Modern Mining January 2019

MINING News

Wassa Underground drilling delivers positive results

Canada’s Golden Star Resources (GSR), listed on the NYSE American and TSX, has reported further step out and infill drill- ing results from its Wassa underground gold mine (Wassa Underground) in Ghana, demonstrating the extension and robust- ness of the deposit. Positive assay results have been received from five new infill and step- out diamond drill (DD) holes at Wassa Underground. Step out drilling confirms gold mineralisation remains open at least 200 m to the south of existing inferred mineral resources while infill drilling con- firms the continuity of width and grade of mineralised areas. A new foot wall zone of gold miner- alisation has been identified. Significant intercepts include 10,4 m grading 11,9 g/t Au from 774,5 m, including 6,4 m grad- ing 16,2 g/t Au, in hole BS18DD393M; and 6,2 m grading 6,7 g/t Au from 944,0 m in hole BS18DD392D1 (drilled depth from wedge). “I am encouraged by the latest positive results from the Wassa Underground drill- ing programme,”commented SamCoetzer, President and CEO of Golden Star. “Our objective is to‘fill the mill’through defining additional mineral resources and utilising theWassa processing plant’s excess capac- ity and these latest results suggest that we are on track to achieve this goal. “The step out drilling results continue to confirm the extension of the Wassa Underground deposit to the south and the deposit remains open down plunge, which suggests further exploration upside potential. The infill drilling results also con- firm the previously recorded grades and widths of the deposit and we expect to

Portal of the underground mine at Wassa. The mine is located in south-western Ghana, approximately 40 km from the Prestea gold mine, also owned by GSR (photo: Golden Star).

upgrade a portion of Wassa’s inferred min- eral resources into the indicated category. “With our larger exploration budget as a result of the funds received from the investment by our new strategic inves- tor, we are focused on demonstrating the potential of this exceptional deposit and delivering compelling value for our shareholders.”

GSR announced in October 2018 the completion of a US$125million investment in the company by La Mancha Holding, a Luxembourg-incorporated private gold investment company. La Mancha, which is also a major investor in Endeavour Mining (which owns and operates several gold mines in West Africa), is now GSR’s largest shareholder. „

Base Resources granted prospecting licence Base Resources, listed on the ASX and AIM, has been granted a new prospecting licence in the Vanga area in Kenya (Vanga PL). The PL is valid for three years and covers an area of 136 km 2 , extending south-west from the company’s existing Kwale Operation towards the Tanzanian border. The PL was applied for following an airborne geophysi- cal and radiometric survey that identified a

series of promising exploration targets. “In the context of the current pursuit of mine life extension at Kwale Operations, the granting of the Vanga PL is a posi- tive and important step,” commented Tim Carstens, Managing Director of Base Resources. “Preparatory activities, ahead of a planned drilling programme in 2019, are underway.” „

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