MINING IN AFRICA SPECIAL — Golden Star expands African

Through a subsidiary, Golden Star Resources (TSE) will explore a newly acquired gold prospect in western Ethiopia, about 800 km from the capital, Addis Ababa.

The Dul permit area is one of several gold prospects for which Ethiopia invited applications in 1994. It encompasses 1,801 sq. km and covers several Proterozoic greenstone belts. These belts contain several primary gold occurrences, of which the Dul Mountain prospect is the most significant. A large soil geochemical anomaly has been defined at Dul Mountain, with channel samples returning values of 0.3 to 25.8 grams gold per tonne. The land package contains evidence of previous mining activity, mostly focused on alluvial deposits, although there is also evidence of small-scale open-pit and underground mining.

Seven gold prospects have been identified by the Ethiopian Institute of Geological Surveys within the project area (in addition to Dul Mountain), as well as a chromite occurrence and other base metal mineralization. Pan African Resources, the Golden Star subsidiary, has proposed an integrated exploration program in which it would work closely with the Ethiopians to evaluate Dul Mountain. Plans also call for a comprehensive regional evaluation of the entire Dul permit.

In a separate development, announced earlier this year, Golden Star announced an exploration agreement with the mines ministry of Ivory Coast. The agreement allows Golden Star to conduct reconnaissance work, including an airborne geophysical survey and ground programs, on an area comprising 15,000 sq. km. Once this is completed, 25% of the area would be granted to Golden Star for further exploration and mine development.

Golden Star also has rights to form a joint venture with SODEMI, a government-owned mining company, with respect to areas that SODEMI has previously explored.

The reconnaissance area encompasses belts of Proterozoic Birimian greenstone rocks and Tarkwaian sediments. The only systematic exploration carried out was a widely spaced aerial magnetic survey in 1975. SODEMI also conducted mapping and sampling in more recent times, and in the process identified more areas of historical mining activity.

Golden Star’s work program, to begin shortly, will include a stream sediment geochemistry program, mapping and sampling, as well as the airborne geophysics.