Golden Star Commences Mining of Pampe Gold Project



    Increases Mineral Reserves of 219,500 Ounces

    DENVER, March 21 /CNW/ - Golden Star Resources Ltd. (AMEX:   GSS) (TSX:
GSC) is pleased to announce the commencement of mining on its Pampe gold
project in Ghana.

    The Pampe project is a satellite deposit on the Akropong Trend, west of
Bogoso, where we have been exploring for a number of years and have identified
a 219,500 ounce mineral reserve, which was included in our year-end 2006
mineral reserve estimate for Bogoso/Prestea. Ore mining at Pampe commenced in
March.

    Peter Bradford, President and CEO, said, "We are very excited to announce
the commencement of mining and delivery of ore to Bogoso from the Pampe
project, for three reasons. First, an additional 219,500 ounces of gold
Mineral Reserves is important; second, for us these Mineral Reserves are in a
new mineral province, the Akropong Trend, approximately 30 kilometers west of
the Ashanti Gold Belt, which potentially provides a second exploration front
to support our activities at Bogoso/Prestea; and third, the additional gold
mineral reserve ounces at Pampe are non-refractory and will therefore provide
a source of feed for our Bogoso CIL processing plant at a very attractive
average grade of 3.3 grams per tonne (g/t) gold."

    LOCATION

    The Pampe deposit is located 26 kilometers north-northwest of our
expanded Bogoso processing plant complex and 1.7 kilometers north of the
highway between Bawdie and Asankragwa in the Western Region of Ghana. The
Pampe deposit lies within Lower Proterozoic Birimian volcano-sedimentary
sequences dominated by a major northeast-southwest trending structural feature
referred to as the Akropong Trend. The Akropong Trend runs parallel to and
about 30 kilometers west of the well known Ashanti Trend and represents a
major deep-seated fault system which hosts gold-rich hydrothermal systems.

    OWNERSHIP

    Golden Star entered into two option agreements to acquire the area
covering the Pampe project area in 1999 and 2000. Under the terms of the
option agreements, Golden Star had the right to acquire the area by the
payment to the vendors of $8 to $10 per ounce of Proven and Probable Mineral
Reserve contained within a feasibility study on the project. Based on a
feasibility study completed in mid-2006, the options have been exercised at a
cost of approximately $1.4 million, inclusive of all past payments.

    PERMITTING AND MINING

    Environmental permitting for the project was completed in late 2006 and
work to construct the access roads to the proposed pit commenced immediately
afterwards and is now complete. Although applications for a Mining Lease and
Mining Permit are still being processed and are expected soon, we have
commenced mining at Pampe pursuant to a special mining permit allowing us to
mine a 100,000 tonne bulk ore sample. Consequently, waste mining commenced in
February and the first ore was mined and delivered to the processing plant in
March. We expect that the mining lease will be issued before the bulk sampling
permit is fully utilized.

    The mineralization at Pampe is non-refractory and will be processed
through the Bogoso carbon-in-leach (CIL) processing plant. Testwork on the
Pampe ore types indicate that gold recoveries of around 90% for the oxide
material and around 83% for the fresh sulfide material are achievable.

    Peter Bradford stated, "We ceased mining at the Plant-North pit in
December and had expected that ore mining at Pampe would have commenced prior
to now, but delays in exercising the option agreements to acquire the Property
stopped this from happening. Although we are pleased that ore mining did
commence in March, the delay caused us to process lower grade, lower recovery
stockpiled material through the Bogoso CIL processing plant to fill the gap.
This is now expected to result in Bogoso/Prestea production for the first
quarter being short of guidance."

    MINERAL RESERVES

    Additional work on the property in the second half of 2006 has resulted
in an increase in the Mineral Reserves relative to feasibility study
assessment. As at December 31, 2006 a Probable Mineral Reserve of 2.06 million
tonnes grading 3.31 grams of gold per tonne for 219,500 ounces of gold
contained has been estimated at Pampe, and these Mineral Reserves were
included in our year-end Mineral Reserve statement for Bogoso/Prestea, as
tabulated below.

