LATIN AMERICAN SPECIAL — Guyana, Suriname, French Guiana —

The current interest in South America’s gold potential owes much to the pioneering activities of Golden Star Resources (TSE) at at time when foreign projects were usually discounted by investment analysts.

The company’s faith in the Omai gold project in Guyana was borne out when senior partner Cambior (TSE) overcame industry skepticism and secured financing to build a modern mine 100 miles southwest of Georgetown. Today, Golden Star has a 30% interest in Omai, which is expected to produce 260,000 oz. gold at a cash cost of close to US$200 per oz., for a mine life of at least 10 years.

The company also ranks among the more active explorers in the country, as well as neighboring Suriname, French Guiana and Venezuela. It recently raised $52.5-million financing to acquire, explore and develop properties in these South American countries.

The company’s Gros Rosabel concession in Suriname is already reaching an advanced stage of exploration. And early this year, Golden Star announced a joint venture with Asarco (NYSE) in French Guiana.

The major can earn a half interest in Golden Star’s St. Elie mining concession by spending up to US$10 million over five years, or else spend a lesser amount to bring the project to the feasibility stage. Also active in Suriname is Canarc Resource (VSE), which can earn a half interest in surface and near-surface mining rights on the Sara Creek property. The company and its local partner plan to construct a placer mine with an initial capacity of 400 cubic meters per day. In addition, Canarc will spend $1.3 million over four years to explore the 22,500-hectare property. Cathedral Gold (TSE) is busy exploring its Kaburi-Eldorado project in Guyana, which has potential for large-scale gold deposits. In June, 1993, it acquired a 90% option interest in the project and, more recently, completed a $10-million private placement of special warrants to fund exploration and development.