Golden Star Resources has benefited from multiple gold deposits across West Africa

GOLD MINING NEWS - Gold mining company Golden Star Resources (GSS) announced that its proven and probable mineral reserves - net of mining depletion - increased by 450,000 ounces, or 14%, during 2009. This reserve growth resulted in 48.3 million tonnes at a grade of 2.40 grams per tonne (g/t) of gold, for contained gold of 3.73 million ounces as of December 31, 2009. Golden Star cited successful exploration efforts, cost reduction and other engineering changes - as well as a rise in the gold price used to calculate reserves - as factors driving the expansion.

The U.S.-based gold miner with projects in West Africa reported that the total reserve addition came in at 920,000 ounces - a 28% increase over mineral reserves as of the end of 2008 - while mining depletion amounted to 470,000 ounces of gold resulting in the net 14% reserve gain. At the company’s Bogoso/Prestea gold mine in southwest Ghana mineral reserves net of depletion climbed 17%, primarily the result of a change in engineering parameters, as well as a higher gold price assumption. At the Wassa gold mine - also in southwest Ghana - the company pointed to successful exploration efforts and the stronger gold price as the main reasons for the 9% increase in mineral reserves.

Measured and indicated mineral resources for Golden Star Resources fell 10% in 2009 to 26.6 million tonnes of ore grading 2.52 g/t. The company cited conversion of these resources into the mineral reserve categories as the factor behind this decline.

Tom Mair, President and CEO of Golden Star Resources, commented “We are pleased with this reserve increase in 2009 that illustrates our commitment to organic growth through exploration which has not only replaced the year’s production but also added to our life of mine reserves. We have substantially increased our exploration budget for 2010, so we expect to both increase our reserve and resource base and continue to convert resource into reserves. Our district-scale property holdings surrounding our mine sites have significant potential and these results emphasize our commitment to further exploration and development.”

Golden Star was highlighted recently by well-respected mutual fund manager, Kevin MacLean, who stewards the Sentry Select Precious Metals Growth Fund - which has won awards from mutual fund rating firm Lipper in the precious-metals equity category. Mr. MacLean’s fund has posted an average annual return of 25% over five years and 8.5% over three years, as he has concentrated on small-cap gold mining companies that can appreciate not solely based upon a rising gold price. The fund manager named three gold companies as his current top picks - Golden Star (GSS), Semafo (SMF.TSX) and Red Back Mining (RBI.TSX) - each operates in West Africa and has a high cash-flow yield. As for large-cap gold miners like Barrick Gold (ABX) and Newmont Mining (NEM), Mr. MacLean described them as “dead money in a flat gold price environment.”

Golden Star Resources is an international gold mining and exploration company with operations in Ghana, West Africa and South America. Golden Star owns controlling interests in several gold properties in southwest Ghana, including the Bogoso/Prestea and Wassa mines. In morning trading shares of GSS were lower by $0.09 to $3.09 while the gold price fell $7.08 to $1,115.50 per ounce.