    
          Pampe Prospect - Mineral Reserves as at December 31, 2006

                                                               Contained
                             Reserve      Tonnes     Grade       Ounces
        Material Type        Category   (millions)  (Au g/t)  (thousands)
    ---------------------- ------------ ---------- ---------- ------------
       Oxide(1)              Probable     0.59       2.71        51.6
    ---------------------- ------------ ---------- ---------- ------------
       Transitional          Probable     0.30       3.03        29.6
    ---------------------- ------------ ---------- ---------- ------------
       Fresh(2)              Probable     1.16       3.70        138.3
    ---------------------- ------------ ---------- ---------- ------------
    TOTAL                    Probable     2.06       3.31        219.5
    ---------------------- ------------ ---------- ---------- ------------
    

    (1) Oxide material is that material that has had all sulfides leached out
via weathering. These materials are softer and thus easier to process.

    (2) Fresh material is material found at depth that is not weathered, is
non-refractory in nature and can be processed through our new BIOX(R) plant.

    MINERAL RE

SOURCES As at December 31, 2006, the estimated Mineral Resources, which are in addition to the Mineral Reserves, were included in our year-end Mineral Resource statement for Bogoso/Prestea and which are in addition to the Mineral Reserves, and are as follows: Pampe Prospect - Mineral Resources as at December 31, 2006 Tonnes Grade Category (millions) (Au g/t) --------------------- ------------------- --------------------- Indicated 0.29 3.18 --------------------- ------------------- --------------------- Inferred 0.13 3.42 --------------------- ------------------- --------------------- Notes to the Mineral Reserves and Mineral Resources: 1. The stated Mineral Reserves and Mineral Resources have been prepared in accordance with Canada's National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mineral Reserves are equivalent to Proven and Probable Reserves and Mineral Resources are equivalent to Mineralized Material as defined by the United States Securities and Exchange Commission (SEC) Industry Guide 7. 2. The Mineral Reserves have been prepared under the supervision of Mr. Peter Bourke, P.Eng., Vice President Technical Services for the Company. The Mineral Resources have been prepared under the supervision of Mr. S. Mitchel Wasel, Exploration Manager for the Company. Both Mr. Bourke and Mr. Wasel are qualified persons as defined by Canada's National Instrument 43-101. 3. The Mineral Reserves were estimated using a gold price of $480 per ounce, approximately the three year average price required by the SEC, and Mineral Resources were estimated using a gold price of $560 per ounce. The Mineral Reserves are based on a mine plan derived from an optimized pit shell. The Mineral Resources are contained within an optimized pit shell and are in addition to the Mineral Reserves. 4. The Pampe Project Mineral Reserves and Mineral Resources were included in the Bogoso/Prestea Mineral Reserve and Mineral Resource statement as at December 31, 2006. 5. Optimized pit parameters were based on historical mining and processing costs at Bogoso and assume haulage to the existing Bogoso CIL plant. Metallurgical testwork (AMMTEC) on the Pampe ore types indicate that they are non-refractory and gold recoveries of around 90% for the oxide material and around 83% for the fresh sulfide material are achievable. Geotechnical drilling and tests have been reviewed by SRK Consulting and their recommendations for pit wall angles have been incorporated into the optimized pit parameters. Mining dilution of 5% and mining recovery of 100% has been assumed. 