GOLDEN Star’s Wassa deposit in Ghana may be larger than last estimated in an inferred mineral resources report that identifyied 5.2 million ounces of gold, said Sam Coetzer, CEO and president of the company in an update today.
This followed exploration of Wassa’s underground section which “… intersected significant gold mineralisation 200 metres down plunge to the south of the inferred mineral resource. “The deposit remains open down plunge and up and down dip so we believe that significant further upside potential exists,” said Coetzer.
“With the strategic investment from La Mancha, we plan to accelerate drilling so that we can gain a more thorough understanding of the magnitude of the deposit” he said. An updated mineral resource estimate is scheduled for February 2019 which Coetzer said was likely to “… further demonstrate its larger scale, longer term potential”.
On August 2, Golden Star unveiled a potentially transformative transaction in which Egyptian entrepreneur Naguib Sawiris’ La Mancha investment vehicle injected $125.7m into the Toronto-listed gold producer.
In return for the funds, La Mancha will be issued with about 163.2 million Golden Star common shares, representing approximately 30% of the outstanding share capital. Sawiris’ best known African gold development is his backing of Endeavour Mining which has grown from a West African minnow into a company with ambitions to produce some 900,000 ounces a year of gold from about 2020.
