GOLDEN STAR RESOURCES

NI 43-101 Technical Report on the Wassa Gold Mine

Mineral Resource & Mineral Reserve Update and

Preliminary Economic Assessment of the Southern Extension Zone

Western Region, Ghana

QUALIFIED PERSONS

Matthew Varvari, FAusIMM

  1. Mitchel Wasel, MAusIMM CP(Geo)

Philipa Varris, MAusIMM CP(Env)

Report Date:

1 March 2021

Effective Date: 31 December 2020NI 43-101 Technical Report (March 2021) Wassa Gold Mine

CONTENTS

1 EXECUTIVE SUMMARY_______________________________________________________________ 16

1.1 Terms of Reference ________________________________________________________________ 16

1.2 Location and Setting _______________________________________________________________ 16

1.3 Mineral Tenure, Permits, Royalties and Agreements ______________________________________ 16

1.4 History __________________________________________________________________________ 17

1.5 Geology and Mineralization _________________________________________________________ 17

1.6 Drilling and Sampling_______________________________________________________________ 18

1.7 Data Verification __________________________________________________________________ 18

1.8 Metallurgical Test Work ____________________________________________________________ 19

1.9 Mineral Resource Estimate __________________________________________________________ 19

1.10 Mineral Reserve Estimate __________________________________________________________ 21

1.11 Mining Methods _________________________________________________________________ 21

1.12 Recovery Methods________________________________________________________________ 24

1.13 Infrastructure ___________________________________________________________________ 26

1.14 Environmental Studies, Permitting and Social or Community Impact ________________________ 27

1.15 Capital and Operating Costs ________________________________________________________ 28

1.16 Economic Analysis ________________________________________________________________ 29

1.17 Preliminary Economic Assessment of the Southern Extension Zone _________________________ 30

1.18 Conclusions and Interpretations _____________________________________________________ 32

1.19 Recommendations________________________________________________________________ 36

2 INTRODUCTION ____________________________________________________________________ 38

2.1 Terms of Reference ________________________________________________________________ 38

2.2 Wassa Gold Mine__________________________________________________________________ 38

2.3 Principal Sources of Information______________________________________________________ 39

2.4 Qualified Persons__________________________________________________________________ 39

2.5 Effective Dates____________________________________________________________________ 39

2.6 Previous Technical Report___________________________________________________________ 40

3 RELIANCE ON OTHER EXPERTS ________________________________________________________ 41

4 PROPERTY DESCRIPTION AND LOCATION________________________________________________ 42

4.1 Location of Mineral Concessions______________________________________________________ 42

4.2 Mineral Rights ____________________________________________________________________ 45

4.3 Royalties and Other Payments; Encumbrances __________________________________________ 46

4.4 Historic Environmental Liability and Indemnity __________________________________________ 46

4.5 Permits and Authorization __________________________________________________________ 47

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ___________ 49

5.1 Accessibility ______________________________________________________________________ 49

5.2 Physiography and Vegetation ________________________________________________________ 49

5.3 Land Use and Proximity to Local Population Centres ______________________________________ 49

5.4 Local Resources and Infrastructure____________________________________________________ 50

5.5 Climate and Length of Operating Season _______________________________________________ 50

6 HISTORY __________________________________________________________________________ 52

6.1 Wassa __________________________________________________________________________ 52

6.2 Hwini Butre, Benso and Chichiwelli____________________________________________________ 52

6.3 Production History, Previously Declared Resources and Reserves____________________________ 53

7 GEOLOGICAL SETTING AND MINERALIZATION ____________________________________________ 55

Page 2NI 43-101 Technical Report (March 2021) Wassa Gold Mine

7.1 Regional Geology__________________________________________________________________ 55

7.2 Local Geology and Mineralization _____________________________________________________ 57

8 DEPOSIT TYPES_____________________________________________________________________ 71

8.1 Wassa __________________________________________________________________________ 71

8.2 Hwini Butre ______________________________________________________________________ 72

8.3 Hwini Butre ______________________________________________________________________ 74

8.4 Chichiwelli _______________________________________________________________________ 75

9 EXPLORATION _____________________________________________________________________ 76

9.1 Wassa __________________________________________________________________________ 76

9.2 Hwini Butre ______________________________________________________________________ 78

9.3 Benso and Chichiwelli ______________________________________________________________ 79

10 DRILLING__________________________________________________________________________ 80

10.1 Surface Drilling __________________________________________________________________ 80

10.2 Underground Drilling______________________________________________________________ 81

10.3 Sampling _______________________________________________________________________ 81

11 SAMPLE PREPARATION, ANALYSES AND SECURITY ________________________________________ 84

11.1 Sample Preparation_______________________________________________________________ 84

11.2 Sample Dispatch and Security _______________________________________________________ 84

11.3 Laboratory Procedures ____________________________________________________________ 84

11.4 Quality Control and Quality Assurance ________________________________________________ 87

11.5 Specific Gravity Data _____________________________________________________________ 104

12 DATA VERIFICATION _______________________________________________________________ 106

12.1 Drilling Database ________________________________________________________________ 106

12.2 Other Verifications by the Qualified Person ___________________________________________ 106

13 MINERAL PROCESSING AND METALLURGICAL TESTING ___________________________________ 107

13.1 Early Metallurgical Test Work ______________________________________________________ 107

13.2 2015 Test Work Program__________________________________________________________ 107

13.3 Test Work Findings ______________________________________________________________ 109

14 MINERAL RESOURCES ______________________________________________________________ 119

14.1 Introduction____________________________________________________________________ 119

14.2 Mineral Resource Estimation Procedures _____________________________________________ 120

14.3 Mineral Resource Database _______________________________________________________ 121

14.4 Grade Shell Modelling ____________________________________________________________ 123

14.5 Statistical Analysis and Variography _________________________________________________ 132

14.6 Block Model and Grade Estimation__________________________________________________ 151

14.7 Model Validation and Sensitivity____________________________________________________ 156

14.8 Mineral Resource Classification ____________________________________________________ 165

14.9 Mineral Resource Statement_______________________________________________________ 171

14.10 Mineral Resource Risks __________________________________________________________ 173

15 MINERAL RESERVES ________________________________________________________________ 174

15.1 Cut-off Grade___________________________________________________________________ 174

15.2 Modifying Factors _______________________________________________________________ 175

15.3 Mineral Reserve Statement________________________________________________________ 175

15.4 Mineral Reserve Risks ____________________________________________________________ 176

Page 3NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16 MINING METHODS_________________________________________________________________ 177

16.1 Mineral Resources Considered in Mining Plan _________________________________________ 177

16.2 Mining Locations ________________________________________________________________ 178

16.3 Current and Upper Mining Zones (Panels 1-3) _________________________________________ 180

17 RECOVERY METHODS ______________________________________________________________ 207

17.1 Processing History _______________________________________________________________ 207

17.2 Flow Sheet Description ___________________________________________________________ 207

17.3 Processing Schedule _____________________________________________________________ 210

18 INFRASTRUCTURE _________________________________________________________________ 213

18.1 Electrical Infrastructure___________________________________________________________ 215

18.2 Surface Water Management _______________________________________________________ 217

18.3 Workshops and Other Site Buildings_________________________________________________ 218

18.4 Site Accommodation _____________________________________________________________ 218

18.5 Waste Rock Storage______________________________________________________________ 219

18.6 Tailings Storage _________________________________________________________________ 221

19 MARKET STUDIES AND CONTRACTS ___________________________________________________ 227

19.1 Market Studies _________________________________________________________________ 227

19.2 Contracts ______________________________________________________________________ 227

20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT ______________ 228

20.1 Relevant Legislation and Required Approvals__________________________________________ 228

20.2 International Requirements _______________________________________________________ 232

20.3 Environmental and Social Setting ___________________________________________________ 233

20.4 Environmental and Social Management ______________________________________________ 246

20.5 Environmental and Social Issues ____________________________________________________ 249

20.6 Closure Planning ________________________________________________________________ 252

21 CAPITAL AND OPERATING COSTS _____________________________________________________ 254

21.1 Introduction____________________________________________________________________ 254

21.2 Capital Costs ___________________________________________________________________ 254

21.3 Operating Costs _________________________________________________________________ 257

21.4 Closure Costs ___________________________________________________________________ 259

22 ECONOMIC ANALYSIS ______________________________________________________________ 260

22.1 Assumptions ___________________________________________________________________ 260

22.2 Stream, Taxes and Royalty ________________________________________________________ 261

22.3 Economic Results, Base Case_______________________________________________________ 261

22.4 Economic Results, Consensus Case __________________________________________________ 263

22.5 Sensitivity _____________________________________________________________________ 265

23 ADJACENT PROPERTIES _____________________________________________________________ 267

24 OTHER RELEVANT DATA AND INFORMATION ___________________________________________ 268

24.1 Southern Extension PEA Introduction________________________________________________ 268

24.2 Mineral Resources used in the PEA__________________________________________________ 270

24.3 Mining Methods ________________________________________________________________ 271

24.4 Metallurgical Testing _____________________________________________________________ 302

24.5 Recovery Methods_______________________________________________________________ 309

24.6 Infrastructure __________________________________________________________________ 311

24.7 Environmental, Permitting and Social and Community Impact ____________________________ 311

Page 4NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 5

24.8 Closure Planning ________________________________________________________________ 312

24.9 Capital and Operating Costs _______________________________________________________ 312

24.10 Economic Analysis ______________________________________________________________ 317

24.11 Conclusions and Interpretations ___________________________________________________ 323

25 CONCLUSIONS AND INTERPRETATIONS ________________________________________________ 328

25.1 Conclusions ____________________________________________________________________ 328

25.2 Risks__________________________________________________________________________ 332

25.3 Opportunities __________________________________________________________________ 334

26 RECOMMENDATIONS ______________________________________________________________ 336

26.1 Current Operations ______________________________________________________________ 336

26.2 Southern Extension Zone _________________________________________________________ 337

27 REFERENCES ______________________________________________________________________ 341

28 DATE AND SIGNATURES_____________________________________________________________ 345NI 43-101 Technical Report (March 2021) Wassa Gold Mine

LIST OF FIGURES

Figure 1-1 Underground Production History and Mineral Reserve plan ……………………………………………………………….. 24

Figure 1-2 Processing Production History and Mineral Reserve plan……………………………………………………………………. 25

Figure 1-3 Gold Production History and Mineral Reserve plan ……………………………………………………………………………. 26

Figure 1-4 Processing schedule for Southern Extension PEA ………………………………………………………………………………. 31

Figure 1-5 Gold Production Schedule for Southern Extension PEA ………………………………………………………………………. 31

Figure 1-6 Project Execution Plan, Southern Extension Panels 4 and 5 ………………………………………………………………… 37

Figure 4-1 Wassa Mine Location in Ghana, West Africa (United Nations, 2018) ……………………………………………………. 42

Figure 4-2 Wassa Mine Location in Ghana, West Africa (GSR, 2021) ……………………………………………………………………. 43

Figure 4-3 Location of operations and infrastructure and concession boundaries (GSR, 2021) ……………………………….. 44

Figure 7-1 Location of Wassa on the Ashanti Belt (Perrouty et al 2012)……………………………………………………………….. 56

Figure 7-2 Total magnetic intensity reduced to pole, of the Ashanti Belt (modified from Perrouty et al, 2012)…………. 58

Figure 7-3 Compilation of geochronology dating from the Ashanti Belt (Perrouty et al, 2012)………………………………… 59

Figure 7-4 Regional geology of the Ashanti belt, showing Wassa, GSR tenure and major deposits (GSR, 2020)…………. 61

Figure 7-5 Wassa mine-scale geology (modified from Bourassa, 2003 and Perrouty et al, 2013) …………………………….. 62

Figure 7-6 Vertical section through Nose of deposit-scale F4 fold, Wassa Main deposit…………………………………………. 63

Figure 7-7 Eburnean folds and foliations from Wassa mine, Starter pit ……………………………………………………………….. 64

Figure 7-8 Eburnean folds and foliations from Wassa mine, B-Shoot pit………………………………………………………………. 65

Figure 7-9 Wassa section through 19,650 mN showing high-grade zones, F3 closures, parasitic folding ………………….. 66

Figure 7-10 Wassa section through 19,925 mN showing interpretation with tight-spaced drilling…………………………… 67

Figure 7-11 Wassa section through 18,900 mN showing interpretation and wide spaced (surface) drilling………………. 67

Figure 7-12 Hwini Butre section through 33,100 mN…………………………………………………………………………………………. 69

Figure 8-1 Syn-Eoeburnean veins from B-Shoot, 242 and South-east zones (modified from Perrouty et al, 2013) …….. 72

Figure 8-2 Mineralization exposure in Father Brown pit, smoky quartz vein…………………………………………………………. 73

Figure 8-3 Mineralization exposure in Adoikrom pit, potassic alteration ……………………………………………………………… 73

Figure 8-4 Mineralization exposure in Subriso West pit, sheared volcanics ………………………………………………………….. 74

Figure 8-5 Mineralization exposure in Subriso East pit, fine grained pyrite…………………………………………………………… 74

Figure 8-6 Mineralization at Chichiwelli East, hydrothermal veins ………………………………………………………………………. 75

Figure 8-7 Mineralization at Chichiwelli West, shear hosted ………………………………………………………………………………. 75

Figure 9-1 Wassa soil geochemistry and anomalies (GSR, 2018) …………………………………………………………………………. 76

Figure 9-2 Wassa airborne magnetic coverage (GSR, 2004)………………………………………………………………………………… 77

Figure 11-1 Transworld Laboratories sample processing flow sheet ……………………………………………………………………. 85

Figure 11-2 Intertek sample processing flow sheet……………………………………………………………………………………………. 86

Figure 11-3 HARD plot comparing fire assay and BLEG for field duplicates…………………………………………………………… 88

Figure 11-4 HARD plot of all coarse rejects (2011) from SGS ………………………………………………………………………………. 89

Figure 11-5 HARD plot of all coarse rejects (2012) from SGS ………………………………………………………………………………. 89

Figure 11-6 HARD plot of all coarse rejects (2013) from SGS ………………………………………………………………………………. 90

Figure 11-7 HARD plot of all Surface Drilling coarse rejects (2014) from SGS………………………………………………………… 91

Figure 11-8 HARD plot of all Surface Drilling coarse rejects (2015) from SGS………………………………………………………… 92

Figure 11-9 HARD plot of all Surface Drilling coarse rejects (2016) from SGS………………………………………………………… 92

Figure 11-10 HARD plot of all Surface Drilling coarse rejects (2017) from SGS and Intertek ……………………………………. 93

Figure 11-11 HARD plot of all Surface Drilling coarse rejects (2018) from Intertek ………………………………………………… 93

Figure 11-12 HARD plot of all Surface Drilling coarse rejects (2019) from Intertek ………………………………………………… 94

Figure 11-13 HARD plot of all Surface Drilling coarse rejects (2020 Jan-Aug) from Intertek ……………………………………. 94

Figure 11-14 HARD plot of all Surface Drilling coarse rejects for 2018-19 for Father Brown & Adoikrom, from Intertek95

Figure 11-15 HARD plot of 2018 Wassa duplicate analysis (Intertek vs SGS)………………………………………………………..103

Figure 11-16 Wassa duplicates correlation plot (Intertek vs SGS)……………………………………………………………………….103

Figure 13-1 West view of metallurgical sample locations (GSR, 2015) ………………………………………………………………..108

Figure 13-2 Comparative indicated deportment of gold from diagnostic leach results………………………………………….112

Figure 13-3 Variation of UCS and CWi results with depth (mRL)…………………………………………………………………………113

Figure 13-4 2015 Ball Mill Bond Work Index against sample depth (mRL)……………………………………………………………114

Figure 13-5 2015 Abrasion Index against sample depth (mRL) …………………………………………………………………………..114

Figure 13-6 Leach recovery kinetic curves……………………………………………………………………………………………………….116

Figure 14-1 Wassa long-range (grey) and short-range (cyan) Mineral Resource estimation model limits ………………..119

Page 6NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-2 Wassa LR model structural ‘Form’ surfaces (oblique view looking N up plunge), surfaces show deposit scale

F4 fold as well as rolling over of mineralization at depth …………………………………………………………………………..124

Figure 14-3 North-facing cross sections showing structural form (18950 mN and 19170 mN) ……………………………….125

Figure 14-4 Structural form surfaces used in the SR model ……………………………………………………………………………….125

Figure 14-5 Images showing the structural control surfaces on sections 19,750 mN and 19,635 mN. The images show

the longer, LR model defined control surfaces and the shorter, mine geology defined control surfaces………….126

Figure 14-6 Short-range isoshell modelling parameters (SRK, 2020) …………………………………………………………………..127

Figure 14-7 SE Isometric view of final LR model Leapfrog Isoshells (blue = >0.4 g/t, red = >1.5 g/t)………………………..128

Figure 14-8 Long section looking East showing the mineralized and halo domain shells on 39,940E (top image). Section

on 39,940E (lower image) displaying the same data, cut by that section line, and the assay data used to create

the domain shells. RED = mineralized domain; BLUE = halo domain…………………………………………………………..129

Figure 14-9 Model section at U=-28.0 in transformed space generated with 2.0 tolerance in V direction ……………….130

Figure 14-10 Mineral Resource wireframes and drill hole locations for the Benso deposits (GSR, 2010) …………………131

Figure 14-11 Mineral Resource wireframes and drillhole locations for Chichiwelli (GSR, 2008) ……………………………..132

Figure 14-12 Probability Plot for LG (left) and HG (right) Domains North of 19400N (top row) and South of 19400N

(bottom row) (SRK, 2020) ……………………………………………………………………………………………………………………..133

Figure 14-13 Histogram showing the uncapped 2m Au composite grade distribution for the mineralized domain …..134

Figure 14-14 Histogram showing the uncapped 2m composite grade distribution for the halo domain ………………….135

Figure 14-15 HG Variogram from anchor point 1 (SRK, 2020)…………………………………………………………………………….137

Figure 14-16 LG Variogram from anchor point 14 (SRK, 2020)……………………………………………………………………………137

Figure 14-17 Variogram for the short-range HG & LG mineralized domains (SRK, 2020) ……………………………………….138

Figure 14-18 Gold grade probability plot with outliers and far out thresholds highlighted (RMS, 2020) ………………….139

Figure 14-19 Inferred nugget effect for gold grade in each vein unit for FBZ deposit (RMS, 2020)………………………….140

Figure 14-20 Fitted experimental variogram points for gold grade in FW for FBZ deposit (RMS, 2020) …………………..141

Figure 14-21 Fitted experimental variogram points for gold grade in HG for FBZ deposit (RMS, 2020)……………………142

Figure 14-22 Fitted experimental variogram points for gold grade in HW for FBZ deposit (RMS, 2020)…………………..143

Figure 14-23 Inferred nugget effect for gold grade in each vein unit for ADK deposit (RMS, 2020)…………………………144

Figure 14-24 Fitted experimental variogram points for gold grade in FW for ADK deposit (RMS, 2020) ………………….145

Figure 14-25 Fitted experimental variogram points for gold grade in HG for ADK deposit (RMS, 2020)…………………..146

Figure 14-26 Fitted experimental variogram points for gold grade in HW for ADK deposit (RMS, 2020)………………….147

Figure 14-27 South-North Swath Plot Comparing Estimated Grades and Informing Capped Composites (SRK, 2020).157

Figure 14-28 Quantile-Quantile Comparison of Block Model Grades to Declustered Change-of-Support Corrected Gold

Distributions for LG (left) and HG (right) domains (SRK, 2020)……………………………………………………………………158

Figure 14-29 SWATH plot in the E-W direction X dimension. Blue line represents Block model Estimated grades and

Red is 2m drill hole composites grades (SRK, 2020) ………………………………………………………………………………….159

Figure 14-30 SWATH plot in the N-S direction Y dimension. Blue line represents Block model Estimated grades and

Red is 2m drill hole composites grades (SRK, 2020) ………………………………………………………………………………….159

Figure 14-31 SWATH plot in the elevation direction Z dimension. Blue line represents Block model Estimated grades

and Red is 2m drill hole composites grades (SRK, 2020) ……………………………………………………………………………160

Figure 14-32 Measured and estimated gold grades at data locations (RMS, 2020)……………………………………………….161

Figure 14-33 Swath plot comparison of composites, nearest neighbor estimates and kriging estimates for uncapped

and capped grades in HG for FBZ deposit (RMS, 2020) ……………………………………………………………………………..162

Figure 14-34 Swath plot comparison of composites, nearest neighbor estimates and kriging estimates for uncapped

and capped grades in HG for ADK deposit (RMS, 2020) …………………………………………………………………………….162

Figure 14-35 Wassa LR model Indicated Mineral Resource classification surface and solids. All blocks above surface

and within solid mesh were classified as Indicated Mineral Resources (GSR, 2021)………………………………………166

Figure 14-36 Estimation metrics associated to Indicated (top) and Inferred (bottom) classified Resources (SRK, 2020)

………………………………………………………………………………………………………………………………………………………….167

Figure 14-37 645m RL section showing resource classification, boundary solid and drill holes (GSR, 2020) …………….169

Figure 14-38 Father Brown and Adoikrom Indicated Mineral Resource surface and Inferred Mineral Resource solids.

All material above Magenta surface was classified as Indicated Mineral Resources all material below surface and

within cyan (ADK) and red (FBZ) 3D meshes was classified as Inferred Mineral Resource ……………………………..170

Figure 15-1 Wassa UG cut-off optimization……………………………………………………………………………………………………..174

Figure 16-1 Mineral Resources considered in Mineral Reserve and models applied……………………………………………..177

Figure 16-2 Schematic of Wassa location descriptors……………………………………………………………………………………….178

Figure 16-3 Wassa mine design and asbuilt, plan view (GSR, 2021) ……………………………………………………………………179

Page 7NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-4 Wassa mine design and asbuilt, longitudinal view…………………………………………………………………………..180

Figure 16-5 Wassa underground production history…………………………………………………………………………………………180

Figure 16-6 Stope cycle for Panel 2 primary stopes ………………………………………………………………………………………….182

Figure 16-7 Panel 2 primary/secondary stope extraction sequence, transverse stopes…………………………………………182

Figure 16-8 Stope cycle for Panel 2 secondary stopes ………………………………………………………………………………………183

Figure 16-9 Oblique view of Wassa Panels 1-3, asbuilt and planned development……………………………………………….184

Figure 16-10 Typical level layout, Panels 1-2 570 mRL ………………………………………………………………………………………185

Figure 16-11 Oblique view of Panels 3 242 Area, planned development and stopes…………………………………………….185

Figure 16-12 Oblique view of Panels 3 B-Shoot Area, planned development and stopes ………………………………………186

Figure 16-13 Stereonet plant of Wassa joint set database…………………………………………………………………………………187

Figure 16-14 Principal stress measurement Magnitude vs Depth……………………………………………………………………….189

Figure 16-15 Support, Barton’s Q-Index chart (Barton and Grimstad, 1993)………………………………………………………..190

Figure 16-16 Stope axes measurements………………………………………………………………………………………………………….192

Figure 16-17 Matthews Stability Graph, transverse stopes (Mathews et al, 1981) ……………………………………………….193

Figure 16-18 Matthews Stability Graph, longitudinal stopes (Mathews et al, 1981) ……………………………………………..193

Figure 16-19 B-Shoot Pillars, modelled factors of safety from Phase 2 software, (GSR, 2018)………………………………..194

Figure 16-20 Wassa paste plant Dec-2020, thickener and storage tank in foreground ………………………………………….196

Figure 16-21 Paste fill distribution modelling…………………………………………………………………………………………………..197

Figure 16-22 Wassa Panels 1 and 2 ventilation circuit to end of life……………………………………………………………………199

Figure 16-23 Wassa Panel 3, B-Shoot Upper ventilation circuit………………………………………………………………………….199

Figure 16-24 Wassa Panel 3, 242 ventilation circuit………………………………………………………………………………………….200

Figure 16-25 Underground dewatering longitudinal view………………………………………………………………………………….201

Figure 16-26 620 mRL main pump station……………………………………………………………………………………………………….202

Figure 16-27 Lateral development schedule for Mineral Reserve……………………………………………………………………….204

Figure 16-28 Ore mining schedule for Mineral Reserve …………………………………………………………………………………….204

Figure 16-29 Underground Production History and Mineral Reserve plan …………………………………………………………..205

Figure 17-1 Wassa processing plant flow sheet ……………………………………………………………………………………………….209

Figure 17-2 Processing schedule for Mineral Reserve plan………………………………………………………………………………..211

Figure 17-3 Gold Production schedule for Mineral Reserve plan………………………………………………………………………..211

Figure 17-4 Processing Production History and Mineral Reserve Plan…………………………………………………………………212

Figure 17-5 Gold Production History and Mineral Reserve plan …………………………………………………………………………212

Figure 18-1 Wassa key infrastructure (GSR, 2018) ……………………………………………………………………………………………213

Figure 18-2 Wassa site layout (GSR, 2021) ………………………………………………………………………………………………………214

Figure 18-3 Wassa site layout and underground workings (GSR, 2021)……………………………………………………………….215

Figure 18-4 Site electrical distribution…………………………………………………………………………………………………………….216

Figure 18-5 Wassa Main pit catchments …………………………………………………………………………………………………………217

Figure 18-6 Tara Camp………………………………………………………………………………………………………………………………….219

Figure 18-7 Waste dump locations (Golder, 2016)……………………………………………………………………………………………220

Figure 18-8 Section through nominal waste dump design …………………………………………………………………………………220

Figure 18-9 Wassa TSF 1 and TSF 2 aerial view (August 2020) ……………………………………………………………………………221

Figure 18-10 View from north of TSF 1 looking southeast (November 2020) ……………………………………………………….222

Figure 18-11 TSF 1 and TSF 2 layout (Geosystems, 2018) ………………………………………………………………………………….224

Figure 20-1 Pra River basin and location of Wassa……………………………………………………………………………………………234

Figure 20-2 Wassa topography and drainage with sub-catchments ……………………………………………………………………235

Figure 20-3 Conceptual underground water flow path model (Golder, 2016)………………………………………………………236

Figure 20-4 Conceptual groundwater model (Golder, 2016) ……………………………………………………………………………..237

Figure 20-5 Groundwater contours and flow (Golder, 2016)……………………………………………………………………………..238

Figure 20-6 Conceptual geo-environmental model, E-W section (Golder, 2016)…………………………………………………..239

Figure 20-7 Paste pH vs NPR for Open Pit ……………………………………………………………………………………………………….241

Figure 20-8 Paste pH vs NPR for Waste …………………………………………………………………………………………………………..241

Figure 20-9 Paste pH vs NPR for Underground…………………………………………………………………………………………………241

Figure 20-10 Paste pH vs NPR for South Inferred……………………………………………………………………………………………..241

Figure 20-11 NPR vs S% for Open Pit………………………………………………………………………………………………………………241

Figure 20-12 NPR vs S% for Waste………………………………………………………………………………………………………………….241

Figure 20-13 NPR vs S% for Underground ……………………………………………………………………………………………………….242

Page 8NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 20-14 NPR vs S% for South Inferred………………………………………………………………………………………………………242

Figure 20-15 GSOPP oil palm plantation on TSF 1 …………………………………………………………………………………………….247

Figure 22-1 Cash Flows by Year for Mineral Reserve – Base case ……………………………………………………………………….261

Figure 22-2 Cash Flows by Year for Mineral Reserve – Consensus case……………………………………………………………….263

Figure 22-3 Sensitivity analysis of the Mineral Reserve base case ($1,300 /oz)…………………………………………………….265

Figure 22-4 Sensitivity analysis of the Mineral Reserve consensus case (av. $1,751 /oz)………………………………………266

Figure 24-1 Illustration of Wassa location descriptors………………………………………………………………………………………270

Figure 24-2 Mineral Resources considered in Southern Extension PEA (LR model only)………………………………………..270

Figure 24-3 Longitudinal Section looking east, showing the Southern Extension Panels………………………………………..271

Figure 24-4 Cross sectional view, Southern Extension, highlighting the width and complexity across the deposit ……272

Figure 24-5 Oblique view of the Southern Extension showing twin decline layout (looking northeast) …………………..273

Figure 24-6 Schematic of a 4-lift primary transverse stope (illustration not to scale) ……………………………………………274

Figure 24-7 Generic downhole stope activity sequence…………………………………………………………………………………….275

Figure 24-8 Primary/secondary stope extraction sequence, transverse stopes ……………………………………………………276

Figure 24-9 Pillarless retreat stope extraction sequence, transverse stopes………………………………………………………..277

Figure 24-10 Generic wide-width mining (illustration not to scale)…………………………………………………………………….278

Figure 24-11 East decline, oblique looking north-west ……………………………………………………………………………………..280

Figure 24-12 West decline, oblique view looking north-east……………………………………………………………………………..281

Figure 24-13 Generic production block layout with primary/2ndary sequence and vent flows, longitudinal view…….283

Figure 24-14 Level layout (295 mRL) showing deposit width and twin decline arrangement, plan view ………………….284

Figure 24-15 Haulage level arrangement, 470 mRL…………………………………………………………………………………………..285

Figure 24-16 Oblique view, approximate Resource development and infill drilling horizons, looking north west……..286

Figure 24-17 Geotechnical drill hole data in Southern Extension, plan (left) and longitudinal (right) views

(OreTeck, 2020)……………………………………………………………………………………………………………………………………288

Figure 24-18 Wassa preliminary principal stress gradient with reference mines and regions (OreTeck, 2020) …………289

Figure 24-19 Geotechnical rock mass model in Southern Extension, showing Q-prime in plan (left) and cross-section

(OreTeck, 2020)……………………………………………………………………………………………………………………………………290

Figure 24-20 Unsupported stable stope spans for expected rock mass conditions and current design hydraulic radii

(Mathews, 1981; Potvin, 1988)………………………………………………………………………………………………………………292

Figure 24-21 Unsupported hanging-wall stable hydraulic radii for Southern Extension, longitudinal view

(OreTeck, 2020)……………………………………………………………………………………………………………………………………293

Figure 24-22 Wassa Panels 4-8, ventilation stages, oblique view ……………………………………………………………………….295

Figure 24-23 Panels 4-8, production block ventilation flows ……………………………………………………………………………..296

Figure 24-24 Primary fan applied pressure (air density 1.1 kg/m3 ) and motor power (75% efficiency) ……………………297

Figure 24-25 Heat loads and cooling summary for Y12 (SRK, 2021)…………………………………………………………………….297

Figure 24-26 Estimated refrigeration capacity over mine life (SRK, 2021)……………………………………………………………298

Figure 24-27 Lateral development schedule for Southern Extension PEA ……………………………………………………………300

Figure 24-28 ROM material mining schedule for Southern Extension PEA …………………………………………………………..300

Figure 24-29 Electrical distribution with Phase 2 expansion required to support Southern Extension …………………….302

Figure 24-30 Metallurgical Sample Drillhole Location……………………………………………………………………………………….304

Figure 24-31 Ball Mill Bond Work Index against sample depth (mRL) ………………………………………………………………305

Figure 24-32 Direct Leach – Grind Sensitivity Summary…………………………………………………………………………………….306

Figure 24-33 Preg-robbing Characterization Summary ……………………………………………………………………………………..307

Figure 24-34 Processing schedule for Southern Extension PEA ………………………………………………………………………….309

Figure 24-35 Gold Production schedule for Southern Extension PEA ………………………………………………………………….311

Figure 24-36 Cash Flows by Year for Southern Extension – Base Case…………………………………………………………………318

Figure 24-37 Cash Flows by Year for Southern Extension – Consensus Case ………………………………………………………..320

Figure 24-38 Sensitivity analysis of the Southern Extension PEA base case ($1,300 /oz) ……………………………………….322

Figure 24-39 Sensitivity analysis of the Southern Extension PEA consensus case ($1,585 /oz) ……………………………….323

Figure 26-1 Project Execution Plan, Southern Extension Panels 4 and 5 ……………………………………………………………..340

Page 9NI 43-101 Technical Report (March 2021) Wassa Gold Mine

LIST OF TABLES

Table 1-1 RGLD stream payment structure ………………………………………………………………………………………………………. 17

Table 1-2 Wassa Measured and Indicated Mineral Resource, as at 31 December 2020 …………………………………………. 20

Table 1-3 Wassa Inferred Mineral Resource, as at 31 December 2020…………………………………………………………………. 20

Table 1-4 Wassa Mineral Reserve, as at 31 December 2020……………………………………………………………………………….. 21

Table 1-5 Wassa, mine design quantities for Mineral Reserve plan……………………………………………………………………… 22

Table 1-6 Stable stope dimensions for Mineral Reserve plan ……………………………………………………………………………… 22

Table 1-7 Mining schedule quantities for Mineral Reserve plan ………………………………………………………………………….. 23

Table 1-8 Mobile fleet purchase schedule for Mineral Reserve plan ……………………………………………………………………. 24

Table 1-9 Processing schedule quantities for Mineral Reserve plan …………………………………………………………………….. 25

Table 1-10 Capital Cost Summary for Mineral Reserve plan ……………………………………………………………………………….. 28

Table 1-11 Cost Estimate, Operating for Mineral Reserve plan …………………………………………………………………………… 29

Table 1-12 Operating Cost Summary for Mineral Reserve plan …………………………………………………………………………… 29

Table 1-13 Conversion of Inferred Mineral Resource to PEA inventory………………………………………………………………… 31

Table 2-1 Qualified persons and site visits ……………………………………………………………………………………………………….. 39

Table 4-1 Mineral rights held by GSWL ……………………………………………………………………………………………………………. 45

Table 5-1 Communities neighbouring Wassa Mine……………………………………………………………………………………………. 50

Table 6-1 Recent Production History, Wassa…………………………………………………………………………………………………….. 54

Table 7-1 Deformational history of the Ashanti Belt (Perrouty et al, 2012)…………………………………………………………… 60

Table 10-1 Exploration data used for Mineral Resource models………………………………………………………………………….. 81

Table 11-1 Summary of analytical quality control data from 2014 to early 2017 …………………………………………………… 90

Table 11-2 CRM for 2003-2007 (TWL) ……………………………………………………………………………………………………………… 96

Table 11-3 Geostats CRM for 2008-2012 (SGS) …………………………………………………………………………………………………. 96

Table 11-4 Gannet CRM for 2008-2012 (SGS)……………………………………………………………………………………………………. 97

Table 11-5 Gannet CRM for 2013 (SGS)……………………………………………………………………………………………………………. 97

Table 11-6 Gannet CRM for 2014-2017 (SGS)……………………………………………………………………………………………………. 98

Table 11-7 Gannet CRM for 2014 to 2017 (Wassa Site Lab)………………………………………………………………………………… 98

Table 11-8 Gannet CRM for 2018 (Intertek) ……………………………………………………………………………………………………… 98

Table 11-9 Gannet CRM for 2019 Wassa UG (Intertek)………………………………………………………………………………………. 99

Table 11-10 Gannet CRM for 2020 Jan-Oct, Wassa UG (Intertek)………………………………………………………………………… 99

Table 11-11 Gannet CRM for 2019 Wassa surface drilling (Intertek) ……………………………………………………………………. 99

Table 11-12 Gannet CRM for 2018-2019 Father Brown/Adoikrom surface drilling (Intertek)………………………………….. 99

Table 11-13 Blank sample summary statistics 2011 to Oct-2020………………………………………………………………………..100

Table 11-14 Blank sample summary statistics 2019, Wassa surface drilling (Intertek)…………………………………………..100

Table 11-15 Blank sample summary statistics 2018-2019 Father Brown/Adoikrom surface drilling (Intertek)………….100

Table 11-16 Gannet CRM for quarter core sample analysis (Intertek)…………………………………………………………………101

Table 11-17 Summary HARD plot results for quarter core sample analysis………………………………………………………….101

Table 11-18 Summary HARD plot results for 2013 round robin program …………………………………………………………….101

Table 11-19 Round-robin descriptive statistics 2012 ………………………………………………………………………………………..102

Table 11-20 Round-robin descriptive statistics 2017 ………………………………………………………………………………………..102

Table 11-21 Summary HARD plot results for 2017 round robin program …………………………………………………………….102

Table 11-22 Summary HARD plot results for 2018 round robin program …………………………………………………………….103

Table 11-23 Specific gravity test results, open pit…………………………………………………………………………………………….104

Table 11-24 Specific gravity test results, underground drilling 2017 …………………………………………………………………..104

Table 11-25 Specific gravity test results, underground drilling 2018 …………………………………………………………………..105

Table 11-26 Specific gravity test results, surface drilling 2018……………………………………………………………………………105

Table 11-27 Specific gravity test results, surface drilling 2020……………………………………………………………………………105

Table 13-1 Ore zones represented by the variability samples ……………………………………………………………………………107

Table 13-2 Summary and location of test work samples……………………………………………………………………………………108

Table 13-3 Screened head assay results………………………………………………………………………………………………………….109

Table 13-4 Elemental and chemical analysis results………………………………………………………………………………………….110

Table 13-5 Summary of diagnostic leach results………………………………………………………………………………………………111

Table 13-6 Results of Crushability Tests: UCS and CWi ……………………………………………………………………………………..112

Table 13-7 Results of 2015 BWi and Ai Tests……………………………………………………………………………………………………113

Page 10NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 13-8 Gravity Gold Recovery Test Results ………………………………………………………………………………………………..115

Table 13-9 Whole Ore Leach and CIL test results……………………………………………………………………………………………..115

Table 13-10 Leach test results and reagent consumptions………………………………………………………………………………..116

Table 13-11 Overall gravity leach recoveries……………………………………………………………………………………………………117

Table 13-12 Reconciliation of assay and back-calculated head grades from test work ………………………………………….117

Table 13-13 Comparative settling test results………………………………………………………………………………………………….118

Table 14-1 Wassa LR model drill hole database as at February, 2020 …………………………………………………………………121

Table 14-2 Wassa Underground short-range drill hole database as of December 1, 2020……………………………………..122

Table 14-3 Father Brown/Adoikrom drill hole database as of December 2020 …………………………………………………….122

Table 14-4 Benso drill hole database as of December 2012……………………………………………………………………………….122

Table 14-5 Chichiwelli drill hole database as of 2012………………………………………………………………………………………..122

Table 14-6 Leapfrog trend inputs for creation of 1.5 g/t and 0.4 g/t LR model grade Isoshells……………………………….124

Table 14-7 Leapfrog trend inputs for creation of 1.5 g/t and 0.4 g/t SR model grade Isoshells……………………………….126

Table 14-8 LR modelling extents…………………………………………………………………………………………………………………….126

Table 14-9 LR Isoshell modelling parameters…………………………………………………………………………………………………..126

Table 14-10 SR block model extents……………………………………………………………………………………………………………….127

Table 14-11 Summary Gold Statistics of Assays and Composites ……………………………………………………………………….132

Table 14-12 Comparison of Uncapped and Capped Gold Composite Grades – LR model ………………………………………133

Table 14-13 Comparison of uncapped and capped gold composite grades – SR model…………………………………………134

Table 14-14 Local variogram orientations and anchor point locations………………………………………………………………..136

Table 14-15 Local variogram models by domain ………………………………………………………………………………………………136

Table 14-16 Descriptive statistics for Hwini Butre modelled domains (uncapped & capped) …………………………………139

Table 14-17 Capping values selected from analysis of the probability plot ………………………………………………………….140

