase over the Mineral Reserves at December 31, 2008. Mineral Reserves at Bogoso/Prestea net of depletion increased 17% due primarily to changed engineering parameters and an increased gold price. Mineral Reserves at Wassa net of depletion increased 9% due primarily to successful exploration efforts and an increased gold price.

Measured and Indicated Mineral Resources decreased 10% over 2009 to 26.6 million tonnes of ore grading 2.52 g/t. Decreases in Measured and Indicated mineral resources were due to conversion of these resources into Mineral Reserve categories.

Tom Mair, President and CEO, said, "We are pleased with this reserve increase in 2009 that illustrates our commitment to organic growth through exploration which has not only replaced the year's production but also added to our life of mine reserves. We have substantially increased our exploration budget for 2010, so we expect to both increase our reserve and resource base and continue to convert resource into reserves. Our district-scale property holdings surrounding our mine sites have significant potential and these results emphasize our commitment to further exploration and development."

The Mineral Reserve and Mineral Resource estimates have been estimated by our technical personnel in accordance with definitions and guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves published by the Canadian Institute of Mining, Metallurgy, and Petroleum and as required by Canada's National Instrument 43-101.



MINERAL RESERVES

---------------------------------------------------------------------------
PROVEN AND PROBABLE MINERAL RESERVES
---------------------------------------------------------------------------
As at December 31, 2009 As at December 31, 2008
Tonnes Gold Ounces Tonnes Gold Ounces
Property Mineral Grade Grade
Reserve Category (millions) (g/t) (millions) (millions) (g/t) (millions)
---------------------------------------------------------------------------
Bogoso/Prestea(1)
Proven Mineral
Reserves
Non-refractory 1.1 1.60 0.06 1.2 1.89 0.08
Refractory 9.7 3.08 0.96 9.6 3.34 1.03
---------------------------------------------------------------------------
Total Proven 10.8 2.92 1.01 10.8 3.18 1.11
---------------------------------------------------------------------------

Probable Mineral
Reserves
Non-refractory 5.0 2.60 0.42 3.9 2.90 0.36
Refractory 15.5 2.65 1.32 9.1 3.07 0.90
---------------------------------------------------------------------------
Total Probable 20.5 2.64 1.73 13.0 3.02 1.26
---------------------------------------------------------------------------

Total Proven and
Probable
Non-refractory 6.1 2.42 0.47 5.1 2.66 0.43
Refractory 25.1 2.81 2.27 18.7 3.21 1.93
---------------------------------------------------------------------------
Total Bogoso/Prestea
Proven and Probable 31.2 2.74 2.75 23.8 3.09 2.36
---------------------------------------------------------------------------
Wassa(2)
Proven Mineral
Reserves
Non-refractory 0.8 1.91 0.05 0.4 1.01 0.01
Probable Mineral
Reserves
Non-refractory 16.3 1.79 0.94 11.3 2.47 0.90
---------------------------------------------------------------------------
Total Wassa Proven
& Probable 17.1 1.79 0.99 11.7 2.42 0.91
---------------------------------------------------------------------------

Totals
Proven Mineral
Reserves
Non-refractory 1.9 1.73 0.11 1.6 1.68 0.09
Refractory 9.7 3.08 0.96 9.6 3.34 1.03
---------------------------------------------------------------------------
Total Proven 11.6 2.86 1.06 11.2 3.10 1.12
---------------------------------------------------------------------------

Probable Mineral
Reserves
Non-refractory 21.3 1.98 1.35 15.2 2.58 1.26
Refractory 15.5 2.65 1.32 9.1 3.07 0.90
---------------------------------------------------------------------------
Total Probable 36.8 2.26 2.67 24.3 2.76 2.16
---------------------------------------------------------------------------

Total Proven and
Probable
Non-refractory 23.2 1.96 1.46 16.8 2.49 1.35
Refractory 25.1 2.81 2.27 18.7 3.21 1.93
---------------------------------------------------------------------------
Total Proven and
Probable 48.3 2.40 3.73 35.5 2.87 3.28
---------------------------------------------------------------------------
Notes to the Mineral Reserve Statement:

