Golden Star adds polymetallic project to Bolivian assets

Calgary-based Golden Star Resources (ASE) recently added a Bolivian polymetallic property to its list of South American mineral assets.

Located in the Andes mountain range, near the Argentina border, the Candelaria property is expected to be in production by the third quarter of 1989, Golden Star said.

An extensive exploration program carried out by the Fondo Nacional de Exploracion Minera and funded by the German International Aid Agency, is in progress at the Candelaria mine and has already outlined 1,034,194 tonnes of reserves.

The reserve figure includes a proven inventory of 419,000 tons with grades as high as 0.193 oz gold, 6 oz silver, 0.65% tin, 2.24% lead and 4.04% zinc per ton.

“We expect that a 500-ton-per- day mill will produce lead/silver and lead/zinc concentrates and 12,000 oz gold annually,” said President Dave Fennell.

He has hired Wright Engineers of Vancouver to review the work completed so far and a report should be available by September, Fennell said. If the review confirms previous results, Wright is scheduled to recommend a program to complete a final feasibility study.

Golden Star acquired the property through its Bolivian subsidiary Empresa Minera Reminsa which operates a 200-ton-per-day Caryuaicollo polymetallic mine some 20 miles from Candelaria.

Under the terms of the Candelaria agreement, the vendor has been paid an initial $15,000(US) and will receive an additional $500,000 when a feasibility study is commissioned. If a production decision is reached, the vendor is entitled to an additional $500,000 plus a 10% net profit interest.

The agreement also allows Fondo Nacional de Exploracion Minera to recover $1,205,000 from production funds which it spent on the exploration and development of the mine and accumulated interest.