Table 14-18 Fitted variogram parameters for gold grade in FW for FBZ deposit…………………………………………………..144

Table 14-19 Fitted variogram parameters for gold grade in HG for FBZ deposit …………………………………………………..144

Table 14-20 Fitted variogram parameters for gold grade in HW for FBZ deposit ………………………………………………….144

Table 14-21 Fitted variogram parameters for gold grade in FW for ADK deposit………………………………………………….148

Table 14-22 Fitted variogram parameters for gold grade in HG for ADK deposit ………………………………………………….148

Table 14-23 Fitted variogram parameters for gold grade in HW for ADK deposit …………………………………………………148

Table 14-24 Fitted major variogram directions in original space ………………………………………………………………………..148

Table 14-25 Descriptive statistics for Benso modelled domains (capped)……………………………………………………………149

Table 14-26 Descriptive statistics for simplified Benso modelled domains (capped) …………………………………………….149

Table 14-27 Variogram parameters for the Benso zones…………………………………………………………………………………..150

Table 14-28 Descriptive statistics for Chichiwelli modelled domains (capped) …………………………………………………….150

Table 14-29 Chichiwelli high grade capping …………………………………………………………………………………………………….150

Table 14-30 Variogram parameters for Chichiwelli zones………………………………………………………………………………….151

Table 14-31 Wassa LR model definitions, upper left hand corner coordinates …………………………………………………….151

Table 14-32 Average Bulk Density used for LR model ……………………………………………………………………………………….151

Table 14-33 Wassa SR model definitions…………………………………………………………………………………………………………152

Table 14-34 LR model Estimation Parameters …………………………………………………………………………………………………153

Table 14-35 SR model estimation parameters …………………………………………………………………………………………………153

Table 14-36 Kriging search parameters for each vein unit in each deposit ………………………………………………………….153

Table 14-37 Father Brown block model parameters…………………………………………………………………………………………154

Table 14-38 Adoikrom Zone block model parameters ………………………………………………………………………………………154

Table 14-39 Hwini Butre rock density……………………………………………………………………………………………………………..154

Table 14-40 Benso block model parameters……………………………………………………………………………………………………154

Table 14-41 Benso ellipsoid search neighbourhood parameters………………………………………………………………………..155

Table 14-42 Benso rock density……………………………………………………………………………………………………………………..155

Table 14-43 Chichiwelli block model parameters……………………………………………………………………………………………..155

Table 14-44 Chichiwelli ellipsoid search neighbourhood parameters………………………………………………………………….156

Table 14-45 Chichiwelli rock density ………………………………………………………………………………………………………………156

Table 14-46 Global mean comparison between nearest neighbor and kriged thickness models for FBZ. ………………..160

Table 14-47 Global mean comparison between nearest neighbor and kriged thickness models for ADK. Variable ….160

Table 14-48 List of least reliable estimates FBZ………………………………………………………………………………………………..161

Table 14-49 List of least reliable estimates ADK……………………………………………………………………………………………….161

Page 11NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 14-50 Global mean comparison between nearest neighbor and kriged Gold models for FBZ ………………………..162

Table 14-51 Global mean comparison between nearest neighbor and kriged Gold models for ADK……………………….163

Table 14-52 Global mean comparison between nearest neighbor and kriged Gold models for FBZ within the densely

sampled area……………………………………………………………………………………………………………………………………….163

Table 14-53 Global mean comparison between nearest neighbor and kriged Gold models for ADK within the densely

sampled area……………………………………………………………………………………………………………………………………….163

Table 14-54 Global mean comparison between nearest neighbor and kriged Gold models for FBZ within the sparsely

sampled area……………………………………………………………………………………………………………………………………….164

Table 14-55 Global mean comparison between nearest neighbor and kriged Gold models for ADK within the sparsely

sampled area……………………………………………………………………………………………………………………………………….164

Table 14-56 Composition of Classified Blocks for Open Pit Extraction Above a Cut-Off Grade of 0.4 g/t Gold ………….167

Table 14-57 Composition of Classified Blocks for Underground Extraction Above a Cut-Off Grade of 2.1 g/t Gold ….168

Table 14-58 Wassa Measured and Indicated Mineral Resource, as at 31 December 2020 …………………………………….172

Table 14-59 Wassa Inferred Mineral Resource, as at 31 December 2020…………………………………………………………….172

Table 15-1 Wassa UG cut-off grade calculation………………………………………………………………………………………………..174

Table 15-2 Wassa Mineral Reserve, as at 31 December 2020…………………………………………………………………………….175

Table 16-1 Upper mine inventory change, OP to UG ………………………………………………………………………………………..181

Table 16-2 Wassa Panels 1-3, design quantities for Mineral Reserve ………………………………………………………………….186

Table 16-3 Joint sets used for stope design……………………………………………………………………………………………………..188

Table 16-4 570 decline stress measurement……………………………………………………………………………………………………188

Table 16-5 Wassa rock mass characterization parameters (Barton et al, 1974) ……………………………………………………189

Table 16-6 Modified Stability Number (N’) for Panels 1-3, transverse stopes (Potvin, 1988)………………………………….191

Table 16-7 Modified Stability Number (N’) for Panels 1-3, longitudinal stopes (Potvin, 1988) ……………………………….191

Table 16-8 Stable stope dimensions, Panels 1-3 ………………………………………………………………………………………………192

Table 16-9 Wassa ventilation model calibration, Dec-2020 ……………………………………………………………………………….198

Table 16-10 Wassa mining schedule quantities for Mineral Reserve plan……………………………………………………………203

Table 16-11 Mobile fleet productivity assumption……………………………………………………………………………………………206

Table 16-12 Mobile fleet schedule for Mineral Reserve plan……………………………………………………………………………..206

Table 17-1 Historic plant production, grades and recoveries……………………………………………………………………………..207

Table 17-2 Key plant design and operating parameters…………………………………………………………………………………….208

Table 17-3 Processing schedule quantities for Mineral Reserve plan ………………………………………………………………….210

Table 18-1 TSF 2 stage design details ……………………………………………………………………………………………………………..226

Table 20-1 Primary environmental approvals for mines in Ghana ………………………………………………………………………229

Table 20-2 Environmental approvals obtained for Wassa mine………………………………………………………………………….231

Table 20-3 Communities around Wassa………………………………………………………………………………………………………….245

Table 20-4 Closure cost estimates, at Dec-2020……………………………………………………………………………………………….253

Table 21-1 Cost estimate, Major Projects for Mineral Reserve plan ……………………………………………………………………254

Table 21-2 Mine development capital allocation for Mineral Reserve plan………………………………………………………….255

Table 21-3 Cost estimate, Minor Projects for Mineral Reserve plan……………………………………………………………………255

Table 21-4 Mobile Fleet, categories ……………………………………………………………………………………………………………….256

Table 21-5 Cost estimate, Mobile Fleet replacement schedule for Mineral Reserve plan………………………………………256

Table 21-6 Capital cost summary for Mineral Reserve plan……………………………………………………………………………….257

Table 21-7 Cost estimate, Operating for Mineral Reserve plan ………………………………………………………………………….258

Table 21-8 Operating cost summary for Mineral Reserve plan…………………………………………………………………………..259

Table 21-9 Closure cost summary for Mineral Reserve plan ………………………………………………………………………………259

Table 22-1 Key life of mine inputs and assumptions used in the economic model for Mineral Reserve…………………..260

Table 22-2 Cash flows, Mineral Reserve economic analysis – Base case ……………………………………………………………..261

Table 22-3 Mineral Reserve economic analysis – Base case ………………………………………………………………………………262

Table 22-4 Cash flows, Mineral Reserve economic analysis – Consensus case……………………………………………………..263

Table 22-5 Mineral Reserve economic analysis – Consensus case………………………………………………………………………264

Table 22-6 Sensitivity results for the Mineral Reserve at different gold prices and discount rates………………………….265

Table 22-7 Sensitivity results of the Mineral Reserve base case ($1,300 /oz)……………………………………………………….265

Table 22-8 Sensitivity results of the Mineral Reserve consensus case (av. $1,751 /oz)…………………………………………266

Table 24-1 Stope Modifying Factors contained in the MSO settings……………………………………………………………………279

Table 24-2 Conversion of Inferred Mineral Resource to PEA inventory……………………………………………………………….279

Page 12NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 13

Table 24-3 Proposed Resource diamond drilling quantities relative to stope timing by Panel………………………………..286

Table 24-4 Wassa Panels 4-8 mine design quantities………………………………………………………………………………………..287

Table 24-5 Modified Stability Number (N’) for Panels 4 and 5, transverse stopes (after Potvin, 1988) ……………………291

Table 24-6 Modified Stability Number (N’) for Panels 4 and 5, longitudinal stopes (after Potvin, 1988) ………………….291

Table 24-7 Stable stope dimensions, Panels 4 and 5…………………………………………………………………………………………292

Table 24-8 Wassa mining schedule quantities, Southern Extension PEA ……………………………………………………………..299

Table 24-9 Mobile fleet schedule, Southern Extension PEA……………………………………………………………………………….301

Table 24-10 Metallurgical Composite Sample Location …………………………………………………………………………………….303

Table 24-11 Metallurgical Composite Head Assay ……………………………………………………………………………………………304

Table 24-12 Bond Ball Work Index Results………………………………………………………………………………………………………305

Table 24-13 Gravity Recovery Gold – Summary ………………………………………………………………………………………………..306

Table 24-14 Reagent Consumption Summary ………………………………………………………………………………………………….307

Table 24-15 Diagnostic Leach Summary ………………………………………………………………………………………………………….308

Table 24-16 Processing Schedule, Southern Extension PEA……………………………………………………………………………….310

Table 24-17 Cost estimate, Major Projects for Southern Extension PEA ……………………………………………………………..312

Table 24-18 Mine development capital allocation for Southern Extension PEA ……………………………………………………312

Table 24-19 Cost estimate, Minor Projects for Southern Extension PEA ……………………………………………………………..313

Table 24-20 Cost estimate, Mobile Fleet addition/replacement schedule for Southern Extension PEA …………………..313

Table 24-21 Capital cost summary for Southern Extension PEA …………………………………………………………………………314

Table 24-22 Cost estimate, Operating for Southern Extension PEA…………………………………………………………………….315

Table 24-23 Operating cost summary for Southern Extension PEA …………………………………………………………………….315

Table 24-24 Closure cost summary for Southern Extension PEA ………………………………………………………………………..316

Table 24-25 Key life of mine inputs and assumptions used in the economic model, PEA ………………………………………317

Table 24-26 Cash flows, PEA economic analysis – Base Case……………………………………………………………………………..318

Table 24-27 Economic Analysis – Base Case……………………………………………………………………………………………………319

Table 24-28 Cash flows, PEA economic analysis – Consensus Case …………………………………………………………………….320

Table 24-29 PEA Economic Analysis – Consensus Case …………………………………………………………………………………….321

Table 24-30 Sensitivity results for the Southern Extension PEA at different gold prices and discount rates …………….322

Table 24-31 Sensitivity results of the Southern Extension PEA base case ($1,300 /oz) ………………………………………….322

Table 24-32 Sensitivity results of the Southern Extension PEA consensus case ($1,585 /oz) ………………………………….323

Table 24-33 Geology, Mining and Processing risks for Southern Extension………………………………………………………….325

Table 24-34 Economic risks for Southern Extension………………………………………………………………………………………….326

Table 24-35 Geological Drilling opportunities for Southern Extension ………………………………………………………………..326

Table 24-36 Mine design and productivity opportunities for Southern Extension ………………………………………………..327

Table 25-1 Geology, Mining and Processing risks for the Mineral Reserve…………………………………………………………..332

Table 25-2 Infrastructure risks for the Mineral Reserve…………………………………………………………………………………….332

Table 25-3 Capital and Operating Cost risks for the Mineral Reserve………………………………………………………………….333

Table 25-4 Environmental and Social Risks ……………………………………………………………………………………………………..333

Table 25-5 Mineral Resource Opportunities…………………………………………………………………………………………………….334

Table 25-6 Mine design and productivity opportunities for the Mineral Reserve …………………………………………………334

Table 25-7 Sustainability Opportunities ………………………………………………………………………………………………………….335

Table 26-1 Cost estimate for 2021 – 2022 Resource definition drilling and technical studies…………………………………339NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 14

LIST OF ABBREVIATIONS

2020 PEA

Preliminary Economic Assessment of potential expansion of the underground mine

to extract the Inferred Mineral Resource in the Southern Extension zone

AAS

Atomic adsorption spectroscopy (sampling)

AC

Air-core (drilling)

ADK

Adoikrom (deposit)

Ai

Bond abrasion index (metallurgical testing)

ALS

ALS Minerals

ARD

Acid rock drainage

ARO

Asset retirement obligations (closure planning)

BDG

BD Goldfields (company)

BLEG

Bulk leach extractable gold (assaying)

BWi

Bond ball mill work index (metallurgical testing)

CIL

Carbon in leach (processing method)

CIM

Canadian Institute of Mining, Metallurgy and Petroleum

CMCC

Community Mine Consultative Committee

CRM

Certified reference material (sampling QA/QC)

CSL

Compacted soil liner (civil construction)

CWi

Bond low impact crushing work index (metallurgical testing)

CYAP

Community Youth Apprenticeship Program

DD

Diamond core (drilling)

EIA

Environmental Impact Assessment

EIS

Environmental Impact Statement

EMP

Environmental Management Plan

EMS

Environmental and social management system

EPA

Environmental Protection Agency (Ghana)

ESR

Excavation support ratio (geotechnical)

FBZ

Father Brown (deposit)

FOS

Factor of safety

FS

Feasibility study

HW

Footwall

G&A

General and administration

GAI

Geochemical abundance index (geochemistry)

GC

Grade control

GSI

Geological strength index (geotechnical)

GSOPP

Golden Star Oil Palm Plantation

GSR

Golden Star Resources

GSSTEP

Golden Star Skills Training and Employability Program

GSWL

Golden Star Wassa Limited

HARD

Half absolute relative difference (statistics)

HBB

Hwini Butre Benso (deposit group)

HBM

Hwini Butre Minerals (company)

HG

High grade

LG

Low grade

HL

Heap leach (processing method)

HW

Hanging-wallNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 15

ICOLD

International Committee on Large Dams

ILR

In-line reactor (processing method)

IP

Induced polarization

Jn

Joint number (geotechnical)

Jr

Joint roughness (geotechnical)

Jw

Joint alteration (geotechnical)

L.I.

Legal Instrument

LG

Low grade

LHOS

Long hole open stoping (mining method)

LR (model)

Long-range model (geological modelling)

LVA

Locally variable anisotropy (geological modelling)

MOU

Memoranda of Understanding

MSG

Modified Stability Graph (geotechnical)

MSO

Mineable Stope Optimiser (mine planning)

NAG

Not acid generating (geochemistry)

NPV

Net present value

OK

Ordinary kriging (geological modelling)

PCP

Practical closure plan (closure planning)

PVC

Poly-vinyl chloride

QA/QC

Quality assurance, quality control

QP

Qualified person

RAB

Rotary air blast (drilling)

RC

Reverse circulation (drilling)

RGI

Ryal Gold Inc (company)

RGLD

RGLD Gold AG (company)

RL

Relative level

RMR

Rock mass rating (geotechnical)

RMS

Resource Modelling solutions (company)

ROM

Run of mine

RPEEE

Reasonable prospects for economic extraction

RQD

Rock quality description (geotechnical)

SGL

Satellite Goldfields Limited (company)

SJR

Saint Jude Resources (company)

SR (model)

Short-range model (geological modelling)

TSF

Tailings storage facility

UCS

Unconfined compressive strength

US$

United States dollar/s

VRA

Volta River Authority (Ghana)

WSL

Wassa site laboratory (assaying)

WUC

Western University College, Tarkwa (Ghana)

WUG

Wassa underground mine

XRD

X-ray diffraction

XRF

X-ray fluorescenceNI 43-101 Technical Report (March 2021) Wassa Gold Mine

1 EXECUTIVE SUMMARY

1.1 Terms of Reference

This Technical Report has been prepared to meet the requirements defined by Form 43-101F1, by and for

Golden Star Resources, describing the Wassa gold mine in Ghana. GSR owns a 90% interest in and manages

Golden Star Wassa Limited, who’s primary asset is the Wassa gold mine, with the Government of Ghana

owning the remaining 10%.

The report provides updated information on the currently operating Wassa Gold Mine:

  • Updated Mineral Resource and Mineral Reserve estimates, as at 31 December 2020; and
  • Summary of a Preliminary Economic Assessment of potential expansion of the underground mine

to extract the Inferred Mineral Resource in the Southern Extension zone (2020 PEA).

The 2020 PEA has no impact on the Mineral Reserves, nor on the key assumptions and parameters

supporting the Mineral Reserves, which are current, valid and do not rely on any assumptions in the PEA.

The PEA is a scoping level study which is conceptual in nature and there is no certainty that production and

financial outcomes will be realized. It has been prepared within the following framework:

  • Production schedules to appropriately consider conversion risk of the Inferred Mineral Resource;
  • Methodologies and design quantities based on proven, currently available technologies;
  • Mine production constrained within current processing capacity (2.7 Mtpa);
  • Costs to reflect current operational experience; and
  • Minimise capital demand needed to establish full production.

The intent of the framework is to present a deliverable PEA plan which can be executed with GSR’s current

operational and financing capacity. Potential enhancements outside this framework are presented as

opportunities outside of the PEA outcomes and can be investigated as part of the forward work plan.

Mineral Resources and Mineral Reserves have been prepared in accordance with the 2014 CIM Definition

Standards and 2019 Best Practice Guideline.

Units in the report are metric and monetary units are United States dollars (US$) unless otherwise stated.

1.2 Location and Setting

The Wassa Mine is located in a rural setting near the village of Akyempim in the Wassa East District, in

Ghana’s Western Region, 80 km north of Cape Coast and 150 km west of the capital Accra.

The climate is classified as wet semi-equatorial with a dry season from November to February. The wettest

month is June with an average 241 ± 85 mm and annual average rainfall is 1,996 ± 293 mm.

1.3 Mineral Tenure, Permits, Royalties and Agreements

GSWL holds three mining leases (Wassa, Hwini Butre, Benso) and several prospecting leases in the region

and full details are presented in Table 4-1.

EIA studies have been undertaken to support permitting and there is considerable background

environmental data.

The Wassa Mining Lease stipulates a 5% royalty on gross revenue, paid quarterly to the Government of

Ghana and the government holds a 10% free-carried interest, which entitles a pro-rata share of dividends.

GSR is party to a gold purchase and sale agreement with Royal Gold, Inc. through its wholly owned

subsidiary RGLD Gold AG (RGLD) which was amended and restated on 30 September 2020. The stream

covers all gold produced within GSWL’s mineral concessions. The stream payment structure is outlined in

Table 1-1. The stream payments are treated as a revenue adjustment.

Page 16NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 17

Table 1-1 RGLD stream payment structure

Stream Tier

Attributable Ounces

% of spot paid

Application

Tier 1

10.5%, until 240,000 oz reached

20%

119,997 oz sold to end-December 2020

Tier 2

5.5%

30%

All production after Tier 1 completed

1.4 History

Golden Star acquired the 90% share in Wassa in September 2002 from Standard Bank after the foreclosure

of Glencar Mining’s share of Satellite Gold Limited. At the time Wassa was an open pit operation treating

3.0 Mtpa through heap leach, with gold recovery of 55-60%.

The carbon in leach plant was commissioned in 2005 and upgraded in 2013 to treat 2.7 Mtpa of fresh rock

feed only. Ore has been mined mostly by open pit, with underground development commencing in 2015

and forming the majority of the ore supply since 2018. Gold production has varied from 184 koz in 2009 to

104 koz in 2016 and has averaged 157 koz/yr for the past three years (2018-2020).

1.5 Geology and Mineralization

1.5.1 Wassa

The Wassa property lies within the southern portion of the Ashanti Greenstone Belt along the eastern

margin and within a volcano-sedimentary assemblage located close to the Tarkwaian basin contact.

Wassa lithology is characterized by lithologies of the Sefwi Group, consisting of intercalated meta-mafic

volcanic and meta-diorite dykes with altered meta-mafic volcanic and meta-sediments which are locally

characterized as magnetite rich, banded iron formation like horizons (Bourassa, 2003). The sequence is

characterized by the presence of multiple ankerite-quartz veins, sub-parallel to the main penetrative

foliation and Eoeburnean felsic porphyry intrusions on the south-eastern flank of the Wassa mine fold.

Wassa mineralization is subdivided into a number of domains: F Shoot, B Shoot, 242, South East, Starter,

419, Mid East, and Dead Man’s Hill. Each of these represents discontinuous segments of the main

mineralized system. The South- Akyempim deposits are located 2 km southwest of the Wassa Main deposit

on the northern end of a mineralized trend parallel to the Wassa Main trend.

Mineralization is hosted in highly altered multi-phased greenstone-hosted quartz-carbonate veins

interlaced with sedimentary pelitic units. It is structurally controlled and related to vein densities and

sulphide contents.

Wassa mineralization is quite old and has been affected by several phases of deformation since

emplacement. Two major folding events were likely emplaced early in the deposit’s deformational history,

with Gold mineralization later remobilized into the hinges of a tight folding event and finally, the deposit

scale fold which influences the open pit configuration.

Remobilized gold in the hinges of the tight folding event are the primary underground mining targets and B

Shoot and F-Shoot are the two main zones. These zones plunge to the south at approximately 20 degrees

with Mineral Resource now defined more than 800 m south of the current underground Mineral Reserve.

1.5.2 Regional Deposits

The Hwini Butre concession is underlain by three deposits: Adoikrom, Dabokrom and Father Brown, which

are all characterized by different styles of mineralization within the Mpohor mafic complex, which consists

mainly of gabbroic and gabbro-dioritic intrusive horizons.

At Father Brown and Dabokrom, mineralization is associated with quartz vein systems that are locally

surrounded by extensive, lower grade, disseminated quartz stockwork bodies, especially at Dabokrom. At

Adoikrom, the mineralization is shear hosted and characterized by the absence of quartz veins; gold is

associated with fine grained pyrite and intense potassic alteration. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The Benso concession is underlain by four main deposits: Subriso East, Subriso West, G Zone and I Zone

which all have a similar style of mineralization.

The Benso deposits are hosted in two dominant rock types, Subriso West and I Zone are hosted within

Intermediate feldspar porphyry intrusives and meta-volcanics, whereas Subriso East occurs along the

contact between carbonaceous phyllites and meta volcanics. Mineralization at Benso is associated with

late deformational stages of the Eburnean orogeny and deposits are shear hosted along subsidiary

structures.

The Chichiwelli deposit consists of two sub-parallel mineralized trends hosting two distinct types of

mineralization. The Chichiwelli West trend is a shear zone hosted deposit with a quartz, carbonate, sericite

and potassic alteration assemblage, the mineralization is associated with pyrite. The Chichiwelli East trend

is a quartz vein associated deposit with an ankerite and sericite alteration assemblage. Mineralization is

also associated with pyrite along vein selvages and in the wall rocks.

1.6 Drilling and Sampling

Drilling is carried out by diamond core (DD), reverse circulation (RC) and RAB/air-core techniques. Surveys

are conducted on drill hole collars (by total station) and downhole (by either multi-shot downhole camera,

or gyro instrument for deeper holes).

A standardized approach to drilling and sampling is applied where typically, sampling is carried out along

the entire mineralized drilled length. Sampled spacing is 1.0 m for RC and for DD samples according to

mineralization, alteration or lithology. Core is split into equal parts along a median to the foliation plane to

ensure representative samples for assaying. The remaining half core is retained for reference and

additional sampling if required.

Sample preparation on site is restricted to core logging and cutting, or RC and RAB sample splitting.

Facilities consist of enclosed core and coarse reject storage facilities, covered logging sheds and areas for

the splitting of RC and RAB samples (with Jones riffle splitter).

From site, samples are transported by road to the primary laboratory in Tarkwa for sample preparation and

chemical analysis. Sample security involves:

  • Chain of custody of samples to prevent inadvertent contamination or mixing of samples; and
  • Rendering active tampering of samples to be as difficult as practicable.

As the samples are loaded, they are checked and the sample numbers are validated. The sample dispatch

forms are signed off by the transport driver (dispatched by the laboratory) and a GSR representative.

Sample dispatch dates are recorded in the sample database as well as the date when results are received.

Sample assays are performed at either the Wassa Site Lab, SGS or Intertek (formerly TWL), with both

independent labs located in Tarkwa. GSR submits quality control samples to each lab for testing purposes.

Both SGS and Intertek laboratories are independent of GSR and are accredited for international

certification for testing and analysis.

1.7 Data Verification

Core logging and sampling procedures adopted by GSR are consistent with industry standards and validated

by external consultants checking logging against the remaining half-core with no major errors identified.

Procedures are in place with several steps to verify the collection of drill hole data and minimize potential

for data entry errors. Data entry and database management involves logging of holes directly into an SQL

Acquire database via laptop computers linked to the main database, with built-in validation tools designed

to eliminate erroneous data entry.

Analytical data is checked for consistency by GSR personnel:

  • Upon receipt of digital assay certificates; the assay results, along with the control sample values,

are extracted from the certificates and imported into the Acquire database;

Page 18NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Failures and potential failures are examined and depending on the nature of the failure,

re-assaying is requested from the primary laboratory; and

  • Analysis of quality control data is documented, along with relevant comments or actions

undertaken to either investigate or mitigate problematic control samples.

GSR relies on the laboratory operators’ QA/QC processes for assaying, as well as GSR’s own independent

QA/QC program. The GSR program includes inserting blanks, certified reference materials (aka: standards)

and pulp or coarse reject duplicates into sample batches before sample lab submission. QA/QC procedures

required >=10 % of the samples submitted to the independent laboratories are check samples.

1.8 Metallurgical Test Work

Metallurgical test work for underground ore was completed as part of the 2015 underground feasibility

study. The test work program showed general consistency with ores previously treated from the open pits.

This has subsequently been confirmed by actual processing results where, since 2015, overall plant

recoveries between 94-96% have been achieved.

1.9 Mineral Resource Estimate

The MRE has been updated for the on the basis of RC and DD drilling at four properties – Wassa, Hwini

Butre, Benso and Chichwelli. At Wassa, 30,067 drill holes for 1,353,740 m used to estimate a Long-Range

Model and 2,875 drill holes for 544,233 to estimate a short-range model (SR model), limited to the mine

area. The Father Brown/Adoikrom MRE has been updated with 3,736 drill holes for 154,589 m. The Benso

MRE was updated using 3,162 drill holes for 130,506 m and Chichiwelli used 506 drill holes for 33,494 m.

Data was validated prior to use in estimation and is considered fit for the purposes of Mineral Resource

estimation by the Qualified Person (QP).

Mineralization was modelled via grade shells at Wassa. The long-range (LR) model used indicator

methodology and the SR model used the raw assay data to interpolate grade shells. The halo domain was

interpreted at 0.4 g/t Au and the high grade/mineralization domain was interpreted at 1.5 g/t Au. Both cut

offs were determined by visual inspection and separated different grade populations in the data. Structural

trend surfaces informed the mineralization interpolation and orientation of search ellipses for both models.

At Father Brown and Adoikrom, GSR and Resource Modelling Solutions (RMS) used a vein modelling

technique, where the vein unit is modelled by estimating the position of the vein and thickness, hanging

wall, high grade and footwall. At Benso, mineralization and oxidation wireframes were created by GSR.

The mineralization zones of Benso are structurally controlled with gold emplacement related to the density

of quartz veining and sulphide content. At Chichiwelli, mineralization wireframes were interpreted at a

nominal 0.5 g/t Au cut off. Mineralization is structurally controlled with gold emplacement related to the

density of quartz veining and sulphide content. The mineralization hosting structures generally trend

north-south and dip moderate-steeply to the east at 60°.

Assay data was composited (3 m for Wassa LR model, 2 m for Wassa SR model, 2 m for Benso and

Chichiwelli), top cut based on review of population disintegration via probability plots. Variograms were

modelled where possible, to characterize the grade continuity in grade estimation.

Grades were estimated using ordinary kriging into parent cells for all deposits. At Wassa (long-range and

short-range) using locally oriented search ellipses, based on structural trends. Three search passes with

successively larger search ranges were used to estimate grades into blocks. The LR model had a block size

of 10 x 10 x 5 m and the SR model had a block size of 1 x 2.5 x 2.5 m. In situ dry bulk density has been

estimated to be 2.80 t/m3 based on measurements by GSR and Intertek in 2017 and 2018.

Block sizes at Father Brown and Adiokrom models were 1 x 2 x 2 m (X x Y x Z) chosen to reflect the

geometry of the deposit. A density of 2.70 t/m3 was assigned. At Benso, the block size chosen was 12.5 x

25 x 10 m (X x Y x Z) to reflect the average spacing of drill fences along strike. Grade was estimated into

mineralization domains with soft boundaries between oxidation units, using four search passes. A density

of 1.80 t/m3 for oxide and 2.70 t/m3 for fresh was assigned. A block size of 12.5 x 25 x 8 m (X x Y x Z) was

Page 19NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 20

chosen for Chichiwelli, grades were estimated in four search passes and a density of 1.80 t/m3 was assigned

to oxide and 2.68 t/m3 to fresh.

Validation was completed via inspection of swath plots, cross sections, mean grade comparisons between

composites and blocks.

The basis of the Mineral Resource classification included confidence in the geological continuity of the

mineralized structures, the quality and quantity of the exploration data supporting the estimates,

confidence in the density measurements and the geostatistical confidence in the tonnage and grade

estimates. Reasonable prospects for eventual economic extraction (RPEEE) was informed via pit shell

optimization for open pit Mineral Resources (Benso, Chichiwelli, HBB Other) and cut off grade estimation

for underground mineral resources (Wassa, Father Brown, Adoikrom). A gold price of US$1500 /oz and

costs from the operations were used in pit shell optimization and cut off grade estimation.

  • The Mineral Resource estimate complies with the requirements of National Instrument 43-101 and

has been prepared and classified in accordance with the 2014 CIM Definition Standards and 2019

Best Practice Guidelines.

  • Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves;
  • Underground deposits within the Mineral Resource are reported at a cut-off grade of 1.4 g/t;
  • Open pit deposits within the Mineral Resource are reported at a cut-off grade of 0.55 g/t, within

optimized pit shells calculated at a $1,500 /oz gold selling price;

  • The Mineral Resource models have been depleted using appropriate topographic surveys;
  • Regional OP includes deposits at Benso, Chichiwelli and HBB Others;
  • Mineral Resources are reported in-situ without modifying factors;
  • No open pit resource has been reported for the Wassa deposit, as engineering studies have

determined Wassa will be mined by underground methods only; and

  • All figures are rounded to reflect the relative accuracy of the estimate.

Table 1-2 Wassa Measured and Indicated Mineral Resource, as at 31 December 2020

Table 1-3 Wassa Inferred Mineral Resource, as at 31 December 2020

Measured & Indicated Mineral Resource, at 31 December 2020

Meas. & Ind.

Mineral Resource

at 31 December 2019

Measured Resource

Indicated Resource

Meas. & Ind.

Mineral Resource

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Wassa OP

29.18

1.29

1,206

Wassa UG

5.90

4.45

843

18.96

3.55

2,162 24.85

3.76

3,005 16.20

3.89

2,027

Father Brown

/Adoikrom UG

1.31

7.96

335

1.31

7.96

335

0.91

8.67

254

Regional OP

3.10

1.98

197

3.10

1.98

197

2.51

2.32

187

TOTAL

5.90

4.45

843

23.37

3.59

2,694 29.26

3.76

3,537 48.81

2.34

3,675

Inferred Mineral Resource

at 31 December 2020

Inferred Mineral Resource

at 31 December 2019

Mt

Au g/t

koz

Mt

Au g/t

koz

Wassa OP

0.62

1.31

26

Wassa UG

70.50

3.39

7,689

58.82

3.75

7,097

Father Brown

/Adoikrom UG

2.66

5.30

453

1.88

6.07

367

Regional OP

0.87

1.47

41

0.42

2.14

29

TOTAL

74.02

3.44

8,183

61.74

3.79

7,518NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 21

1.10 Mineral Reserve Estimate

The Mineral Reserve has been calculated with a cut-off grade of 1.9 g/t, which is below 2.4 g/t applied

previously. The change has been driven by lower operating costs, achieved through increasing

underground mining rates that have been sustained through 2019 and 2020 and validated by an

assessment during 2020 which showed the optimal NPV for the Mineral Reserve will be achieved at a

cut-off of 1.9 g/t and ore mining rate of 5,000 t/d (1.8 Mtpa).

Modifying factors are applied to stopes at 5.0% diluton and 96.1% recovery and 0.0% diluton and 100.0%

recovery for development, which are based on actual performance to end-November 2020.

The Mineral Reserves have been prepared in accordance with the 2014 CIM Definition Standards and 2019

Best Practice Guidelines.

Material is included in the Mineral Reserve as follows:

  • The Mineral Reserve estimate complies with the requirements of National Instrument 43-101 and

has been prepared and classified in accordance with the 2014 CIM Definition Standards and 2019

Best Practice Guideline.

  • The Mineral Reserve is reported at a cut-off grade of 1.9 g/t, calculated at a $1,300 /oz gold selling

price;

  • Modifying factors are applied as 5.0% dilution and 96.1% recovery for stopes;
  • Material based on Measured Mineral Resources are reported as Proven Mineral Reserves;
  • Material based on Indicated Mineral Resources are reported as Probable Mineral Reserves;
  • Material based on Inferred Mineral Resources are excluded from Mineral Reserve;
  • Economic analysis of the Mineral Reserve demonstrates economic viability at $1,300 /oz gold price;

and

  • All figures are rounded to reflect the relative accuracy of the estimate.

Table 1-4 Wassa Mineral Reserve, as at 31 December 2020

1.11 Mining Methods

1.11.1 Mine Design

Mining is by underground with trackless access by decline (1:7 gradient), operated by GSWL personnel. The

method is long hole open stoping (LHOS), mostly with transverse uphole stopes, in 25 m lifts, mined top

down, in primary/secondary sequence. Stable unsupported stope heights are up to 100 m and stopes are

mined to full orebody width.

The mine is divided into Panels, which reflect progressive stages of capital development. The Mineral

Reserve includes Panels 1, 2 and 3, which lie between 150-650 m depth.

The December 2019 Mineral Reserve proposed to extract material below the B-Main and 242 pits by open

pit methods. This has changed to underground extraction (Panel 3) based on trade off studies during 2020

which concluded underground extraction provided improved selectivity and reduced capital demand.

Mineral Reserve, at 31 December 2020

Mineral Reserve

at 31 December 2019

Proven Reserve

Probable Reserve

Mineral Reserve

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

UG, Panels 1 & 2

4.28

3.28

451

4.48

2.99

430

8.75

3.13

881

7.42

3.72

889

UG, Panel 3

2.06

2.94

195

2.06

2.94

195

Open Pit

9.92

1.57

500

Stockpiles

0.69

0.58

13

0.69

0.58

13

1.06

0.62

21

TOTAL

4.97

2.91

464

6.54

2.97

625

11.50

2.94

1,089 18.41

2.38

1,410NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 22

Panels 1 and 2 contain Proven and Probable Mineral Reserve. Panel 3 contains only Probable Mineral

Reserve, plus Inferred Mineral Resource which is excluded from the plan informing the Mineral Reserve.

Panels 1 and 3 leave 6-10 m intact rock pillars between stopes, with ad-hoc waste rock fill to enable pillar

recovery or for simple waste disposal.

Panel 2 is planned for paste backfill. Primary stopes have been extracted, with voids awaiting

commissioning of the paste fill plant in early 2021. Once primary stopes are filled, secondary stope

extraction will commence. Stopes are up to 100 m high and are separated vertically by sill pillars which will

be recovered after stopes above and below are extracted and filled.

Table 1-5 Wassa, mine design quantities for Mineral Reserve plan

1.11.2 Geotechnical

Geotechnical assessments have been completed and the rock mass quality is classified Very Good, using

Barton’s (Barton et al, 1974) classification and Geological Strength Index (GSI) rating systems.

In-situ stress measurements have been taken and mining induced seismicity is not expected to have an

impact until mining approaches 1,000 m depth (Mineral Reserve is down to 650 m depth).

Geotechnical design for development has been done using Barton’s Q support classification and

development excavations lie within Category 1, “No Support Required”, although and minimum standard

pattern is applied, consisting of friction bolts and mesh to the back and upper walls of all headings.

Geotechnical design for stopes has been done using the Stability Graph method to determine the stable

stope design geometry and stope geometries contained in Table 1-6.

Table 1-6 Stable stope dimensions for Mineral Reserve plan

Panels 1-2

B-Shoot

Panel 3

B/F-Shoot

Panel 3

242

Ore Mined, by Panel

‘000 t

8,755

1,245

818

g/t

3.13

2.71

3.30

‘000 oz

881

109

87

Ore Mined, Total

‘000 t

10,818

g/t

3.09

‘000 oz

1,076

Development, Total

m

44,173

Dev’t Capital

m

20,392

Dev’t Operating

m

23,781

Vertical Development

m

2,776

Mined to Waste

‘000 t

2,469

Paste Backfill

‘000 m3

2,967

Stope Dimension

Transverse Stope

Longitudinal Stope

MIN

MAX

Design (m)

MIN

MAX

Design (m)

Height

m

25

100

100

<15

25

25

Strike Length

m

25

25

25

<60

70

70

Width across Strike

m

15

30

25

<15

15

15

Dip, end/side-walls

65°

65°

65°

65°

65°

65°NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 23

1.11.3 Ventilation

The ventilation network for Panels 1 and 2 is planned to provide 50 m3 /s per working area for up to 9

working areas with total airflow of 590 m3 /s.

Total airflow is currently 440 m3 /s and will be increased to the design flows with addition of two new

5.5-6.0 m diameter shafts (one each for intake and exhaust) which are budgeted in 2021 and 2022. Both

shafts will be located at the southern end of Panel 2.

The Panel 3 B-Shoot area will connect to the Panel 1 -2 network and will enable increase airflow with an

additional exhaust raise planned to be collared in the saddle between the Main and South-east pits.

The Panel 3 242 area will be ventilated with an independent network incorporating an exhaust drive mined

from the Main pit connecting to the 242 ramp which will have a portal in the 242 pit. Up to 190 m3 /s will

flow through the 242 ramp with fans placed in the exhaust adit portal.

