Under an agreement with the transitional government of Ethiopia, Golden Star Resources (TSE) has been granted exploration leases in the East African nation.
The 90 licences constitute what is known as the Dul Mountain gold project.
Golden Star, through its 91% owned subsidiary, Pan African Resources, was granted the leases for three years. It agreed to spend US$7.3 million during the initial term of exploration, including US$2.1 million in the first year.
The Dul project, which comprises 1,800 sq. km, is one of four which the transitional government opened up to bidders in 1994. It lies within a historic mining area, 800 km west of Addis Ababa.
Since 1985, the area has been explored by the Ethiopian government, which identified six targets. The Dul is the most advanced of these.
To date, 697 metres of drilling have been completed (six holes) by the Ethiopian government survey, as have soil geochemistry, geophysics and trenching.
Golden Star plans to conduct diamond drilling shortly.
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