Vancouver — With the price of bullion hitting US$350 per oz.,
The company filed a shelf offering to sell up to US$75 million in common and preferred shares, warrants and convertible debt securities. The funds are earmarked for acquisitions as well as development.
The Littleton, Colo.-based company holds a 90% stake in the Bogoso-Prestea open-pit operation, a 45% managing equity interest in the Prestea underground mine, and a 90% interest in the Wassa open-pit gold project.
In June, Golden Star boosted proven and probable reserves at Bogoso-Prestea to 20.6 million tonnes averaging 3.15 grams gold per tonne, equivalent to 2.1 million oz. gold. That’s an increase of 263,467 oz. from the end of 2001. Also, 69% of the reserve is classified as proven, up from 56%.
The increase follows drilling at the Buesichem, Brumase-Beposo and Plant-North deposits. More drilling is planned for Plant-North, which remains open to the south.
Of the reserve, 5.5 million tonnes grading 2.22 grams gold per tonne are in oxide material whereas 1.5 million tonnes grading 3.18 grams are classified as transitional oxide-sulphides. Another 4.1 million tonnes are primary ore averaging 3.77 grams, and the gold in another 7.7 million tonnes grading 3.49 grams is associated with refractory sulphides. Refractory transitional ores constitute 1.8 million tonnes averaging 3.1 grams gold.
Likewise, measured and indicated resources (including reserves) climbed to 30.4 million tonnes grading 3.25 grams, or 3.2 million oz. — a 6% increase since the end of December 2001. Of the total, 8.6 million tonnes grading 3.21 grams gold are primary ore.
The company is also exploring properties in South America’s Guiana Shield.
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