1.11.4 Mining Schedule

Table 1-7 Mining schedule quantities for Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Definition Drilling

Resource Dev’t & Infill

‘000 dd.m

36.0

5.0

15.0

5.0

Grade Control

‘000 dd.m

13.5

12.3

13.1

12.2

6.5

Total Dev’t

‘000 dd.m

49.5

17.3

28.1

17.2

6.5

Development

Capital

m.adv

2,582

5,943

6,756

5,111

Operating

m.adv

7,272

4,996

5,289

5,926

296

Total Dev’t

m.adv

9,855

10,939

12,045

11,037

296

Vertical Development

v m

977

891

464

443

Backfill

‘000 fill.m3

546

597

592

621

445

166

Material Movement

Waste, tonnes

‘000 t

463

657

737

609

3

ROM, tonnes

‘000 t

1,784

1,826

1,804

1,939

2,020

1,445

ROM, Au grade

g/t

3.08

3.11

3.29

3.07

2.94

3.10

ROM, cont.Au

‘000 oz

176.7

182.5

190.6

191.3

191.0

144.1

Total Movement

‘000 t

2,247

2,483

2,541

2,549

2,023

1,445

Haulage

Tonnes x Kilometres

Mtkm

6.8

8.0

8.7

9.3

6.7

4.8

Avg. Distance

km

3.01

3.22

3.43

3.64

3.33

3.33

1,076.3

13,287

44.3

3.33

20,392

23,781

44,173

2,776

2,967

2,469

10,818

3.09

Total/avg

118.6

61.0

57.6NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 24

Figure 1-1 Underground Production History and Mineral Reserve plan

1.11.5 Mobile Equipment

The current mobile equipment fleet will continue to be used and progressively move toward standardized

machine types:

  • Development Jumbos: continue current twin-boom machine, nominally Sandvik DD421;
  • Production Drills: continue current 89-115 mm top-hammer, nominally Sandvik DL421;
  • UG Loaders: current mixed fleet of 18 t units, progress toward 21 t, nominally Sandvik LH621; and
  • UG Trucks: current fleet of 40 t units, progress toward 60 t machines, nominally Volvo A60H.

Table 1-8 Mobile fleet purchase schedule for Mineral Reserve plan

1.12 Recovery Methods

The Wassa processing plant is a conventional CIL plant with a four stage crushing circuit (p80 <8 mm)

feeding two independent ball mills of 3 MW each (p80 <75 μm).

The grinding circuit includes gravity recovery by Knelson concentrators and intensive leach in an Acacia

reactor. Cyclone underflow has cyanide and oxygen added prior to pumping to leach circuit via the in-line

reactor pipeline. The CIL circuit consists of six stages of agitated leach with an residence time of 18-20 h at

full capacity.

Loaded carbon is acid washed and stripped and gold is electrowon onto steel mesh prior to smelting to

produce doré bars.

Development Jumbo

  1.  

4

5

5

5

1

Production Drill

  1.  

2

2

2

3

3

2

UG Loader

  1.  

6

5

4

4

3

3

UG Truck

  1.  

8

9

7

8

6

4

ROM & Ancillary

  1.  

9

1 0

1 0

1 0

8

6

CY26

Machine Type

CY21

CY22

CY23

CY24

CY25NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 25

Table 1-9 Processing schedule quantities for Mineral Reserve plan

Figure 1-2 Processing Production History and Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Feed, from Underground

Tonnes

‘000 t

1,711

1,893

1,996

2,228

2,001

338

Au grade

g/t

3.14

3.01

2.95

2.95

2.89

3.03

cont.Au in Feed

‘000 oz

173

183

190

211

186

3 3

Feed, from LG Stockpile

Tonnes

‘000 t

361

100

225

Au grade

g/t

0.62

0.61

0.61

cont.Au in Feed

‘000 oz

7

2

4

Total Processed

Tonnes

‘000 t

2,072

1,993

1,996

2,228

2,001

563

Au grade

g/t

2.70

2.89

2.95

2.95

2.89

2.06

cont.Au in Feed

‘000 oz

180

185

190

211

186

3 7

Recovery

g/t

94.4%

94.3%

94.1%

93.9%

93.6%

90.8%

Au Produced

‘000 oz

170

175

178

199

174

3 4

Total/avg

10,167

2.99

976

686

0.62

1 4

10,852

2.84

990

93.9%

930NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 1-3 Gold Production History and Mineral Reserve plan

1.13 Infrastructure

Surface infrastructure to support the mining and processing operations is in place and includes:

  • Access roads;
  • Electrical power supply – access to grid, on-site generation and site distribution;
  • Waste storage areas and open pit water storage areas, including water diversion structures;
  • Main exhaust fans for underground ventilation;
  • Processing facilities for processing up to 2.7 Mtpa;
  • 4,000 tpd paste plant, recently completed;
  • 2 Tailings Storage Facilities (TSF) – TSF 1 is being revegetated and TSF 2 is active;
  • Maintenance workshops and site electrical distribution infrastructure;
  • Site administration buildings; and
  • Accommodation camp.

The mining and processing of the Mineral Reserve does not require any major upgrades to the site surface

infrastructure, other than for the ventilation outlined in Section 0.

TSF design capacity exceeds requirements for the Mineral Reserve plan, without accounting for tails which

will be used for paste backfill.

The design of TSF 2 meets the requirements of the Minerals and Mining (Health, Safety and Technical)

Regulations, 2012 (L.I. 2182) and takes due consideration of the recommendations of the International

Committee on Large Dams (ICOLD), the Australian Committee on Large Dams (1999) and the Canadian Dam

Association guidelines (2007).

The minimum Factor of Safety (FOS) values calculated for all conditions on both the downstream and

upstream slopes which were found to meet, and in some conditions exceed, the Minerals and Mining

(Health, Safety and Technical) Regulations, 2012 (L.I. 2182) requirements for factors of safety.

Page 26NI 43-101 Technical Report (March 2021) Wassa Gold Mine

1.14 Environmental Studies, Permitting and Social or Community Impact

There is a successful history of permitting, environmental and social risk management at Wassa

1.14.1 Sustainability

GSR supports, is subject to and / or incorporates enhanced disclosure on a range of international

requirements including:

  • Human Rights, via the UN Sustainable Development Goals
  • Anti-Corruption, through Ghana’s designation as Extractive Industries Transparency Initiative

compliant

  • Voluntary codes, including International Cyanide Management Code certification; Responsible Gold

Standard and the Responsible Gold Mining Principles

  • Resettlement, land acquisition and compensation, through conforming to the International Finance

Corporations’ Performance Standard 5 on Land Acquisition and Involuntary Resettlement.

There are corporate assurance processes in place, including independent reviews, audit and/or validation

to ensure conformance with the codes and standards.

1.14.2 Environmental Considerations

The first Environmental Certificate for Wassa (and all other managed concessions) was received in

September 2006 and is maintained in good standing with submission of and Environmental Management

Plan (EMP) every three years, with the most recent Environmental Certificate issued in 2020.

The EMP is supported by:

  • Surface water management, with an emphasis on diversion to minimize contact water.
  • Hydrogeology, which concluded in 2016 and 2019 that expected drawdown will not have significant

impact on community ground water boreholes.

  • Geochemistry: analysis has consistently shown ore and waste lithologies, are generally not acid

generating (NAG) which is validated by over two decades of mining.

  • Water Quality:

o Surface water in vicinity of the open pits, conforms to the EPA Effluent Quality Guidelines;

o Underground drainage studies indicate that water quality guidelines be met with

discharges predicted to be generally neutral to alkaline with low concentrations of TDS,

sulphate and metals. This is validated by routine sampling results.

  • Air Quality is routinely monitored and an array of dust suppression mitigations are employed

during dry season conditions.

  • Noise is routinely monitored at neighbouring villages and results show noise emanations are not the

result of Wassa activity.

  • Vibration has been modelled and results conform to regulatory limits, which has been validated by

monitoring results.

  • Biodiversity surveys have been conducted for baseline establishment and measuring impacts.

o Flora: Species of conservation significance are actively propagated for revegetation use and

areas identified to host quality unprotected remnant forest are specifically avoided;

o Fauna: A 1996 study found no species of small mammal, bats, birds, herpetofauna, or

amphibians of outstanding conservation merit. Several species of large mammal with

conservation significance were located but observation required traversing over 10 km into

a Forest Reserve to observe, likely due to high hunting pressures and impacts of logging.

Page 27NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 28

1.14.3 Social Considerations

The main areas of focus for socio-economic improvement are: health, education, electricity and water

supply, and livelihood opportunities. Social investment initiatives include:

  • Golden Star Development Foundation: GSR’s main partnership vehicle to implement a variety of

community development projects and programs.

  • Golden Star Oil Palm Plantation: GSOPP is a community-based oil palm plantation company

established in 2006 as a non-profit subsidiary of GSR.

  • Capacity Building and Livelihood Enhancement: The Golden Star Skills Training and Employability

Program (GSSTEP) provides skills training in non-mining sectors, increasing economic diversity.

  • Local Procurement: The GSWL MOU on Local Employment and Contracts builds on the history of

building local procurement capacity around Wassa.

Unauthorized small-scale mining (galamsey) occurs on and around the Wassa leases. In addition to the

initiatives above, GSWL conducts engagement programs and collaborates with the Minerals Commission,

legal small-scale mining associations and community organizations to cede areas of concessions to facilitate

legal small-scale mining, along with appropriate security around active mining areas. With this approach,

GSR has the opinion that galamsey around Wassa has little potential to impact current or future operations.

1.14.4 Closure Planning

Closure concepts and provisional plans are required for permitting and updated three-yearly in the EMP.

The Asset Retirement Obligation estimate is $19.83 M and Practical Closure is estimated at $14.31 M.

1.15 Capital and Operating Costs

Capital and operating cost estimates apply the following bases:

  • All costs are in US$ for both historic actuals and forward looking expenditures. Majority of costs

(including local Ghana) are aligned to US$, negating the effect of exchange rates.

  • Expenditures aligned to physical schedules over the life of the project.
  • Forward estimates calibrated to 2020 actual spend (Jan-Dec 2020).

1.15.1 Capital Costs

Capital costs have been classified into growth (to expand or increase capacity of the operation from the

current established base) and sustaining (sustain the established base) capital.

Table 1-10 Capital Cost Summary for Mineral Reserve plan

Mine Development

$M

Mining UG

$M

Definition Drilling

$M

Processing

$M

Site G&A

$M

TSF

$M

Mobile Fleet

$M

Projects, Ventilation

$M

Projects, Other

$M

Total

$M

Unit Cost per Proc.t

$/t

Unit Cost per rec.oz

$/oz

Sustaining Capital

51.7

33.2

5.5

18.3

9.8

18.2

136.5

75.69

757

Growth Capital

26.6

8.6

7.5

5.0

47.7

24.53

281

7.5

5.0

184.3

16.02

180

Total/avg

78.3

33.2

8.6

5.5

18.3

9.8

18.2NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 29

1.15.2 Operating Costs

Operating costs have been estimated as follows:

  • Analysis of 2020 actual spend;
  • Analysis of share of fixed and variable cost for each activity, at the cost element level (eg: fuel,

labour, consumables);

  • Calculation of periodic spend, driven by scheduled units of a physical activity; and
  • Review of step change fixed costs where higher physical rates are planned.

Table 1-11 Cost Estimate, Operating for Mineral Reserve plan

Table 1-12 Operating Cost Summary for Mineral Reserve plan

1.16 Economic Analysis

The Mineral Reserve has been valued using discounted cash flows to determine NPV, as at 31 December

  1. It shows positive cash flow at the $1300 /oz reserve selling price and supports declaration of a

Mineral Reserve.

For the Mineral Reserve:

  • Growth Capital:

$47.7 M;

  • Development Duration: nil (in production);
  • Production Phase Life: 6 years (2021-2026);
  • Production Phase Rate: 171 koz/yr;
  • All-in Sustaining Cost: $881 /oz; and
  • After-tax NPV5%:

o Base Case ($1,300 /oz):

$121.2 M (100% basis)

o Consensus Case (av $1,751 /oz):$335.6 M (100% basis)

(Consensus of 27 banks and financial institutions, as at the end of January 2021)

UofM

Mining, Development

m.adv

Mining, Production

stope.t

Mining, Backfill

fill.m3

Mining, Surface Haulage

ROM.t

Mining, Overheads

ug.all.t

Mining, Geology

ug.ddm.op

Processing

mill.t

G&A

mill.t

Refining

rec.oz

1.27

9,665

Description

Lateral Development

Stope Material

Paste Backfill

ROM Material

Driving Quantity

Resultant Rate

$/ROM.t mined

7.05

18.24

4.87

220,378

Tonnes Processed

20.37

99,942

Tonnes Processed

9.24

Grade Control Drilling, UG

13,767

0.89

24,399

Total Material Mined, UG

2.26

197,269

52,640

Expenditure

$ ‘000

76,247

4,610

Au Produced

0.43

CY21

CY22

CY23

CY24

CY25

CY26

Total Operating

Mining

$M

70.1

65.5

66.4

70.5

60.8

40.7

Processing

$M

37.1

39.6

35.2

37.0

38.1

33.4

Site G&A

$M

17.5

17.9

17.2

17.5

17.7

16.7

Total Operating

$M

124.7

123.1

118.8

125.1

116.6

90.7

Unit Cost per Proc.t

$/t

64.11

57.89

65.85

64.48

57.74

54.32

Unit Cost per rec.oz

$/oz

733

696

658

694

652

657

Total/avg

220.4

104.6

699.0

60.76

682

374.0NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 30

1.17 Preliminary Economic Assessment of the Southern Extension Zone

The PEA is entirely based on an Inferred Mineral Resource and there is no certainty that further geological

drilling will result in the determination of higher Mineral Resource classification, nor that production and

financial outcomes will be realized. Mineral Resources that are not Mineral Reserves do not have

demonstrated economic viability.

The PEA of the Southern Extension zone has been completed with the following limits and scope:

  • Inferred Mineral Resource south of 19,240 mN;
  • Scoping level mining study:

o Mining method selection and methodology;

o Stope optimization;

o Mine design to determine development quantities which inform cost estimate;

o Ventilation design and modelling;

o Simulation of truck haulage to validate production rate;

o Definition drilling strategy;

o Preliminary scheduling;

  • Review of metallurgical test work and processing capacity;
  • Review of permitting requirements;
  • Estimation of capital and operating cost; and
  • Economic analysis.

The PEA shows the Southern Extension project is potentially economically viable with an after-tax NPV at

5% discount rate, of $ 783.5M (100% Basis).

  • Growth Capital:

$228.8 M;

  • Development Duration: 6 years (Y1-Y6);
  • Production Phase Life: 11 years (Y7-Y17);
  • Production Phase Rate: 294 koz/yr;
  • All-in Sustaining Cost: $778 /oz; and
  • After-tax NPV5%:

o Base Case ($1,300 /oz):

$452.2 M (100% basis)

o Consensus Case ($1,585 /oz): $783.5 M (100% basis)

Conversion risk of the Inferred Mineral Resource has been addressed through application of cut-off grades

and modifying factors in the different mining panels. 54% of metal is included in the PEA inventory for

Panels 4 and 5 where there is more definition drilling and the inclusion factor decreases to 48% for the

deeper panels 7 and 8 where definition drilling is more widely spaced. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 31

Table 1-13 Conversion of Inferred Mineral Resource to PEA inventory

Units

Panel 4

Panel 5

Panel 6

Panel 7

Panel 8

Total

Inferred Mineral

Resource,

in-situ

Mt

7.8

11.5

8.6

19.6

18.6

66

Au g/t

3.0

3.1

2.7

4.0

3.6

3.4

Moz

0.76

1.14

0.74

2.52

2.14

7.3

PEA Inventory

Mt

4.1

5.5

3.1

9.4

7.8

30

Au g/t

3.3

3.5

3.7

4.3

3.8

3.8

Moz

0.42

0.61

0.37

1.31

0.94

3.6

Conversion to PEA

Inventory

%Moz

54%

49%

48%

50%

Cut-off Grade

Au g/t

2.3 g/t

2.9 g/t

Modifying Factors,

Stopes

7.5% Dilution

95.0% Recovery

13.0% Dilution

75.0% Recovery

Figure 1-4 Processing schedule for Southern Extension PEA

Figure 1-5 Gold Production Schedule for Southern Extension PEANI 43-101 Technical Report (March 2021) Wassa Gold Mine

Realization of the production schedule from the PEA carries a number of risks in addition to those defined

in Section 1.18.2.

  • Geology:

The primary risk is that the PEA is based on an Inferred Mineral Resource. As further definition

drilling is completed, current interpretations and estimates of geological continuity, gold grade, and

mineralization volumes may not be realized.

  • Mining:

The PEA is based on a scoping level study and assumes increased productivity rates which are

planned but not yet achieved. The main risks to achieving the PEA outcomes are that geotechnical

conditions result in slower production and if operations are unable to achieve development

advance and stope turnover rates.

  • Processing:

Limited metallurgical test work has been completed for the PEA mining area. Results generally

suggest processing will be consistent with current operations, but there is minor variability and

further test work may identify that planned recoveries and throughput rates may not be achieved.

  • Capital and Operating Costs:

The PEA is based on a scoping level study and with further studies, capital and operating costs,

which are based on current costs and increased productivity, may increase.

There are a number of opportunities specific to the PEA plan as studies progress.

  • Geology:

The Inferred Mineral Resource which informs the PEA is open to the north, south and up and down

dip. Should further drilling increase the defined mineralization, project life and production rates

may be increased. Further drilling may also confirm the materially higher grades and

mineralization continuity in the deeper Panels 7-8 so that less conservative modifying factors can

be applied.

  • Mining:

Stope size and level intervals are consistent with current operations and may be increased as

studies progress, which would reduce development quantities and cost. Haulage optimization

studies and emerging electrification technology may confirm an alternative to the planned diesel

truck system which would result in reduced costs (mostly ventilation) and emissions.

1.18 Conclusions and Interpretations

1.18.1 Conclusions

The following interpretations and conclusions are made by the Qualified Persons in their respective areas of

expertise, based on the review of data contained in this Technical Report.

  • Mineral Titles and Agreements, Surface Rights, Royalties and Encumberances:

The required mineral titles, surface and access rights, permits and approvals exist and are in good

standing required to support ongoing operations.

There is a 5% royalty on gross revenue payable to the Government of Ghana.

There is a two-tier gold stream to Royal Gold Inc. and royalty payments and tax to government are

payable prior to the stream payments.

  • Exploration, Driling and Data Collection:

The following are appropriate to support estimation of Mineral Resources and Mineral Reserves:

o Understanding of the geological setting, lithologies and structural and alteration controls

on the mineralization;

o Exploration programs completed to date;

Page 32NI 43-101 Technical Report (March 2021) Wassa Gold Mine

o Sampling methods used to collect raw data;

o Sample preparation, analysis and security;

o Quantity and quality of the lithological, structural, collar and down-hole survey data

collected during drilling programs; and

o QA/QC programs to address issues of precision and accuracy.

  • Metallurgical Test Work

Test work programs have been completed which are reflective of processing plant performance

and used samples which reasonably represent the plant feed scheduled in the Mineral Reserve

plan.

No significant metallurgical issues were identified and this has been validated by actual plant

performance.

  • Mineral Resource Estimates

Mineral Resources are estimated as:

o Measured and Indicated Mineral Resource: 29.3 Mt at 3.76 g/t, containing 3.54 Moz; and

o Inferred Mineral Resource: 74.0 Mt at 3.44 g/t, containing 8.18 Moz.

The Mineral Resources have been prepared in accordance with the 2014 CIM Definition Standards

and 2019 Best Practice Guideline. Mining is assumed by underground methods at Wassa and

Hwini Butre, and open pit methods at all other locations.

Mineral Resources have a reasonable chances for of eventual economic extraction, with estimates

constrained as follows, assuming $1,500 /oz gold selling price:

o Open Pit: constrained by open pit optimization shell based on a $1,500 /oz gold selling

price and cut-off grade (0.55 g/t); and

o Underground: constrained by cut-off grade (1.4 g/t).

  • Mineral Reserve Estimate

Proven and Probable Mineral Reserves are estimated as 11.5 Mt at 2.94 g/t, containing 1.09 Moz.

The Mineral Reserves have been prepared in accordance with the 2014 CIM Definition Standards

and 2019 Best Practice Guidelines. Mining will be by underground long hole open stoping. The

former open pit component of the Mineral Reserve has been replaced by underground extraction.

Mineral Reserves are supported by a positive economic test assuming $1,300 /oz gold selling price.

  • Mining Methods

The mine plan and schedule use:

o Conventional underground mining practices and equipment to carry out long hole open

stoping, consistent with currently employed techniques;

o Demonstrated mining rates based on recent development and stoping performance;

The mine plan includes appropriate consideration of:

o Geotechnical conditions;

o Stope modifying factors;

o Mine ventilation;

o Mine dewatering;

o Scheduling interactions and rates; and

o Mobile fleet capacities.

The introduction of paste fill will require integrating into the stope cycle sequence to enable

secondary stoping to commence.

Page 33NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 34

  • Recovery Methods

Recovery methods in the processing plant and forward recovery assumptions (average 94.1%) are

supported by test work and plant history.

The processing plant capacity exceeds mine production in all years for the Mineral Reserve plan.

  • Environmental, Permitting and Social Considerations

All required environmental and social regulatory requirements to support ongoing operations are

in place and maintained in good standing.

GSR complies with international requirements on environmental and conservation, human rights,

and anti-corruption. It has adopted voluntary international codes on corporate responsibility in the

areas of cyanide management, TSF design, responsible gold mining and resettlement.

GSWL has posted and periodically updates its reclamation bond ($13.7 M at end of 2020).

For environmental impacts, appropriate studies and surveys have been completed, design features

and management practices are established and monitoring programmes are in place for:

o Water quality;

o Air quality;

o Noise and vibration; and

o Biodiversity.

GSR supports a number of community and social initiatives:

o Golden Star Development Foundation (community and social development projects);

o Golden Star Oil Palm Plantation (agribusiness sponsored by GSR which aims to become self

supporting); and

o Capacity building and livelihood enhancement (skills training, local procurement)

These initiatives proactively aim to build capacity and diversify the economy of local communities

as well as reduce uptake of small-scale illegal mining.

  • Capital and Operating Costs

Capital and operating costs have been estimated based on actual 2020 activity costs and 2021

budget costs, projected through the mine plan.

o The growth capital cost for the life of mine is $47.7 M; and

o The sustaining capital cost for the life of mine is $136.5 M.

Unit production costs estimated for the Mineral Reserve are:

o Direct operating cost: $669 /oz;

o All-in sustaining cost: $902 /oz; and

o All-in cost: $964 /oz.

  • Economic Analysis of the Mineral Reserve

An economic analysis to support the declared Mineral Reserve was prepared. Using the

assumptions outlined in this Technical Report, the operations show a positive cash flow at the

$1300 /oz reserve selling price and support the declaration of a Mineral Reserve.

o Growth Capital:

$47.7 M;

o Development Duration: nil (in production);

o Production Phase:

6 years, averaging 171 koz/yr;

o All-in Sustaining Cost: $941 /oz; and

o After-tax NPV5%:

▪ Base Case ($1,300 /oz):

$117.3 M (100% basis)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

▪ Consensus Case (av $1,751 /oz):$331.7 M (100% basis)

1.18.2 Risks

Realization of the production schedule from the Mineral Reserve carries a number of risks.

  • Geology:

Tightly spaced definition drilling is required which, if not completed sufficiently ahead of

production could cause production delays or unexpected grade outcomes and negatively impact

production and cash flow.

  • Mining:

Delivery of the Mineral Reserve plan requires maintaining current productivity for development

and stoping activities. Geotechnical conditions are currently very good, but ongoing review and

management is required to ensure adverse geotechnical results do not adversely impact

production and cash flow.

  • Processing:

No material processing risks were identified for the Mineral Reserve.

  • Infrastructure:

Delays to commissioning and/or achieving design capacity of the paste backfill plant and mining

system will adversely impact production. The intake and return ventilation shafts are not yet

geotechnically assessed and adverse findings may add cost and/or time to complete the upgrade,

impacting production rates and cash flow.

  • Capital and Operating Costs:

Capital and operating costs may significantly increase, particularly if productivity assumptions are

not met or there are adverse movements of major cost components (eg: labour, energy).

  • Environmental and Social:

Delivery of the Mineral Reserve plan requires access to personnel outside the local communities

and this may be impacted by both regional (competition, security) and global (pandemic, transport)

factors. Additionally, modernization of practices and technology may reduce reliance on

un/semi-skilled labour, limiting accessibility to jobs for local community members, which may

adversely impact community support and/or increase artisanal mining around Wassa with

commensurate negative outcomes for closure costs and reputation.

1.18.3 Opportunities

A number of opportunities have been identified with potential to add value to the Mineral Reserve plan.

  • Mineral Resource:

Upside potential exists for the Mineral Resource from definition drilling to upgrade the large

Inferred Mineral Resource which is the Southern Extension zone and various targets to grow the

defined mineralisation which are not yet tested.

  • Productivity and Mine Design:

Mining practices could deliver improved cost and productivity outcomes through application of

technology, geotechnical design optimization and improvements to the paste backfill system after

it reaches steady-state operation.

  • Sustainability:

Identified opportunities exist for emissions reduction (electrification, haulage optimization and

application of renewables), water (efficiency and quality preservation) and energy efficiency

(comminution optimization).

Page 35NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 36

1.19 Recommendations

Based on the positive results of the technical and economic analysis of the Mineral Reserve of the Wassa

gold mine, the following actions are recommended:

  • Continue definition drilling to support production in Panels 1 and 2 and increase geological

confidence in Panel 3;

  • Complete drilling programs with potential to increase the defined mineralization (main Wassa

orebody, local soil sampling anomalies and regional including Father Brown/Adoikrom UG).

  • Continue extraction of the Mineral Reserve by underground methods, at the optimized cut-off

grade of 1.9 g/t and transition the upper areas previously planned for open pit mining, to more

selective underground extraction to improve margins and bring forward production;

  • Continue delivery of major capital projects (paste backfill plant and system, ventilation upgrade

with two new shafts to surface, development of Panel 3 underground);

  • Continue processing using CIL treatment in the Wassa processing plant;
  • Continue current governance practices to ensure ongoing statutory compliance and license to

operate is maintained, including management systems, social investment programs and corporate

responsibility programs; and

  • Investigate potential to expedite stoping from the Panel 3 (242 and B-Shoot).

For the Inferred Mineral Resource in the Southern Extension Zone, based on the positive results of the

preliminary economic assessment, the risks and opportunities identified, and conclusions made, the

following actions are recommended to progress the project:

  • Continue definition drilling to increase geological confidence to enable upgrading classification of

the Inferred Mineral Resource for Panels 4 and 5;

  • Commence technical studies to feasibility study level for the disciplines of metallurgy, geotechnics,

ventilation and mine design;

  • Complete option and trade-off studies to optimize the project plan, including assessment of

alternative haulage options (eg: shaft, conveyor), equipment selection (eg: semi/full automation,

battery electric) and mine design (level interval);

  • Conduct trials in the current operation to validate the proposed stoping methodology in Panels 4-8;
  • Investigate electrification and renewable energy options to reduce emissions;
  • Complete site water balance model and assess opportunities to improve water efficiency and

reduce discharged contaminants; and

  • Review crushing and grinding circuit to optimize comminution efficiency.

The progressive development plan proposed for the Southern Extension zone has the project being

developed in three major phases of definition drilling and capital investment.

  • Panels 4 and 5: Resource development drilling in progress and studies planned to inform and

investment decision at the end of project year 2 (Y2).

  • Panels 6 and 7: Resource development drilling in Y6-7, decline development starting Y6 and stope

production in Y8.

  • Panel 8: Resource development drilling in Y10, decline development starting Y10 and stope

production in Y12.

The project execution plan for progressing to production from the Southern Extension zone outlines the

activities for only the first phase (Panels 4 and 5) to reach an investment decision with a feasibility level

study and the potential timeframe to production. The estimated cost to deliver the feasibility study is

$14.0 M, which is mostly for definition drilling ($13.2 M).NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 1-6 Project Execution Plan, Southern Extension Panels 4 and 5

Page 37NI 43-101 Technical Report (March 2021) Wassa Gold Mine

2 INTRODUCTION

2.1 Terms of Reference

This Technical Report has been prepared to meet the requirements defined by Form 43-101F1, by and for

Golden Star Resources, describing the Wassa gold mine in Ghana. The report provides updated information

on the currently operating mine, including an updated Mineral Resource and Mineral Reserve estimate.

The Report also contains the summary of a Preliminary Economic Assessment (PEA) completed in support

of the potential expansion of the underground mine to extract the Inferred Mineral Resource in the

Southern Extension zone (2020 PEA).

The PEA has been prepared within the following framework:

  • Underground mining rate increased to fully utilise the installed processing capacity (2.7 Mtpa);
  • Production schedules to appropriately consider conversion risk of the Inferred Mineral Resource;
  • Methodologies and design quantities based on proven, currently available technologies;
  • Costs to reflect current operational experience; and
  • Minimise capital demand needed to establish full production.

The intent of the framework is to present a deliverable PEA plan which can be executed with GSR’s current

operational and financing capacity. Potential enhancements outside this framework are presented as

opportunities outside of the PEA outcomes and can be investigated as part of the forward work plan.

The 2020 PEA has no impact on the Mineral Reserves, nor on the key assumptions and parameters

supporting the Mineral Reserves. The Mineral Reserves are current, valid and do not rely on any of the

assumptions made in the 2020 PEA.

The 2020 PEA is conceptual and outlines a mining inventory which is entirely based on an Inferred Mineral

Resource. Inferred is the lowest level of confidence for a Mineral Resource and there is no certainty that

further geological drilling will result in the determination of higher Mineral Resource classification, nor that

production and financial outcomes will be realized. Mineral Resources that are not Mineral Reserves do

not have demonstrated economic viability.

The Mineral Resources and Mineral Reserves have been prepared in accordance with CIM Definition

Standards for Mineral Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and

the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM

Council on November 29, 2019.

References within this report to “GSR” include Golden Star Resources (GSR) and Golden Star Wassa Limited

(GWSL) as the context requires.

Golden Star is a Canadian federally-incorporated international gold mining and exploration company,

producing gold in Ghana, West Africa. This report has been prepared to satisfy GSR’s obligations as a

reporting issuer in Canada.

Units used in the report are metric units unless otherwise stated. Monetary units are in United States

dollars (US$) unless otherwise stated.

2.2 Wassa Gold Mine

The Wassa Gold Mine is located near the village of Akyempim in the Wassa East District, in the Western

Region of Ghana. It is 80 km north of Cape Coast and 150 km west of the capital Accra. The property lies

between latitudes 5°25’ and 5°30’ north and between longitudes 1°42’ and 1°46’ east. GSWL owns the

rights to mine the Wassa, Benso and Hwini Butre concessions. GSR owns a 90% interest in and manages

GSWL with the Government of Ghana owning the remaining 10%.

Page 38NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 39

2.3 Principal Sources of Information

This Technical Report was prepared by GSR. Information for the report was based on published material, as

well as data, professional opinions, and unpublished material from work completed by GSR. It includes

information provided by and discussions with third party contractors and consultants engaged by GSR.

Section 27 contains the list of reports and documents used in preparation of this report.

Major contributions by contractors and consultants have been reviewed and approved by QP’s as follows:

  • Environmental impact assessment studies undertaken by Golder Associates (Ghana and South

Africa);

  • Geological modelling:

o Long-range model resource estimate prepared by SRK (Toronto);

o Short-range model wireframe and resource estimate prepared by SRK (Moscow).

  • Geotechnical assessment prepared by OreTeck Mining Solutions (Australia);
  • Metallurgy and Processing assessment prepared by MineScope Services (Australia);
  • Mine Ventilation assessment prepared by SRK (US);
  • Tailings storage facility design and geotechnical assessments by Knight Piésold Ghana (the engineer

of record); and

  • Paste backfill studies carried out by Outotec (Canada) Ltd.

2.4 Qualified Persons

Matt Varvari (not independent) is the Qualified Person (QP) responsible for overall project management of

the Technical Report and specifically, Sections 1-3, 6, 13, 15-19 and 21-27 of this report. They are a Fellow

of the Australasian Institute of Mining and Metallurgy and have the required qualifications and experience

to act as a QP. Matt is based in London, UK and is employed full-time by GSR as Vice President Technical

Services.

  1. Mitchel Wasel (not independent) is the QP responsible for Sections 7-12 and 14 of this report. They are

a Chartered Professional of the Australasian Institute of Mining and Metallurgy and have the required

qualifications and experience to act as a QP. Mitch is based in Takoradi, Ghana and is employed full-time

by GSR as Vice President Exploration.

Philipa Varris (not independent) is the QP responsible for Sections 4, 5 and 20 of this report. They are a

Chartered Professional of the Australasian Institute of Mining and Metallurgy and have the required

qualifications and experience to act as a QP. Philipa is based in London, UK and is employed by GSR as

Executive Vice President and Head of Sustainability.

All QP’s have conducted sufficient visits to Wassa site, as detailed in Table 2-1.

Table 2-1 Qualified persons and site visits

2.5 Effective Dates

  • Effective date of the Wassa Mineral Resource: 31 December 2020

Company

GSR

GSR

GSR

Responsibility

Overall resposibility for GSR project management.

Mineral Reserves.

Sections 1-3, 6, 13, 15-19 and 21-27.

Mineral Resources.

Sections 7-12 and 14.

Sections 4, 5 and 20.

Site Visit

4 visits to Wassa in 2019-2020

Most recent 23 Nov – 4 Dec 2020

22 years based in Ghana for GSR.

6 visits to Wassa in 2020.

Most recent 12 – 22 Oct 2020

9 yrs in Ghana w ith GSR (2011-2019)

5 visits to Wassa in 2020

Most recent: 23 Nov – 3 Dec 2020

Qualified Person

Matt Varvari

  1. Mitchel Wasel

Philipa VarrisNI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Effective date of the Wassa Mineral Reserve: 31 December 2020
  • Effective date of the Economic Analysis for the Mineral Reserve: 31 December 2020
  • Effective date of the Preliminary Economic Assessment: 31 December 2020

2.6 Previous Technical Report

Golden Star Resources filed the following Technical Report on Wassa with an effective date of 31 December

2018:

  • Raffield, M., Wasel, M. and Varris, P. NI 43-101 Technical Report on Resources and Reserves,

Golden Star Resources, Wassa Gold Mine, Ghana

Page 40NI 43-101 Technical Report (March 2021) Wassa Gold Mine

3 RELIANCE ON OTHER EXPERTS

In the preparation of this Technical Report, the qualified persons in specific instances relied on studies,

reports, opinions or statements of experts who are not qualified persons. These include:

  • Environmental impact assessment studies:

o “Golden Star (Wassa) Limited; Updated Tailings Storage Facility (TSF) 2 Project

Environmental Impact Statement”. Prepared by Golder Associates, November 2016,

regarding environmental impacts as reported in Section 18 and 20.

o “Golden Star (Wassa) Limited; Tailings Storage Facility (TSF) 2 Project Environmental Impact

Statement”. Prepared by Geosystems Consulting, February 2012, regarding environmental

impacts as reported in Section 18 and 20.

o “Wassa Expansion Project Environmental Impact Statement”. Prepared by Geosystems

Consulting, September 2015, regarding environmental impacts as reported in Section 18

and 20.

o “Environmental Impact Statement for the Wassa Project”. Prepared by Wexford Goldfields

Limited (WGL), 2004, regarding environmental impacts as reported in Section 20.

o “The Wassa Project Environmental Impact Statement”. Prepared by Scott Wilson, 2004,

regarding environmental impacts as reported in Section 20.

o “Satellite Goldfields Limited, Wassa Gold Project, Environmental Baseline Study”. Prepared

by SGS Laboratory Services (Ghana) Limited, November 1996, regarding environmental

baseline as reported in Section 20.

  • “Final GSR Mining Title Opinion”. Prepared by REM Law Consultancy (Accra), February 2021,

regarding the good standing of the Wassa, Benso and Hwini Butre mining leases as reported in

Section 4.

Page 41NI 43-101 Technical Report (March 2021) Wassa Gold Mine

4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location of Mineral Concessions

The Wassa Mine is located near the village of Akyempim in the Wassa East District in the Western Region of

Ghana, approximately 80 km north of Cape Coast and 150 km west of the capital, Accra. It lies between

latitudes 525’ and 530’ N and longitudes 1°42’ and 1°46’ E. The location of the Wassa Mine is shown in

Figure 1-1.

The Wassa Mine is operated under the Wassa mining lease which was issued on September 17, 1992. The

total surface area of the Wassa Mining Lease is 5,289 Ha, with approximately 595 Ha of disturbance from

GSWL’s activities. GSWL has applied for a reshape of the concession boundary to comply with recent

changes to cadastre grid requirements by the Minerals Commission, which will modify the total area of the

concession to 6,496 ha.

Figure 4-1 Wassa Mine Location in Ghana, West Africa (United Nations, 2018)

Page 42NI 43-101 Technical Report (March 2021) Wassa Gold Mine

In addition to the Wassa mining lease, GSWL holds the Hwini Butre and Benso mining leases, and several

prospecting licences in the Western Region of Ghana. GSWL’s mineral properties are shown in Figure 4-2.

Figure 4-2 Wassa Mine Location in Ghana, West Africa (GSR, 2021)

Figure 4-3 shows the locations of GSWL’s mineral concessions and operations:

  • Wassa mining lease: Wassa is an operating underground gold mine comprising the following

mineralization domains: F Shoot, 419, B Shoot, 242, Starter, South-East, Mid-East and Dead Man’s

Hill. SAK comprises several deposits to the west.

  • Benso mining lease: comprising the Subriso East, Subriso West, G-Zone, C-Zone and I-Zone

deposits.

  • Hwini Butre mining lease: comprising the Father Brown, Adoikrom and Dabokrom deposits.
  • Benso (Chichiwelli) exploration property: comprising two mineralized zones, Chichiwelli West and

Chichiwelli East.

  • Manso exploration property: located east of Benso and Hwini Butre.

The properties and leases are spread along a trend of approximately 80 km southwest of the Wassa mine.

There are sufficient access and surface rights for GSWL’s operations.

Page 43NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 4-3 Location of operations and infrastructure and concession boundaries (GSR, 2021)

Page 44NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 45

4.2 Mineral Rights

The Constitution of Ghana vests title in every mineral in its natural state to the Government of Ghana. The

exercise of any mineral right in Ghana requires an appropriate mineral title to be issued by the Government

of Ghana acting through the Minister responsible for Lands and Natural Resources. The Minister of Lands

and Natural Resources administers, promotes and regulates Ghana’s mineral wealth through the Minerals

Commission, a governmental organization designed in accordance with the Minerals Commission Act 1993

and the Minerals and Mining Act, 2006 Act 703 (Minerals and Mining Act).

A person must apply to the Minerals Commission and be granted a mineral right by the Minister of Lands

and Natural Resources before they can search, survey, prospect, explore or mine for a mineral anywhere in

Ghana. There are different types of licenses (namely, reconnaissance and prospecting licenses, and mining

leases) for the different mining activities. Each type of licence details the activities that are permitted.

The Government of Ghana holds a 10% free-carried interest in all companies holding mining leases. The

10% free-carried interest entitles the Government to a pro-rata share of future dividends. The Government

has no obligation to contribute development capital or operating expenses.

Table 4-1 sets out the mineral rights held by GSWL (or those in which GSWL has an interest). GSR will from

time to time seek a title opinion from its legal counsel in Ghana to confirm its title in its material mineral

properties, and the good standing of the underlying mineral rights.

Table 4-1 Mineral rights held by GSWL

Name

Type of

Mineral right

No.