(1) The stated Mineral Reserve for Bogoso/Prestea includes Prestea South,
Pampe and Mampon.
(2) The stated Mineral Reserve for Wassa includes the Hwini-Butre and Benso
properties.
(3) The stated Mineral Reserves have been prepared in accordance with
Canada's National Instrument 43-101 Standards of Disclosure for Mineral
Projects 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 Reserves are equivalent
to Proven and Probable Reserves as defined by the SEC Industry Guide 7.
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.
(4) The 2009 Mineral Reserves have been prepared under the supervision of
Mr. Karl Smith, Vice President Technical Services for the Company.
Mr. Smith is a "Qualified Person" as defined by Canada's National
Instrument 43-101. The 2008 Mineral Reserves were prepared under the
supervision of Mr. Peter Bourke, P.Eng., the former Vice President
Technical Services for the Company. Mr. Bourke is a "Qualified Person"
as defined by Canada's National Instrument 43-101.
(5) The Mineral Reserves at December 31, 2009 were estimated using a gold
price of $850 per ounce, which is approximately equal to the three-year
average gold price. At December 31, 2008, Mineral Reserves were
estimated using a gold price of $700 per ounce.
(6) The terms "non-refractory" and "refractory" refer to the metallurgical
characteristics of the ore. We plan to process the refractory ore in our
sulfide bio-oxidation plant at Bogoso and to process the non-refractory
ore using our more traditional gravity, flotation and/or cyanidation
techniques.
(7) 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. The parameters for the pit optimization program
are based on a gold price of $850 per ounce, historical and projected
operating costs at Bogoso/Prestea, Wassa and Hwini-Butre and Benso.
Metallurgical recoveries are based on historical performance or
estimated from test work and typically range from 80% to 95% for
non-refractory ores and from 70% to 85% for refractory ores. A
government royalty of 6% is allowed as are other applicable royalties.
The aforementioned factors, exclusive of the cost required to transport
material to the pit rim, are also used to determine the cut-off grade to
distinguish ore.
(8) Mineral Reserves are expressed on a 100% basis. Our share of the Mineral
Reserves is subject to the Government of Ghana's 10% carried interest
which entitles it to a 10% dividend once our capital costs have been
recovered.
(9) Numbers may not add due to rounding.


Reconciliation of Mineral Reserves

---------------------------------------------------------------------------
Contained Tonnes Ounces
Tonnes Ounces (% of (% of
(millions) (millions) Opening) Opening)
------------------------------------- ------------- ----------- --------
Opening Mineral Reserves
at December 31, 2008 35.5 3.27 100% 100%
Gold Price Increase(1) 4.9 0.17 14% 5%
Exploration Changes(2) 5.9 0.25 17% 7%
Mining Depletion(3) (4.9) (0.47) (14)% (14)%
Engineering (4) 6.8 0.52 19% 16%
------------------------------------- ------------- ----------- --------
Closing Mineral Reserves
at December 31, 2009(5) 48.3 3.73 136% 114%
---------------------------------------------------------------------------
Notes to the reconciliation of Mineral Reserves:

(1) Gold Price Increase represents changes resulting from an increase in
gold price used in the Mineral Reserve estimates from $700 per ounce in
2008 to $850 per ounce in 2009.
(2) Exploration Changes include changes due to geological modeling, data
interpretation and resource block modeling methodology as well as due
to exploration discovery of new mineralization.
(3) Mining Depletion represents the 2008 Mineral Reserve within the volume
mined in 2009 with adjustments to account for stockpile addition
and depletions during 2009 and therefore does not correspond with 2009
actual gold production.
(4) Engineering includes changes as a result of engineering facts such
as changes in operating costs, mining dilution and recovery assumptions,
metallurgical recoveries, pit slope angles and other mine design and
permitting considerations.
(5) Numbers may not add due to rounding


NON-RESERVE - MEASURED AND INDICATED MINERAL RESOURCES

Cautionary Note to US Investors concerning estimates of Measured and Indicated Mineral Resources

This section uses the terms "Measured Mineral Resources" and "Indicated Mineral Resources". We advise US investors that while those terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them. 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.

Our Measured and Indicated Mineral Resources reported below are exclusive of the Proven and Probable Mineral Reserves as shown above and have been estimated in compliance with definitions set out in Canada's National Instrument 43-101.