6. Mineral Resources are reported using a block grade cut-off of 0.82 grams per tonne for oxide material, 0.91 grams per tonne for transitional material and 0.95 grams per tonne for fresh material. High-grade assays within the sample population were cut using an upper cut of 20 grams of gold per tonne for oxide and 30 grams of gold per tonne for transition and fresh samples. 7. Mineral Reserves and Mineral Resources are expressed on a 100% basis. Golden Star's share of the Mineral Reserves and Mineral Resources is subject to the Government of Ghana's 10% carried interest which entitles them to a 10% dividend once our capital costs have been recovered. 8. Numbers may not add due to rounding. Quality Assurance-Quality Control (QA-QC) Drilling of the Pampe deposit has been conducted periodically over the last two years using both Reverse Circulation (RC) and Diamond Core drilling. All diamond drill core is split at Bogoso, with half the core lengths sent to TransWorld Laboratories in Tarkwa, Ghana, for sample preparation and analysis. The remaining half or quartered (depending on metallurgical test selection) core is stored at Bogoso for future inspection and detailed logging, to provide valuable information on mineralogy, structure, alteration patterns and the controls on gold mineralization. All RC holes are sampled in three-meter composites with all intervals exceeding 0.2 grams of gold per tonne being resampled on one meter intervals. All sample preparation, crushing, and analysis are carried out at the TransWorld Laboratories in Tarkwa, Ghana. Samples are subjected to 12-hour BLEG (Bulk Leach Extractable Gold) Leachwell analysis of 1,000 gram sub-samples pulverized to 85% at minus 75 microns (200#) to a quoted accuracy of 10 parts per billion of gold. All analytical work is subject to a systematic and rigorous QA-QC. At least 5% of samples are blanks, duplicates and certified standards and the accuracy of the analysis is confirmed to be acceptable from comparison of the recommended and actual 'standard' results. Significant drill intersections are summarized in the following table with a complete set of intersections available on our web site www.gsr.com. Additional drilling is planned for 2007 to test some of the higher grade shoots that exhibit widths and grades which could be exploitable via underground mining methods. Pampe South Prospect Significant Reverse Circulation and Diamond Drill Results NORTH EAST Elevation From To Hole ID (m) (m) (m) (m) (m) ------------------------------ --------- ------- --------- ---- ---- PPSDD002 23,586 28,026 5,098 66 84 PPSDD004 23,731 27,950 5,139 188 196 PPSDD004 23,731 27,950 5,139 214 225 PPSDD007 23,489 27,925 5,122 116 145 PPSDD007 Including 123 129 PPSDD007 Including 131 139 PPSDD009 23,489 27,875 5,148 153 160 PPSDD010 23,423 27,925 5,148 233 255 PPSDD011 23,436 27,900 5,147 182 214 PPSDD012 23,467 27,825 5,174 146 158 PPSDD013 23,484 27,947 5,120 165 177 PPSDD017 23,533 27,925 5,112 54 79 PPSDD020 23,478 27,775 5,181 128 137 PPSDD021A 23,492 27,756 5,080 124 131 PPSRC006 23,569 28,000 5,098 87 111 PPSRC006 Including 95 100 PPSRC008 23,535 27,950 5,105 80 131 PPSRC008 Including 92 97 PPSRC008 Including 110 117 PPSRC009 23,536 27,847 5,147 15 27 PPSRC009 50 56 PPSRC011 23,530 27,750 5,192 48 56 PPSRC011 63 76 PPSRC023 23,508 27,775 5,178 75 85 PPSRC024 23,556 27,775 5,190 8 29 PPSRC026 23,563 27,924 5,109 17 57 PPSRC026 Including 21 25 PPSRC026 Including 35 40 PPSRC026 84 89 PPSRC027 23,579 27,950 5,108 11 27 PPSRC027 Including 23 27 PPSRC028 23,654 28,000 5,110 57 65 PPSRC028 72 97 PPSRC030 23,532 27,819 5,161 112 133 PPSRC030 Including 113 121 PPSRC031 23,560 27,823 5,163 32 43 PPSRC032 23,544 27,875 5,127 24 46 PPSRC032 67 85 PPSRC034 23,481 27,851 5,162 138 147 PPSRC035 23,495 27,750 5,180 83 91 PPSRC037 23,530 27,772 5,186 44 64 PPSRC039 23,616 28,050 5,090 29 38 PPSRC040 23,641 28,070 5,088 13 23 PPSRC041 23,579 28,050 5,089 81 106 ---------------------------------------------------------------------- Approx. Drilled