Issuing

Authority

Issue Date

Expiry

Date

Surface

Area

Third-Part

Ownership

Comments

Wassa

Mining Lease

LVB

87618/94

Minerals

Commission 17/09/1992 16/09/2022 52.89 km2

Government of

Ghana holds a

10% free

carried interest

Benso

Mining Lease

LVDGAST

37993462020

Minerals

Commission

25/08/2020

24/08/2031

19.45 km2

Government of

Ghana holds a

10% free

carried interest

Hwini Butre

Mining Lease

LVDGAST

38000372020

Minerals

Commission

25/08/2020

24/08/2031

43 km2

Government of

Ghana holds a

10% free

carried interest

Dwaben

(Safric)

Reconnaissance

Licence

LVB1624/06

Minerals

Commission

02/02/2006

(expired in

2020)

26.92 km2

Application to convert

reconnaissance licence

to prospecting licence

submitted to the

Minerals Commission in

November 2020

Benso

(Chichiwelli)

Prospecting

Licence

PL.2/1550

Minerals

Commission

27/09/2007

22.46 km2

Notice of grant of

extension of

prospecting licence

issued by the Minerals

Commission in January

2020

Abura

Abura

Prospecting

Licence

PL 2/135

Minerals

Commission

13/12/2018

12/12/2021

65.10 km2

Subject to

option

agreement

with Bowden

Gold Resources

Limited

Manso 1

Prospecting

Licence

PL 2/378

Minerals

Commission 10/01/2005

101.6 km2

Application to renew

prospecting licence

submitted to the

Minerals Commission in

August 2020

Manso 2

Prospecting

Licence

PL 2/337

Minerals

Commission 07/09/2007

21.38 km2

Subject to

option

agreement

with Pacific

Mining Limited

Application to renew

prospecting licence

submitted to the

Minerals Commission in

September 2020NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The Wassa Mine sits within the Wassa mining lease which comprises an area of 52.89 km2 lying to the north

and south of latitudes 525’ and 530’, respectively and bounded to the east and west by longitudes 142’

and 146’, respectively.

The Wassa mining lease was entered between the Government of Ghana and Satellite Goldfields Limited

(SGL) on September 17, 1992 for a term of 30 years, renewable. In 2002, the mining lease was assigned by

SGL to GSWL with the written consent of the Government of Ghana. GSWL is the registered legal and

beneficial holder of the Wassa mining lease. The Government of Ghana holds 10% of GSWL share capital.

4.3 Royalties and Other Payments; Encumbrances

GSWL pays to the Government of Ghana within thirty days from the end of each quarter a royalty at a rate

of 5% determined based on the total revenue of minerals produced during the quarter. This royalty is

payable prior to any adjustments from the Royal Gold stream (see below). Royalties are paid through the

Commissioner of Internal Revenue.

Payment of annual ground rent is made to the owner of the land except in the case of annual ground rent

in respect of mineral rights over stool lands, which are paid to the Office of the Administrator of Stool

Lands. A holder of a mineral right must also pay to the Minerals Commission an annual mineral right fee

determined based on the type of tenure. GSWL pays annual ground rate and annual fees in relation to all

the mineral rights it holds.

GSR is party to a gold purchase and sale agreement with Royal Gold, Inc. through its wholly owned

subsidiary RGLD Gold AG (RGLD). The agreement was initiated on 6 May 2015, amended on 29 Jun 2018,

17 October 2019 and most recently 30 September 2020. The stream covers all gold produced within

GSWL’s mineral concessions and requires GSR to deliver according to two tiers:

  • Tier 1: 10.5% of all production to RGLD at a cash purchase price of 20% of spot gold until 240,000

ounces have been delivered; and

  • Tier 2: thereafter, to deliver 5.5% of all production to RGLD at a cash purchase price of 30% of spot

gold.

Pursuant to the terms of the gold sale and purchase agreement, GSR is restricted from granting

encumbrances on the Wassa gold project without RGLD’s consent. In 2019, GSR entered into a credit

facility agreement with Macquarie Bank Limited pursuant to which GSWL’s mineral rights were, with the

approval of the Minister of Lands and Natural Resources and RGLD, encumbered to secure the repayment

of the loan.

At the end of December 2020, the remaining balance of the Tier 1 stream was 120,003 oz. The stream is

treated as a revenue adjustment.

4.4 Historic Environmental Liability and Indemnity

The Wassa operations were permitted under an environmental impact assessment developed for SGL in

  1. At commencement, Wassa was a heap leach operation fed by the Main pits complex comprising the

interconnected South-East, 242, B-Shoot, F-Shoot, South, Main South, and 419 pits. The predominant

liabilities of the original SGL operations, including heap leach area and waste dumps, have since been fully

encompassed by the GSWL operations.

In 2002, GSR purchased certain assets of SGL and liabilities for the operations transferred. In 2005, GSR

acquired St. Jude Resources (Ghana) Limited (SJR) and, with it, the Hwini Butre and Benso (HBB) properties

and their associated liabilities. Likewise, the development of the HBB operations by GSWL saw the

establishment of infrastructure that fully encompassed the previous areas of disturbance of SJR. The

establishment of the reclamation security agreement with the EPA in 2005 and the associated bond with

the EPA addresses security for reclamation and closure obligations.

There are no other legacy issues associated with the GSWL site.

Page 46NI 43-101 Technical Report (March 2021) Wassa Gold Mine

4.5 Permits and Authorization

In addition to the mineral rights specified in Table 4-1, GSWL requires certain permits and licenses to carry

out its activities, including:

  • Mining operating permit:

The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) prescribe

technical and health and safety standards for mining operations and require a person who is

granted a mining lease to, before the commencement of operation of the mine, obtain a mining

operating permit from the Inspectorate Division of the Minerals Commission.

  • Environmental permit:

The Environmental Assessment Regulations, 1999 (L.I. 1652) require that all developmental

activities likely to impact adversely on the environment be subject to environmental assessments.

Pursuant to these regulations, an undertaking which in the opinion of the Environmental Protection

Agency (EPA) has or is likely to have an adverse effect on the environment cannot commence

unless the undertaking has been registered and an environmental permit has been issued by the

EPA. The Minerals and Mining Act requires that all necessary approvals and permits required to be

obtained from the Forestry Commission and the EPA for the protection of natural resources, public

health and the environment.

The major environmental permits in place for the Wassa mine are:

o Wassa operations (EPA/EIA/112) and expansions (EPA/EIA/322) including South Akyempim

pits (EPA/EIA/190);

o Hwini Butre and Benso operations (EPA/EIA/175) and expansion (EPA/EIA/247).

o Wassa TSF 2 (EPA/EIA/383) and renewal (EPA/EIA/442); and

o Wassa Expansion project, including Wassa underground, Main pits and waste dump

expansion (EPA/EIA/508).

  • Licence to export, sell or dispose of minerals:

The exportation, sale or disposal of minerals requires a licence from the Minister for Lands and

Natural Resources. Pursuant to section 46 of the Minerals and Mining Act., a mining lease

authorizes the holder to, inter alia, “take and remove from the land the specified minerals and to

dispose of them in accordance with the holder’s approved marketing plan.” Under the Minerals and

Mining (General) Regulations, 2012 (L.I. 2173), an application by a holder of a mining lease for a

licence to export, sell or dispose of gold or other precious minerals produced by the holder must be

accompanied by a refining contract and a sales and marketing agreement.

  • Operating licence and permit for the acquisition, use, transportation and storage of explosives:

Under Regulation 23 of the Minerals and Mining (Explosives) Regulations, 2012 (L.I. 2177), the

construction of a building or other structure to be used as a magazine for the storage of explosives

is subject to an operating license delivered by the Minerals Commission. As required under

Regulation 32 of L.I. 2177, the storage of explosives in a magazine is also subject to a permit from

the Minerals Commission; the latter is valid for one year and is renewable on application. Under

L.I. 2177, an operating licence is required for the purchase and use or transportation of explosives.

There are separate operating licences for the purchase and use of explosives and for

transportation. Each is valid for a period of one calendar year and is renewable on application

made one month before the end of each year. Additionally, a permit is required for each occasion

on which explosives are being transported in respect of which the specific type and quantity of

explosives must be indicated.

  • Licence to use water resources:

The use of water resources is regulated by the Water Resources Commission Act, 1996 (Act 522)

and the Water Use Regulations, 2001. Act 522 provides that no person shall (a) divert, dam, store,

abstract or use water resources; or (b) construct or maintain any works for the use of water

resources except in accordance with the provisions of the Act. Subject to obtaining the requisite

Page 47NI 43-101 Technical Report (March 2021) Wassa Gold Mine

approvals or licences, a holder of a mineral right may, for purposes of or ancillary to the mineral

operations, obtain, divert, impound, convey and use water from a river, stream, underground

reservoir or watercourse within the land the subject of the mineral right.

  • Fire permit:

The Fire Precaution (Premises) Regulations, 2003 requires that a fire certificate be issued by the

Chief Fire Officer in respect of premises used as a place of work or for a purpose which involves

access to the premises by members of the public, whether on payment or not. The certificate is

valid for 12 months and is renewable.

GSWL conducts its operations in accordance with applicable laws and regulations in Ghana and is in

compliance with its permitting obligations in relation to its activities. With regards to environmental

matters, GSWL has undertaken environmental impact assessment studies on its concessions to support the

permitting of its mining projects and has considerable background data to support required environmental

permitting processes.

Page 48NI 43-101 Technical Report (March 2021) Wassa Gold Mine

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY

5.1 Accessibility

The Wassa Mine is near the village of Akyempim in the Wassa East District in the Western Region of Ghana.

It is 62 km north of the district capital, Daboase, and 40 km east of Bogoso, and is 80 km north of Cape

Coast and 150 km west of the capital Accra.

The main access to the site is from the east, via the Cape Coast to Twifo-Praso road, then over the

combined road-rail bridge on the Pra River. There is also an access road from Takoradi in the south via

Mpohor.

The satellite sites of Hwini Butre and Benso are respectively, 60 km and 35 km southeast of the main Wassa

site. They are accessible from Wassa via an unsealed access and haulage road. All sites lie within 15 km of

sealed public road but generally, the haul road to Wassa is the most reliable access.

Figure 4-3 in Section 4.1 shows a plan of the various locations and access infrastructure.

5.2 Physiography and Vegetation

The project area is characterized by gently rolling hills with elevations up to 1100 m RL, incised by an

extensive drainage network. The natural vegetation is an ecotone of the moist, semi-deciduous forest and

wet rainforest zones. It has been degraded due to anthropogenic activities, giving way to broken forest,

thickets of secondary forest, forb re-growth, swamps in the bottom of valleys, and cleared areas.

Extensive subsistence farming occurs throughout the area, with plantain, cassava, pineapple, maize, and

cocoyam being the principal crops. Some small-scale cultivation of commercial crops is also carried out,

with cocoa, teak, coconut and oil palm the most common. Forest patches are present on the steep slopes

and in areas unsuitable for agriculture.

Environmental assessments carried out in the project area over the last two decades (SGS 1996 and 1998,

WGL 2004, GSR 2015, Geosystems 2013, and Golder 2016) indicate that the biodiversity of the Wassa

operational area is of low ecological significance and conservation status.

5.3 Land Use and Proximity to Local Population Centres

The Wassa Mine is located in a rural setting with no major urban settlements within 30 km. It lies in the

Wassa East District, part of the Western Region of Ghana, 40 km north of Daboase (district capital), 65 km

north of Takoradi (regional capital) and 35 km north-east of the city of Tarkwa.

The nearest villages are Akyempim, Akyempim New Site (formally Akosombo, resettled early in Wassa

operations) and Kubekro. The Togbekrom community were resettled to Ateiku.

The Hwini Butre and Benso sites are approximately 35 km and 65 km, respectively, north-northwest of the

Port of Takoradi and south-east of Tarkwa. The key communities within and outside the concession are

Subriso, Odumase, Ningo, Akyaakrom, Mpohor, Benso, and Anlokrom. The total population of these

communities is approximately 10,000. The Benso Township is approximately 5 km from the Benso mine

site to the south and the Mpohor Township is approximately 2 km west of the Hwini Butre site.

The population data/estimates for the larger communities located within the Wassa concession boundaries

are shown in Table 5-1.

Page 49NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 50

Table 5-1 Communities neighbouring Wassa Mine

Land uses in the vicinity of GSWL operations are predominantly rural with agricultural, forestry,

agroforestry (palm oil and rubber plantations), and unauthorized small-scale mining operations.

5.4 Local Resources and Infrastructure

There are five other significant mining operations within 50 km of Wassa:

  • Nsuta manganese mine, Ghana Manganese Company;
  • Iduapriem gold mine, AngloGold Ashanti;
  • Tarkwa gold mine, Gold Fields Ghana Limited;
  • Damang gold mine, Gold Fields Ghana Limited; and
  • Bogoso-Prestea gold mine, Future Global Resources.

Wassa Mine is in operation with required services, infrastructure, and community support to continue.

  • Access is via public road to site with good overall access. Roads are sealed from Accra to within

15 km from site, then access is via formed, unsealed road. From site, travel by road to Takoradi is

generally 1.5-2 hours and 4-5 hours to Accra;

  • Electrical infrastructure with access to power through the grid and on-site generation;
  • On-site processing plant with capacity up to 2.7 Mtpa;
  • On-site tailings storage facilities with sufficient permitted capacity;
  • Waste rock storage facilities with sufficient permitted capacity;
  • Access/haulage road from Wassa site, to the satellite Hwini Butre, Benso and Chichiwelli sites; and
  • Access to skilled labour with the history and scale of mining in Ghana.

5.5 Climate and Length of Operating Season

The climate in the project area is classified as wet semi-equatorial. The Intertropical Convergence Zone

crosses the area twice a year, resulting in a bi-modal rainfall pattern with peaks in Mar-Jul and Sep-Oct.

During the dry season months of Nov-Feb, the climate is heavily influenced by the seasonal Harmattan

which brings dry and dusty winds from the Sahara across West Africa. Rainfall is mainly influenced by

south-west monsoon winds, which blow from the south-western part of the country.

Analysis of available rainfall data, obtained from the Ateiku Meteorological survey (1944 to 2009) indicates:

  • Average annual rainfall is 1,996 ± 293 mm;
  • Wettest month is June, with average rainfall of 241 ± 85 mm;
  • Driest month is January, with average rainfall of 31 ± 35 mm;
  • The wettest month on record is June 2009 with 475 mm of rainfall.

Local measurements taken at Wassa from 1998-2019 (at main site) and 2007-2014 (at TSF 1) are consistent

with the large data set from Ateiku. Local stations identified the bi-modal rainfall pattern and recorded an

average of approximately 1,659 mm/yr and the wettest month being June 2014 with 512 mm at TSF 1 and

417 mm at the main site.

Community

Divisional Area

Estimated Population

(SGS 1996)

Population

(WEDA 2013)

Akyempim

Mamponso

2,500

2,533

Akosombo

Mamponso

n/a

166

Kubrekro

Anyinabrem

300

335

Nsadweso

Anyinabrem

2,400

1,541

Togbekrom

Anyinabrem

Not measured

674NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Annual potential evapotranspiration is estimated to be approximately 1,337 mm/yr, indicating minimum

precipitation balance of +288 mm/year. In 2020, measured evaporation at the TSF site was in the order of

1,300 mm/year. Rainfall exceeds potential evapotranspiration from Mar-Jul and Sep-Oct with groundwater

recharge most likely to be prevalent during these periods. Relative humidity is consistent throughout the

year, ranging from 88% to 90%.

The climatic conditions mean that, with effective surface water management practices, mining operations

can continue year-round with short suspensions to open pit operations during storms, most of which are

short duration and can occur throughout the year. Underground mining operations are not directly

affected by weather events except where very large, long duration rainfall results in the safe capacity of pit

sumps being exceeded, requiring evacuation of the underground workings due to risk of inundation.

Normal operations are resumed once sumps are pumped down to safe levels.

Page 51NI 43-101 Technical Report (March 2021) Wassa Gold Mine

6 HISTORY

6.1 Wassa

6.1.1 Historic Mining

The Wassa area has experienced local small-scale and colonial mining activity at Wassa since the beginning

of the 20th century with numerous small pits and adits evident.

From 1988, the property was operated as a small-scale mining operation with a gravity gold recovery circuit

by WMRL, a Ghanaian company.

6.1.2 Satellite Goldfields Limited (1993-2002)

In 1993 WMRL formed Satellite Goldfields Limited (SGL) with the Irish companies Glencar Exploration

Limited and Moydow Ltd, assigning the Wassa mining lease to SGL.

Extensive satellite imagery and geophysical interpretations were carried out which identified a strong gold

target. Exploration drilling commenced in February 1994 and by March 1997 58,709 m of drilling had been

completed. Construction of the Wassa Mine was initiated in September 1998, after Glencar secured a

$42.5 M debt-financing package from a consortium of banks and institutions.

The operation was originally developed as an open pit mine with heap leach treatment of 3.0 Mtpa and

planned production of 100,000 oz/yr. First ore was mined from the open pit in October 1998.

During the first year of production, planned gold recovery of 85% from oxide ore in the heap leach was not

achieved due to high clay content of the ore and poor solution management. Attempts were made to

increase recovery, including doubling the leach solution application rate but recoveries for the oxide ores

above 55-60% could not be achieved.

The low gold recovery resulted in debt servicing issues and Wassa was marketed for sale. GSR started

negotiations to purchase Wassa in mid-2000. As part of due diligence, GSR initiated a drilling program in

March 2001 to test their geological model and extensions to some of the high grade orebodies.

SGL was placed into receivership in November 2001 and in April 2002, GSR concluded that the mineable

reserve at Wassa was 30% below the 648,000 oz stated by SGL. Negotiation continued until September

2002 when the agreement for GSR to purchase the 90% share of Wassa was announced.

6.2 Hwini Butre, Benso and Chichiwelli

6.2.1 Historic Mining

Early European reports indicate the Dabokrom area, around Hwini Butre, may have been a major source for

gold sold to Portuguese explorers when they first arrived in Ghana in the late 1400’s.

European interest grew in the 1800’s with the presence of gold and proximity to Sekondi-Takoradi, which

had developed as a port to service mines at Tarkwa, Prestea and Obuasi. Many exploration licences were

granted during the gold boom of 1898-1902 and by the 1930’s most of the area was under license to

various local and European interests.

At Dabokrom, a shaft was sunk by Oceania Consolidated in the 1930’s to follow the shallow dipping quartz

veins. The property was worked for several years but stopped in 1939 at the start of World War 2.

At Chichiwelli a shaft was sunk in 1918 following a quartz vein at the very north end of the Benso

concession, close to the Subri River Forest Reserve. Mining progressed to the 260 ft level but was

abandoned in 1924 after the mine was flooded.

The whole area has many historic workings which evidence mining activity, mostly from the 1930’s.

Page 52NI 43-101 Technical Report (March 2021) Wassa Gold Mine

6.2.2 Modern Exploration (1980’s-2005)

6.2.2.1 Hwini Butre

The Dabrokrom concession was acquired by BD Goldfields (BDG) during the 1980’s who invited Danish

company Lutz Resources Limited to carry out preliminary exploration on the property. The property

transferred to Hwini Butre Minerals (HBM) in the early 1990’s, which was controlled by Lutz.

HBM entered a joint venture with Placer-Outukumpu who drilled several holes around Dabokrom in 1993

to assess potential of the vein systems. They concluded that potential was limited by widely spaced veins

and little gold in the diorite host rock. Saint Jude Resources (SJR) acquired Dabokrom in 1994 and explored

the area until 2002 when work was suspended due to a legal dispute between SJR, BDG and the

Government of Ghana. The matter was resolved in 2005 before acquisition of the project by GSR.

SJR began exploring the concession in February 1995 which represented the first sustained exploration

program on the concession. SJR undertook ground geophysical surveys which included magnetic,

radiometric and induced polarization surveys; soil geochemical surveys were also completed on the

concession area, resulting in the identification of numerous targets. Trenching and pitting were conducted

in areas of geophysical and geochemical anomalies and over historical prospects or old workings in an

attempt to outline near surface mineralization. Subsequent drilling of the surface targets resulted in the

delineation of the Adoikrom, Father Brown and Dabokrom prospects along a combined strike length of 900

  1. Further exploration conducted in 2005 identified the Adoikrom North prospect. A total of some 22,100

m over 267 drill holes were completed on the main mineralized zones and the exploration targets.

6.2.2.2 Benso and Chichiwelli

Reconnaissance work at Chichiwelli, Subriso, Denerawah and Amantin was conducted by BHP Billiton from

1989-92, on what is now the Benso concession. This identified soil geochemical anomalies and follow-up

drilling was completed at Chichiwelli but results did not meet targeting criteria and the concessions were

relinquished. Tenure was then acquired by a local company, Architect Co-Partners, with a 150 km2

prospecting concession which covered Amantin, Subriso and Chichiwelli, as well as a large part of the

Subriso River Forest Reserve that was closed to exploration from 1996.

Canadian company Fairstar Exploration Limited took over the Benso concession in 1995 and carried out

extensive work, particularly at Subriso and Amantin, where considerable drilling was completed but ceased

by the end of the decade due to funding constraints. An agreement was reached in 2001 for SJR to take

over the exploration work.

In 2001, SJR completed an agreement with Fairstar and took over the exploration work. From early 2002 to

about mid-2004, SJR focused mainly on the Subriso area where substantial mineralization was outlined at

two prospects, Subriso East and West. Numerous other prospects, namely Subriso Central, I Zone and G

Zone were identified and drill tested, as was the Amantin area, which had also been drilled to a

considerable extent by Fairstar.

6.3 Production History, Previously Declared Resources and Reserves

6.3.1 Golden Star Resources (2003-present)

Since acquiring Wassa in 2003 GSR has produced 2.4 million ounces of gold and the mine has a remaining

life of six years as defined by the current Mineral Reserve.

Milestones at Wassa under GSR management are:

  • 2003: definition drilling ahead of feasibility study for CIL plant.
  • 2004: feasibility study completed and construction commences on CIL plant with open pit mining.
  • 2005: CIL plant commissioned.
  • 2006: acquired St Jude Resources (Hwini Butre and Benso concessions). Connected to grid power.
  • 2007: commenced open pit mining at South Akyempim. Construction of haul road to Hwini Butre.

Page 53NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 54

  • 2008: commenced open pit mining at Benso, processing at Wassa.
  • 2009: commenced open pit mining at Hwini Butre and drilling to test underground potential.
  • 2011: Hwini Butre mining moves from Adoikrom to Father Brown pit.
  • 2012: commenced drilling to test underground potential below Wassa.
  • 2013: upgraded plant to 2.7 Mtpa capacity with fresh ore, consolidated mining at Wassa Main pit.
  • 2014: released positive Preliminary Economic Assessment for Wassa Underground and completed

Hwini Butre mining at Father Brown.

  • 2015: completed positive Feasibility Study for Wassa UG and commenced development, along with

starting construction of TSF 2.

  • 2016: mined first stope ore from Wassa UG in July and definition drilling continued to define wide

zones of mineralization in B-Shoot.

  • 2017: commercial production declared at Wassa UG and deep definition drilling program defines

what was later to become the Southern Extension zone. UG averages 1,865 ore t/d.

  • 2018: open pit mining of Main pit completed and UG ore mining rate increases to 2,945 t/d. Wassa

UG Inferred Mineral Resource reported growth to 5.2 Moz with addition of Southern Extension

zone.

  • 2019: completed positive Feasibility Study for paste backfill commenced development. UG ore

mining rate increased to 3,895 t/d (1.4 Mtpa).

  • 2020: completed construction of paste backfill plant and on-site gas-fired power generation. UG

ore mining rate increased to 4,480 t/d (1.6 Mtpa).

Annual production is shown in Table 6-1. Production in 2012 and 2013 includes contributions from Hwini

Butre and Benso.

Production peaked in 2013 at 187 koz with the plant operating at full capacity and high grade ore being

mined from the Father Brown pit at Hwini Butre. From 2014, open pit ore was sourced solely from the

Wassa Main pit until its completion in 2017. Lower grades resulted in production of around 100 koz/yr.

Mining transitioned to underground from 2016, with commercial production realized in 2017 and the

underground becoming the main production source by 2018. Since 2018, underground production has

steadily increased to maintain and exceed 150 koz/yr, with the addition of minor amounts of low-grade ore

from open pit stockpiles.

Table 6-1 Recent Production History, Wassa

Year

Open Pit & Stockpile

Underground

Total

Processed

Mt

Feed Grade

Au g/t

Produced

Au koz

Processed

Mt

Feed Grade

Au g/t

Produced

Au koz

Processed

Mt

Feed Grade

Au g/t

Produced

Au koz

2012

2.51

2.09

159

2.51

2.09

159

2013

2.70

2.29

187

2.70

2.29

187

2014

2.63

1.41

110

2.63

1.41

110

2015

2.50

1.46

109

2.50

1.46

109

2016

2.44

1.27

93

0.18

2.06

11

2.62

1.32

104

2017

1.93

1.27

76

0.69

3.03

61

2.62

1.73

137

2018

0.53

0.76

12

1.01

4.18

137

1.60

3.06

151

2019

0.16

0.65

3

1.39

3.57

153

1.55

3.27

155

2020

0.38

0.79

9

1.64

3.13

156

2.01

2.70

165NI 43-101 Technical Report (March 2021) Wassa Gold Mine

7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

The regional geological setting of the Ashanti belt has been described by several authors previously. The

most recent publication describing the geological setting of the sub-region was from Perrouty et al., in

Precambrian Research in 2012.

The Ashanti greenstone belt in the Western Region of Ghana is composed primarily of paleoproterozoic

metavolcanic and metasedimentary rocks that are divided into the Birimian Supergroup (Sefwi and Kumasi

Groups) and the Tarkwa Group. Both units are intruded by abundant granitoids and host numerous

hydrothermal gold deposits such as the Wassa, Obuasi, Bogoso and Prestea mines and paleoplacer deposits

such as the Tarkwa and Teberebie Mines.

Allibone et al. (2002) separated the Paleoproterozoic Eburnean orogeny into two distinct phases known as

Eburnean I and II. This classification was revised by Perrouty et al. in 2012 who proposed two distinct

orogenic events, the Eoeburnean orogeny and the Eburnean orogeny. The Eoeburnean orogeny predates

the deposition of Tarkwaian sediments and is associated with a major period of magmatism and

metamorphism in the Sefwi Group basement. The Eburnean event is associated with significant post

Tarkwaian deformation that affected both the Birimian Supergroup and overlying Tarkwaian sediments.

The Eburnean orogeny is associated with major north-west to south-east shortening that developed major

thrust faults, including the Ashanti Fault along with isoclinal folds in Birimian metasediments and regional

scale open folds in the Tarkwaian sediments. These features are overprinted by phases of sinistral and

dextral deformational events that reactivated the existing thrust faults and resulted in shear zones with

strong shear fabrics.

The Birimian series was first described by Kitson (1928) based on outcrops located in the Birim River

(around 80 km east of the Ashanti Belt). Since this early interpretation, the Birimian stratigraphic column

has been revised significantly. Before the application of geochronology, the Birimian super group was

divided in an Upper Birimian group composed mainly of metavolcanics and a Lower Birimian group

corresponding to metasedimentary basins. Subsequent authors have proposed synchronous deposition of

Birimian metavolcanics. Most recently, Samarium/Neodymium and U/Pb analyses have reversed the

earlier stratigraphic interpretation with the younger metasediments overlying the older metavolcanics.

Proposed ages for the metavolcanics vary between 2,162 ± 6 Ma and 2,266 ± 2 Ma. Detrital zircons in the

metasediments indicate the initiation of their deposition between 2,142 ± 24 Ma 2,154 ± 2 Ma. The Kumasi

Group was intruded by the late sedimentary Suhuma granodiorite at 2,136 ± 19 Ma (U/Pb on zircon,

Adadey et al., 2009).

Page 55NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-1 Location of Wassa on the Ashanti Belt (Perrouty et al 2012)

The Tarkwa super group was first recognized by Kitson (1928) and consists of a succession of clastic

sedimentary units, which have been divided in four groups by Whitelaw (1929) and Junner (1940).

The Kawere Group located at the base of the Tarkwaian super group is composed of conglomerates and

sandstones with a thickness varying between 250 m and 700 m. The unit is stratigraphically overlain by the

Banket Formation, which is characterized by sequences of conglomerates interbedded with cross-bedded

sandstone layers, the maximum thickness of this group being 400 m. The conglomerates are principally

composed of Birimian quartz pebbles (>90%) and volcanic clasts (Hirdes and Nunoo, 1994) that host the

Tarkwa Placer deposits.

The Banket formation is overlain by approximately 400 m of Tarkwa Phyllites.

The uppermost unit of the Tarkwa super group is the Huni Sandstone, comprised of alternating beds of

quartzite and phyllite intruded by minor dolerite sills that form a package up to 1,300 m thick (Pigois et al.,

2003). U/Pb and Pb/Pb geochronology dating of detrital zircons provide a maximum depositional age of

2,132 ± 2.8 Ma for the Kawere formation and 2,133 ± 3.4 Ma for the Banket formation (Davis et al., 1994;

Hirdes and Nunoo, 1994). These ages agree with the study by Pigois et al. (2003) that yielded maximum

depositional age of 2,133 ± 4 Ma from 71 concordant zircons of the Banket formation. According to all

concordant zircon histograms (161 grains) and their uncertainties, a reasonable estimation for the start of

the Tarkwaian sedimentation could be as young as 2,107 Ma.

Page 56NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Abundant granites and granitoids intruded the Birimian and Tarkwaian units during the Paleoproterozoic.

Eburnean plutonism in south-west Ghana can be divided into two phases between 2,180 to 2,150 Ma

(Eoeburnean) and 2,130 to 2,070 Ma (Eburnean) that is supported by the current database of U/Pb and

Pb/Pb zircon ages. Most of the granitoids intruded during both phases correspond to typical Tonalite–

Trondhjemite–Granodiorite suites. However, in the southern part of the Ashanti Belt, intrusions within the

Mpohor complex have granodioritic, dioritic and gabbroic compositions.

Dolerite dykes oriented north-south and east-northeast to west-southwest that are generally less than 100

m in thickness are abundant across the West African craton where they cross-cut Archean and

Paleoproterozoic basement. In south-western Ghana these dykes are well defined in magnetic data where

they are characterized by strong magnetic susceptibility. Dolerite dykes are observed to cross-cut

undeformed K-feldspar rich granites that formed during the late Eburnean, and are overlain by Volta basin

sediments with a maximum depositional age of 950 Ma (Kalsbeek et al., 2008). These relationships

constrain dyke emplacement to between 2,000 Ma and 950 Ma. In contrast some older dolerite/gabbro

dykes and sills were deformed during the Eburnean orogeny and are dated at 2,102 ± 13 Ma (U/Pb on

zircon, Adadey et al., 2009).

With the exception of some late Eburnean granitoids, dolerite dykes and Phanerozoic sediments, all other

lithologies have undergone metamorphism that generally does not exceed upper greenschist facies.

Studies on amphibole/plagioclase assemblages suggest the peak temperature and pressure was 500 to

650C and 5 to 6 kbar (John et al., 1999), dated at 2092 ± 3 Ma (Oberthür et al., 1998).

7.2 Local Geology and Mineralization

The Wassa property lies within the southern portion of the Ashanti Greenstone Belt along the eastern

margin of the belt within a volcano-sedimentary assemblage located at proximity to the Tarkwaian basin

contact. The eastern contact between the Tarkwaian basin and the volcano-sedimentary rocks of the Sefwi

group is faulted, but the fault is discrete as opposed to the western contact of the Ashanti belt where the

Ashanti fault zone can be several hundred meters wide.

Deposition of the Tarkwaian sediments was followed by a period of dilation and the intrusion of late mafic

dykes and sills.

The lithologies of the Wassa assemblage are predominantly comprised of mafic to intermediate volcanic

flows which are interbedded with minor horizons of volcaniclastics, clastic sediments such as wackes and

magnetite rich sedimentary layers, most likely banded iron formations. The volcano-sedimentary sequence

is intruded by syn-volcanic mafic intrusives and felsic porphyries.

The magnetic signature of the Ashanti belt is relatively high in comparison to the surrounding Birimian

sedimentary basins such as the Kumasi basin to the west of the Ashanti belt and the Akyem Basin to the

East as illustrated in Figure 7-2.

Rock assemblages from the southern area of the Ashanti belt were formed between a period spanning

from 2,080 to 2,240 Ma as illustrated in Table 7-1, with the Sefwi Group being the oldest rock package and

the Tarkwa sediments being the youngest. The Ashanti belt is host to numerous gold occurrences, which

are believed to be related to various stages of the Eoeburnean and Eburnean deformational event.

Structural evidences and relationships observed in drill core and pits at Wassa would suggest the

mineralization to be of Eoeburnean timing while other known deposits in the southern portion of the

Ashanti belt such as Chichiwelli, Benso and Hwini Butre are considered to be of Eburnean age.

The Eoeburnean deformation is best observed at Wassa where the deformational event has produced a

penetrative foliation with an associated lineation which is defined by mineral alignments. A period of

extension occurred between the Eoeburnean and Eburnean deformational events which resulted in the

formation of the Akyem Basin (Kumasi Group) to the northeast of the Wassa Mine and the Tarkwa group to

the west of the Wassa concession. Both metasedimentary sequences of the Tarkwa and Kumasi group

have not been affected by the penetrative foliation observed at Wassa.

Page 57NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The Eburnean deformation is divided in multiple events which vary in number depending on the authors as

summarized in Table 7-1. All deposits underlying the Wassa concession have been affected by the

Eburnean deformational events, the main penetrative foliation has been affected by at least three

Eburnean folding events which have resulted in a large scale refolded synform. The main foliation is sub

vertical and oriented northeast to south-west on the south-eastern flank of the Wassa mine fold whereas it

is dipping at around 45° to the south-southeast on the north-west flank of the Wassa mine fold.

Figure 7-2 Total magnetic intensity reduced to pole, of the Ashanti Belt (modified from Perrouty et al, 2012)

Page 58NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 59

Figure 7-3 Compilation of geochronology dating from the Ashanti Belt (Perrouty et al, 2012)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 60

Table 7-1 Deformational history of the Ashanti Belt (Perrouty et al, 2012)

In Birimian

Obuasi/Bogoso

Allibone et al, 2002

In Tarkwaian

Tarkwa,

Damang

Tunks et al, 2004

Regional

Eisenlhor et al, 1992

Regional

Feybesse et al,

2006

Milesi et al, 1992

Eoeburnean

2187 –

2158 Ma

Sefwi Group volcanism and

sedimentation

Volcanism,

Granitoids intrusion.

Regional

Metamorphism.

Birimian sediments

and volcanics.

Penecontemporan

eous Plutonism

(Dixcove type

granitoids).

Magmatic

accretion.

Plutonism.

Birimian

sedimentation.

D1, N-S shortening

Regional scale folding in the

Sefwi Group.

Possible Gold mineralization.

Onset of

deformation in a

“foreland thrust”

and Tarkwaian

deposition.

D2, Extension Phase

2154-2125 Ma

Kumasi Group sedimentation

D1

S1 parallel to bedding.

Flat-lying bedding

parallel shearing.

Eburnean

2125 –

2000 Ma

Tarkwa Basin Formation

(2107-2097 Ma)

D3, NW-SE shortening

Km scale folds in Birimian and

Tarkwaian.

S3 Subvertical crenulation

cleavage (NE-SE).

Thrust faults (Ashanti,

Damang…)

Metamorphism peak

(2092Ma).

D2, NW-SE shortening

Isoclinal folds with axial

surface parallel to the

regional faults and

shear zones.

Ashanti thrust fault.

D1, NW-SE

shortening

Km scale folds

(with subvertical

axial surface, S3).

Damang thrust

fault.

D1, NW-SE

shortening

S1 (NE-SE)

subvertical and

subparallel to

bedding in both

Birimian and

Tarkwaian Regional

folds (tight to

isocline).

D1, NW-SE

shortening

Thrust faults.

Tarkwaian

sediments

deposition, Syn

D1.

Metamorphism

(6kbar/550-

650°C).

D3

Low dip axial surface

fold at Obuasi.

S3 crenulation cleavage

overprinting S2. Final

stage of D2?

D2, Continuing

compression

S2 (NE-SE) fabrics

overprint S1

foliation.

S2 is defined by

aligned muscovite

and elongate

recrystallized

quartz grains.

Metamorphism.

Syncrogenic

plutonism (Cape

Coast type

granitoids).

D2/D3, NW-SE

shortening

Tarkwaian folds.

Strike-slip faults

and shearing.

Gold

mineralization.

Metamorphism

(2-3kbar/

200-300°C).

D4, NNW-SSE shortening

Sinistral shear reactivism D3

thrust.

S4 crenulation cleavage ENE

WSW.

Greenschist retrograde

metamorphism.

Remobilization and

concentration of gold particles

along the shear zone and at

the base of the Tarkwa Basin.

D4, NNW-SSE

shortening

Hm scale fold at

Obuasi.

D2, NNWSSE

shortening

Thrust faults and

minor folds.

D5 or syn-D4

Sinistral strike-slip

faults and shearing.

Gold mineralization.

D5

Recumbant folds <m.

Sub-horizontal crenulation

cleavage.

Last pyrite/gold mineralization

associated with quartz vein.

D3, ESE-WNW

shortening

Folds with

shallowly dipping

axial surfaces and

mineralized

quartz veins,

post-dating peak

of

metamorphism.

K-rich plutonism

(cross-cutting all

previous

structures).

Late plutonism.

D6, NE-SW shortening

Low amplitude folds +

crenulation cleavage ~N320/70

(RH).

Reverse faults oriented NW-SE.

D4

Faults oriented

NW-SE.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-4 Regional geology of the Ashanti belt, showing Wassa, GSR tenure and major deposits (GSR, 2020)

7.2.1 Wassa

The Wassa lithological sequence is characterized by lithologies belonging to the Sefwi Group and consisting

of intercalated meta-mafic volcanic and meta-diorite dykes with altered meta-mafic volcanic and meta

sediments which are locally characterized as magnetite rich, banded iron formation like horizons (Bourassa,

2003), as illustrated in Figure 7-5. The sequence is characterized by the presence of multiple ankerite

quartz veins which are sub-parallel to the main penetrative foliation. The lithological sequence is also

characterized by Eoeburnean felsic porphyry intrusions on the south-eastern flank of the Wassa mine fold.

Page 61NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-5 Wassa mine-scale geology (modified from Bourassa, 2003 and Perrouty et al, 2013)

The first deformational event (D1) at Wassa is of Eoeburnean timing and consists of North-South

Shortening. This pre-Tarkwaian event resulted in a penetrative foliation which transposed lithological

contacts along this main foliation. Early, gold bearing, syn-D1 quartz-ankerite veins were also formed

during the Eoeburnean event.

Page 62NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The second event of deformation (D2) is an extension period with no local deformation at the mine scale at

Wassa. Regionally, this event separates the Eoeburnean and Eburnean orogeny by an extension period of

approximately 40 Ma which resulted in the sedimentation of the Birimian and Tarkwaian basins.

The Eburnean orogeny is divided in three distinct deformational events, D3 is a Northwest-Southeast

shortening event which resulted in the inversion of regional detachment faults into thrust faults. At the

mine scale, this event generated a second penetrative foliation at Wassa and a first phase of Eburnean

folding. The D4 deformational event, a North Northwest-South Southeast shortening event resulted in the

sinistral reactivation of earlier faults at the regional scale and severely buckled the Wassa stratigraphic

sequence into moderately steeply dipping, tight fold patterns (F4 Fold) and a third penetrative foliation

(S4).The last deformational event, D5, is the result of sub-vertical compression which resulted in open

recumbent folds at Wassa and a fourth foliation located in the axial plane of the F5 folds and is generally

sub-horizontal, shallowly plunging to the South.

