Golden Star gives not to Mahdia gold project

Geological reserves are 8.5 million cubic metres, grading 0.52 g per cubic metre. The initial mining plan calls for the installation of a plant with a capacity to process one million cubic metre per year beginning in June, 1990. Subject to final feasibility, up to three additional processing units will be added.

Capital costs for the project, including the completion of a feasibility report, are estimated at $3.6 million(US) by Exploration Development Associates, a Denver-based engineering consulting company. Capital costs for an additional three processing units are $8 million(US).

Giant Resources, an Australian- based mining company which held an option to earn an interest in the Mahdia property, has terminated its agreement with Golden Star. As a result, Star retains a 100% interest in the project.

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