Golden Star subsidiary acquires French Guiana gold company

A subsidiary of Golden Star Resources (TSE) is set to acquire all the outstanding shares of a French company based in French Guiana.

Guyanor Ressources S.A. will pay US$4.1 million — and assume US$1.4 million in debt — to acquire Societe de Travaux Public et de Mines Auriferes en Guyane (SOTRAPMAG), an alluvial mining company which holds the rights to acquire the Paul Isnard property in French Guiana.

Situated 250 km west of the capital, Cayenne, the property consists of eight concessions and four exploration permits covering a total area of 248 sq. km. Two additional exploration permits, covering 50 sq. km, have been applied for, and approval is pending.

The property is underlain by a Proterozoic-aged sequence of mafic to felsic volcanics and clastic sediments of the Paramaca and Bonidoro Groups, which are, in turn, cut by ultramafic to felsic intrusives. Although several hardrock gold occurrences have been noted on the property, very little systematic exploration has been carried out.

The alluvial gold deposits at Paul Isnard have been known for almost a century. Mechanized alluvial mining started in or near 1910, with documented production of more than 3 tonnes of gold. SOTRAPMAG has been working the Paul Isnard property since 1986, with monthly gold production averaging 25 kg (800 oz.)

There are considerable alluvial reserves on the property, and Guyanor intends to continue mechanized alluvial mining. An exploration program is planned, to determine the full extent of the alluvial reserves and prepare a new mining plan. In addition, a program of geochemical and geological surveys, trenching and core drilling will be carried out to delineate primary hardrock deposits.