Bogoso/Prestea delivers

Denver-based Golden Star Resources (GSC-T) ended 2003 with better-than-expected output from its flagship Bogoso/Prestea open-pit mine in Ghana.

The mine was expected to produce 160,000 oz. last year at a cash operating cost of US$175 per oz.; it has in fact yielded 174,000 oz. at the same cost.

Golden Star has a 90% equity interest in the mine, whereas the government of Ghana has a 10% carried interest.

Golden Star acquired an initial 70% interest in the 145-sq. km Bogoso concessions in 1999 by buying 70% of Bogoso Gold. In 2001, Golden Star boosted its interest to 90% and picked up a 90% stake in the surface mining rights of the adjoining, 129-sq.-km Prestea property (to a depth of 200 metres).

Meanwhile, 150 km west of Accra, Golden Star is building its 90%-owned Wassa gold mine, where a final feasibility study is ongoing. A newly discovered zone of mineralization is expected to expand the proven and probable resource of 14.4 million tonnes grading 1.67 grams gold per tonne. The resource was delineated by the past owners, who closed a failed heap-leach operation there a few years ago.

Golden Star says reserves at Bogoso-Prestea and Wassa now total 3.4 million contained ounces gold, up from 2.2 million contained ounces at the end of 2002.

Also, the company has closed a US$49.5-million, bought-deal equity offering, which consisted of 6.6 million shares priced at US$7.50 per share, with no warrants involved.

The shares were offered in Canada and the U.S. by a syndicate led by BMO Nesbitt Burns and Orion Securities and which includes Canaccord Capital, National Bank Financial, RBC Dominion Securities and Westwind Partners.

Proceeds are earmarked for the assets in Ghana.

Golden Star now has 116 million shares outstanding, for a market capitalization of $1.1 billion.

Beyond Ghana, Golden Star is gearing up to begin exploring its new gold ventures in Sierra Leone and Mali (T.N.M., Dec 8-14, 2003).

In Sierra Leone, Golden Star has agreed to earn an initial 51% interest in several properties of London-based Mano River Resources (MNO-V) by spending US$6 million over four years.

In Mali, Golden Star can earn a 51% interest in the Mininko property of privately held Geo Services International by spending up to US$2.6 million; it can earn an 82.5% interest, subject to certain conditions, by funding project development.