True Grade Dip Azimuth width Width Au Hole ID (degrees) (degrees) (m) (m) (g/t) ---------------------------- --------- --------- ------- ------- ----- PPSDD002 -52 97 18.0 12.2 2.6 PPSDD004 -52 281 7.6 5.2 6.3 PPSDD004 -52 281 11.0 7.5 6.6 PPSDD007 -45 106 29.4 22.5 12.2 PPSDD007 -45 106 6.0 4.6 39.0 PPSDD007 -45 106 8.0 6.1 9.3 PPSDD009 -58 92 6.9 4.2 10.0 PPSDD010 -43 93 21.5 17.0 5.9 PPSDD011 -49 93 32.2 23.2 2.9 PPSDD012 -53.5 91 12.0 8.0 4.7 PPSDD013 -50.5 93 12.0 8.4 7.3 PPSDD017 -50 90 25.0 17.7 2.7 PPSDD020 -52 94 9.0 6.1 8.8 PPSDD021A -64 88 7.0 3.6 8.7 PPSRC006 -50 90 24.0 17.0 6.0 PPSRC006 -50 90 5.0 3.5 13.0 PPSRC008 -51 96 51.0 35.4 4.4 PPSRC008 -51 96 5.0 3.5 9.1 PPSRC008 -51 96 7.0 4.9 8.7 PPSRC009 -50 90 12.0 8.5 4.0 PPSRC009 -50 90 6.0 4.2 16.7 PPSRC011 -50 89 8.0 5.7 8.1 PPSRC011 -50 89 13.0 9.2 8.9 PPSRC023 -52 98 10.0 6.8 11.0 PPSRC024 -51 100 21.0 14.6 5.4 PPSRC026 -50 96 40.0 28.3 5.0 PPSRC026 -50 96 4.0 2.8 10.6 PPSRC026 -50 96 5.0 3.5 12.8 PPSRC026 -50 96 5.0 3.5 13.1 PPSRC027 -50 90 16.0 11.3 7.5 PPSRC027 -50 90 4.0 2.8 20.8 PPSRC028 -49 279 8.0 5.8 6.8 PPSRC028 -50 278 25.0 17.7 2.2 PPSRC030 -60 94 21.0 12.0 2.3 PPSRC030 -60 94 8.0 4.6 4.4 PPSRC031 -50 99 11.0 7.8 5.3 PPSRC032 -52 95 22.0 15.0 3.4 PPSRC032 -52 95 18.0 12.3 3.6 PPSRC034 -52 91 9.0 6.1 5.8 PPSRC035 -45 96 8.0 6.1 8.5 PPSRC037 -50 88 20.0 14.1 6.9 PPSRC039 -50 87 9.0 6.4 10.8 PPSRC040 -50 90 10.0 7.1 9.5 PPSRC041 -50 97 25.0 17.7 2.5 ---------------------------------------------------------------------- COMPANY PROFILE Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana and various property interests elsewhere in the country, as well as other gold exploration interests in West Africa and in the Guiana Shield of South America. Golden Star's gold production is expected to increase to 390,000 ounces in 2007, nearly doubling gold sales relative to 2005 and 2006. Golden Star has approximately 232 million common shares outstanding. Note regarding Canada's National Instrument 43-101: The above disclosure has been reviewed by our Qualified Persons, Mr. S. Mitchel Wasel, Exploration Manager in Ghana, and Mr. Peter Bourke, P.Eng., Vice President Technical Services. Cautionary Note to US Investors concerning estimates of Measured and Indicated Mineral Resources: US investors are advised that while the terms "measured mineral resources" and "indicated mineral resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them. US investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. Cautionary Note to US Investors concerning estimates of Inferred Mineral Resources: US investors are advised that while the term "inferred mineral resources" is recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources could not form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable. Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding anticipated increases in production, receipt of a Mining Lease and Mining Permit for the Pampe deposit, gold recoveries from Pampe ore, the establishment and estimates of mineral reserves and non-reserve mineral resources, the recovery of any mineral reserve, planned operations, production, grade, recoveries, and planned exploration activities. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration, construction and start-up; variations in ore grade; variations in relative amounts of refractory, non-refractory and transition ores; variations in tonnes mined, crushed or milled; delay or failure to receive board or government approvals; including the Mining License and Mining Permit for the Pampe deposit; technical or permitting issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2005.

For further information:

For further information: Golden Star Resources Ltd. Bruce Higson-Smith,
800-553-8436 Vice President Corporate Development or Anne Hite, 800-553-8436
Investor Relations Manager


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