Except as otherwise provided, the total Measured and Indicated Mineral Resources for all properties have been estimated at an economic cut-off grade based on a gold price of $1,000 per ounce for December 31, 2009 and $800 per ounce for December 31, 2008 and on economic parameters deemed realistic. The economic cut-off grades for Mineral Resources are higher than those for Mineral Reserves and are indicative of the fact that the Mineral Resource estimates include material that may become economic under more favorable conditions including increases in gold price.

The following table summarizes our estimated non-reserves - Measured and Indicated Mineral Resources as of December 31, 2009 as compared to the totals for December 31, 2008:



Measured and Indicated Mineral Resources

---------------------------------------------------------------------------
Measured Indicated Measured & Indicated
-------------------------------------------------------
Property Tonnes Gold Tonnes Gold Tonnes Gold
(millions) Grade (millions) Grade (millions) Grade
(g/t) (g/t) (g/t)
---------------------------------------------------------------------------

Bogoso/Prestea(1) 4.7 1.90 12.9 2.20 17.6 2.12
Prestea Underground 0.0 0.00 1.4 13.36 1.4 13.36
Wassa 0.1 0.82 4.3 0.89 4.4 0.89
Benso 0.0 0.00 0.2 1.73 0.2 1.73
Hwini-Butre(8) 0.0 0.00 0.3 5.38 0.3 5.38
Goulagou(9) 0.0 0.00 2.7 1.75 2.7 1.75

Total 2009 4.8 1.87 21.8 2.66 26.6 2.52
---------------------------------------------------------------------------

Total 2008 5.4 2.24 21.6 2.89 27.0 2.76
---------------------------------------------------------------------------
Notes to the Measured and Indicated Mineral Resources:
(1) The Mineral Resources for Bogoso/Prestea include Pampe and Mampon.
(2) The Mineral Resources were estimated in accordance with the definitions
and requirements of Canada's National Instrument 43-101. The Mineral
Resources are equivalent to Mineralized Material as defined by the SEC
Industry Guide 7.
(3) The Mineral Resources, other than for Goulagou (see Note 8), were
estimated using optimized pit shells at a gold price of $1,000 per ounce
from which the Mineral Reserves have been subtracted. Other than gold
price, the same optimized pit shell parameters and modifying factors
used to determine the Mineral Reserves were used to determine the
Mineral Resources. The Prestea Underground resource was estimated using
a $1,000 per ounce gold price and operating cost estimates. In 2008, we
used a gold price of $800 per ounce for the optimized shell.
(4) The Mineral Resources are not included in and are in addition to the
Mineral Reserves described above.
(5) The Qualified Person for the estimation of the Mineral Resources is
S. Mitchel Wasel, Golden Star Resources Vice President of Exploration.
(6) Numbers may not add due to rounding.
(7) Mineral Resources are shown on a 100% basis. The Mineral Resources
shown above, other than for Prestea Underground and Goulagou, are
subject to the Government of Ghana's 10% carried interest which entitles
it to a 10% dividend once capital costs have been recovered. The Mineral
Resources at Prestea Underground are subject to the Government of
Ghana's 19% minority interest, with Golden Star having an 81% beneficial
interest. Goulagou is 10% owned by a third party.
(8) The Hwini-Butre Indicated Mineral Resource includes 0.29 million tones
at a grade of 5.38 g/t which occurs below the $1,000 pit shells and
which we believe may be exploitable by underground mining.
(9) The Mineral Resources for Goulagou were estimated using optimized pit
shells at a gold price of $560. Pit optimization parameters for the
Goulagou Mineral Resources were estimated based on feasibility studies
on other similar deposits in Burkina Faso, Golden Star's experience in
West Africa, and from limited metallurgical test work on the Goulagou
ores. Heap leach processing was the assumed processing option for this
deposit.


NON-RESERVES - INFERRED MINERAL RESOURCES

Cautionary Note to US Investors concerning estimates of Inferred Mineral Resources

This section uses the term "Inferred Mineral Resources." We advise US investors that while this term is recognized and required by Canada's National Instrument 43-101, the US Securities and Exchange Commission 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 part or all of the Inferred Mineral Resource exists, or is economically or legally mineable.

Our Inferred Mineral Resources have been estimated in compliance with definitions defined by Canada's National Instrument 43-101. Golden Star Resources has filed Technical Reports regarding the initial disclosure of Mineral Reserves and Mineral Resources for Bogoso/Prestea, Wassa and the HBB properties as required by Canada's National Instrument 43-101.

