Vancouver With the price of bullion hitting US$350 per oz., Golden Star Resources (GSC-T) is taking steps to advance its mining properties in Ghana.
The company filed a shelf offering to periodically sell up to US$75 million in common and preferred shares, warrants and convertible debt securities. The funds from the shelf offering are ear marked not only for property development, but also for acquisition.
The Littleton, Colorado-based company holds a 90%stake in the Bogoso-Prestea open-pit operation, a 45% managing equity interest in the Prestea underground mine and recently acquired a 90% stake in the Wassa open-pit gold project in Ghana.
In June, Golden Star boosted proven and probable reserves at Bogoso-Prestea to 20.6 million tonnes averaging 3.15 grams gold per tonne, or 2.1 million oz. of contained gold; that’s an increase of 263,467 oz. from the end of 2001, and 69% of the reserve is classified as proven, up from 56%. The increase in ounces resulted from drilling on the Buesichem, Brumase-Beposo and Plant-North deposits. Further drilling is planned for Plant-North, which remains open to the south.
Of the reserve, 5.5 million tonnes grading 2.22 grams gold per tonne are in oxide material, and 1.5 million tonnes running 3.18 grams are classified as transitional oxide-sulphides. Another 4.1 million tonnes are primary ore averaging 3.77 grams, and the gold in another 7.7 million tonnes grading 3.49 grams is associated with refractory sulphides. Refractory transitional ores make up 1.8 million tonnes averaging 3.1 grams gold.
Likewise, measured and indicated resources (including reserves) climbed to 30.4 million tonnes grading 3.25 grams, for about 3.2 million oz. — a 6% increase since the end of December 2001. Of the total, 8.6 million tonnes grading 3.21 grams gold is primary ore.
The company also holds other exploration interests in the Guiana Shield in South America as well as in West Africa.
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