Golden Star Resources Ltd. (TSX:GSC)(NYSE Amex:GSS)(GSE:GSR) has announced significant increases in its Proven and Probable Mineral Reserves and Mineral Resources as at December 31, 2010.
Mineral Reserves, net of mining depletion, increased by 882,000 ounces or 24% by reaching a tonnage of 65.3 million grading 2.20 grams per tonne (g/t) for contained gold of 4.62 million ounces at year end. The increase was the result of successful exploration efforts (38%) and an increased gold price (55%). The remainder of the increase (7%) was due to geologic modeling, data interpretation, resource block modeling and changes in engineering parameters. Mining depletion totaled 460,000 ounces of gold and therefore the total reserve addition before depletion was 1.35 million ounces of gold, equivalent to a 36% increase over the Mineral Reserves at December 31, 2009.
Measured and Indicated Mineral Resources increased 63% over 2009 to 54.9 million tonnes grading 1.99 g/t gold. Inferred Mineral Resources increased 20% over 2009 to 16.5 million tonnes grading 3.66 g/t gold.
Tom Mair, President and CEO, said, "We are very pleased to report that our focus on organic growth through exploration has delivered results in 2010. In 2011, we will increase our exploration budget by $10 million to $30 million. Approximately 80% of this 2011 budget will be spent within haul distance of our existing processing plants. This year's results demonstrate the potential of our district-scale property holdings around both mine sites."
Mitchel Wasel, Vice President of Exploration added, "Based on this year's success, by mid-year, we will have nine drill rigs turning in Ghana in proximity to our processing plants. Our goal is to continue replacing and adding to our reserves and resources in the coming year. Our historical practice of using optimized pit shells for constraining resources has resulted in a high conversion of resources to reserves of approximately 70%."
The Mineral Reserve and Mineral Resource estimates have been estimated by our technical personnel in accordance with definitions and guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves published by the Canadian Institute of Mining, Metallurgy, and Petroleum and as required by Canada's National Instrument 43-101.
Source: Golden Star Resources Ltd.