The total Inferred Mineral Resources for all of our open pit deposits are those ore tonnages contained within economically optimized pits, configured using current and predicted mining and processing methods and related operating costs and performance parameters. Except as otherwise indicated, the Inferred Mineral Resources for all properties have been estimated at economic cut-off grades based on gold prices of $1,000 per ounce and $800 per ounce as of December 31, 2009 and December 31, 2008, respectively, and economic parameters deemed realistic.

The following table summarizes estimated non-reserves - Inferred Mineral Resources as of December 31, 2009 as compared to the total for December 31, 2008:



-------------------------------------------------------------

Gold
Property Tonnes grade
(millions) (g/t)
-------------------------------------------------------------
Bogoso/Prestea(1) 3.8 3.10
Prestea Underground 4.1 7.79
Wassa 0.1 1.70
Benso 0.3 3.98
Hwini-Butre(8) 0.4 5.28
Chichiwelli Manso 1.9 1.91
Goulagou(9) 0.5 1.02
Paul Isnard(10) 0.0 0.00
-------------------------------------------------------------
Total 2009 11.0 4.62
-------------------------------------------------------------
Total 2008 20.8 3.66
-------------------------------------------------------------
Notes to Non-Reserves - Inferred Mineral Resources Table

(1) The Inferred Mineral Resources for Bogoso/Prestea incorporates Pampe
and Mampon.
(2) The Inferred Mineral Resources were estimated in accordance with the
definitions and requirements of Canada's National Instrument 43-101.
Inferred Mineral Resources are not recognized by the United States
Securities and Exchange Commission.
(3) The Inferred Mineral Resources, other than for Goulagou, were estimated
using an optimized pit shell at a gold price of $1,000 per ounce from
which the Mineral Reserves have been subtracted. Other than gold price,
the same optimized pit shell parameters and modifying factors used to
determine the Mineral Reserves were used to determine the Mineral
Resources. For Goulagou optimized pit shell at a gold price of $560 was
used. The Prestea Underground resource was estimated using a $1,000 per
ounce gold price and operating cost estimates.
(4) The Inferred Mineral Resources are not included in and are in addition
to the Mineral Reserves described above.
(5) The Qualified Person for the estimation of the Inferred Mineral
Resources is S. Mitchel Wasel, Golden Star Resources Vice President of
Exploration.
(6) Numbers may not add due to rounding.
(7) Inferred Mineral Resources are shown on a 100% basis. Except for
Goulagou and the Prestea Underground, the Inferred Mineral Resources
shown are subject to the Government of Ghana's 10% carried interest
which entitles it to a 10% dividend once our capital costs have been
recovered. The Inferred Mineral Resources at Prestea Underground, are
subject to the Government of Ghana's 19% minority interest, with Golden
Star currently having an 81% beneficial interest. A private party owns
10% of Goulaogu.
(8) The Hwini-Butre Inferred Mineral Resource includes 0.26 million tones
at a grade of 5.87 g/t which occurs below the $1,000 pit shells and
which we believe may be exploitable by underground mining.
(9) Pit optimization parameters for the Goulagou Inferred Mineral Resources
were estimated based on feasibility studies on other similar gold
deposits in Burkina Faso, Golden Star's experience in West Africa, and
from limited metallurgical test work on the Goulagou ores. Heap leach
processing was the assumed processing option for this deposit.
(10) On November 19, 2009, the Company entered into an agreement pursuant
to which it sold all of its rights, title and interest in the Bon
Espoir, Iracoubo Sud and Paul Isnard properties in French Guiana for
approximately $2.1 million.


Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. 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 the Guiana Shield of South America. Golden Star has approximately 257 million shares outstanding.

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. Such statements include our expectations regarding reserves and resources increases for 2010 and our plans for processing refractory ore and non-refractory ore. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual facts to differ materially. 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 our Form 10-K for 2009. 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.

Contact Information

  • For further information on the results release and
    conference call details, please contact:
    Golden Star Resources Ltd.
    Bruce Higson-Smith
    Vice President Corporate Development
    +1-800-553-8436
    or
    Golden Star Resources Ltd.
    Anne Hite
    Investor Relations Manager
    +1-800-553-8436