The deposit scale F4 fold is shown on a vertical section through the nose of this structure in Figure 7-6.

The various phases of Eburnean deformations and their effect on the host rocks are illustrated in:

  • Figure 7-7:

o Top image shows syn-D1 veins and S1 foliation folded by and F3 fold;

o Bottom image shows syn-D1 veins, S1 and S3 foliations affected by a mesoscopic F4 fold;

  • Figure 7-8:

o Top image shows syn-D1 veins folded and buckled by S5 foliation; and

o Bottom image shows syn-D1 veins, affected by both S4 and S5 foliations.

Figure 7-6 Vertical section through Nose of deposit-scale F4 fold, Wassa Main deposit

Page 63NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-7 Eburnean folds and foliations from Wassa mine, Starter pit

Page 64NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-8 Eburnean folds and foliations from Wassa mine, B-Shoot pit

Page 65NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The Wassa mineralization is subdivided into a number of domains: F Shoot, B Shoot, 242, South East,

Starter, 419, Mid-East and Dead Man’s Hill. Each of these represents discontinuous segments of the main

mineralized system which extends approximately 3.5 km along strike from surface and is still open at depth.

The SAK deposits are located approximately 2 km to the southwest of the Wassa Main deposit on the

northern end of a well-defined mineralized trend parallel to the Wassa Main trend. The SAK deposits are

also located on the western side of a major regional east dipping fault which separates the Wassa main

mineralization from this trend. The mineralization is hosted in highly altered multi-phased greenstone

hosted quartz-carbonate veins interlaced with sedimentary pelitic units. The SAK mineralization is

subdivided into a number of domains as well, SAK 1, 2 and 3, which are thought to be associated with tight

F3 fold closures which plunge steeply to the South west.

Mineralization within the Wassa Mine is structurally controlled and related to vein densities and sulphide

contents. Higher grade mineralization has been interpreted to be associated with tight isoclinal folding

(F3). These tight folds often have extenuated limbs that are weakly mineralized, where as the fold closure

was the focal point of remobilized fluids and associated gold. Mineralization in the limbs is generally

narrower, < 10 m and fold closer thicknesses and exceed 25-30 m thicknesses. Higher grade mineralization

has up and down dip extension of approximately 150 to 200 metres with a down plunge extension being

drill tested over 2,000 m from where it daylights in the Starter pit area to section 18,500 mN in the south,

where it remains open.

Figure 7-9 illustrates the tightly folded nature of the gold mineralization, as depicted by the black dotted

line showing high-grade zones associated with F3 fold closures and subsequent parasitic folding. The

mineralization is then subsequently folded by the deposit scale parasitic F4 folds.

Three vein generations have been distinguished on the basis of structural evidence, vein mineralogy,

textures and associated gold grades. Evidence further relates the majority of gold mineralization to the

earliest recognized vein generation which is believed to be syn-Eoeburnean. Gold grades broadly correlate

with the presence of quartz-dolomite/ankerite-tourmaline bearing quartz veins and the presence of

sulphide minerals (predominantly pyrite) within and around the quartz veins. Gold grades appear to be

spatially restricted to the quartz veins, vein selvages and the immediate wall rocks. The alteration haloes

developed around the veins and pervasively developed within the core of the deposit scale Wassa fold

contain lower grade mineralization.

Figure 7-9 Wassa section through 19,650 mN showing high-grade zones, F3 closures, parasitic folding

Page 66NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The combined and overprinted Eburnean deformational events (D3 to D5) render precise prediction of the

vein geometries and localities difficult in areas with wider spaced or little drillhole data. However, where

drilling density is tighter (12.5 m x 10 m), as with in the immediate underground mining areas it is possible

to construct both hanging and footwall contacts of the economic gold mineralization, Figure 7-10. The

higher grade zones of gold mineralization are constrained with in broader lower grade mineralized zones

that can be defined reasonably well with the wider spaced surface drillhole data, but to delineate the

geometry of the higher grade zones tighter underground grade control drilling is required. Figure 7-11, drill

cross section 18900N shows a simpler interpretation which is based on wider spaced surface drilling. As

indicated above further infill underground drilling is necessary to delineate the geometry of the high-grade

gold mineralization.

Figure 7-10 Wassa section through 19,925 mN showing interpretation with tight-spaced drilling

Figure 7-11 Wassa section through 18,900 mN showing interpretation and wide spaced (surface) drilling

Page 67NI 43-101 Technical Report (March 2021) Wassa Gold Mine

7.2.2 Hwini Butre

The Hwini Butre concession is underlain by three main deposits: Adoikrom, Dabokrom and Father Brown,

which are hosted within the Mpohor mafic complex, which consists mainly of gabbroic and gabbro-dioritic

intrusive horizons as illustrated in Figure 7-4 Regional geology of the Ashanti belt, showing Wassa, GSR

tenure and major deposits. Each of the three deposits have different mineralization styles.

The timing of the mineralization at Hwini Butre is considered to be of late to post Eburnean age with the

period of hydrothermal activity likely to have spanned a considerable length of time. At Father Brown and

Dabokrom, mineralization is associated with quartz vein systems which are locally surrounded by extensive,

lower grade, disseminated quartz stockwork bodies, especially at Dabokrom. The Father Brown deposit is

characterized by well-developed fault-filled quartz veins which are, as is the case for Dabokrom, light grey

with carbonate and mica accessory minerals and minor tourmaline and feldspar. Wall rock alteration is

commonly associated with elevated gold grades and consists of silicification with carbonates, muscovite

and sericite. Secondary strain fabrics are also present, with mylonitic and cataclastic fabrics common in the

heavily altered zones. Visible gold occurs as disseminations in discrete quartz veins and within zones of

silicification associated with pyrite. Gold is medium to coarse grained and generally occurs with pyrite and

appears to be free milling. As at Benso, arsenopyrite is largely absent from the Hwini Butre deposits.

At Adoikrom, the mineralization is shear hosted and characterized by the absence of quartz veins; gold is

associated with fine grained pyrite and intense potassic alteration. The higher grade core of gold

mineralization at Adoikrom is constrained within a moderately plunging, South West trending shoot which

has been drilled tested to approximately 1000 meters depth where it remains open.

Page 68NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 7-12 Hwini Butre section through 33,100 mN

7.2.3 Benso

The Benso concession is underlain by four main deposits: Subriso East, Subriso West, G Zone and I Zone. All

the deposits are characterized by similar style of mineralization. The Benso deposits are hosted in two

dominant rock types. Subriso West and I Zone are hosted within Intermediate feldspar porphyry intrusives

and meta-volcanics, where Subriso East occurs along the contact between carbonaceous phyllites and meta

volcanics. Mineralization at Benso is associated with late deformational stages of the Eburnean orogeny

and deposits are shear hosted along subsidiary structures.

Mineralogy is relatively simple with fine grained but visible gold disseminated in the shear fabric and

associated with pyrite which can be locally abundant. Zones of intense alteration with chlorite, carbonates

and epidote are common. Arsenopyrite is absent from the deposits.

7.2.4 Chichiwelli

The Chichiwelli deposit consists of two sub-parallel mineralized trends which hosts two distinct types of

mineralization. The Chichiwelli West trend is a shear zone hosted deposit with a quartz, carbonate, sericite

and potassic alteration assemblage, the mineralization is associated with pyrite. The Chichiwelli East trend

is a quartz vein associated deposit with an ankerite and sericite alteration assemblage. Mineralization is

also associated with pyrite along vein selvages and in the wall rocks.

Page 69NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The lithological assemblage at Chichiwelli West consists of mainly fine to medium grained dioritic intrusives

with local intercalation of basalt and feldspar porphyritic intrusives. Lithologies are moderately to strongly

foliated adjacent to the shear zone, the mineralization is bounded to the shear zone and associated with a

strong shear fabric. The shear zone mineralization is characterized locally by boudinage quartz and calcite

stringers with fine disseminated sulphides, mainly pyrite, and associated with a sericite and potassium

alteration assemblage with minor silicification. The Chichiwelli East lithological sequence is comprised

mainly of deformed diorite with local strain zones. The mineralization is characterized by milky white

quartz veins associated with potassium alteration and euhedral coarse grained pyrite.

Page 70NI 43-101 Technical Report (March 2021) Wassa Gold Mine

8 DEPOSIT TYPES

8.1 Wassa

The Wassa deposit is located on the eastern flank of the northeast trending Ashanti Belt, a

Paleoproterozoic greenstone belt which was formed and deformed, along with the dividing Birimian and

Tarkwaian sedimentary basins during the Eoeburnean and Eburnean orogeny. Most deposits found within

the Ashanti belt can be classified as lode gold deposits or orogenic mesothermal gold deposits, with the

exception of the Tarkwaian paleoplacer deposits which have a sedimentary origin. Orogenic gold deposits

are the most common gold systems found within Archean and Paleoproterozoic terrains, in the West

African shield, these deposits are typically underlain by geology considered to be of Eburnean age and are

generally hosted by volcano-sedimentary sequences.

  1. Dubé and P. Gosselin of the Geological Survey of Canada described these deposits as greenstone-hosted

quartz-carbonate vein deposits in the 2007 special publication No. 5 entitled Mineral Deposits of Canada.

The authors described these deposits as typically occurring in deformed greenstone belts and distributed

along major compressional crustal scale fault zones commonly marking the convergent margins between

major lithological boundaries. The greenstone-hosted quartz-carbonate vein deposits correspond to

structurally controlled complex deposits characterized by networks of gold-bearing, laminated quartz

carbonate fault-fill veins. These veins are hosted by moderately to steeply dipping, compressional brittle

ductile shear zones and faults with locally associated shallow-dipping extensional veins and hydrothermal

breccias. In these deposits, gold is mainly confined to the quartz-carbonate veins but can also occur within

iron-rich sulphidized wall rocks or within silicified and sulphide-rich replacement zones.

The Ashanti belt is considered prospective for orogenic mesothermal gold deposits and hosts numerous

lode gold deposits and paleoplacer deposits. As illustrated by Figure 7-4, several major gold deposits are

found within the Ashanti belt which can be classified into six different deposit types:

  • Sedimentary hosted shear zones;
  • Fault fill quartz veins;
  • Paleoplacer;
  • Intrusive hosted;
  • Late thrust fault quartz veins; and
  • Folded veins system.

The sedimentary hosted shear zone deposits are localized principally along a steep to sub-vertical major

crustal structures located along the western margin of the Ashanti belt referred to as the Ashanti trend.

The Ashanti trend shows a range of mineralization styles associated with graphitic shear zones, which

represents the principal displacement zone of a regional-scale shear zone that defines the mineral belt.

These styles include highly deformed graphitic shear zones containing disseminations of arsenopyrite as the

principal gold bearing phase and disseminations of sulphides in mafic volcanic rocks generally found in the

footwall of the main shear zones. The sedimentary hosted shear zone deposits which occur along the

Ashanti trend include Bogoso, Obuasi, Prestea and Nzema.

The second type of deposit found within the Ashanti belt are laminated quartz vein deposits containing free

gold. Fault filled quartz vein deposits also occur along the Ashanti trend but are only present at Obuasi and

Prestea. The third type of deposit are paleo-placer deposits within the Tarkwaian sedimentary basin which

are hosted within narrow conglomerate horizons intercalated with sandstone units characterized by iron

oxides cross beddings. Paleoplacer deposits occur in the southern portion of the Tarkwa basin and

examples include Tarkwa, Teberebie and Iduaprim. The fourth type of deposit found within the Ashanti

belt are intrusive hosted deposits which occur along second order structures such as the Akropong trend in

the Kumasi basin and the Manso trend in the Southern portion of the Ashanti belt. These deposits can be

hosted both within felsic and mafic intrusives and are characterized by a penetrative fabric where gold is

associated with pyrite and arsenopyrite. Examples of such deposits include Edikan and Pampe along the

Akropong trend and Benso and Hwini Butre along the Manso trend. The fifth type of deposit found within

Page 71NI 43-101 Technical Report (March 2021) Wassa Gold Mine

the Ashanti belt is late thrust fault associated quartz vein deposits. The Damang mine which is located just

west of Wassa is the only known thrust fault related deposit in the Ashanti belt. The deposit is

characterized by low angle; undeformed extensional and tensional veins associated with low angle thrust

faults. This type of deposit contrasts with the last type of deposit found with the belt, the multi-phase

folded Wassa vein deposit. The Wassa mineralization consists of greenstone-hosted, low sulphide

hydrothermal deposits where gold mineralization occurs within folded quartz-carbonate veins, as

illustrated in Figure 8-1. The Wassa deposit can therefore be classified as an Eoeburnean folded vein

system and is the only such deposit recognized to date within the Ashanti belt.

Host rocks in the Wassa mine area have been affected by at least four phases of ductile deformation,

producing a polyphase fold pattern at the mine scale. Discrete high-strain zones locally dissect this fold

system. The structural history of the Wassa area is important in that the various deformational events have

been responsible for the emplacement of the gold mineralization as well as the geometry of the zones

themselves. Mineralized zones at the Wassa Mine are related to vein swarms and associated sulphides that

formed during the Eoeburnean deformational event. All rock types underlying the Wassa Mine appear to

be altered to variable degrees with the most common alteration consisting of a carbonate-silica-sulphide

assemblage.

Figure 8-1 Syn-Eoeburnean veins from B-Shoot, 242 and South-east zones (modified from Perrouty et al, 2013)

8.2 Hwini Butre

The Hwini Butre deposits can be characterized as mafic intrusive hosted, orogenic shear zones. The

deposits are hosted within diorite and granodiorite intrusive rocks of the Mpohor complex. The Father

Brown deposit is characterized by well-developed fault-filled quartz veins (Figure 8-2), whereas the

Adoikrom deposit is a shear zone hosted deposit characterized by intense potassium and silica alteration

assemblage (Figure 8-3).

Analysis of geophysical surveys and topographical features have identified several north to north-northeast

trending regional features running through the area which are tentatively interpreted as boundary faults

along the margins of the Ashanti Belt. The Mpohor complex exhibits the underlying north-south trends but

also has extensive cross cutting features present particularly in the north-west orientation. These

structural features are second order or subsidiary structures splaying from primary structures.

Page 72NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 73

The Adoikrom, Father Brown and Dabokrom deposits occur in the south portion of the Mpohor complex

and appear to be controlled by a series of shallow to moderately dipping faults and shear structures with

dips varying from 20° to the south at Dabokrom and steepening to 65° to the northwest at Adoikrom.

Figure 8-2 Mineralization exposure in Father Brown pit, smoky quartz vein

Figure 8-3 Mineralization exposure in Adoikrom pit, potassic alteration

NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 74

8.3 Hwini Butre

The Benso deposits can also be characterized as mafic intrusive hosted, orogenic shear zones deposits,

which are hosted by Birimian metavolcanics into which coarse plagioclase porphyry units have intruded and

are generally conformable with the volcaniclastic units.

At Subriso East, the metavolcanics host complex quartz vein systems associated with intense shearing and

abundant sulphide mineralization (Figure 8-5). At Subriso West, the presence of intermediate porphyry

intrusive appears to play a more significant role (Figure 8-4) and quartz veining is less extensive and broad

scale silicification is more common. The contacts between metavolcanics and porphyry have been

identified as potential targets for higher grade gold mineralization.

The mineralization hosting structures generally dip steeply towards the west with foliation generally

parallel to the bedding. The aeromagnetic interpretation reveals a north to north-northeast striking fault

system along the course of the Ben River with several other fracture systems also evident with strikes

varying between the northwest and northeast. The Subriso East deposit is interpreted to dip less steeply to

the west at approximately 50°.

Oxidation associated with weathering is variable but generally limited. The weathering forms a layer of

lateritic clay rich material grading into a soft saprolite. The vertical depth is generally 10 m or less but can

reach depths of 30 m in places. There is a sharp boundary between oxide and fresh material with a narrow

and poorly developed transition zone.

Figure 8-4 Mineralization exposure in Subriso West

pit, sheared volcanics

Figure 8-5 Mineralization exposure in Subriso East

pit, fine grained pyrite

NI 43-101 Technical Report (March 2021) Wassa Gold Mine

8.4 Chichiwelli

The Chichiwelli deposits can also be characterized as mafic intrusive hosted, orogenic shear zones, the

deposits are hosted within diorite and granodiorite intrusive rocks. The mineralization zones at Chichiwelli

are similar to those observed at Benso, with the mineralized hosting structures generally dipping to the

east.

The Chichiwelli deposit consists of two sub-parallel mineralized trends which hosts two distinct types of

mineralization, as shown in Figure 8-7 and Figure 8-6. Mineralization at the Chichiwelli West zone is shear

zone hosted with a carbonate, sericite and potassic alteration assemblage, while mineralization along the

Chichiwelli East trend is quartz vein associated with an ankerite and sericite alteration assemblage.

Mineralization is spatially associated with pyrite at both deposits.

Figure 8-7 Mineralization at Chichiwelli West, shear

hosted

Figure 8-6 Mineralization at Chichiwelli East,

hydrothermal veins

Page 75NI 43-101 Technical Report (March 2021) Wassa Gold Mine

9 EXPLORATION

Extensive exploration work has been conducted on and around the Wassa concession. Previously, several

airborne and ground geophysical surveys consisting of aero-magnetics, radiometrics and Induced

Polarization (IP) were conducted on the properties. The geophysical surveys targeted geochemical

anomalies, which had previously been identified following multiple stream and soil geochemical sampling

programs.

9.1 Wassa

Modern exploration programs on the Wassa concession began in the early 1990s with satellite imagery and

geophysical surveys which identified geophysical lineaments and anomalies over small scale and colonial

mining areas. Stream and soil geochemistry sampling programs were conducted over the geophysical

anomalies and identified two linear gold in-soil anomalies as illustrated in Figure 9-1.

Figure 9-1 Wassa soil geochemistry and anomalies (GSR, 2018)

Exploration drilling commenced in February 1994 and, by March 1997, a total of 58,709 m of RC and DD

had been completed. In September 1997, consulting engineers Pincock, Allen and Holt completed a FS.

Only minimal exploration work was conducted by SGL between the completion of the FS in 1997 and the

2001 bankruptcy.

In March 2002, GSR started an exploration program as part of a due diligence exercise following the

ratification of a confidentiality agreement with the creditor of SGL. The exploration program consisted

mainly of pit mapping and drilling below the pits to test the continuity of mineralization at depth. The

concession was acquired later that year by GSR following the completion of the due diligence exercise.

Exploration drilling resumed in November 2002 under GSR with the aim to increase the quoted reserves

and resources for the feasibility, which was completed in 2003.

Simultaneously to the resource drilling program that targeted resource increases in the pit areas, GSR also

undertook grass roots exploration along two previously identified mineralized trends. The 419 area was

Page 76NI 43-101 Technical Report (March 2021) Wassa Gold Mine

located south of the main pits and the SAK anomaly was a soil target that had never been previously drilled

and was located west of the main pits. Deep auger campaigns were also undertaken in the Subri forest

Reserve, which is located in the southern portion of the Wassa Mining lease.

Figure 9-2 Wassa airborne magnetic coverage (GSR, 2004)

In March and April 2004, a high resolution, helicopter geophysical survey was carried out over the Wassa

Mining Lease and surrounding Prospecting and Reconnaissance Licenses (Figure 9-2). Five different survey

types were conducted, namely: Electromagnetic, Resistivity, Magnetic, Radiometric and Magnetic

Horizontal Gradient. The surveys consisted of 9,085 km of flown lines covering a total area of 450 km2 .

Flight lines were flown at various line spacing varying between 50 to 100 m depending on the survey type.

Page 77NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The geophysical surveys identified several anomalies with targets being prioritized on the basis of

supporting geochemical and geological evidence.

The exploration program in 2005 continued to focus on drill testing anomalies identified by the airborne

geophysical survey as well as infill drilling within the pit area to expand the reserve and resource base. The

resource definition drilling program focused mainly on SAK, South-East and the 419 area. The following

years were subject to more infill and resource definition drilling in the pit areas at Wassa. In 2011,

exploration drilling programs shifted towards drilling deep HG targets below the pits; this drilling continued

until 2015. Drilling was limited in 2016 with rigs in filling the first planned stoping areas to increase

confidence in the resource prior to underground mining. The 2017 drilling programs were two-fold, infilling

gaps in the previous drilling with in the proposed expanded open pit as well as testing the B shoot

underground mineralization both north and south, up and down plunge respectively. The southern

extension drilling initiated in 2017 continued into 2019 and utilized larger drill rigs to conduct directional

wedging and downhole motor work to delineate the deeper southern extensions of B and F shoot HG

mineralization.

9.2 Hwini Butre

GSR acquired SJR and the Hwini Butre concession in late 2005 and commenced exploration work in early

  1. GSR exploration activities concentrated on the previously defined mineralization at Adoikrom North,

Adoikrom, Dabokrom and Father Brown. The drilling program focused mainly on infill drilling and

extending the continuity of the deposits at depth. The previous drilling by SJR reached a maximum vertical

depth of approximately 130 m, whereas GSR extended the modelled mineralization at vertical depths of

over 250 m.

GSR also undertook regional exploration programs over the concession by targeting a number of

geochemical and geophysical anomalies previously identified by SJR, these anomalies were mainly tested

by use of rotary air blast drilling. A combination of 4 m deep auger and shallow auger at a grid spacing of

400 m by 50 m was also carried out to further test the existing gold in soil anomalies and gaps in the

geochemistry sampling over the Hwini Butre concessions.

In 2007 and 2008, GSR focused its Hwini Butre exploration activities on the northern portion of the

concession where several colonial gold occurrences such as Breminsu, Apotunso, Abada, Whinnie and

Guadium are located. Previous soil sampling in these areas identified several anomalies and the follow up

programs included deep auger and rotary air blast drilling. A total of 1,384 auger holes and 41 RAB holes

totalling 725 m were completed.

In 2009, 5,992 m RC (83 holes) and 2,100 m DD (21 holes) were completed on the Hwini Butre property

(Father Brown, Adoikrom and Dabokrom) to test the strike extensions of the zones and also upgrade the

existing quoted Mineral Resource. The drilling program also identified potential underground target

beneath the Subriso West pit. Induced Polarization geophysical surveys were conducted over the Hwini

Butre and Benso concessions in 2009. The program generated targets that were coincidental with

lithological trends and gold in soil anomalies.

The resource definition drilling program continued in 2010 at Father Brown, Adoikrom and Dabokrom

where 5,075 m of RC drilling (72 holes) and 5,207.3 m of DD drilling (24 holes) were completed. The drilling

program also tested the underground potential of the deposits with significant success. A deep auger

program totalling 746 m over 205 holes to test IP geophysical anomalies at Essaman was also completed.

In 2011 the deeper targets at Father Brown and Adoikrom were tested to evaluate the underground

potential of the deposits. In all, 13 DD holes totalling 3,689.6 m were drilled at Father Brown and

Adoikrom. RAB drilling, totalling 2,941 m (174 holes) were undertaken at Semkrom to test IP and

aeromagnetic/radiometric anomalies. In 2012, exploration concentrated on Father Brown and Adoikrom

infill and step out underground drilling program, with 33 DD holes totalling 10,094 m being completed. In

2018, exploration drilling resumed at Father Brown and Adoikrom to continue evaluating the underground

potential. The program combined RC and DD holes totalling 8,236.2 m. The 2018 drilling programs rolled

over into 2019 where another 28 holes were completed totaling 14,526.9 m (RC and DD ).

Page 78NI 43-101 Technical Report (March 2021) Wassa Gold Mine

9.3 Benso and Chichiwelli

GSR acquired the Benso and Chichiwelli concessions in late 2005 and commenced exploration work in early

2006, with exploration activities focusing on the previously defined mineralization at Subriso East, Subriso

West, I Zone and G Zone. The drilling program focused mainly on infill drilling and extending the continuity

of the deposits at depth. The 2006 exploration program was also the focus of regional exploration

programs over the concession by targeting a number of geochemical and geophysical anomalies previously

identified by SJR, these anomalies were mainly tested by use of rotary air blast drilling. A combination of 4

m deep auger and shallow auger at a grid spacing of 400 m by 50 m was also carried out to further test the

existing gold in soil anomalies and gaps in the geochemistry sampling over the Hwini Butre concessions.

Exploration on the Benso property in 2007 and 2008 concentrated on drill testing new zones of

mineralization delineated by the RAB drilling in 2006. A total of 81 holes and 10,232.3 m of RC and DD

drilling was completed at Subriso East, Subriso West, G Zone and I Zone. At Amantin, follow-up programs

included deep auger sampling on a 200 by 50 m grid and RAB drilling was undertaken to test the previously

defined soil anomalies. A total of 3,717 m of RAB drilling from 178 holes and 1,683.9 m of deep auger

drilling over 487 holes were completed at Amantin.

The 2009 exploration program at the Benso concession focused on resource delineation and definition

drilling at the Subriso East, Subriso West and G Zone deposits. A total of 3,159 m RC (35 holes) and 2,538.4

m DD were completed. IP geophysical surveys were conducted over the Benso concessions in 2009 and the

program generated targets that were coincidental with lithological trends and gold in soil anomalies.

The 2010 exploration activities at Benso included the continuation of the resource delineation and

definition drilling in and around the pits and also drilling off the potential underground target at Subriso

West. A total of 8,815 m RC (112 holes) and 8,286.2 m DD (18 holes) were completed. A deep auger

program totalling 1,114 m over 319 holes was undertaken to test IP targets at Subriso West.

In 2011, 12 DD holes, totalling 4,557 m, were drilled on the Benso property at Subriso West to close up the

spacing along strike and down dip of the HG zone of mineralization intersected beneath the pit. At

Amantin, a shallow RC program totalling 1,177 m (22 holes) was completed to follow up on widely spaced

RAB and RC intersections from earlier drilling programs. A deep auger (6 m) program totalling 907.5 m

from 174 holes were completed at K Zone and I Zone to test additional targets generated by IP survey

program.

Exploration activity at Benso in 2012 was limited to structural interpretation of the controls on

mineralization to determine the underground potential at Subriso West.

Page 79NI 43-101 Technical Report (March 2021) Wassa Gold Mine

10 DRILLING

Wassa is an advanced property so details of all drill results are not required in this report. This section

provides an overview of drilling and representative plans and cross-sections are shown in Section 7.2.

10.1 Surface Drilling

Drilling is carried out by a combination of DD, RC and RAB techniques. In general, RAB is used at early

stages for follow up to soil geochemical sampling and, during production, for testing contacts and

mineralization extensions around the production areas. RAB has a maximum drilling depth of 30 m.

RC pre-collar with diamond core tails drilling is used as the main method for obtaining samples for Mineral

Resource estimation and is carried out along drill lines spaced between 25 and 50 m along prospective

structures and anomalies defined from soil geochemistry and RAB drilling. RC drilling is typically extended

to depths of in the order of 100-125 m. The DD method is used to provide more detailed geological data

and where more structural and geotechnical information is required. Generally, the deeper intersections

are also drilled using DD and, as a result, most section lines contain a combination of RC and DD drilling.

RC and DD drilling was conducted with a GSR geologist was on site to align the drill rig and check the drill

head dip and azimuth. Downhole surveying was conducted using a single shot camera, for RC and DD holes

at the bottom of holes exceeding 30 m depths and then taken progressively every 30 m up hole. The single

shot camera recorded the dip and azimuth for each surveys which was validated and recorded by the GSR

geologists or was recorded by a Reflex survey instrument and captured in the database as well as being

filed in the respective drillhole file folders on site.

Drilling depths at Wassa Main have generally been less than 250 m but with the discovery of higher grades

below the Wassa Main pit in late 2011, hole depths have increased. In the 1st half of 2014, two gyro survey

instruments were utilized to resurvey several of the deeper holes. In total, 153 holes, drilled during 2012 to

2014, were resurveyed. The gyro survey readings were conducted every 10 m both in and out of the hole

and the values were then averaged. The 153 gyro surveyed holes were updated in the database and

subsequently used for the resource estimates. The gyro surveys showed that there was some deviation in

the holes below 250 m drilled depth. Deviations varied from location to location depending on drill

orientation with a general tendency for the hole to steepen and swing to the north.

Drilling of the deeper targets at Wassa has required the use of directional drilling methods. The deeper

holes, often exceeding 1000 meters, are drilled from surface using HQ sized core and this initial hole

(referred to as the “mother” hole) is drilled to the depth where the first directional hole would be started.

The directional hole (or “daughter” hole) is drilled using a smaller core size, NQ and is deviated from the

mother hole initially using a casing wedge which is oriented in the direction of the mineralized target. Once

the initial deflection has been achieved with the wedge, the hole deviation can be controlled using a down

hole directional motor which can change the dip and azimuth of the hole by approximately plus or minus

1.5 degrees over a 10-metre run. The direction of the hole can also be controlled by using various

combinations of down hole stabilizers and drill bits. The step out deeper drilling fences typically involve

two mother holes with three to four daughter holes from each of these. The deeper holes are surveyed,

down hole with either a Reflex multi-shot or gyro survey instrument. The surveys are taken while the hole

is being drilled as well as every 10 to 15 meters from the bottom of the hole once it has been completed.

Exploration data used in the Long-Range model for the Mineral Resource is summarized in Table 7-1.

The majority of the drilling has been conducted by GSR, although there are some drillholes completed by

previous concession owners that have been used to inform the Wassa long-range model (by SGL) and Hwini

Butre and Benso models (by SJR). Where drill data by prior ownership is used the data has be validated and

checked to the satisfaction of the QP for inclusion to inform interpretation and grade estimates.

Page 80NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 81

Table 10-1 Exploration data used for Mineral Resource models

All drillhole collars were surveyed using a Nikon Total Station (DTM-332) or Sokkia Total Station by a GSR

surveyor. Individual RC and DD holes are identified and marked in the field with poly-vinyl chloride (PVC)

pipes. RAB drill holes were surveyed in the field and identified and marked with wooden pegs.

10.2 Underground Drilling

Underground diamond drilling is performed using electric-hydraulic diamond drills utilizing the

underground mine’s 1,000 V power supply. Core drilled underground is HQ (63.5mm), NQ (47.6 mm) or

NQ2 (50.6 mm) in core size. The final drilling density for classification as Measured Mineral Resource is

designed to be 15 m along strike and 13 m down dip, or tighter. With the orebody generally striking north

south (on the mine grid), typical drilling azimuths range +/-30 degrees each side of 090˚ or 270˚ azimuth,

depending on whether the drills are set up on the hangingwall or footwall side of the orebody. Dips

generally range between +30˚ to -60˚.

Downhole surveying is conducted using a Reflex multi-shot downhole surveying tool. When collaring, a

single survey is taken at 10-12m depth. At the first survey, the drill hole orientation must fall within ±2o

azimuth and ±1.5o dip tolerance, when compared to design. For any hole where the first survey falls

outside of tolerance, the geologist has the discretion to either terminate the drill hole and re-collar at the

drilling company’s expense, or to continue the hole. At the completion of the drill hole, multi-shot surveys

are collected at 15 m intervals on the way out. All downhole surveys are collected by the underground

mine geologists. The drilling crews do not perform the surveys themselves.

Drill hole collar locations are captured by the underground mine surveying team. The surveyors use either

a Leica TS15 total station, or a Leica TS16 total station to record the collar position in X, Y, Z location. The

total station is accurate to less than two seconds in azimuth. In cases where the mine surveyors cannot

identify the drill hole collar site, the designed collar coordinates are recorded in the databases.

The Short-Range grade model used for calculation of the December 2020 Mineral Resource estimate,

within the active mining area, was completed in December 2020 and utilized 273 additional underground

holes totaling 34,275 meters.

10.3 Sampling

A standard approach to drilling and sampling on all GSR projects in Ghana. Sampling is typically carried out

along the entire mineralized drilled length.

Sample recovery is good across all deposits drilled to date. Ground conditions are generally good and air

drilling techniques (AC/RAB and RC) are avoided below the groundwater table where DD is applied.

For RC drilling, samples are collected every 1 m. Where DD holes have been pre-collared using RC, the

individual 1 m RC samples are combined to produce 3 m composites which are then sent for analysis.

Should any 3 m composite sample return a significant gold grade assay, the individual 1 m samples are then

sent separately along with those from the immediately adjacent samples.

Data Source

Purpose

No. Holes

Drill Metres

Grade Control (RC)

24,957

642,470

Pre-Existing (Dec18 Report)

Exploration (RC, DD)

3,422

500,282

UG Operational (DD)

847

93,896

Grade Control (RC)

411

12,142

2019-2020

Exploration (RC, DD)

59

48,036

UG Operational (DD)

371

56,914

Total

30,067

1,353,740NI 43-101 Technical Report (March 2021) Wassa Gold Mine

10.3.1 Diamond Drillholes

DD samples are collected, logged and split with a diamond rock saw in maximum 1.2 m lengths. The core is

cut according to mineralization, alteration or lithology. The core is split into two equal parts along a

median to the foliation plane using a core cutter. The sampling concept is to ensure a representative

sample of the core is assayed. The remaining half core is retained in the core tray, for reference and

additional sampling if required.

10.3.2 RC Drillholes

RC sampling protocols were established in 2003. The composite length of 3 m has been established to

allow a minimum of at least two composites per drillhole intersection based on experience from

exploration drilling and mining. The hangingwall and footwall intersections can generally be easily

recognized in core from changes in pyrite content and style of quartz mineralization.

The 3 m composite sampling methodology is:

  • A sample of each drilled meter is collected by fitting a plastic bag on the lower rim of the cyclone to

prevent leakage of material;

  • Bag is removed once the “blow-back” for the meter has been completed and prior to the

commencement of drilling the subsequent meter;

  • Both the large plastic sample bags and the smaller bags are clearly and accurately labelled with

indelible ink marker prior to the commencement of drilling. This is to limit error and confusion of

drilling depth while drilling is proceeding;

  • 3 m composite samples are taken by shaking each of the 1 m samples (approximately 20 kg) and

taking equal portions of the 3 consecutive samples into a single plastic bag to form one composite

sample (approximately 3 kg);

  • Composite samples are taken using tube sampling, which uses a 50 mm diameter PVC tube which

has been cut at a low oblique angle at one end to produce a spear of approximately 600 mm

length;

  • The technique assumes that a sample from the cyclone is stratified in reverse order to the drilled

interval. A representative section through the entire length of the collected sample is considered

to be representative of the entire drilled interval;

  • PVC tube is shuffled from the top to bottom of the sample, collecting material on the way. The

“shuffling” approach ensures sample accumulated in the tube does not just push the remaining

sample away; and

  • Material in the tube is emptied into the appropriately labelled sample bag and in the case of 3 m

composite samples, stored separately from the 1 m samples.

The 1 m sample collection methodology is:

  • 1 m re-sampling of selected mineralized composite zones using the 20 kg field samples is

undertaken with a single stage riffle splitter;

  • Splitter is clean, dry, free of rust, and damage is used to reduce the 20 kg sample weight to a 3 kg

fraction for analysis;

  • Care is taken to ensure that the sample is not split when it is transferred to the splitter, and is

evenly spread across the riffles;

  • When considered necessary, the sample is assisted through the splitter by tapping the sides with a

rubber mallet;

  • Excessively damp or wet samples are not put through the splitter, but tube-sampled or grab

sampled in an appropriate manner. Alternatively, the sample is dried before splitting. A common

sense approach to wet sampling is adopted on a case by case basis;

Page 82NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Clods of samples are not forced through the splitter, but apportioned manually in a representative

manner; and

  • Splitter is thoroughly cleaned between each sample using a brush. Where possible, the splitter is

cleaned using an air gun attached to the drill rig compressor.

10.3.3 RAB/AC Drilling

RAB and Air Core (AC) drilling is used for exploration but is not used to inform any of the current Mineral

Resource estimates.

RAB and AC samples are collected and bagged at 1 m intervals. As the samples are generally smaller in size

than the RC samples, 3 m composites are prepared by shaking the samples thoroughly to homogenize the

sample, before using the PVC tube to collect a portion of the three individual 1 m samples. After positive

results from the 3 m composites, the individual 1 m samples are split to approximately 2 to 3 kg using the

Jones riffle splitter and then submitted to the laboratory for analysis.

Page 83NI 43-101 Technical Report (March 2021) Wassa Gold Mine

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

The measures implemented by GSR related to sample preparation, analysis and security are considered by

the Qualified Person to be consistent with standard industry practice and of sufficient quality to include in

the estimation of Mineral Resources.

11.1 Sample Preparation

Sample preparation on site is restricted to core logging and core cutting or RC and RAB sample splitting.

The facilities consist of enclosed core and coarse reject storage facilities, covered logging sheds and areas

for the splitting of RC and RAB samples. Sub-sampling of RC and RAB samples is carried out using a Jones

Riffle splitter.

11.2 Sample Dispatch and Security

Samples are collated at the mine site after core cutting or sample splitting and then transported to the

primary laboratory for the completion of the sample preparation and chemical analysis. Samples are

trucked by road to the laboratories in Tarkwa.

Sample security involves two aspects, namely, maintaining the chain of custody of samples to prevent

inadvertent contamination or mixing of samples, and rendering active tampering of samples as difficult as

possible.

The transport of samples from site to the laboratory is by road using a truck dispatched from the

laboratory. As the samples are loaded, they are checked and the sample numbers are validated. The

sample dispatch forms are signed off by the driver and a company representative. The sample dispatch

dates are recorded in the sample database as well as the date when results are received.

No specific security safeguards have been put in place by GSR to maintain the chain of custody during the

transfer of core between drilling sites, the core library, and sample preparation and assaying facilities. Core

and rejects from the sample preparation are archived in secure facilities at the core yard and remain

available for future testing.

11.3 Laboratory Procedures

Sample assays have been performed at either the Wassa Site Lab, SGS or Intertek (formerly named TWL).

Both commercial labs are located at Tarkwa. GSR submits quality control samples to each lab for testing

purposes.

Both SGS and Intertek laboratories are independent of GSR and are accredited for international

certification for testing and analysis.

  • SGS, Minerals Division – Tarkwa: ISO 17025 and ISO 9001; and
  • Intertek Minerals Ltd, Tarkwa: ISO/IEC 17025.

The sample preparation and analysis processes at the Wassa Site Laboratory (WSL), Intertek, and SGS differ

slightly. WSL was used as the primary laboratory for 3 m composite and grade control RC drill samples from

July 2007 onwards. The laboratory had previously operated as a metallurgical sample processing

laboratory at the Wassa mine site.

11.3.1 Wassa Site Laboratory

The sample preparation and analysis process at the WSL is as follows:

  • Sample reception, sorting, labelling and loading;
  • Dry entire sample (3 kg) at 110°C for between 4 and 8 hours;
  • Jaw crush entire sample to 3 mm, and secondary Keegor crusher to 1 mm;
  • Split 3 kg sample and pulverize for 3 to 8 minutes to 95% passing 75 µm;

Page 84NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 85

  • Sample homogenization using a mat rolling technique, and sub-sample 1 kg into bulk leach

extractable gold (BLEG) roll bottle;

  • Bottle roll for 6 hours with LeachWellTM accelerant. Allow to settle for 30 to 60 minutes;
  • Filter 20 ml aliquot from bottle;
  • Di-isobutyl Ketone extraction and atomic absorption spectroscopy (AAS) determination of gold

content; and

  • 1 in 10 residue samples are retained for gold determination using fire assay.

