Ore Resource Estimation of Pampe Gold Deposit, Ghana

by

Francis Fosu

A project submitted to the Department of Mining Engineering

in conformity with the requirements for the

Masters of Engineering

Queen's University

Kingston, Ontario, Canada

December, 2012

EXECUTIVE SUMMARY

This report is a result of an ore resource estimation of a gold deposit situated in the Asankragwa

belt at Pampe, a Golden Star Resources property in the western region of Ghana. The deposit is

about 25 km south west of Bogoso and 97 km from the port of Takoradi. The deposit has three

main ore bodies, the main reef, the hanging wall and the footwall ore bodies.

The objective of the work was to estimate the resource of the deposit after the exploration

drilling to determine the viability of the project and make related financial decisions. The ore

estimation was based on 779 drill holes. This includes 11 metallurgical holes, 133 diamond drill,

116 reverse circulation holes and 519 rotary air blast holes.

The QAQC analysis of 70 laboratory duplicates gave 16% precision of 64% samples

repeatability with a correlation coefficient of 0.96%. The field duplicates compared against the

original assay values exhibited a relatively lower degree of repeatability. It was released that

about 60% repeatability of samples fell within 20% precision (relative difference). In all a total

of 97 field duplicates were analysed thus producing a correlation coefficient of 0.68%.

Two hundred and eighty certified standards and 18 blanks were inserted in the samples submitted

for analysis and generally the overall assay results produced by SGS with reference to the

certified mean was acceptable within the industry standards.

Two meters composite sample was prepared for the sample population which was constrained

using the solid. A basic statistics report for the sample population at 99.5% and a point of

inflexion on a cumulative plot graph gave a threshold value of 30 gpt. Forty-nine samples

ranging from 31.15 g/t to 133.10 g/t which represents about 0.45 % of the total composites

samples had their grades reduced to 30g/t. The economic cut off grade for oxide, transition and

fresh ore was 0.73 gpt, 0.80 gpt and 0.90gpt respectively. The capped assay values were used for

interpolation using the search ellipse, trace blocks and variogram parameters and the results was

2,277,425 tonnes at 3.14 gpt. The total ounces contained were 191,644 at 3.21gpt for measured

and indicated and 38,183 at 2.84 gpt for inferred resources.

BIOGRAPHY

Francis Fosu was educated at the University of Mines and Technology, Tarkwa, Ghana (MSc in

Geological Engineering). He worked for Golden Star Resource (Canadian Mid-tier) in Ghana as

senior Resource geologist before joining Queen's University to undertake MEng in mining

engineering under the supervision of Dr. James Archibald (The Robert M. Buchan Dept. of Mining).

His project work is being supervised by Professor George McIsaac.