Golden Star, Billiton eyeing gold, copper mining in Cuyuni
US$3.5M could be spent in five years
Stabroek News
April 27, 2002
Golden Star Resources Ltd has entered into a joint venture to acquire two prospecting licences in the Cuyuni with BHP Minerals International Exploration Inc, which will plug US$3.5 million into exploration in the first five years.
In a press release issued by Golden Star earlier this week, it was stated that the Cuyuni property, covering an area of 104 square kilometres, is believed to have copper and gold and is being acquired from Barama Company Ltd.
Under the agreement, BHP will pay to Barama US$65,000 upon the signing of the agreement; US$10,000 upon the transfer of the prospecting licences for the Cuyuni property into the name of BHP; US$25,000 per year on the anniversary of the signing of the agreement as an advance royalty payment; US$250,000 for each mine site developed by BHP as a further advance payment for royalty; one per cent of the capitalised exploration and development cost of each new mine site as a cash payment upon commencement of commercial production; and a net profits royalty of five per cent.
The release said BHP, a member of BHP Billiton Ltd, will have 80% managing interest in the joint venture and will fund 100% of all project expenditure up to the completion of a bankable feasibility study. Golden Star will have 20% interest in the joint venture and will be "free carried" until the completion of the bankable feasibility study, the release stated.
Golden Star's President and Chief Executive Officer, Peter Bradford, was quoted in the release as saying: "Golden Star has a long association with the Guiana Shield and has developed a tremendous knowledge base, which we are keen to capitalise on. We are therefore pleased to have renewed our association with BHP and to have the opportunity to participate in the exploration of the Cuyuni property."
Golden Star holds a 30% equity interest in Omai Gold Mines Ltd in Guyana.
It also has 90% equity interest in the Bogoso/Prestea open-pit gold mine in Ghana, a 45% interest in, and management of, the Prestea underground mine in Ghana, and a 50% interest in the Gross Rosebel gold project in Suriname.
In addition, the company has other gold exploration interests in the Guiana Shield in South America and in West Africa.
BHP Billiton is one of the world's leading metals and mining companies. It is a major producer of aluminium and alumina, chrome and manganese ores and alloys, steaming coal, nickel and titanium minerals, and is developing a growing copper portfolio. It employs some 30,000 people, mainly in Australia, Latin America and Southern Africa, and has its headquarters in London.