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Gold/Mining/Energy : Golden Star Resources Ltd. - A Potenial Ten Bagger -- Ignore unavailable to you. Want to Upgrade?

To: JG who wrote (10)	7/31/1998 7:31:00 PM
From: Pete Mimmack	Read Replies (1) \| Respond to of 44

Jim - Don't worry. Here's yesterday's PR. No debt, $11 million USD, another $3.7 million on the way with this deal. While I don't know their burn rate, I doubt they'll be chewing up $14 mil this quarter. DENVER, July 30 /PRNewswire/ -- Golden Star Resources Ltd. (Amex: GSR; Toronto: GSC) (Golden Star) and Cambior Inc. (Amex: CBJ) (Cambior) are pleased to announce that an agreement has been reached for the exploration and development of Golden Star's Eagle Mountain property. Eagle Mountain is located in central Guyana approximately 50 kilometers southeast of the Omai mine, held through Omai Gold Mines Limited (OGML) in which Cambior, Golden Star and the Government of Guyana hold a 65%, 30% and 5% equity interest, respectively. Under the terms of the agreement, OGML can earn a 100% interest in the Eagle Mountain Project by: * Paying US$80,000 to Golden Star upon closing, which is contingent on approval of the OGML Board of Directors and acceptance by the government of Guyana of the transfer of Eagle Mountain to OGML and conversion of the exploration permit to a mining lease. * Advancing to Golden Star at closing approximately $3.7 million, as a non interest bearing loan to be repaid through the normal redemption of the Class I Preference Shares owed to Golden Star currently. * Funding 100% of exploration and feasibility costs associated with future programs at Eagle Mountain through completion of a final feasibility study. * If exploration is successful in defining a mining reserve resulting in a positive feasibility study and mine development, OGML will pay a 1.5% net smelter royalty to Golden Star upon achievement of commercial production. In addition, OGML will pay to Golden Star an amount equal to $1 million at the end of each year of commercial production for a period of five years. The Eagle Mountain area has been an important center of mechanized and small scale gold mining in Guyana for over a century, producing in excess of 750,000 ounces. Systematic gold exploration has been conducted on and off at Eagle Mountain since the 1940's, including programs by the former Anaconda Company (57 core holes), the Guyana Geology and Mines Commission (22 core holes) and Golden Star (27 core holes). This work has identified at least four relatively flat lying, stacked and collapsed mineralized breccia zones, or cupolas, which exist over a known strike length of approximately 2.1 kilometers. Continuing exploration programs will aim at better defining the nature and tenure of gold mineralization in the four known zones as well as testing for possible extensions of the mineralization. OGML will manage the exploration with a Golden Star team of geologists seconded to the project. David Fennell, President and CEO of Golden Star commented, "A joint venture with OGML on Eagle Mountain makes good sense given the project's relative proximity to the Omai mine and the potential operating synergies that could be generated if exploration is successful at Eagle Mountain. For Golden Star, the joint venture provides an additional $3.7 million in cash by accelerating payments from OGML during a depressed time in the gold sector. The additional cash will allow us to advance exploration at our other projects. For OGML, Eagle Mountain represents a promising exploration opportunity where a significant amount of work has already been completed, defining four substantial zones of mineralization that can now be drilled out to determine their commercial interest. Golden Star is a gold and diamond exploration company which holds a 30% equity interest in the Omai gold mine in Guyana, one of the largest gold mines in South America. Golden Star also holds significant gold and diamond exploration interests in South America and Africa. Golden Star currently has approximately 30.3 million shares outstanding, approximately US$11 million in cash and no debt. The Company is listed on the Toronto Stock Exchange (under the symbol "GSC") and the American Stock Exchange (under the symbol "GSR").