11.3.2 Transworld/Intertek

TWL (now Intertek) was the primary laboratory for core samples until July 2007, when it was discontinued

due to the following issues:

  • Contamination due to poor dust control in pulverizing area of the laboratory. Use of dust attracting

cloth gloves for sample handling. BLEG aliquot preparation area containing dirt and liquids, which

may result in sample cross-contamination.

  • Large fluctuation in employee numbers (60 to 180), which resulted in a risk of training and quality

control issues when increasing employment numbers over a short period of time.

  • The use of a manual data tracking and capture system, which increased risk of data entry errors.

GSR considered this to be a sub-optimal process for a commercial laboratory.

The sample preparation and analysis process used by TWL is illustrated in Figure 11-1.

Figure 11-1 Transworld Laboratories sample processing flow sheet

TRANSWORLD LABORATORIES(GH) LTD.-

BLEG +Leachwell Sample Analysis Flow Sheet

Detection Limit 0.01 ppm Au

3-5 kg Sample

Sample Receival and sorting

Dry entire sample

at 110oC (12 hours)

Jaw crush entire sample

<6mm

Riffle split 3.0 to 4.0 Kg

Retain residual split in

original receival bag.

If sample weight is greater than 5kg

Pulverise subsample

cone splitting is recommended

<75um

Homogenise and weigh

Retain residual pulp in

2.0 Kg into BLEG roll bottle

pulp bag

Add:

30g Ca(OH)2

10ml of 200ppm CN solution(2g NaCN)

1000 ml water

1 LeachWell Tablet

Place on Bottle roller –

roll for 6 hours

Remove from roller and

allow to settle for 2 hours

Discard all Tails

Filter 50ml sub sample

Wash Tails of 10th sample

Analysis for Gold by

into flask.

Fire assay Method

Extract into 5ml of DIBK

Atomic

Absorption

Analysis

Data Processing

and ReportingNI 43-101 Technical Report (March 2021) Wassa Gold Mine

11.3.3 SGS Tarkwa

The SGS laboratory (Tarkwa) was used for drill core samples from July 2007, to August 2017, with the

sample preparation and analysis process as follows:

  • Sample received, entered in LIMS, worksheets, printed and samples sorted;
  • Samples emptied into aluminium dishes;
  • Dry entire sample at between 105 and 110°C for 8 hours;
  • Jaw crush entire sample to 6 mm;
  • Split sample using a single stage riffle splitter, to result in a 1.5 kg sub-sample;
  • Pulverize sub-sample for 3 to 5 minutes, to give 90% passing 75 µm;
  • Sample homogenization using a mat rolling technique, and put 1 kg of sample into the BLEG roll

bottle;

  • Remaining sample is retained as pulp and crushed sample duplicates;
  • Bottle roll for 12 hours with LeachWellTM accelerant. Allow to settle for 2 hours;
  • Filter 50 ml of aliquot; and
  • Di-isobutyl Ketone and AAS for gold grade determination.

During 2017, GSR discontinued using SGS laboratories and began shipping samples to Intertek Laboratories.

The Intertek lab sample flow sheet is shown in Figure 11-2. The reason for the change was poor sample

result turn-around time. Since the prior issues with Transworld/Intertek, ownership of TWL had changed to

Intertek who had implemented internationally recognised standards with changes in management and

procedures.

Figure 11-2 Intertek sample processing flow sheet

Page 86NI 43-101 Technical Report (March 2021) Wassa Gold Mine

11.4 Quality Control and Quality Assurance

Quality control measures are set in place to ensure the reliability and trustworthiness of assay data, and to

ensure that it is of sufficient quality for inclusion in the subsequent Mineral Resource estimates. Quality

control measures include written field procedures and independent verifications of aspects such as drilling,

surveying, sampling and assaying, data management and database integrity. Appropriate documentation

of quality control measures and analysis of quality control data are an integral component of a

comprehensive quality assurance program and an important safeguard of project data.

The field procedures implemented by GSR are comprehensive and cover all aspects of the data collection

process such as surveying, drilling, core and RC cuttings handling, description, sampling and database

creation and management. At Wassa, each task is conducted by appropriately qualified personnel under

the direct supervision of a qualified geologist. The measures implemented by GSR are considered to be

consistent with industry best practice.

The quality controls employed by GSR include:

  • Field duplicates used to check sampling precision and deposit variability. Two separate samples are

collected at the drill site and bagged separately from which two individual samples are produced.

The results of these checks can be useful in highlighting natural variability of the grade distribution.

  • Pulp duplicates used as a check of sampling precision and coarse gold in pulps. Two separate pulp

samples are prepared from a single coarse reject after sample splitting and on site preparation.

The results are useful in indicating problems with sample preparation and splitting.

  • Repeats as a check of analytical precision and coarse gold. Two separate aliquots are prepared

from separate samples taken from the original coarse reject and the two samples results are

compared.

  • Blanks for highlighting contamination problems and cross labelling when samples are mislabelled in

the laboratory.

  • Standards as a check of analytical precision and accuracy.

GSR relies on both the laboratory operators QA/QC processes for assaying, as well as GSR’s own

independent QA/QC program. The GSR program includes inserting blanks, certified reference materials

(otherwise known as standards), and pulp or coarse reject duplicates into sample batches, before sample

submission to the lab. GSR also provides sample dispatch lists to the laboratories, to ensure that all

samples dispatched from site are received at the lab.

GSR has supplied QA/QC reports to various consultants over the numerous drilling campaigns since 2004,

and a summary of the historical and current QA/QC results is included here.

11.4.1 Comparison of Assay Methodologies

In 2003, during open-pit operations, it was recognized that there was a variance between primary and

duplicate assay grades of the same sample, as well as a variance between the planned mine grade to the

mill reconciled grade. The conventional 50g fire assay being used at the time displayed poor reproducibility

between field duplicates. This effect was also evident between pulp duplicates; although not as marked.

The conclusion was that a component of coarse gold was present in the samples, and contributed to poor

reproducibility between samples. It was recommended to switch to an analytical process that made use of

significantly larger sample masses, such as LeachWell™ assays.

To address this, GSR changed the assay procedure from the 50 gram fire assay method to a 1kg BLEG assay,

with a LeachWellTM accelerant. Gold grade was determined using an AAS finish. Initially, samples were split

by a rotary splitter and leached for six hours. Following the analysis of the leach tailings, the leach time was

extended to 12 hours.

Due to time constraints, the use of the rotary splitter was discontinued and a Jones Riffle splitter was used

to split sub-samples from the larger RC drill hole samples. The difference between the reproducibility of

fire assay versus larger BLEG assays is illustrated in Figure 11-3. It shows a significant improvement with

Page 87NI 43-101 Technical Report (March 2021) Wassa Gold Mine

respect to sample reproducibility between the fire assay and the BLEG methodologies. Using BLEG, 80% of

pairs report Half Absolute Relative Difference (HARD) precisions of less than 17%, compared to the 35%

precision attributable to the fire assay method. SRK recommended that GSR continue to monitor the

reproducibility of the sample grades from the paired data analysis.

Figure 11-3 HARD plot comparing fire assay and BLEG for field duplicates

11.4.2 Repeat (Coarse Reject) Duplicates 2011 to 2013

From 2011, GSR discontinued the use of pulp samples for determining repeatability. Instead, coarse reject

material (leftover material from the laboratory primary crush stage) was used as duplicate sample material.

During the sample prep stage, after the drill core passed through primary crushing, the excess coarse reject

material was collected and returned to Wassa. This material was then re-numbered and re-submitted to

the laboratory for repeat analysis. Coarse reject duplicates were used to monitor the sample preparation

processes of the laboratory.

The HARD plot of all coarse rejects for 2011 is presented in Figure 11-4. The results of this HARD analysis

show that approximately 89% of the 369 coarse duplicate samples fall within approximately 20% error and

76% fall within 10% error. This is acceptable for gold deposits of this type.

The HARD plot of all coarse rejects for 2012 is presented in Figure 11-5. The results of this HARD analysis

show that approximately 83% of the 2,173 coarse duplicate samples fall within approximately 20% error

and 60% fall within 10% error. This is acceptable for gold deposits like Wassa.

The HARD plot of all coarse rejects for 2013 is presented in Figure 11-6. The results of this HARD analysis

show that approximately 82% of the 2,962 coarse duplicate samples fall within approximately 20% error

and 56% fall within 10% error. This is considered to be acceptable for Wassa.

Page 88NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 11-4 HARD plot of all coarse rejects (2011) from SGS

Figure 11-5 HARD plot of all coarse rejects (2012) from SGS

Page 89NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 90

Figure 11-6 HARD plot of all coarse rejects (2013) from SGS

11.4.3 QA/QC Data Summary 2014 to early 2017

The analytical quality control data produced between 2014 and early 2017 is summarized in Table 11-1.

The data represents approximately 16% of the total number of entire samples for this period.

Table 11-1 Summary of analytical quality control data from 2014 to early 2017

SGS

WGS

Total

Comment

  1.  

%

  1.  

%

  1.  

%

Sample Count

61,943

96,596

158,539

Blanks

622

1.0%

6,159

6.4%

6,781

4.28%

Coarse Sand

QC Samples

4,564

7.4%

4,302

4.5%

8,866

5.6%

ST074/9453

575

766

1,341

0.21 g/t

ST14/9501

405

405

0.43 g/t

ST16/9487

264

419

683

0.49 g/t

ST626

664

664

0.51 g/t

ST06/9481

89

280

369

1.02 g/t

ST06/7384

167

167

1.08 g/t

ST588

763

763

1.60 g/t

ST39/6373

168

168

1.67 g/t

ST602

324

324

1.91 g/t

ST482

635

516

1,151

1.94 g/t

ST575

476

476

2.43 g/t

G914-2

14

14

2.45 g/t

ST596

61

61

2.51g/t

ST37/6374

30

30

3.33 g/t

ST43/7370

955

955

3.37 g/t

G910-3

12

12

4.03 g/t

ST48/8462

175

175

4.82 g/t

ST517

1,108

1,108

5.23 g/t

GC Field Duplicates

6,567

10.6%

6,567

4.1%

Coarse Reject Duplicates

3,802

3.9%

3,802

2.4%

Total QC Samples

11,753

19.0%

14,263

14.8%

26,016

16.4%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 91

11.4.4 Repeat (Coarse Reject) Duplicates 2014 to October 2020

Coarse reject samples from SGS and Intertek sample splits were re-numbered and re-submitted for repeat

analyses. Coarse reject duplicates were used to monitor the sample preparation stage at a laboratory.

Analysis of the HARD plots of coarse reject duplicates processed by SGS and Intertek suggested that

approximately 56% to 69% of gold assay samples had a HARD below 10% error. Approximately 77% to 96%

coarse duplicate samples fell within approximately 20% error. This variance is typical of coarse reject

duplicate pairs in gold deposits; indicating that SGS and Intertek can reasonably reproduce this type of

paired data.

The HARD plot of all coarse rejects for 2014 is presented in Figure 11-7. The results of this HARD analysis

show that approximately 83% of the 2,145 coarse duplicate samples fall within approximately 20% error

and 56% fall within 10% error. This is considered to be acceptable for Wassa.

Figure 11-7 HARD plot of all Surface Drilling coarse rejects (2014) from SGSNI 43-101 Technical Report (March 2021) Wassa Gold Mine

The HARD plot of all surface drilling coarse rejects for 2015 is presented in Figure 11-8. The results of this

HARD analysis show that approximately 88% of the 641 coarse duplicate samples fall within approximately

20% error and 69% fall within 10% error. This is considered to be acceptable for Wassa.

Figure 11-8 HARD plot of all Surface Drilling coarse rejects (2015) from SGS

The HARD plot of all coarse rejects for 2016 is presented in Figure 11-9. The results of this 83% of the 355

coarse duplicate samples fall within HARD analysis show that approximately 20% error and 61% fall within

10% error. This is considered to be acceptable for Wassa.

Figure 11-9 HARD plot of all Surface Drilling coarse rejects (2016) from SGS

Page 92NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The HARD plot of all surface drilling coarse rejects for 2017 is presented in Figure 11-10. The results show

that approximately 85% of the 750 coarse duplicate samples fall within approximately 20% error and 62%

fall within 10% error. This is considered to be acceptable for Wassa.

Figure 11-10 HARD plot of all Surface Drilling coarse rejects (2017) from SGS and Intertek

The HARD plot of all surface coarse rejects for 2018 is presented in Figure 11-11. The results show that

approximately 77% of the 2,399 coarse duplicate samples fall within approximately 20% error and 56% fall

within 10% error. This is considered to be acceptable for Wassa.

Figure 11-11 HARD plot of all Surface Drilling coarse rejects (2018) from Intertek

Page 93NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The HARD plot of all Surface drilling coarse rejects for 2019 (plus some 2018 results which were not

included in 2018 results) is presented in Figure 11-12. The results show that approximately 84% of the

4,079 coarse duplicate samples fall within approximately 20% error and 64% fall within 10% error. This is

considered to be acceptable for a Wassa.

Figure 11-12 HARD plot of all Surface Drilling coarse rejects (2019) from Intertek

The HARD plot of Underground drill core coarse rejects values for January to October 2020 is presented in

Figure 11-13. The results show that approximately 87% of the 1,280 coarse duplicate samples fall within

approximately 20% error and 63% fall within 10% error. This is considered to be acceptable for Wassa.

Figure 11-13 HARD plot of all Surface Drilling coarse rejects (2020 Jan-Aug) from Intertek

Page 94NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The HARD plot of coarse rejects values for the Father Brown and Adoikrom (HBB) drilling for 2018 and 2019

surface drilling is presented in Figure 11-14. The results of this HARD analysis show that approximately 86%

of the 946 coarse duplicate samples fall within approximately 20% error and 70% fall within 10% error. This

is considered to be acceptable for these deposits.

Figure 11-14 HARD plot of all Surface Drilling coarse rejects for 2018-19 for Father Brown & Adoikrom, from Intertek

11.4.5 Certified Reference Material

CRM material (otherwise known as standards) are used to monitor the accuracy, precision, and

reproducibility of the assay results. CRM materials were sourced from Geostats Pty Ltd. , and Gannet

Holdings Pty Ltd. Although the CRM material can be easily identified by the laboratory, the grade of the

standard is difficult to determine due to the large number of different standards used. Standards in use

between January 2003 and October 2020 are shown in Table 11-2 through to Table 11-12.

A total of 16,100 standards were submitted to SGS between 2008 and 2017. The standards submitted

largely performed within expected ranges and mean grades, similar to the expected values. Results

indicate that SGS reported assay values both higher and lower than the certified mean value, with some

variation to the detection limit. That said, 96% or more of the determinations typically fell within +/–5% of

the mean value. Standards submitted to SGS from 2014 to 2017 performed much better with 100% of the

determinations falling within +/–3% of the mean value and 75% falling within +/- 2% of the mean value.

A total of 4,320 standards were submitted to the Wassa site laboratory between 2014 and 2017. Standards

analyzed by Wassa site lab performed marginally worse with some individual samples beyond two standard

deviations of the expected value. These results could possibly be due to the mislabeling of samples. Due to

the lower accuracy of the Wassa site lab, along with the slowing down of open-pit operations, in-house

assaying was phased out during 2017.

In 2018, GSR began using Intertek Laboratory, as its primary laboratory. A total of 400 CRM were

submitted in 2018, with the UG drill core sample batches, with 89 percent or more of the determinations

typically falling within +/–2% of the expected value. Between January, 2019 – October, 2020, a total of

20,053 CRMs were submitted to Intertek with the underground core samples batches, with 77 percent of

the determinations typically falling within +/–2% of the expected value.

Page 95NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 96

The surface drilling programs in 2019 submitted an additional 2,584 CRM’s with the RC and diamond core

samples. These samples were also submitted to Intertek laboratories in Tarkwa and 100% of the samples

returned determinations falling with +/–2% of their certified value.

The HBB drilling program also utilized Intertek Laboratories, with 867 CRM’s being submitted with the RC

and core samples sent to the lab. The CRM’s returned 79 percent of the determinations typically falling

within +/–2% of the certified value.

In general, the performance of the standards inserted with samples submitted for assaying at SGS, Intertek

and Wassa site laboratories is acceptable. The majority of the failures appear to be caused by the

mislabelling of samples.

Table 11-2 CRM for 2003-2007 (TWL)

Table 11-3 Geostats CRM for 2008-2012 (SGS)

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

Gannet A

0.22

196

0.22

0%

Gannet B

2.52

185

2.57

+2%

Gannet C

3.46

21

3.53

+2%

Gannet D

3.40

75

3.40

0%

Gannet E

2.36

77

2.45

+4%

Gannet F

0.78

47

0.75

-4%

Gannet G

3.22

82

3.02

-6%

Gannet M

1.18

159

1.28

+2%

Gannet N

0.50

171

0.49

-2%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

G901-10

0.48

82

0.51

+6%

G305-3

0.71

14

0.66

-7%

G901-2

1.70

32

1.54

-9%

G906-4

1.90

137

1.99

+5%

G999-4

2.30

36

2.40

+4%

G302-2

2.44

70

2.50

+2%

G901-1

2.50

38

2.38

-5%

G396-9

2.60

29

2.39

-8%

G900-7

3.19

193

3.22

+1%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 97

Table 11-4 Gannet CRM for 2008-2012 (SGS)

Table 11-5 Gannet CRM for 2013 (SGS)

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST07/9453

0.21

476

0.21

+2%

ST14/9501

0.43

447

0.42

-3%

ST16/9487

0.49

110

0.51

+3%

ST16/5357

0.52

654

0.52

0%

ST486

0.57

124

0.54

-5%

ST17/2290

0.78

14

0.79

+2%

ST481

1.02

32

1.05

+3%

ST06/5356

1.04

115

1.06

+2%

ST322

1.04

18

1.07

+3%

ST06/7384

1.08

1881

1.04

-4%

ST384

1.08

173

1.06

-2%

ST39/6373

1.67

117

1.74

+4%

ST09/7382

1.93

205

1.87

-3%

ST482

1.94

695

1.98

+2%

ST5355

2.37

145

2.39

+1%

ST05/9451

2.45

538

2.53

+3%

ST05/6372

2.46

168

2.44

-1%

ST05/2297

2.56

78

2.49

-3%

ST486

2.63

49

2.59

-5%

ST10/9298

3.22

132

3.30

+3%

ST37/6374

3.33

129

3.08

-7%

ST43/7370

3.37

834

3.33

+1%

ST5359

3.91

131

3.97

+1%

ST359

3.93

87

3.96

+1%

ST48/8462

4.82

508

4.89

+1%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST07/9453

0.21

645

0.22

+4%

ST14/9501

0.43

402

0.50

+17%

ST06/7384

1.08

39

1.05

-3%

ST482

1.94

528

1.99

+2%

ST05/6372

2.46

665

2.48

+1%

ST37/6374

3.33

579

3.29

-1%

ST48/8462

4.82

187

4.89

+1%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 98

Table 11-6 Gannet CRM for 2014-2017 (SGS)

Table 11-7 Gannet CRM for 2014 to 2017 (Wassa Site Lab)

Table 11-8 Gannet CRM for 2018 (Intertek)

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST07/9453

0.21

575

0.21

0%

ST16/9487

0.49

264

0.49

0%

ST626

0.51

664

0.50

-2%

ST06/9481

1.02

89

1.03

+1%

ST06/7384

1.08

167

1.05

-3%

ST602

1.91

324

1.97

+3%

ST482

1.94

635

2.00

+3%

ST575

2.43

476

2.44

0%

G914-2

2.45

14

2.46

0%

ST596

2.51

61

2.51

0%

G910-3

4.03

12

3.96

-2%

ST48/8462

4.82

175

4.91

+2%

ST517

5.23

1108

5.20

-1%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST07/9453

0.21

766

0.21

0%

ST14/9501

0.43

405

0.43

0%

ST16/9487

0.49

419

0.50

+2%

ST06/9481

1.02

280

1.00

-2%

ST588

1.6

763

1.61

+1%

ST482

1.94

516

1.95

+1%

ST37/6374

3.33

30

3.31

-1%

ST43/7370

3.37

955

3.36

0%

ST39/6373

1.67

168

1.66

-1%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

G913-10

7.10

14

6.94

-2%

G915-3

9.22

23

8.98

-3%

G911-4

2.45

32

2.45

0%

G316-7

5.79

22

5.78

0%

G314-5

5.30

42

5.23

-1%

G314-3

6.68

7

6.59

-1%

ST588

1.6

69

1.60

0%

ST575

2.43

40

2.48

+2%

ST37/6374

3.33

22

3.15

-6%

ST43/7370

3.37

34

3.29

-2%

ST73-8281

1.52

95

1.51

0%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 99

Table 11-9 Gannet CRM for 2019 Wassa UG (Intertek)

Table 11-10 Gannet CRM for 2020 Jan-Oct, Wassa UG (Intertek)

Table 11-11 Gannet CRM for 2019 Wassa surface drilling (Intertek)

Table 11-12 Gannet CRM for 2018-2019 Father Brown/Adoikrom surface drilling (Intertek)

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST638

5.29

2,652

5.14

-3%

ST675

4.91

3,308

4.99

+2%

ST43/7370

3.37

1,390

3.30

-2%

ST575

2.43

1,717

2.39

-2%

G912-3

2.1

254

2.06

-2%

ST601

2.09

2,734

2.06

-1%

ST602

1.91

1,010

1.97

+3%

ST588

1.6

3,488

1.59

-1%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST638

5.29

853

5.07

-4%

ST675

4.91

335

4.99

+2%

ST43/7370

3.37

432

3.33

-1%

ST575

2.43

455

2.39

-2%

ST601

2.09

707

2.10

0%

ST602

1.91

171

2.00

+5%

ST588

1.6

547

1.60

0%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST588

1.60

453

1.58

-2%

ST601

2.09

523

2.06

-1%

ST575

2.43

388

2.38

-2%

ST43/7370

3.37

257

3.29

-2%

ST675

4.91

584

5.02

+2%

ST638

5.29

379

5.18

-2%

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST588

1.60

100

1.57

-2%

ST602

1.91

161

1.97

+3%

ST601

2.09

8

2.00

-4%

G912-3

2.10

148

2.05

-2%

ST575

2.43

340

2.39

-2%

ST43/7370

3.37

7

3.24

-4%

ST675

4.91

98

5.03

+2%

G915-3

9.22

5

8.72

-5%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 100

11.4.6 Blanks

Blank samples are routinely inserted into the sample stream to check for possible sample contamination

during the preparation and assaying process.

Pre-August 2018, the blank material used by GSR, Wassa consisted of coarse sand. The blank samples sent

to SGS laboratory consistently yielded values at or below the detection limit, with zero samples yielding a

value over 10 times the detection limit of gold. With no failures, the sample blanks performed extremely

well and indicated minimal, if any, sample contamination during assaying. From August 2018 to date,

coarse aggregate material (crushed granite) from the Winneba belt has been used as blank material and

inserted into the sample stream. These blanks have performed extremely well over the years as a check for

cross-contamination during sample preparation at Intertek.

From 2014 to 2017, blank material processed at the Wassa site laboratory performed more poorly, with

some samples yielding values close to, or above, 10 times the detection limit of gold. Over time, from 2014

to 2016, the blank samples’ performance noticeably declined. Further investigation of anomalously high

values indicated contamination in the sample preparation process in some cases. The Wassa site

laboratory was primarily used for assaying open pit grade control samples, with a very limited number (13)

of underground diamond drill holes processed by the Wassa site lab during 2017.

External lab analysed blank assay data from 2011 to Oct 2020 included 15,073 assays, all assayed by either

SGS or Intertek. Summary statistics for the blank material assays are shown in Table 11-13, Table 11-14 and

Table 11-15.

Table 11-13 Blank sample summary statistics 2011 to Oct-2020

Table 11-14 Blank sample summary statistics 2019, Wassa surface drilling (Intertek)

Table 11-15 Blank sample summary statistics 2018-2019 Father Brown/Adoikrom surface drilling (Intertek)

Sample Type

Year

Number

Minimum

(Au g/t)

Maximum

(Au g/t)

Median

(Au g/t)

Mean

(Au g/t)

Blanks

2011

278

0.01

0.01

0.01

0.01

Blanks

2012

194

0.01

0.27

0.01

0.01

Blanks

2013

210

0.01

0.11

0.01

0.01

Blanks

2014

56

0.01

0.07

0.01

0.02

Blanks

2015

69

0.01

0.03

0.01

0.01

Blanks

2016

553

0.01

0.03

0.01

0.01

Blanks

2017

930

0.01

0.04

0.01

0.01

Blanks

2017

498

0.01

0.03

0.01

0.01

Blanks

2018

1,089

0.005

0.66

0.01

0.01

Blanks

2019

7,177

0.005

0.08

0.01

0.01

Blanks

2020

2,074

0.005

0.08

0.01

0.01

Sample Type

Year

Number

Minimum

(Au g/t)

Maximum

(Au g/t)

Median

(Au g/t)

Mean

(Au g/t)

Blanks

2019

1419

0.01

0.03

0.01

0.01

Blanks

2020

15

0.01

0.05

0.01

0.01

Sample Type

Year

Number

Minimum

(Au g/t)

Maximum

(Au g/t)

Median

(Au g/t)

Mean

(Au g/t)

Blanks

2019

511

0.01

0.08

0.01

0.01NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 101

11.4.7 Umpire Laboratory Performance

Laboratory checks are performed to check on the reliability of the primary laboratory. In 2013 and 2014,

“round-robin” sample check studies were conducted using SGS, TWL (now Intertek) and the Wassa site

laboratory. SGS laboratory was the primary laboratory during this period. No additional studies have been

completed since then, but there are plans to implement another program in 2021.

In 2014, 252 quarter core samples were selected from drilling conducted between 2012 and mid-2014. The

intersections selected were high-grade intervals which averaged approximately 17 g/t Au. GSR has

previously conducted similar quarter core sampling studies on other GSR owned deposits. The

repeatability of the original results is often poor due to the change in sample size going to half the volume

from the original sample. The 2014 Wassa quarter core sampling study produced the same results, with

good repeatability between the original sample and the corresponding coarse sample reject, and much

poorer repeatability with the quarter core sample. The average grade for both the original assay and the

coarse sample reject duplicate compared well at 17 g/t Au, whereas the quarter core sample was less at 12

g/t Au. However, control sample standards that were submitted with these sample batches consistently

showed a negative bias, as seen in Table 11-16, so this can partially account for the lower average. The

HARD plots shown in Table 11-17 show the good correlation between the original assay value and the

coarse sample reject duplicate, but not when comparing the original assay to the quarter core samples

analysed at TWL Laboratory. Although the negative lab bias and the smaller sample volume attributes to

poor repeatability, the Wassa deposit has a high nugget gold distribution which alone will result in poor

repeatability. The variability of the gold distribution was recognized and GSR has put in sample protocols to

help reduce the variability, i.e. larger sample volumes, BLEG leach well analysis.

Table 11-16 Gannet CRM for quarter core sample analysis (Intertek)

Table 11-17 Summary HARD plot results for quarter core sample analysis

In 2013, 120 RC samples were split into three samples which were sent to each of the laboratories for gold

analysis. The sample batches also contained control samples to monitor the precision of the individual

laboratories.

The three laboratories all performed well with the best correlation being between SGS and the Wassa site

laboratory. The HARD plots for the laboratory comparisons are shown below in Table 11-18.

Table 11-18 Summary HARD plot results for 2013 round robin program

Standard

Certified Mean

(Au g/t)

Samples Submitted

(no.)

Mean Assay Grade

(Au g/t)

Laboratory Bias

ST517

5.23

5

4.98

-5%

ST482

1.94

9

1.78

-8%

ST16/9487

0.49

14

0.46

-6%

Laboratory

Samples

(no.)

<10% HARD

<15% HARD

<20% HARD

Correlation

Coefficient

Original SGS vs Check SGS

252

65%

81%

90%

0.94

Original SGS vs Check Intertek

252

32%

45%

57%

0.60

Check SGS vs Check Intertek

252

29%

44%

55%

0.45

Laboratory

<10% HARD

<15% HARD

<20% HARD

Correlation

Coefficient

SGS vs Wassa

65%

84%

92%

0.97

SGS vs Intertek

68%

84%

88%

0.97

Wassa vs Intertek

71%

84%

90%

0.98NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 102

The <20% HARD correlation for all the labs demonstrates how the larger RC chip samples provide a better

representation of grade. Approximately 90% of the 120 RC samples submitted for this study show a 20%

error, compared to the coarse reject core samples submitted in 2013 and 2014 which show a correlation of

approximately 80% of the data set with 20% error.

In 2012, a “round-robin” exercise was undertaken to check the reliability of Au assay results from the

primary laboratory, SGS. A total of 10% of all assays from the 1m samples received each month were

randomly picked for reanalysis. The data was grouped into six separate ranges, namely 0.00 to 0.50 g/t,

0.50 to 0.90 g/t, 0.90 to 1.20 g/t, 1.20 to 2.00 g/t, 2.00 to 2.50 g/t and greater than 2.50 g/t. The selection

in each range was manipulated until the 10% is achieved with a bias towards the mineralized intervals.

Three samples, each weighing about 3 kg were prepared from each original sample bag using the one-stage

riffle splitter. Four batches of 175 samples including duplicates and standards were dispatched to SGS,

WSL, TWL (Intertek), and ALS Minerals in Ghana-Kumasi (ALS). All samples were labeled with the same

identification numbers. A total of 157 assays were returned by each laboratory for analysis.

Statistical comparison of the data indicates that ALS returned lower grades and variance than SGS, WSL and

TWL (Intertek). SGS and TWL (Intertek) correlated well with similar minimum and maximum grades, and

standard deviation population distribution. The descriptive statistics from the round robin exercise are

included in Table 11-19.

Table 11-19 Round-robin descriptive statistics 2012

In 2017, GSR submitted 578 samples to both SGS and Intertek laboratories, inclusive of CRM. Statistical

comparison of the data indicated that TWL (Intertek) returned slightly lower grades and variance than SGS.

SGS and TWL (Intertek) correlated well with similar minimum and maximum grades, and standard deviation

population distribution. The descriptive statistics from the round-robin exercise are included in Table

11-20.

Table 11-20 Round-robin descriptive statistics 2017

When comparing the results from the two laboratories, the HARD analysis showed that approximately 84%

of the 584 repeat samples fell within approximately 20% error and 69% fell within 10% error. This was a

good correlation between the two laboratories and the decision was made to switch from SGS to TWL

(Intertek). The HARD results for the comparison between the two laboratories are shown in Table 11-21.

Table 11-21 Summary HARD plot results for 2017 round robin program

In 2018, GSWL changed its primary laboratory from SGS to Intertek Ltd. As part of the QA/QC protocols, to

check the reliability of the new primary laboratory, coarse rejects of samples analysed by Intertek were re

bagged with different identification numbers and submitted to SGS as checks, 761 samples were submitted

to SGS between January to August of 2020.

Laboratory

Samples

(no.)

Minimum

(g/t)

Maximum

(g/t)

Mean

(g/t)

Variance

Standard

Deviation

SGS

157

0.01

12.0

1.33

1.75

1.32

WSL

157

0.01

8.9

1.09

1.47

1.21

TWL/Intertek

157

0.01

11.68

1.15

1.68

1.30

ALS

157

0.01

9.32

1.02

1.31

1.15

Laboratory

Samples

(no.)

Minimum

(g/t)

Maximum

(g/t)

Mean

(g/t)

Variance

Standard

Deviation

SGS

584

0.01

113.00

3.33

60.79

7.80

TWL/Intertek

584

0.01

109.20

3.21

55.81

7.47

Laboratory

<10% HARD

<15% HARD

<20% HARD

Correlation

Coefficient

SGS vs TWL/Intertek

69%

78%

84%

0.97NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 103

Sample checks showed a strong correlation between the analytical methods of both laboratories. The

HARD results for the comparison between the two laboratories are shown in Table 11-22. Figure 11-15 and

Figure 11-16 show the HARD and corelation plots respectively.

Table 11-22 Summary HARD plot results for 2018 round robin program

Figure 11-15 HARD plot of 2018 Wassa duplicate analysis (Intertek vs SGS)

Figure 11-16 Wassa duplicates correlation plot (Intertek vs SGS)

Laboratory

<10% HARD

<15% HARD

<20% HARD

Correlation

Coefficient

Intertek vs SGS

73%

84%

90%

0.99NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 104

11.5 Specific Gravity Data

11.5.1 Open Pit

At Wassa SG determinations were carried out by GSR. SG was measured on representative core samples

from drill runs. This ensured representative SG data across all rock types irrespective of gold grade.

SG was measured at the core facility using a water immersion method. For each sample in the dataset, the

sample was weighed in air, then coated in wax and weighed in air and immersed in water. Historically, a

total of 606 determinations were collected on core samples.

The water immersion methodology was considered to provide accurate estimates of variations in bulk SG

throughout the Wassa gold deposits. After testing, each sample was carefully replaced at its original

location in the core box.

Samples were selected from all the different lithologies. The sampling procedure was guided by pit

location, lithology, depth, quartz contents (in oxide) and the oxidation state. A total of nineteen holes from

Dead Man’s Hill, South East, Starter, 419, 242, B-shoot and F-Shoot were selected with the results

presented in Table 11-23.

Table 11-23 Specific gravity test results, open pit

An additional 13 samples consisting of oxide (9), trans (1), fresh (2) and quartz (1) were sent to the Western

University College (WUC, Tarkwa) as independent checks. The average results were 1.76, 2.29, 2.73 and

2.59 g/cm3 respectively.

The SG determinations were considered accurate as the reconciliations between the mined tonnages and

those estimated from the resource models reconcile well.

11.5.2 Underground, 2017

In 2017 an SG study was completed to test whether higher grade mineralization being mined from

underground was heavier than waste rock and the lower grade material mined from the open pits. A total

of 40 samples were selected from four underground drill holes and were sent to Intertek Laboratories for

wax immersion SG determinations. The results from this study indicated that the higher grade

underground mineralization is heavier than the lower grade open pit material. Gold mineralization at

Wassa is directly related to the percentage of pyrite associated with quartz veining; in general, the higher

percentage of pyrite the higher the gold grades. The underground mining exploits these higher grade areas

of the mineralization with associated higher percentages of sulfides which in turn accounts for the heavier

mass of this material. The results of the study are summarized in Table 11-24.

Table 11-24 Specific gravity test results, underground drilling 2017

Material

No. Samples

SG Value (g/cm3 )

Standard Error

Oxide

213

1.80

2%

Transition

42

2.19

3%

Fresh

327

2.70

1%

Quartz Vein

24

2.56

1%

Hole ID

From

(m)

To

(m)

Interval Length

(m)

Au Grade

(avg. g/t)

SG

(avg. g/cm3 )

BS17-670-27

70.5

98.5

5.53

5.53

2.98

BS17-670-11

80.2

110.2

4.30

4.30

2.83

BS17-645-5

100.5

125.6

25.1

42.62

2.94

BS17-670-23

61.8

78.2

4.85

4.85

3.03NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 105

11.5.3 Southern Extension, 2018

In June 2018, GSR conducted a specific gravity measurement program. 723 samples from surface drill core

and 966 samples from underground core were assessed (Table 11-25 and Table 11-26). Results showed

average SG for the underground fresh ore is 2.8. The water displacement method to measure density was

employed, using paraffin sealed core samples.

Table 11-25 Specific gravity test results, underground drilling 2018

Table 11-26 Specific gravity test results, surface drilling 2018

11.5.4 2020 Drilling

In 2020, 58 check SG determinations were conducted on the limited surface drilling. No further SG

determinations were conducted on the UG core as lithologies have essentially remained the same. These

results have confirmed the overall density of 2.8 which has been used in the Mineral Resource Estimations.

These results are summarized in Table 11-5 below.

Table 11-27 Specific gravity test results, surface drilling 2020

Rock Type

No. Determinations

SG

(avg. g/cm3 )

Banded Magnetic Mudstone

67

3.02

Diorite

725

2.83

Felsic Intrusive

Phyllite

67

2.74

Quartz Vein

107

2.65

Total

966

2.81

Rock Type

No. Determinations

SG

(avg. g/cm3 )

Banded Magnetic Mudstone

32

2.70

Diorite

470

2.69

Felsic Intrusive

41

2.59

Phyllite

131

2.63

Quartz Vein

49

2.57

Total

723

2.63

Rock Type

No. Determinations

SG

(avg. g/cm3 )

Banded Magnetic Mudstone

5

2.75

Diorite

27

2.80

Felsic Intrusive

7

2.78

Phyllite

13

2.87

Quartz Vein

6

2.67

Total

58

2.77NI 43-101 Technical Report (March 2021) Wassa Gold Mine

12 DATA VERIFICATION

The measures implemented by GSR related to data verification are considered by the Qualified Person to

be consistent with standard industry practice and of sufficient quality to include in the estimation of

Mineral Resources.

Core logging and sampling procedures are considered consistent with industry standards. The Qualified

Person has supervised work completed by consultants to assess and validate the logging against the halved

drill core with no major errors identified.

“Blind” test samples are frequently sent to the laboratory and monthly batch results are analysed. Any

anomalous results are queried immediately. A small number of anomalous and/or poor results have been

noted over the years, but these have been identified and the reasons for the results fall into two main

categories, namely:

  • Mislabelling of individual samples, standards, and blanks; and/or
  • Individual batch issues corresponding to changes in the laboratory setup or calibration. In these

cases, re-assaying has been carried out.

12.1 Drilling Database

The procedures implemented by GSR involve several steps designed to verify the collection of drill hole

data and to minimize the potential for data entry errors. At Wassa, data entry and database management

involves two steps. Drill hole logs are captured directly into an SQL Acquire database via laptop computers,

which are linked to the main database. Acquire has built-in validation tools and drop-down menus,

designed to eliminate erroneous data entry during the core logging process.

Analytical data is checked for consistency by GSR personnel with oversight by the Qualified Person. Upon

reception of digital assay certificates; the assay results, along with the control sample values, are extracted

from the certificates and imported into the Acquire database. Failures and potential failures are examined

and, depending on the nature of the failure, re-assaying is requested from the primary laboratory. Analysis

of quality control data is documented, along with relevant comments or actions undertaken to either

investigate or mitigate problematic control samples.

12.2 Other Verifications by the Qualified Person

The QP for the Mineral Resource estimate is Mitch Wasel has been involved with the project since 2003

and data verification since then includes:

  • Regular site visits to oversee and supervise drill programs, including adherence to procedures, and

oversight as it relates to quality control;

  • Verification of core logging;
  • Spot checks on the database to ensure it’s representative of hard copy data;
  • Review and interpretation of QA/QC results (described in Section 11);
  • Audits of laboratories;
  • Comparison of RC and DD assays;
  • Review of analytical methods, results of which informed the decision to move from AAS to BLEG

analysis (described in Section 11);

  • Confirmation in the field of collar coordinates to verify drill hole locations; and
  • Confirmation in the field of downhole surveys.

