Golden Star Resources Ltd. (GSS - Free Report) has announced its proven and probable mineral reserves (also called "Mineral Reserves") and mineral resources as of Dec 31, 2013.
Golden Star’s mineral reserve ounces (oz) declined 8% year over year to 3.9 million oz mainly due to mining depletion and lower gold price assumptions used. Mineral reserves were estimated on a gold price assumption of $1,300 per oz compared with $1,450 per oz estimated on Dec 31, 2012.
At the Wassa mine, proven and probable mineral reserves rose by 34% year over year to 2 million oz. Despite a reduction in gold price assumption and depletion of 206,000 ounces of mineral reserve, there was an increase in the proven and probable mineral reserves at the mine.
At Bogoso mine, Mineral Reserves in active pits was 394,000 oz, a decline of 53% from the previous year due to lower gold price assumptions despite an increase in grades.
Golden Star’s measured and indicated mineral resource ounces declined 14% year over year to 6.4 million oz with lower gold price assumption of $1,400 per oz. Wassa's total measured and indicated mineral resource increased 29% year over year to 3.3 million oz as of Dec 31, 2013. The increase is due to a 37% increase in the mineral resource within the Wassa Main pit design and the inclusion of 289,000 oz of mineral resource from the Wassa Underground deposit.
Bogoso's measured and indicated mineral resource declined 35% from the previous estimate to 3 million oz due to the lower gold price assumption used and depletion in the pits where mining is currently ongoing.
Golden Star is presently drilling the Wassa Main deposit to determine the ultimate size as well as improve the understanding of the deposit. The company’s strategy is to increase production from low cost non-refractory ore sources while reducing overall operating costs.
Golden Star currently carries a Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Rank include Franco-Nevada Corp. (FNV - Free Report) , Lake Shore Gold Corp. and Alexco Resource Corp. , each with a Zacks Rank #2 (Buy).