Fresh from closing a private placement worth $21.4 million, Golden Star Resources (TSE) has signed an agreement to acquire the Yaou-Dorlin gold project in western French Guiana from BHP Minerals International Exploration and a mining agency of the French government. The cost: $6.8 million plus additional considerations.
The placement consisted of 1.5 million special warrants at $14.25 per warrant. Each warrant entitles the holder to receive one common share at no additional cost.
The 3,600-sq.-km property is 210 km from the capital city of Cayenne. The French mining agency BRGM had explored the area since 1981 and was joined by BHP in a joint venture eight years ago. To date, exploration has been performed on 12 permits totaling 300 sq. km.
At the Yaou prospect, the partners have completed more than 12,500 metres of diamond drilling, 13,000 metres of motorized auger sampling to an average depth of 25 metres, 10,000 metres of hand augering and 1,900 metres of trenching.
Four mineralized zones have been delineated. Gold occurs in quartz monzonite stocks (associated with quartz, calcite and pyrite) and in schistose mafic tuffs with minor intrusive rocks. Preliminary reserves are estimated at 13.8 million tonnes grading 3.4 grams gold per tonne to a depth of 200 metres. The Dorlin prospect, about 50 km east of Yaou, has drill-indicated reserves of 1.7 million tonnes containing five million grams (160,000 oz.) of gold. Further exploration will be carried out in conjunction with programs in the South Benzdorp area of Suriname, immediately west of Yaou.
Proceeds from the placement will also be used to acquire and explore properties in Guyana, Venezuela and South America.
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