Page 106NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 107

13 MINERAL PROCESSING AND METALLURGICAL TESTING

13.1 Early Metallurgical Test Work

On obtaining ownership of the Project in 2002, GSR commissioned a feasibility study (FS) for a CIL operation

with the process engineering component undertaken by Metallurgical Process Development Pty Ltd. (now

known as MDM). The FS was completed in 2003. The metallurgical test work conducted in support of the

MDM FS was conducted on samples from the Wassa area. Samples were originally sent to SGS Lakefield in

Johannesburg for both variability and bulk sample test work. Further variability test work was conducted at

AMMTEC in Perth.

A total of 24 variability samples were tested; 10 of fresh mineralized material, six of oxide, and 8 samples

taken from the existing (now decommissioned and reclaimed) HL operation. Four bulk samples were also

tested, representing fresh, oxide, HL phase 1 and HL phase 2. The samples were all taken from the Wassa

Main area.

At a grind size of 75% -75 µm, and a 24-hour leach time, the fresh bulk sample achieved a leach recovery of

92%. The Bond Ball Mill Work Index (BWi) for this sample was 14.8 kWh/t. Under the same conditions, the

oxide bulk sample achieved a leach recovery of 93%. The BWi for this sample was reported as 8 kWh/t.

Minor preg-robbing behaviour was noted, and gravity recovery test work indicated that plant recoveries of

30 to 40% could be expected from a gravity circuit.

13.2 2015 Test Work Program

In 2015 as part of the Wassa Underground feasibility study, further metallurgical test work was completed.

The test work evaluated the performance of feed from underground with a series of half-core samples from

definition drilling. The physical characteristics and metallurgical response of these samples were compared

to those of a reference sample of current plant feed from that time (open pit sourced).

At the time of test work an exploration decline and bulk sample was obtained from underground, which

was expected to be representative of the underground feed material. The benefit of bulk sample

treatment through the plant resulted in a reduced test work program that included a series of six variability

and four crushability samples that were compared to a reference sample taken from the current open pit

ore feed.

The metallurgical test work was undertaken by SGS in Cornwall, UK and the samples were delivered and

logged in the middle of December 2014 with this initial phase of test work completed and the draft report

issued in early April 2015.

13.2.1 Metallurgical Variability, Crushability and Reference Samples

For the purpose of the metallurgical program, the material planned for future processing was differentiated

spatially by GSR into six underground domains or zones which are depicted in Figure 13-1 with further

details presented in Table 13-1.

Table 13-1 Ore zones represented by the variability samples

Zone

Northing

Relative Level

Tonnes

(‘000 t)

Grade

(g/t Au)

cont.Au

(koz)

Tonnes

share %

Metal

share %

from mN

to mN

from mRL

to mRL

Zone 1 upper

20,200

19937.5

857

682

598

4.74

91.2

15%

14%

Zone 1 lower

20,200

19937.5

682

607

707

6.78

154.1

18%

23%

Zone 2 upper

19,937.5

19690

782

632

723

6.28

146.1

18%

22%

Zone 2 lower

19,937.5

19690

632

507

538

4.32

74.7

14%

11%

Zone 3 upper

19,690

19500

657

557

772

5.02

124.6

20%

19%

Zone 3 lower

19690

19500

557

482

613

4.2

82.8

16%

12%

Total Processing Inventory

3,952

5.3

673.5

100%

100%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 108

Figure 13-1 West view of metallurgical sample locations (GSR, 2015)

Six variability samples were selected, one for each zone from available HQ and NQ half cores. These core

sections were further cut in half, with one section used for the metallurgical test work and the remaining

quarter core sections retained for reference. Each sample of quarter cores weighed between 50 and 60 kg.

Four full core samples (with a segment removed for assay purposes) were selected for the crushability

tests. Each crushability sample consisted of 7 lengths of HQ drill core each approximately 200 mm in

length. From these, three samples were prepared for the UCS tests with the remaining core sections and

material from UCS testing prepared for the Bond crushability index (low energy crushing) tests.

A single reference sample was also obtained by hand selection from the workings in the Starter pit area at

around the 910 m level. Around 100 kg of material was taken and this sample was used for both

metallurgical and crushability test work.

Table 13-2 Summary and location of test work samples

Sample Type

Detail

Northing

Easting

Relative Level

Sub-samples /

Intersections

  1.  

from

to

from

to

from

to

avg.

mN

mN

mE

mE

m

m

m

Reference

20,420

20,396

40,004

39,974

910

910

910

6

Variability

Z1U

19,972

20,043

40,113

39,984

828

682

763

6

Variability

Z1L

19,947

19,988

39,994

39,912

678

615

664

7

Variability

Z2U

19,770

19,846

40,084

39,930

753

653

713

5

Variability

Z2L

19,700

19,757

40,079

39,931

602

530

575

6

Variability

Z3U

19,531

19,576

40,023

39,979

602

562

585

4

Variability

Z3L

19,497

19,565

40,040

39,945

555

510

533

5

Crushability 1 BSDD347MET 19,492

19,489

40,024

39,999

587

514

553

8

Crushability 2

WMET4

20,053

20,050

40,014

39,999

767

748

753

8

Crushability 3

WMET5

20,036

20,036

39,980

39,975

722

713

719

8

Crushability 4

WMET6

20,017

20,016

39,976

39,964

716

652

700

8NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 109

The locations of the reference, variability and crushability samples are presented in Table 13-2 along with

the nominal ore zones selected. Some of the crushability samples selected were adjacent to rather than

completely within the representative ore zone. Crushability 1 was from depth to the south of Zone 3 Lower

while the other crushability samples were from different depth within Zone 1 Upper and Zone 1 Lower.

The reference sample was taken from the current workings in the starter pit area above and to the north of

Zone 1 Lower at 910 mRL.

13.2.2 Details of Metallurgical Test work

The metallurgical evaluation test work program included the following investigations:

  • Scope of work for reference and variability samples:

o elemental scan: ICP multi-element analysis;

o analysis of sulphide and total sulphur;

o analysis of carbonate and graphitic carbon;

o diagnostic leach (gold deportment tests);

o BWi; and

o Bond abrasion index (Ai).

  • Standard flowsheet treatment tests – to confirm recoveries and reagent additions / consumptions:

o grind calibration tests;

o gravity concentration;

o cyanide leaching of the gravity tails with pre-aeration; and

o settling tests.

  • Scope of work for crushability and reference samples:

o unconfined compressive strength (UCS);

o Bond low impact crushing work index (CWi);

o BWi; and

o Ai.

13.3 Test Work Findings

13.3.1 Head Grade and Elemental / Chemical Analyses

The gold and silver head grades were determined by milling and screening at 106 µm with fire assay of the

two screen fractions. The results are summarized in Table 13-3.

Table 13-3 Screened head assay results

Sample

Overall Grade

Size fraction

Gold

Distribution

Silver

Distribution

+106 micron

-106 micron

Au g/t

Ag g/t

Share

Au g/t

Ag g/t

Au g/t

Ag g/t +106μm -106μm +106μm -106μm

Reference

1.53

0.1

1.9%

11.32

0.2

1.14

0.1

13.9%

86.1%

3.7%

96.3%

Zone 1 Upper

6.51

0.4

2.4%

28.29

1.6

7.03

0.4

10.3%

89.7%

8.8%

91.2%

Zone 1 Lower

7.99

0.6

2.3%

42.29

4.2

7.31

0.6

12.0%

88.0%

15.0%

85.0%

Zone 2 Upper

5.11

0.4

1.3%

17.26

1.0

4.38

0.3

4.2%

95.8%

3.5%

96.5%

Zone 2 Lower

4.64

0.2

2.4%

9.94

0.8

4.52

0.2

5.0%

95.0%

8.8%

91.2%

Zone 3 Upper

4.07

0.5

1.6%

9.45

0.6

4.42

0.5

3.6%

96.4%

2.1%

97.9%

Zone 3 Lower

5.26

0.6

2.2%

25.3

2.8

5.29

0.5

10.3%

89.7%

10.9%

89.1%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 110

In all samples, the gold and silver analyses in the coarse fraction (+106 µm) is higher than for the finer

fraction (-106 µm).

An ICP elemental scan was undertaken on the reference and variability samples; in addition, the total

carbon and organic carbon as well as the total sulphur and sulphide sulphur were analysed using the Leco

method. Results are presented in Table 13-4.

Table 13-4 Elemental and chemical analysis results

Sample

1010A

2008A

3008A

4008A

5008A

6007A

7007A

(%)

REF1

Z1U

Z1L

Z2U

Z2L

Z3U

Z3L

Cu

0.003

0.019

0.011

0.01

0.01

0.008

0.01

Pb

<0.001

0.002

<0.001

<0.001

<0.001

<0.001

0.002

Zn

0.006

0.009

0.01

0.008

0.009

0.008

0.007

As

<0.001

0.001

0.003

0.001

0.001

0.001

<0.001

Cd

<0.0001

0.0003

0.0003

0.0003

0.0002

0.0002

0.0002

Ni

0.002

0.004

0.004

0.002

0.002

0.005

0.003

Co

<0.001

0.003

0.004

0.004

0.003

0.003

0.003

Mn

0.07

0.14

0.18

0.2

0.15

0.1

0.13

Bi

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

Sb

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

Hg

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

Te

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

Se

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

<0.0001

SiO2

78.46

74.96

65.39

66.51

59.42

65.39

57.55

Al

3.32

3.48

4.46

4.37

5.22

4.65

5.24

Fe

2.83

5.57

6.46

5.48

4.67

3.92

4.62

Mg

0.74

0.88

1.09

1.27

1.53

1.47

1.8

Cr

0.03

0.06

0.05

0.03

0.02

0.01

0.01

Ca

1.82

1.1

1.81

2.14

3.47

2.71

3.77

S

0.46

0.86

1.56

0.98

1.3

1.17

0.9

Na

0.92

0.96

1.46

1.93

1.98

1.57

2.16

K

1.36

1.7

1.79

1.57

1.38

2.11

1.6

% S (total)

0.46

0.86

1.56

0.98

1.3

1.17

0.9

% S (soluble)

0.02

0.03

0.04

0.04

0.04

0.03

0.03

% S (sulphide)

0.44

0.83

1.52

0.94

1.26

1.14

0.87

% C (total)

1.4

1.42

1.69

1.99

2.22

1.86

2.52

% C (organic)

0.03

0.02

0.03

0.02

0.03

0.02

0.02

% C (CO3)

1.37

1.4

1.66

1.97

2.19

1.84

2.5

The level of sulphide sulphur was higher in the higher grade variability samples than in the reference

sample. Similarly, the level of iron and other base metals was higher; however, the levels of the other base

metals is relatively low. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 111

13.3.2 Diagnostic Leach

Diagnostic leaching is a method of quantifying the indicated deportment of gold in a sample and the

relative ease or difficulty with which the gold can be recovered. The sample is prepared by grinding to a

typical grind size likely to be employed (75% < 75 µm was selected) and is subject to a cyanide leach to

dissolve the free gold. The solids from the initial cyanide leach test are then sequentially pre-treated with

more aggressive acids to dissolve minerals that could be encapsulating the residual gold. Following each

pre-treatment stage the sample is again treated by cyanide leaching. As the level of sulphide minerals was

indicated to be higher in the higher grade underground material from the geological interpretation of the

core samples and confirmed from the elemental analyses presented in Table 13-5 the aim was to

determine whether the increased level of sulphide minerals was resulting in the samples being more

refractory to treatment for the recovery of gold.

In the diagnostic leach procedure, the samples are subject the following leach and pre-leach treatments:

  • Direct cyanidation: recovers free and exposed gold.
  • Hydrochloric acid pre-treatment: liberates gold encapsulated in carbonates, pyrrhotite, galena and

iron hydroxide minerals.

  • Sulphuric acid (oxidative) pre-treatment: liberates gold encapsulated in sphalerite, labile copper

sulphate and labile base metal sulphide minerals.

  • Nitric acid pre-treatment: liberates gold encapsulated in pyrite, arsenopyrite and marcasite.
  • Carbon combustion: burns off any organic carbon releasing gold that had previously been

adsorbed by the carbon and not therefore amenable to recovery by cyanide leaching.

Residual gold and silver present after the above tests represent gold encapsulated in silica and other non

reactive gangue minerals.

Results of the diagnostic leach tests for gold are summarized in Table 13-5 and represented graphically

showing the deportment of gold in the samples in Figure 13-2.

Table 13-5 Summary of diagnostic leach results

Gold Deportment

Sample Reference

Ref 1

Z1U

Z1L

Z2U

Z2L

Z3U

Z3L

%

%

%

%

%

%

%

Cyanide Soluble

91.9

96.82

97.05

93.13

86.92

89.5

85.34

In Carbonates / Pyrrhotite

1.38

0.88

1.1

1.7

8.83

2.37

2.99

In Sphalerite and Labile Sulphides

0.66

0.58

0.23

0.73

1.22

0.97

2.18

In Pyrite and Arsenopyrite

2.53

1.22

1.26

3.3

1.91

4.01

7.01

In Graphitic Carbon

0.59

0.27

0.1

0.35

0.38

0.45

0.4

Residual Gold

2.93

0.23

0.25

0.79

0.74

2.71

2.08

TOTAL

100

100

100

100

100

100

100

The results generally indicated that the mineralogy and metallurgy of the samples are somewhat different

with some samples appearing to have potentially more gold locked or associated with different sulphide

minerals and others less when compared to the reference sample. Two samples (Z3U and Z3L) showed

potentially higher levels of gold encapsulated in pyrite while sample Z2L showed higher levels of gold

potentially associated with more reactive minerals such as pyrrhotite. The results were not seen to be

completely consistent with the gravity leach results discussed later.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 112

Low levels of preg-robbing potential were indicated from the gold liberated in the burn off stage. It should

be noted that due to assay detection limits some of the lower deportments may be marginally inaccurate.

Given a detection limit of 0.01 g/t Au, measurements below this level were assigned a nominal assay of

0.005 g/t Au; hence on the lower levels the deportment in these fractions could be slightly overstated.

It was reported in the diagnostic leach tests during the hydrochloric acid digestion that a reasonably

vigorous reaction took place on the majority of the variability samples with the generation of green foam.

This would tend to indicate a high level of carbonate and also acid soluble iron, possibly pyrrhotite.

Figure 13-2 Comparative indicated deportment of gold from diagnostic leach results

13.3.3 Crushability

Two separate tests were undertaken into the material strength and crushability by measuring the UCS and

the CWi test, which indicates a material’s resistance to crushing. In the UCS test, a sample is prepared by

cutting to pre-set dimensions (re-coring) and this is then subject to a compressive load to measure the

strength at which the sample fails. The Bond CWi test, also known as the low impact energy test, involves

two swinging weighted pendulums which are allowed to fall and impact simultaneously on the sample in

order to measure from what height the pendulum needs to fall to crush the sample. Both tests are

undertaken on multiple individual samples; 3 prepared samples in the case of the UCS tests and around 20

sample pieces for the Bond CWi test. The results of the tests are presented in Table 13-6.

Table 13-6 Results of Crushability Tests: UCS and CWi

Density

Depth

UCS Result (Mpa)

CWi (kwh/t)

Depth

t/m3

RL m

Average

Max

Min

Average

Std Dev

m RL

Reference

2.67

910

59.5

73.7

41.8

9.8

1.6

910

Crushability 1

2.93

550

64.7

76.9

54.3

9.7

1.3

550

Crushability 2

2.87

753

53.9

94.4

31.1

11.1

1.2

753

Crushability 3

2.71

720

167.4

244

90.7

11

2.1

720

Crushability 4

2.84

699

82.4

90

68.9

12.3

2.9

699

The UCS test results are seen to be variable, with a relatively large variation between the maximum and

minimum measurements on the different samples which mainly appear to relate to the sample tested NI 43-101 Technical Report (March 2021) Wassa Gold Mine

rather than the depth of the material. Results were generally in the 30 to 95 MPa range, indicating that the

materials tested were medium strong to strong, although one sample (Crushability 3) indicated to consist of

quartzite (massive quartz vein), rather than schist identified for the majority of the other samples tested,

recorded a very strong measurement of around 240 MPa. The other sample of the same type of material

measured 90 MPa, while a third sample shattered during preparation and cutting and failed to produce the

required test sample.

The CWi test results are in the easy to medium classification. Similar to the UCS results, the CWi test results

are also relatively variable with the reference sample (910 mRL) generally indicating results towards the

lower end of those measures; however, no real correlation can be see between the CWi results and relative

level of the sample tested as shown in Figure 13-3.

Figure 13-3 Variation of UCS and CWi results with depth (mRL)

13.3.4 Ball Milling Bond Work Index and Abrasion Index

For the 2003 FS into the treatment of the Wassa material by milling and CIL, test work was undertaken on

representative samples of primary ore, oxides and spent HL material. The BWi for the primary and oxide ores

were reported to be in the region of 14.6 and 8 kWh/t, respectively.

More recent investigations suggest that the BWi is generally noted to be increasing with depth. Based on

samples tested from three different drillholes from the Wassa starter pit area, SE Area and MSN Area, BWi

measurements, though somewhat inconsistent, appeared to indicate that the BWi was increasing with depth.

From 2015, with fresh open pit ore feed, the unit power draw presented for the two ball mills is shown to be

between 14.5 and 16.5 kWh/t treated. This results in a calculated BWi of around 14 – 16 kWh/t, based on

the reported mill feed and product sizes and power draw on the ball mills. An allowance has been included

in the calculations for mechanical and other losses between the drive motor and mill. In recent years with

the blend of underground and open pit the BWi continues to remain within the 14 – 16 kWh/t range.

The findings of the BWi and Ai investigations from the 2015 tests are presented in Table 13-7 and are

shown as a function of the average sample depth Figure 13-4 and Figure 13-5, respectively.

The BWi tests were undertaken at a closing screen size of 106 µm to give a mill product of around 75-80% <

75 µm.

In summary, the findings of the latest test work generally did not support the suspected increasing BWi with

further depth with the reference sample (910 m RL) showing the highest BWi reading.

Table 13-7 Results of 2015 BWi and Ai Tests

Page 113NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 114

Sample Description

BWi

Ai

Avg. Depth

kWh/t

RL m

Reference

15.7

0.394

910

Z1U Zone 1 Upper

15.3

0.33

763

Z1L Zone 1 Lower

14.7

0.276

664

Z2U Zone 2 Upper

14.9

0.228

713

Z2L Zone 2 Lower

14.5

0.175

575

Z3U Zone 3 Upper

14.4

0.229

585

Z3L Zone 3 Lower

13.9

0.152

533

Crushability 1 (347MET)

14

0.182

553

Crushability 2 (MET4)

15

0.205

753

Crushability 3 (MET5)

14.8

0.398

719

Crushability 4 (MET6)

14.8

0.326

700

Figure 13-4 2015 Ball Mill Bond Work Index against sample depth (mRL)

Figure 13-5 2015 Abrasion Index against sample depth (mRL)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 115

The abrasion index is a measure of the anticipated wear on components and consumables in the

comminution circuit and is applicable to wear in both crushers and mills (media and liners). Ai is generally

shown not to be increasing with depth and it appears that Ai is slightly lower on deeper samples. With the

exception of one sample (MET 5) of massive quartz vein, measured Ai is for the reference sample is higher

than all the other variability and crushability samples tested. This lower indicated abrasion index with

depth may result in the reduced consumption of grinding media and mill crusher liners as mining proceeds

deeper into the underground mining areas. All the samples fall into the slightly abrasive classification.

13.3.5 Gravity Gold and Leaching Tests

13.3.5.1 Gravity Tests

Gravity tests were undertaken by grinding a 1 kg sample to approximately 75% passing 75 µm and then

passing the sample through a Falcon centrifugal concentrator. The primary concentrate from the Falcon

was further processed on a Mozley shaking table, with the final concentrate weighed and sent for assay.

Tailings from the centrifugal concentrator and shaking table were subject to cyanide leach tests.

The results of the gravity concentration tests are presented in Table 13-8.

Table 13-8 Gravity Gold Recovery Test Results

Sample

Ref

Gravity Con Mass

Assay

Metal Recovery to

Gravity Con

g

Wt %

Au (g/t)

Ag (g/t)

% Fe

% S

(total)

Au %

Ag %

Ref1

3.3

0.33

84.33

8.0

19.59

15.61

18.19

26.4

Z1U

2.1

0.21

322.6

18.8

37.28

21.86

10.41

9.18

Z1L

4.9

0.49

322.3

19.3

38.24

26.92

19.77

15.01

Z2U

2.5

0.25

324.3

26.3

37.05

31.09

15.87

18.26

Z2L

3.0

0.30

211.6

13.4

35.84

44.15

13.68

19.14

Z3U

2.7

0.27

199.2

14.8

34.31

38.32

13.21

8.88

Z3L

2.4

0.24

282.8

24.1

28.80

29.76

12.90

10.52

Gravity recoveries were lower than previously reported. This is probably a function of the laboratory tests

which, for this stage of the investigation, were not optimized to maximize gravity gold recovery. It can also

be seen that the recovery from the reference sample is generally higher than on the variability samples.

In all gravity tests, concentrates contained a magnetic component that was readily picked up by a strong

rare earth magnet but not an iron magnet. This magnetic component was suspected to be pyrrhotite and

this was reported by SGS to be supported by the sulphur to iron ratios measured in the feed analyses.

13.3.5.2 Whole Ore Leach and CIL Evaluation Test

In order to investigate the effective leach parameters for the comparative leaching tests, a single leach test

was undertaken on the reference sample with and without carbon to confirm whether any preg-robbing

effect was evident. The results are presented in Table 13-9.

Table 13-9 Whole Ore Leach and CIL test results

Solution

(24h/48h)

Solid tails

Gold on Carbon

Overall

Recovery

Back Calc.

Head Grade

Au g/t

Ag g/t

Au g/t

Ag g/t

Au g/t

Ag g/t

Au %

Au %

Au

g/t

Ag g/t

Leach Test

1.13

0.08

0.105

0.05

1.55

0.15

Distribution

93.2%

67.0%

6.8%

33.0%

93.2%

67.0%

CIL Test

0.14

0.01

0.1

0.05

93.4

12.7

1.21

0.19

Distribution

14.3%

6.5%

8.3%

26.4%

77.4%

67.1%

91.7%

73.6%

NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 116

The results generally indicated that no preg-robbing effect was evident with the recoveries without carbon

addition higher than those with carbon added to the leach (CIL test), although the gold reconciliation was

seen to be worse on the CIL test with a back-calculated gold head grade of 1.21 g/t Au compared to the

screened analysis head grade and leach test back-calculated head grade of 1.53 and 1.55 g/t Au

respectively.

13.3.5.3 Gravity Tails Leach Test Results

Leach tests were undertaken on the combined gravity tails from the centrifugal concentrator and

concentrate cleaning table. From the gravity tests and one of the diagnostic tests there was potential that

pyrrhotite could be present so the gravity tails samples were adjusted to pH 10.5 – 11 using lime and

aerated until the pH and dissolved oxygen levels stabilized generally in line with the plant practice of

injecting oxygen into the transfer lime from milling to CIL. Pyrrhotite is highly reactive and can result in

high consumptions of oxygen and cyanide in leach if not preconditioned.

Leach tests were conducted for 48 hours with samples taken at 2, 4, 6, 24 and 48h and analysed for gold

and silver in solution. An initial cyanide level of 1 g/l was used and cyanide levels in solution were

maintained at >0.5 g/l by dosing of additional cyanide as required. The tails solids were analysed for silver

and gold. No lead nitrate was added in the leach tests.

Leach test results of the gravity tails are presented in Table 13-10.

Table 13-10 Leach test results and reagent consumptions

Sample Reference

Gold Recovery %

Assayed Tails

Consumption kg/t

24h

48h

g/t Au

NaCN 24h

NaCN 48h

Lime as CaO

Ref1

77.22

88.69

0.09

0.43

1.31

0.88

Z1U

90.69

87.35

0.44

0.51

1.48

0.89

Z1L

86.72

87.64

0.68

0.40

1.15

0.75

Z2U

92.81

93.80

0.20

0.43

1.05

0.92

Z2L

87.81

88.06

0.42

0.15

0.91

0.88

Z3U

92.95

91.33

0.23

0.63

0.89

1.16

Z3L

94.57

93.25

0.18

0.63

1.01

1.11

Figure 13-6 Leach recovery kinetic curvesNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 117

It can be seen that in some tests, recoveries based on 48h leach solution analyses were lower than for the

those based on the 24h leach solution assays. This could be caused by analytical discrepancies or errors

based on solutions analysed or possibly some adsorption of dissolved gold onto the fine milled solids. As

no appreciable preg-robbing potential or effect was indicated in the diagnostic leach and comparative leach

and CIL tests, this is not considered to be a major concern as any weakly adsorbed gold would be recovered

on the plant due to the presence of activated carbon in the leach circuit.

The leach curves on the gravity tails appear to be relatively consistent with the exception of that for the

reference samples which shows slower kinetic especially at 24h, although results in similar overall

recoveries at 48h, shown in Figure 13-6.

13.3.5.4 Overall Gravity / Leach Recoveries

The overall recoveries from the gravity / leach test work are presented in Table 13-11. These are based on

the maximum leach recovery at either 24 or 48h and on the back-calculated head grade from the recovered

gold and tailings assays.

Table 13-11 Overall gravity leach recoveries

Sample

Reference

Gold Recovery %

Gravity

Leach

Overall

Ref1

26.41

88.69

91.68

Z1U

16.38

90.69

92.22

Z1L

22.69

87.64

90.44

Z2U

20.19

93.80

95.05

Z2L

15.37

88.06

89.90

Z3U

16.91

92.95

94.15

Z3L

20.41

94.57

95.68

In the gravity / leach tests, poor reconciliations were achieved between the back-calculated head grade and

the assay head grades from the screened analyses on the master samples with the back-calculated head

grades consistently being considerable lower than the head assay results by as much as 35% in two tests.

The comparison of the assay head compared to the back-calculated head grade for both the gravity leach

and diagnostic leach results are presented in Table 13-12.

Table 13-12 Reconciliation of assay and back-calculated head grades from test work

Sample

Assay Head Grade

From Diagnostics

From Gravity / Leach

Grade

Grade

g/t Au

g/t Ag

g/t Au

g/t Ag

g/t Au

g/t Ag

Reference

1.53

0.10

1.35

0.22

1.08

0.13

Z1U

6.51

0.43

6.74

0.89

4.18

0.31

Z1L

7.99

0.63

8.71

1.06

7.08

0.46

Z2U

5.11

0.36

5.10

0.62

4.03

0.38

Z2L

4.64

0.21

4.84

0.46

4.14

0.32

Z3U

4.07

0.45

4.12

0.33

3.20

0.30

Z3L

5.26

0.55

4.28

0.27

3.36

0.29

The correlations were better in the diagnostic leach tests compared to the gravity / leach tests with both

positive and negative discrepancies. Differences varied between -10% and +18% resulting in an overall

difference of only -2%.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 118

13.3.6 Settling Tests

Comparative settling tests were undertaken on the reference sample and one selected variability sample

(Z1L). Initial scoping tests were undertaken using five different flocculants with the settling tests

undertaken using Nasaco anion flocculants N2132 and N2326. The results show very similar settling

performance on the reference samples and one variability sample selected.

The settling test results are presented in Table 13-13.

Table 13-13 Comparative settling test results

Sample

Feed

Solids

pH

Flocculant

Flocculant

Dosage

Initial

Settling

Rate

Final

Solids

Content

Thickener

Underflow

Unit Area

%

g/t

m3 /m2 /day

%

m2 /t/d

Reference Test 1

9.43

10.5

N2132

50.04

1335.26

59

0.235

Reference Test 2

10.08

10.5

N2326

46.62

2897.86

61.8

0.261

Z1L Test 1

9.04

10.5

N2132

52.21

2414.88

56.5

0.225

Z1L Test 2

9.13

10.6

N2326

51.69

2637.79

56.9

0.223NI 43-101 Technical Report (March 2021) Wassa Gold Mine

14 MINERAL RESOURCES

14.1 Introduction

The Mineral Resource Statement presented herein represents an estimate for the Wassa Main deposit and

the satellite deposits Chichiwelli, Benso and Hwini Butre. The Mineral Resource Statement is presented in

accordance with the guidelines of NI 43-101.

The GSR exploration team was responsible for preparation of the long-range model (LR model) for the

Wassa Mineral Resource modelling exercise which included all topographic surfaces, weathering surfaces,

structural control lines and resulting Leapfrog Isoshells. SRK (Toronto), utilizing the inputs from the GSR

geologists, estimated gold grades for the LR model, whereas the short-range model (SR model), used within

the active mining area, Figure 14-1, was created by the GSR mine geologists with assistance from SRK

(Moscow). The Father Brown and Adoikrom Mineral Resource Estimates were created in a similar manner

with GSR providing drill hole intervals for HW, HG and FW mineralized zones to Resource Modeling

solutions (RMS) who provided 2D estimates of the grades and thicknesses. The Benso and Chichiwelli

Mineral Resource Estimates are historical models created by GSR geologists and SRK (Cardiff). The Mineral

Resource classification and statement was conducted by GSR under the supervision of S. Mitchel Wasel, a

  1.  

For the SR model, the site’s mine geology group was responsible for the generation of the structural control

lines used to influence the grade interpolation in the model. SRK (Moscow) then performed the domain

generation and grade interpolation steps, as well as the depletion and validation of the block model. SRK

(Moscow) depleted the block model with asbuilt and CMS volumes provided by GSR. The completed block

model was also independently validated by the Wassa mine geology group.

Figure 14-1 Wassa long-range (grey) and short-range (cyan) Mineral Resource estimation model limits

Page 119NI 43-101 Technical Report (March 2021) Wassa Gold Mine

This section describes the Mineral Resource estimation methodology and summarizes the key assumptions

considered for the estimate. The Mineral Resource estimate reported herein is a reasonable

representation of the global gold Mineral Resource found at the Wassa Main and satellite deposits given

the current level of sampling. The Mineral Resources have been estimated in conformity with generally

accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are

reported in accordance with NI 43-101. Mineral Resources are not Mineral Reserves and do not have

demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be

converted into Mineral Reserve.

The databases used to estimate the Mineral Resources were audited internally by GSR. In the opinion of

the GSR QP, S. Mitchel Wasel, the current drilling information is sufficiently reliable to interpret with

confidence the boundaries for gold mineralization and that the assay data are sufficiently reliable to

support Mineral Resource estimation.

14.2 Mineral Resource Estimation Procedures

The Mineral Resource evaluation methodology involved a database compilation and internal validation

exercise by GSR. At Wassa, GSR was responsible for structural control lines, grade wireframes, topographic

and weathering surfaces. GSR provided SRK with borehole databases, structural control lines, grade

wireframes, topographic surfaces and weathering surfaces. At HBB, GSR was responsible for the HW, HG

and LG drillhole intervals, topographic and weathering surfaces and RMS estimated the gold grades and

mineralized zone thickness.

Prior to initiating the modelling and Mineral Resource estimation process, SRK reviewed the databases for

the Wassa project. The Father Brown and Adoikrom data was reviewed by RMS prior to gold grade

estimations.

After evaluating the available database, SRK proceeded with (Wassa), the data conditioning (compositing

and capping) for geostatistical analysis and variography. At Wassa, the grade wireframe modelling was

completed in Leapfrog Geo 4.4 under following the guidelines that GSR and SRK have established together.

The grade interpolation methodology was discussed between GSR and SRK, it was decided to use Ordinary

Kriging (OK) with local varying angles and local variograms for the estimation of gold grades based on the

structural complexity and folded nature of the deposit.

For the SR model, database compilation and internal validation checks were performed by GSR. The

database was then passed to SRK (Moscow) who performed a second data validation prior to commencing

modelling work. GSR was responsible for the generation of the structural control strings, which were used

to influence the domain shell creation and the grade estimation.

SRK (Moscow) then:

  • Created the structural control meshes from the structural control strings;
  • Created the domain shells;
  • Coded the sub-block model with the domain information;
  • Estimated grade using OK with locally variable anisotropy;
  • Depleted the model with development and stope surveys; and
  • Validated the model.

On completion, SRK (Moscow) submitted the Surpac and Leapfrog models to GSR Mine Geology for

independent validation.

The classification of the LR model and preparation of the Mineral Resource Statement utilizing both long

range and short-range estimates were conducted by GSR under the supervision of GSR’s QP, Mr. S.

Mitchel Wasel.

Page 120NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 121

14.3 Mineral Resource Database

14.3.1 Wassa

The Wassa database is made up of five individual drillhole databases, namely:

  • GSR Wassa exploration database, which contains exploration drilling conducted by GSR since 2002;
  • GSR Underground drilling database, which contains all of the diamond drill holes drilled from

underground;

  • the All Wassa (AW) exploration database, which contains historical exploration drill holes from SGL;
  • Satellite Open Pit grade control database, which is dominantly blast holes; and
  • GSR Open Pit grade control database, which is dominantly RC holes.

The Satellite grade control database was not included in the Mineral Resource estimate as the blast holes

samples are considered not to be of a sufficient quality for use in the Mineral Resource estimate.

A completion date cut-off was applied to the GSR exploration and Underground drill hole databases. For

the 2020 year-end LR model estimate the cut off for surface and underground drilling was 31 January 2020

and for the SR model estimate the drilling results were up to 30 November 2020. These are the data sets

utilized for the subsequent Mineral Resources shown in Table 14-1.

Table 14-1 Wassa LR model drill hole database as at February, 2020

Database

Total

Type

Purpose

Holes

Metres

Pre-Existing

Grade Control

24,957

642,470

Exploration

3,422

500,282

UG Exploration

847

93,896

At February 20

Grade Control

411

12,142

Exploration

59

48,036

UG Exploration

371

56,914

Total

30,067

1,353,740

The later 30 November cut-off allowed addition of 273 underground drill holes totaling 34,275 m to be

included in the SR model estimate.

The borehole databases contain: collar details; downhole deviation surveys; gold assays; lithological

descriptions; alteration; structural data; major structures and vein descriptions. GSR and SRK have

performed validation routines to the database. Based on this assessment and checks described in Section

12, it is the opinion of the QP that the database is appropriate to inform the Mineral Resource estimate.

For the SR model, all data was initially stored in the GSR master acQuire database. The relevant Wassa

Mine geology data was then exported from acQuire in .csv format, to a Surpac-linkedMicrosoft Access

database. The database contained all Wassa related surface exploration drilling, all underground Mineral

Resource definition drilling, all underground channel sampling, all underground chip sampling, and all

underground sludge sampling data.

For the purpose of the short-range block modelling, the chip, channel and sludge data was excluded from

the estimation runs, leaving only the surface and underground diamond drill core and surface RC assay

data. GSR made this decision because, after statistical review of the data, SRK (Moscow) concluded that

the risk of biases existing in the chip, channel and sludge data exceeded the benefits from allowing these

additional samples to inform the estimation. Table 14-2 summarizes the number of drill holes contained in

the Surpac Access database, that were subsequently used for the short-range Mineral Resource estimate.

The Surpac Database only utilized surface drill holes that are in the immediate vicinity of underground

mine, whereas the LR model has a much larger extent and used all of the validated drill holes available. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 122

Table 14-2 Wassa Underground short-range drill hole database as of December 1, 2020

Location

Type

No. Holes

Drill Metres

Wassa UG

DD

1,491

185,086

Wassa Surface

DD

841

302,253

Wassa Surface

RC

543

56,894

Total Drilling

DD + RC

2,875

544,233

14.3.2 Hwini Butre

The Father Brown/Adoikrom database is made up of Exploration DD and RC holes as well as RC grade

control drilling data.

The 2020 year-end Mineral Resource estimate utilized all of the drilling data that was available at the end

of 2019 which essentially remained unchanged as at the end of 2020, as summarized in Table 14-3.

Table 14-3 Father Brown/Adoikrom drill hole database as of December 2020

Location

Type

No. Holes

Drill Metres

Father Brown/Adoikrom

DD Exploration

435

66,229

RC Exploration

214

16,323

RC Grade Control

3,087

72,037

The borehole databases contain information including collar information, downhole deviation surveys, gold

assays, lithological descriptions, alteration, structural data, major structures and vein descriptions.

GSR has performed validation routines to the Mineral Resource database. Based on this assessment, and

the checks described in Section 12, it is the opinion of the QPs that the borehole database is appropriate to

form the basis of the Mineral Resource estimate.

14.3.3 Benso

SRK was provided with a Gemcom project directory containing the drilling data (Table 14-4) as audited by

GSR along with the geological wireframes, oxidation and topographic surfaces and block model parameters.

Additional information was provided as Excel spreadsheets documenting QA/QC data and results of density

determinations.

Table 14-4 Benso drill hole database as of December 2012

Location

Type

No. Holes

Drill Metres

Benso

RC

465

33,276

DD

321

37,623

Geotech

14

1,637

GC (RC)

2,362

57,970

14.3.4 Chichiwelli

SRK was provided with a Gemcom project directory containing the drilling data (Table 14-5) as audited by

GSR and the geological models subsequently produced by GSR including geological wireframes, oxidation

and topographic surfaces and block model parameters. Additional information was provided as Excel

spreadsheets documenting QA/QC data and results of density determinations.

Table 14-5 Chichiwelli drill hole database as of 2012

Location

Type

No. Holes

Drill Metres

Chichiwelli

RC

483

29,802

DD

23

3,692

Geotech

GC (RC)

NI 43-101 Technical Report (March 2021) Wassa Gold Mine

As no mining has taken place at Chichiwelli, the topographic survey used for the 2010 Mineral Resource

statement remains current.

The “HBB other” tonnes and grade in the Mineral Resource statements in sub-section 14.9 also includes

three small deposits located in the Manso and Hwini Butre Prospecting and Mining licence areas. These

deposits are Abada, Adoikrom South and C3PR. The techniques used to estimate these deposits are

consistent with those reported for Chichiwelli.

14.4 Grade Shell Modelling

14.4.1 Wassa Mineralization Wireframes

The LR model wireframe modelling was carried out by GSR geologists using Leapfrog Geo 6.0 software.

Mineralized wireframes at Wassa are modelled using an indicator approach which uses a 0.4 g/t cut-off for

the low grade (LG) envelopes and a 1.5 g/t cut off for high grade (HG). Visual inspection of assay data

suggests that these respective lower cut-off levels are reasonable to separate barren from auriferous

sections intersected by each borehole. Mineralized shells are created using this indicator approach

combined with structural trend surfaces created by the site geologists and reviewed by SRK.

For the SR model, the cut-offs used to define LG or “halo” domain and HG or “mineralized” domain were

the same as those used for the LR model but the methodology used in by SRK using Leapfrog Geo 6.0

software was different in that grade thresholds were used instead of indicator. As per the LR model,

structural trend surfaces were used to influence the shape of the domain shells.

14.4.2 Wassa Indicator Interpolants – Background

An indicator interpolant works in a similar way to a grade shell, but rather than interpolating the raw grade,

all data above the given indicator grade value is assigned a value of 1 and all data below the indicator grade

value are assigned a value of 0. A shell is then generated at a defined iso-value, between 0 and 1. This

helps to remove the impact of very high grades which can result in “blow-outs” or unrealistic volumes that

can result from standard grade shell modelling of highly skewed data populations.

The indicator interpolant is influenced by an anisotropic structural trend, which is based on form surfaces.

The form surfaces represent vectors of grade continuity, where grade continuity is high along the modelled

form, and low across it. Due to the significantly deformed nature of the gold mineralization, this type of 3-

dimensional structural trend is vital to produce a geologically realistic shape of the indicator interpolants.

The SR model did not use the indicator interpolant method employed in the LR model. Rather, the domain

shells for the SR model were generated by directly interpolating the Au grade values above a nominated

threshold. The reason for the difference between the two modelling methodologies comes down to the

difference in drill spacing between the two models – wide spacing in the LR model and tighter drill spacing

in the SR model. To avoid “blow-outs” related to high grade values in widely spaced drill data, the LR

model seeks to limit the high grade values by restricting the volume of the domain shell generated around

that high grade assay. However, for the SR model, the drill spacing is much tighter, which reduces the

impact of any isolated high grade values. GSR has periodically reviewed the decision to use two different

modelling methodologies. At this time, GSR believes that this approach still provides the best estimate of

Au grades in each model.

14.4.3 Wassa Structural Trend

The structural HG mineralization trends at Wassa (Figure 14-2) has been created utilizing underground

mapping, open pit grade control data and available downhole diamond core structural data. A structural

consultant was engaged to assist with the creation of these trends in the southern portion of the Wassa

deposit, where there are currently Inferred Mineral Resources.

The structural trend lines were created on sections and then used to create a series of form surfaces, which

in turn were used to guide the interpolation of the grade isoshells and populate the local block angles for

search ellipse orientation and grade estimation. These form surfaces represent the broad F4 folding event,

a plunging synclinal feature which affects grade distribution at the mine scale, with some subtly different

Page 123NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 124

internal orientations attributed to the largest features associated with an earlier high strain folding event

(F3). In areas where tight underground drilling and mapping are available it is possible to create structural

controls surfaces that reflect the local mineralization geometry, often associated with smaller parasitic F4

and F3 folds.

Figure 14-2 Wassa LR model structural ‘Form’ surfaces (oblique view looking N up plunge), surfaces show deposit

scale F4 fold as well as rolling over of mineralization at depth

A total of 51 structural ‘form’ surfaces have been used for the creation of the LR model isoshells and local

varying block angles. Table 14-6 summarizes the parameters used to define the Structural Trend for each

model.

Table 14-6 Leapfrog trend inputs for creation of 1.5 g/t and 0.4 g/t LR model grade Isoshells

Trend Type

Compatibility

Trend Inputs

Strength

Global Mean Trend

Strongest Along Inputs

Version 2

All 51 modelled structural

‘form’ surfaces

7.0 to 10.0

N/A

An example of the resulting Structural Trend is presented in Figure 14-3.

W

E

400 mNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-3 North-facing cross sections showing structural form (18950 mN and 19170 mN)

For the SR model, in-mine and near mine structural control surfaces were created using oriented core

structural measurements, combined with underground structural mapping. This structural information was

used to create structural trend surfaces (Figure 14-4 and Figure 14-5) which represented the structural

geometry of the Au mineralization in the Wassa Mine area. A total of 68 surfaces were used in the

Short-Range model and represented the same fold geometries as seen in the LR model, but with greater

local definition.

Figure 14-4 Structural form surfaces used in the SR model

Table 14-7 summarizes the parameters used to define the Structural Trend for each model.

Page 125NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 126

Table 14-7 Leapfrog trend inputs for creation of 1.5 g/t and 0.4 g/t SR model grade Isoshells

Trend Type

Compatibility

Trend Inputs

Range

Strength

Global Mean

Trend Direction

Global Mean Trend

Ellipsoid Ratios

Strongest

Along Inputs

Version 2

68 modelled

structural ‘form’

surfaces

15

15

50 dip, 270 azi,

20 pitch

Maximum = 3

Intermediate = 2

Minimum = 1

Figure 14-5 Images showing the structural control surfaces on sections 19,750 mN and 19,635 mN. The images

show the longer, LR model defined control surfaces and the shorter, mine geology defined control surfaces

14.4.4 Wassa Indicator Interpolants – Process

Prior to generating the indicator interpolant shells, the raw assay file was composited to 3m, with a

minimum end composite length of 1.5m. Any composites less than the end composite length of 1.5 m were

not utilized in the interpolation. Indicator interpolants were defined at 0.4 g/t Au and 1.5 g/t Au threshold.

The indicator interpolants were restricted to be within a bounding box defined by the coordinates provided

in Table 14-8.

Table 14-8 LR modelling extents

Axis

Minimum extent

Maximum extent

X

39 050 E

40 850 E

Y

18 200 N

20 800 N

Z

-775 Z

1 100 Z

Table 14-9 summarizes the parameters that were applied to both the 1.5 g/t Au and 0.4 g/t Au models.

Table 14-9 LR Isoshell modelling parameters

Interpolant

Type

Range

Nugget

Iso-Value

Resolution

Volumes

Excluded

Spheroidal

100

0.5

0.35

2.5m

<5000m³NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 127

In order to better reflect the geometry of the Au mineralization at a local scale, and also to improve

continuity in areas of wider spaced drilling, GSR edited the indicator interpolant shells using indicator

polylines. Indicator polylines are digitized and editable strings that carry an associated numeric value which

is added to the assay data points on which the interpolant is based. In this instance, indicator polylines

with values of 1 (inside), 0 (outside) and indicator iso-value were added to the interpolant. The “iso-value”

indicator polylines allow the specific position of the outer limit of the shell to be locally edited. This helps

to influence continuity orientations at a smaller scale, ensuring F3 continuity and geometry could be

reflected in the resultant domain wireframes in well drilled areas, and assisted in improving the continuity

of the model in some of the more sparely drilled areas.

For the SR model, the raw assay intervals were composited down hole to a fixed 2m length. Any residual

lengths less than 1m were discarded. A composite cap of 30 g/t Au was applied to the data prior to grade

shell contouring.

Grade thresholds for the “mineralized” and the “halo” domains were defined at 1.5 g/t Au and 0.4 g/t Au

thresholds. The 1.5 g/t Au cut-off threshold was selected on the basis of a statistical and visual evaluation

of the grade distribution. This threshold has been periodically reviewed by GSR and is considered

appropriate. The low grade 0.4 g/t threshold has been in previous models Wassa and is considered

appropriate to define the low grade material that surrounds the higher grade core at Wassa.

The raw data interpolants were restricted within a bounding box defined by the coordinates provided in

Table 14-10.

Table 14-10 SR block model extents

Axis

Minimum extent

Maximum extent

X

39 580 E

40 300 E

Y

19 330 N

20 520 N

Z

300 Z

1 070 Z

The Leapfrog numeric model used the interpolant parameters shown in Figure 14-6.

Figure 14-6 Short-range isoshell modelling parameters (SRK, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 128

14.4.5 Wassa Long-Range Model

The final model, displayed in Figure 14-7, constitutes the following:

  • >0.4 g/t Au – the iso-surfaced indicator interpolant;
  • >1.5 g/t Au – the iso-surfaced indicator interpolant.

Figure 14-7 SE Isometric view of final LR model Leapfrog Isoshells (blue = >0.4 g/t, red = >1.5 g/t)

The two Mineral Resource Isoshells (wireframes) were constructed by GSR geologists with inputs from

structural consultants and SRK. These comprise a LG shell and HG shell, corresponding to a 0.4 g/t gold and

a 1.5 g/t gold threshold, respectively.

Figure 14-8 shows the two domain shells generated for the SR model. 0.4 g/t Au was used for the “halo”

domain threshold, and 1.5 g/t Au was used for the “mineralized” domain.

N

S

400 mNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-8 Long section looking East showing the mineralized and halo domain shells on 39,940E (top image).

Section on 39,940E (lower image) displaying the same data, cut by that section line, and the assay data used to

create the domain shells. RED = mineralized domain; BLUE = halo domain

14.4.6 Hwini Butre

The 2020 Mineral Resource estimates for Father Brown (FBZ) and Adoikrom (ADK) were a combined effort

by GSR and Resource Modelling Solutions (RMS). A different approach was taken compared to previous

and both of these deposits were modelled using a “vein modelling” technique, estimating both vein

thickness and grade.

GSR provided RMS with drill hole intercepts indicating hanging wall (HW) main mineralized zone or vein

(ADK or FBZ) (HG annotation) or footwall (FW) from and to intervals.

Each vein unit is modelled by estimating the position of the vein and each one of the thicknesses, HW, HG

and FW. The position of the vein is defined by the intercept with the top of HW unit, the first thickness is

the difference between the intercept of the contact between HW and HG with the top of HW, the second

thickness is defined by the difference between the contact HW and HG and the contact between HG and

FW and the third thickness is defined by the base of the FW contact.

Intercepts within a horizontal distance tolerance of 2.0m are used to calculate position and thicknesses in

order to check any possible relationship between these variables and determine whether or not

independent modelling is adequate for the modelling of each vein unit. The scatterplots between each

variable showed no significant correlation between the variables, therefore, the independent modelling of

each one of these variables in a stepwise manner is deemed appropriate.

Page 129NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The final vein model is defined by stacking the modelled thicknesses below the vein position model. A

cross section at U = -28.0m in transformed space is shown in Figure 14-9. Drill hole FBRGC0980075 in FBZ

in Figure 14-9 show discrepancies with surrounding data and are challenging to match, however, this

modelling workflow works very well on average. Note that these sections are shown in transformed

coordinates, after gold estimationsmodels were rotated back to the original Easting-Northing-Elevation

coordinates.

Figure 14-9 Model section at U=-28.0 in transformed space generated with 2.0 tolerance in V direction

14.4.7 Benso

Geology and mineralization domaining was undertaken by GSR. Mineralized wireframes were constructed

on 25 meter sections with the 2D polylines being snapped to drill hole grade intercepts using a nominal

grade cut-off of 0.5 g/t Au. The 2D polylines were then tied together to create a 3D mesh that was

subsequently used for volume and grade estimates. An oxidation surface was created in a similar manner

with the depth of weathering being delineated by a polyline on 25 m spaced drill sections and then used to

create a mesh surface. This oxidation surface was then used to code the subsequent block models,

distinguishing weathered from fresh rock.

The mineralization zones of Benso are structurally controlled with gold emplacement related to the density

of quartz veining and sulphide content.

Four estimation domains subdivided by oxidation state have been modelled for Benso, as follows:

  • Subriso East (SE);
  • Subriso West (SW);
  • G-Zone; and
  • I Zone.

The SE domain is physically separated from the others and strikes to the north with a dip to the west of

between 55-60°. The SW, G Zone and I Zone domains occur in sub-parallel structures and strike to the

north-west (320°) with a steep dip of 75-80° to the south-west. Because of this, it was decided to treat the

SE deposit as separate for the purposes of grade interpolation.

Only DD and RC drilling has been used for the subsequent grade estimation. The Mineral Resource

wireframes and drillholes are shown in Figure 14-10.

Page 130NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-10 Mineral Resource wireframes and drill hole locations for the Benso deposits (GSR, 2010)

14.4.8 Chichiwelli

Geology and mineralization domaining was undertaken by GSR and the mineralized zone modelling was

conducted in a method similar to the Benso deposits.

The mineralization zones of Chichiwelli are structurally controlled with gold emplacement related to the

density of quartz veining and sulphide content. The mineralization hosting structures generally trend

north-south and dip moderate-steeply to the east at 60°.

Two estimation domains have been modelled for Chichiwelli as follows:

  • East Domain; and
  • West Domain.

The East and West domains comprise some 10 individually separated wireframe solids.

Wireframes are based on a roughly 0.5 g/t Au grade value. In places composite grades fall below this

threshold value but have been included for the sake of maintaining continuity of the wireframe. The style

of mineralization seen at Chichiwelli is analogous to deposits observed elsewhere in the Wassa region and,

typically for shear zone hosted gold deposits, the mineralization grades tend to pinch and swell within the

defined mineralized bearing structures. The Mineral Resource wireframes and drillholes are shown in

Figure 14-11.

Page 131NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 132

Figure 14-11 Mineral Resource wireframes and drillhole locations for Chichiwelli (GSR, 2008)

14.5 Statistical Analysis and Variography

As with the previous LR model Mineral Resource estimates for Wassa, GSR contracted SRK (Toronto) to

conduct all of the Statistical Analysis and Variography. GSR provided SRK with all of the relevant DD assay

data, structural control lines and high and low grade mineralized wire frames (Leapfrog Isoshells).

Table 14-11 summarizes the gold statistics of the assays tagged by mineralized domains provided by GSR.

In May 2017, SRK evaluated four drill hole databases for the Wassa Gold Mine, and after discussions with

GSR, agreed to combine these databases as conditioning data to be used in grade estimation. This decision

has not since been revisited, and all four databases were combined once again.

For consistency with previous models, SRK chose to composite at 3.0-m lengths within the solid

wireframes. Unlike previous Mineral Resource models where all composites with length greater than 0.3 m

were kept in the estimation database, SRK chose to remove all composites smaller than 1.5 m (or 50% of

the composite length). Summary statistics for these composites are also provided in Table 14-11. There is

a slight change in the mean grade between assays and composites; however, assay statistics are length

weighted, while composite statistics are unweighted since length weights will not be used during grade

estimation.

Table 14-11 Summary Gold Statistics of Assays and Composites

Zone

Assays

Composites**

Count

Mean

Std

Dev*

Min*

Max*

CoV*

Count

Mean

Std

Dev*

Min*

Max*

CoV*

HG + LG

264,166

1.69

5.84

0.001

1547.97

3.45

93,387

1.71

3.84

0.001

185.07

2.24

HG

59,860

4.27

11.15

0.001

1547.97

2.61

20,094

4.32

6.95

0.001

185.07

1.61

LG

204,306

0.99

2.71

0.001

442.20

2.73

73,293

1.00

1.78

0.001

152.75

1.78

* StdDev = Standard Deviation; Min = Minimum; Max = Maximum; CoV = Coefficient of Variation

** Less 1.5 m residual composites, composite statistics are not length-weightedNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 133

In collaboration with GSR, SRK selected the capping value by comparing probability plots of gold

composites on a by-domain basis and plotting the mean grade and the number of affected data by the

chosen cap value shown in Figure 14-12. In recognition of the differences in drill density north and south of

19400N, and the potential impact of this spacing on high grade smearing, SRK separated the database into

a northern and southern dataset at 19,400 mN.

Figure 14-12 Probability Plot for LG (left) and HG (right) Domains North of 19400N (top row) and South of 19400N

(bottom row) (SRK, 2020)

In the northern area, SRK chose to cap HG composites at 50 g/t gold and LG composites at 22 g/t gold.

These capping thresholds are slightly higher than those chosen in the January 2019 Mineral Resource

model; however, given the data density, SRK does not foresee any overestimation issues. In the south, SRK

capped the HG composites at 20 g/t gold and LG composites at 15 g/t gold. Table 14-12 compares the

statistics for uncapped and capped composite gold grades.

Table 14-12 Comparison of Uncapped and Capped Gold Composite Grades – LR model

Zone

Composites

Capped Composites

Count

Mean

StdDev*

Max*

CoV*

Mean

StdDev*

Max*

CoV*

HG + LG

93,387

1.71

3.84

0.001

185.06

1.68

3.20

50

1.90

HG

20,094

4.32

6.95

0.001

185.06

4.21

5.67

50

1.35

LG

73,293

1.00

1.78

0.001

152.75

0.98

1.42

22

1.45

* StdDev = Standard Deviation; Min = Minimum; Max = Maximum; CoV = Coefficient of Variation

As with the previous short-range Mineral Resource estimates for Wassa, GSR contracted SRK (Moscow) to

conduct all of the mineralized wireframe modelling, Statistical Analysis and Variography. GSR provided SRK

with all of the relevant DD assay data and structural control lines .NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 134

The composite assay statistics for the SR model have been provided in Table 14-13. The target composite

length was 2.0m, but with small length adjustments made to avoid creating shorter composites at the end

of intersections. In the few cases where composites with a length less than 1m were generated, these

were discarded.

Table 14-13 Comparison of uncapped and capped gold composite grades – SR model

Zone

Composites

Capped Composites

Count

Mean

StdDev*

Max*

CoV*

Mean

StdDev*

Max*

CoV*

HG

24,023

4.92

8.16

217.64

1.66

4.34

4.44

20

1.02

LG

39,005

0.68

0.69

90.26

1.02

0.67

0.56

20

0.85

* StdDev = Standard Deviation; Min = Minimum; Max = Maximum; CoV = Coefficient of Variation

During the kriging estimate, the 2m Au composites were capped at 20g/t Au. This capping value has been

reviewed by GSR at various times throughout the Wassa Underground mine’s history. Mine reconciliation

data has shown that the 20g/t Au cap value has reconciled an acceptable level, with the capping considered

to have a conservative to neutral effect on the grade estimation, depending on which part of the Wassa

Underground deposit is being estimated. As such, the capping value remained unchanged during the latest

SR model creation. Histograms in Figure 14-13 and Figure 14-14 have been provided, showing the

uncapped 2m composite grade distribution for the two domains.

Figure 14-13 Histogram showing the uncapped 2m Au composite grade distribution for the mineralized domainNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-14 Histogram showing the uncapped 2m composite grade distribution for the halo domain

14.5.1 Wassa Local Angle Models (LR Model)

SRK generated local angles derived from triangulated facets of the structural trend surfaces provided by

GSR. This was achieved using Datamine Studio RM, and an initial angle data set for both dip and dip

directions. As before, the structural trend surfaces were generated using Leapfrog, and the mesh

resolution provided a smooth variation of the dip and dip direction angles.

The angles data set was then used to interpolate a block model of dip and dip directions, which was later

called upon for local estimation. The estimation of angles used inverse distance estimation with a power of

three, using an isotropic range of 500 m with up to six conditioning angle data. This is consistent with the

Mineral Resource models built since 2017.

14.5.2 Local Variogram Models

The local estimation approach chosen for the Wassa Gold Mine required the specification of local

variogram models. SRK assessed and modelled local variograms for the HG and LG domains, centred about

each anchor point. Anchor point locations were reviewed by GSR prior to finalization of their locations.

Table 14-14 summarizes the anchor point locations and their local orientations for variogram calculation

and modelling. The modelled local variograms for these anchor points are tabulated in Table 14-15. For

the LG domain, SRK relied on variograms based on the combined LG and HG capped composites due to the

challenges of inferring reliable variograms based solely on LG composites. One reason for the inference

challenge may be related to the spatial voids in the database where the HG domain resides. For anchor

points 6, 8 and 13, SRK used the HG domain variograms for the LG domain and adjusted the ranges

wherever possible to reflect the combined domain variograms.

For each domain (LG and HG), the local variogram parameters (Table 14-15) were then estimated to the

block model grid to be read into the grade estimation. In general, the local variograms should be smoothly

transitioning within the series. Abrupt changes in grade continuity, within a zone and between anchor

point locations, were not expected. Highly localized changes were addressed by the selection of anchor

point locations. To ensure smoothness of the local variograms parameters and consistency with the 2015

model, SRK used global kriging with a continuous spherical variogram with ranges of 1,000 by 750 by 500

metres.

Page 135NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 136

An example of the variograms for the HG and LG zones at two anchor points, 1 and 14 are shown in Figure

14-15 and in Figure 14-16.

Table 14-14 Local variogram orientations and anchor point locations

Anchor

Point

GSLib

Gems

Coordinates

ANG1

ANG2

ANG3

Azm

Dip

Azm

X

Y

Z

1

75

-88

0

75

-88

-15

40263

18575

136.5

2

79

-75

0

79

-75

-11

40164

18923

-322

3

270

-69

0

270

-69

180

40135

19155

438.5

4

285

-74

0

285

-74

195

40245

19575

1005.5

5

259

-77

0

259

-77

169

40005

19555

603.5

6

272

-61

0

272

-61

182

40015

19705

873.5

7

270

-75

0

270

-75

180

39975

19925

945.5

8

273

-85

0

273

-85

183

40245

19925

876.5

9

255

-77

0

255

-77

165

39945

19925

624.5

10

257

-37

0

257

-37

167

39975

20165

780.5

11

271

-75

0

271

-75

181

40255

20155

951.5

12

249

-65

0

249

-65

159

40045

20425

975.5

13

154

-41

0

154

-41

64

39835

20425

966.5

14

141

-46

0

141

-46

51

39555

20125

906.5

Table 14-15 Local variogram models by domain

Domai

n

AP

Nugget

Structure 1 (Exp)

Structure 2 (Sph)

Effect

CC

Ahmax

Ahmin

Ahvert

CC

Ahmax

Ahmin

Ahvert

LG

1

0.25

0.58

10

10

8

0.17

40

40

25

2

0.25

0.58

11

11

8.5

0.17

45

45

25

3

0.2

0.55

24

10

4

0.25

24

14

6

4

0.2

0.35

10

20

5

0.45

160

250

21

5

0.2

0.64

6

17

8

0.16

45

90

22

6

0.2

0.35

8

8

3

0.45

35

50

13

7

0.2

0.55

14

8

10

0.25

60

50

20

8

0.2

0.45

12

20

15

0.35

175

175

55

9

0.2

0.6

7

10

6.5

0.2

50

90

22

10

0.3

0.52

9.5

11

6

0.18

28

60

25

11

0.2

0.58

25

25

8

0.22

185

185

55

12

0.25

0.65

15

15

12.5

0.1

90

90

12.5

13

0.2

0.68

8

12

8

0.12

20

50

10

14

0.2

0.68

8

8

6

0.12

40

40

20

HG

1

0.25

0.58

10

10

6.5

0.17

35

35

25

2

0.25

0.68

11

11

8.5

0.07

25

25

15

3

0.3

0.25

24

24

5

0.45

32

32

14

4

0.2

0.35

10

20

5

0.45

160

250

21

5

0.2

0.67

8

18

8

0.13

55

100

22

6

0.2

0.45

10

10

3

0.35

30

22

13

7

0.2

0.5

25

8

8

0.3

60

55

12

8

0.2

0.35

35

35

5

0.45

175

175

55

9

0.2

0.65

6.5

11

6

0.15

30

100

35

10

0.2

0.62

6.5

4.5

7

0.18

25

55

40

11

0.2

0.53

31

31

12

0.27

185

185

55

12

0.25

0.38

15

15

6.5

0.37

110

25

7

13

0.3

0.68

10

10

8

0.02

75

75

30

14

0.3

0.68

10

10

8

0.02

75

75

30NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-15 HG Variogram from anchor point 1 (SRK, 2020)

Figure 14-16 LG Variogram from anchor point 14 (SRK, 2020)

Page 137NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 138

Local variogram models were not used in the SR model. The SR model used a different locally-variable

anisotropy (LVA) technique. Each location in the block model was assigned azimuth, dip and plunge

information based on the structural control surfaces and the overall variogram model. This orientation

information was then called upon during the estimation process to set the orientation of the variogram

model and search neighbourhood each block grade estimate.

The variogram parameters for the HG & LG mineralized domains were set as shown in Figure 14-17.

Figure 14-17 Variogram for the short-range HG & LG mineralized domains (SRK, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 139

14.5.3 Hwini Butre Father Brown – Adoikrom

The statistics were preformed on each of the domains for each individual zone, FBZ (HW, HG and FW) and

ADK (HW, HG and FW)

The descriptive statistics for the individual modelled domains are summarized in Table 14-16.

Table 14-16 Descriptive statistics for Hwini Butre modelled domains (uncapped & capped)

Zone

Domain

Capping

Count

Minimum Maximum

Mean

stdev

COV

Adoikrom

HW

Uncapped

807

0.00

13.42

1.31

1.265

0.965

Capped

807

0.00

5.00

1.00

0.793

0.791

HG

Uncapped

946

0.09

136.38

7.58

10.300

1.359

Capped

946

0.00

23.00

5.90

5.088

0.863

FW

Uncapped

855

0.00

12.01

1.19

1.058

0.893

Capped

855

0.00

5.00

0.95

0.802

0.843

Father

Brown

Zone

HW

Uncapped

1,130

0.01

37.62

0.81

1.796

2.214

Capped

1,130

0.01

5.00

0.60

0.741

1.231

HG

Uncapped

1,207

0.01

253.00

11.41

17.272

1.513

Capped

1,207

0.01

46.00

9.28

10.827

1.167

FW

Uncapped

1,120

0.00

40.10

1.02

2.458

2.402

Capped

1,120

0.00

5.00

0.74

0.789

1.068

Probability plotsfor eachvein unitfor eachdomain are generated andshown in Figure 14-18. The capping

values selected from the probability plots are summarized in Table 14-17.

Figure 14-18 Gold grade probability plot with outliers and far out thresholds highlighted (RMS, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 140

Table 14-17 Capping values selected from analysis of the probability plot

Deposit

Vein unit

Capped Values used

FBZ

FW

5

FBZ

HG

46

FBZ

HW

5

ADK

FW

5

ADK

HG

23

ADK

HW

5

The variography was performed for each deposit and for each vein unit (FBZ & ADK) using capped

composites. Experimental variograms are calculated for full range of possible azimuths with steps of 15

degrees totaling 24 directions. The direction with most continuous experimental points from visual

inspection of the 24 directions were utilized for nugget inference. These directions may not coincide with

the final major continuity direction when considering all experimental points for final model fit. The nugget

is inferred by fitting a single structure spherical variogram to the first few (up to three) experimental

variogram points.

The variogram nugget inference for all vein units in FBZ are shown in Figure 14-19. The directions utilized

for nugget inference are detailed in each plot in Figure 14-19.

Figure 14-19 Inferred nugget effect for gold grade in each vein unit for FBZ deposit (RMS, 2020)

The experimental variogram and fitted model for FW unit in FBZ is shown in Figure 14-20. The parameters

of the fitted model are summarized in Table 14-18. The experimental variogram and fitted model for HG

unit in FBZ is shown in Figure 14-21. The parameters of the fitted model are summarized in Table 14-19.

The experimental variogram and fitted model for HW unit in FBZ is shown in Figure 14-22. The parameters

of the fitted model are summarized in Table 14-20.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 141

Figure 14-20 Fitted experimental variogram points for gold grade in FW for FBZ deposit (RMS, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-21 Fitted experimental variogram points for gold grade in HG for FBZ deposit (RMS, 2020)

Page 142NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-22 Fitted experimental variogram points for gold grade in HW for FBZ deposit (RMS, 2020)

Page 143NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 144

Table 14-18 Fitted variogram parameters for gold grade in FW for FBZ deposit

Nugget

Structure 1

Structure 2

Contribution

0.000

0.851

0.149

Model Shape

exponential

exponential

Angle 1

43.3

43.3

Angle 2

0.0

0.0

Angle 3

0.0

0.0

Range 1

10.0

155.9

Range 2

16.3

10.0

Range 3

1.0

1.0

Table 14-19 Fitted variogram parameters for gold grade in HG for FBZ deposit

Nugget

Structure 1

Structure 2

Contribution

0.250

0.416

0.334

Model Shape

exponential

exponential

Angle 1

29.1

29.1

Angle 2

0.0

0.0

Angle 3

0.0

0.0

Range 1

10.0

77.3

Range 2

10.0

50.0

Range 3

1.0

1.0

Table 14-20 Fitted variogram parameters for gold grade in HW for FBZ deposit

Nugget

Structure 1

Contribution

0.283

0.717

Model Shape

exponential

Angle 1

72.6

Angle 2

0.0

Angle 3

0.0

Range 1

10.0

Range 2

10.0

Range 3

1.0

The variogram nugget inference for all vein units in ADK is shown in Figure 14-23. The directions utilized for

nugget inference are detailed in each plot in Figure 14-23 and the experimental variogram and fitted model

for FW unit in ADK is in Figure 14-24. The parameters of the fitted model are summarized in Table 14-21.

The experimental variogram and fitted model for HG unit in ADK is shown in Figure 14-25 and the

parameters of the fitted model in Table 14-22. The experimental variogram and fitted model for HW unit in

ADK is shown in Figure 14-26. The parameters of the fitted model are summarized in Table 14-23.

Figure 14-23 Inferred nugget effect for gold grade in each vein unit for ADK deposit (RMS, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-24 Fitted experimental variogram points for gold grade in FW for ADK deposit (RMS, 2020)

Page 145NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-25 Fitted experimental variogram points for gold grade in HG for ADK deposit (RMS, 2020)

Page 146NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-26 Fitted experimental variogram points for gold grade in HW for ADK deposit (RMS, 2020)

Page 147NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 148

Table 14-21 Fitted variogram parameters for gold grade in FW for ADK deposit

Nugget

Structure 1

Structure 2

Contribution

0.000

0.062

0.938

Model Shape

exponential

exponential

Angle 1

77.8

77.8

Angle 2

0.0

0.0

Angle 3

0.0

0.0

Range 1

15.0

15.0

Range 2

929.5

15.0

Range 3

1.0

1.0

Table 14-22 Fitted variogram parameters for gold grade in HG for ADK deposit

Nugget

Structure 1

Structure 2

Contribution

0.097

0.460

0.443

Model Shape

exponential

exponential

Angle 1

13.1

13.1

Angle 2

0.0

0.0

Angle 3

0.0

0.0

Range 1

32.8

21.9

Range 2

38.9

10.0

Range 3

1.0

1.0

Table 14-23 Fitted variogram parameters for gold grade in HW for ADK deposit

Nugget

Structure 1

Structure 2

Contribution

0.000

0.650

0.350

Model Shape

exponential

exponential

Angle 1

73.1

73.1

Angle 2

0.0

0.0

Angle 3

0.0

0.0

Range 1

15.0

58.4

Range 2

15.0

99.9

Range 3

1.0

1.0

The major direction of continuity for each variogram model for each deposit is inferred from the weighted

ranges of each variogram structure utilizing their contribution as weights. The major direction is rotated

back to original space and the results are summarized in Table 14-24.

Table 14-24 Fitted major variogram directions in original space

Deposit

Domain

Azimuth

Dip

Weighted

Anisotropy

FBZ

FW

118.9

26.5

2.1

FBZ

HG

131.6

18.5

1.4

FBZ

HW

86.9

38.5

1.0

ADK

FW

172.9

10.9

4.8

ADK

HG

4.1

11.7

1.1

ADK

HW

170.7

15.1

1.5NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 149

14.5.4 Benso

The statistics are based on composited assay values within the wireframes modelled by GSR; the data was

composited to 2 m lengths within the mineralized zones, and composites of less than 1.50 m were

removed.

The descriptive statistics for the individual modelled domains, split by oxidation state, are summarized

below in Table 14-25. The transition zone is relatively thin, and so has not been analysed separately. For

all datasets, zero values were checked in the database, and were set to 0.001 g/t.

Table 14-25 Descriptive statistics for Benso modelled domains (capped)

Domain

Oxidation

Count

Minimum

Maximum

Mean

Variance

COV

Subriso East

Oxide

266

0.001

30.81

2.11

15.18

1.85

Fresh

649

0.001

51.58

2.54

25.49

1.99

Total

915

0.001

51.58

2.42

22.51

1.96

Subriso West

Oxide

36

0.41

15.86

3.14

14.11

1.20

Fresh

571

0.001

223.83

3.88

147.39

3.13

Total

607

0.001

223.83

3.83

139.48

3.08

G Zone

Oxide

44

0.001

21.15

2.76

18.69

1.57

Fresh

570

0.001

52.33

2.04

11.1

1.63

Total

614

0.001

52.33

2.09

11.64

1.63

I Zone

Oxide

11

0.21

1.51

0.97

0.23

0.49

Fresh

86

0.11

18.18

2.72

10.96

1.22

Total

97

0.11

18.18

2.52

10.04

1.26

The four areas were combined into two areas for estimation purposes; namely Subriso East, and Subriso

West, G Zone and I Zone combined. The Subriso East domain is separated from the Subriso West, G Zone

and I Zone areas, and strikes roughly north-south, with a dip to the west of between 55 and 60°. The

Subriso West, G Zone and I Zone areas lie in sub-parallel structures, striking roughly to the north-west

(320°), with a steep dip of 75 to 80° towards the south-west. The descriptive statistics for the two separate

estimation domains are shown below in Table 14-26.

Table 14-26 Descriptive statistics for simplified Benso modelled domains (capped)

Domain

Count

Minimum

Maximum

Mean

Variance

COV

Subriso East

915

0.001

51.58

2.42

22.51

1.96

Subriso West, G Zone and I Zone

1318

0.001

223.83

2.93

71.05

2.88

Statistical distributions for the two domains are similar, with the histograms indicating that the distribution

is not normal, being highly negatively skewed. The log transformed gold grade data demonstrates there

may be several populations within the distribution and that the distribution approached log-normality.

HG caps were applied to the composite data as follows:

  • Subriso East: 40 g/t cap; and
  • Subriso West, G Zone, I Zone: 60g/t cap.

The estimation data sets noted above were used to derive variograms for estimation. In all cases, the grade

block model for each individual modelled solid was estimated using only the composites inside that solid.

Variography was undertaken on the log transformed data, with a short lag, omnidirectional, downhole

variogram used to derive the nugget effect. Directional variograms were then calculated within a rotated

plane aligned with the strike and dip of the modelled solids. The variogram parameters derived from the

modelled variograms are shown in Table 14-27. Variograms were back transformed before use in OK.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 150

Table 14-27 Variogram parameters for the Benso zones

Parameter

Subriso East

Subriso West, G Zone and I Zone

Co

0.25

0.19

C1

0.41

0.54

C2

0.34

0.27

a1 (strike)

20

20

a1 (dip)

15

8

a2 (strike)

50

50

a2 (dip)

40

30

14.5.5 Chichiwelli

The statistics are based on composited assay values domained within the mineralization wireframes

described previously, with sample data composited to 2 m lengths within the mineralized zones.

The statistics presented here are based on all drilling data that intersect the wireframes. The composites

inside the modelled bodies were also split into oxidation states, but as there was little information for the

transition zone, SRK combined the three oxidation states and used the combined oxidations datasets

throughout the statistical and geostatistical studies, and the subsequent grade estimation.

The descriptive statistics for the two separate estimation domains are shown below in Table 14-28.

Table 14-28 Descriptive statistics for Chichiwelli modelled domains (capped)

Domain

Count

Minimum Maximum

Mean

Variance

COV

East

418

0.001

41.1

1.75

17.64

2.41

West

559

0.001

46.3

1.69

10.14

1.89

HG capping was applied to both the East and West domains. The HG caps were determined on the basis of

the shape of the tail of the log histogram and the log probability plots. Capping reduces the extreme values

to a nominated capped value, which affects the mean grades of the 2.0 m composites, as indicated by Table

14-29.

Table 14-29 Chichiwelli high grade capping

Domain

Cap

Applied

Mean Grade

before Cap

Mean Grade

after Cap

Percentage

difference

(g/t)

(g/t)

(g/t)

(%)

East

25

1.75

1.65

-6.06

West

15

1.69

1.59

-6.29

The estimation data sets noted above were used to derive variograms for estimation. In all cases, the grade

block model for each individual modelled solid was estimated using only the composites inside that solid.

Variograms were modelled for the East and West domains separately. Variography was attempted for the

individual solids, but the resultant variograms were unable to be modelled. Raw variography resulted in

difficult to model variograms, and so a Gaussian transformation was applied to the data. The first stage

was to define the nugget effect from a short-lag omnidirectional variogram, which is calculated along the

drillhole, and then to model the variogram ranges from directional variograms from along strike, down-dip

and across dip directions. The directional variograms are then back transformed into “raw” space and used

for subsequent estimation. The back transformed variograms and resultant variogram parameters are

included in Table 14-30.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 151

Table 14-30 Variogram parameters for Chichiwelli zones

Parameter

East

West

Co

7.94

3.06

C1

3.60

1.59

Nugget Effect (%)

68.8

65.81

Range (m)

a1 (strike)

25

40

a1 (dip)

25

35

a1 (normal to strike)

8

4.7

14.6 Block Model and Grade Estimation

14.6.1 Wassa Long-Range Block Model

A 3D block model including rock type, gold, percent mineralization, density and class was constructed for

each of the modelling areas, Wassa short-range and long-range. The selection of the block size was driven

by the borehole spacing and mainly by the geometry of the auriferous zones, but also based on mining

parameters and in accordance with the previous Mineral Resource estimate. The LR models block size was

set at 10 x 10 x 5 m in the northing, easting and elevation directions, respectively along the mine grid. The

block model origins can be seen in Table 14-31.

Table 14-31 Wassa LR model definitions, upper left hand corner coordinates

Block Size

Origin*

Block Count

(m)

(m)

X

10

39,050

180

Y

10

18,200

260

Z

5

1,100

375

* Coordinates relative to mine grid.

A percent block model was used to evaluate tonnages. Tonnage for each respective block was obtained by

weighting volumes corresponding to the interpreted auriferous zones and the respective mean SG defined

by weathering profile.

The block model bulk density data was coded based on weathering surface which was built to define oxide

material from fresh material. The weathering surface defined the ‘top of fresh’ material; all blocks above

the ‘top of fresh’ surface were designated as oxide and material below the surface as ‘fresh’. The bulk

density values assigned to the block model were based on series of measurements made over the various

exploration phases going back to the initial GSR exploration program in 2002. The density values used for

the tonnage estimate were provided by GSR and are detailed below in Table 14-32.

Table 14-32 Average Bulk Density used for LR model

Weathering Type

Avg Bulk Density t/m3

Oxide

1.8

Fresh

2.8

For the SR model, the Surpac 3D block model contained the 20 g/t Au capped composite grade estimate,

the bulk density coding, the domain coding, the depletion coding, and the Mineral Resource classification

coding. The block size for estimation is effectively 5m cubes, with sub-blocking to 2.5 mN, 1.0 mE and 2.5

mRL. The block size was based on the Measured Mineral Resource drill spacing at Wassa. The Surpac block

model is structured with a 2.5 mN, 1.0 mE, and 2.5 mRL block size, and no sub-blocking, in order to

facilitate transfer of the block model between different software. The Surpac block model contained a total

of 9,041,540 blocks, with the origins outlined in Table 14-33. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 152

Table 14-33 Wassa SR model definitions

Coordinate

Origin

Block Size (m)

No. of Blocks

X

39,600

1

272

Y

19,350

2.5

460

Z

320

2.5

292

As the Wassa Underground mine exists well below the bottom of the partial oxidation layer, the bulk

density in the model has been set to 2.8 (fresh rock). The 2.8 value comes from test work performed by

both GSR and Intertek during 2017 and 2018.

14.6.2 Wassa Mineral Resource Estimation Methodology

For the LR model, SRK implemented the same methodology since 2018 to construct the Mineral Resource

model, using ordinary kriging with local varying angles and local variograms for the estimation of gold

grades. The general steps required to implement the approach are:

  • Construct locally varying angles models for dip and dip direction;
  • Calculate and model local variograms for each series and interpolate these local variograms to

construct a model of local variogram model parameters;

  • Estimate gold grades using ordinary kriging, calling upon the local models of dip, dip direction, and

variogram models; and

  • Check estimated model using qualitative and quantitative methods.

Table 14-31 summarizes the block model definition used for the model area using the mine grid. No

rotation was applied. GSR opted to change the vertical size of a block from 3 m to 5 m to improve

alignment of the model to mine elevations. The vertical extent of the model has increased to encompass

the mineralization delineated by the deeper southern exploration boreholes.

The following sections summarize the method(s) used, assumptions made, and results obtained for each of

the four modelling steps.

For the SR model, the Mineral Resource estimation methodology involved:

  • The construction of structural control surfaces that represented the orientation of the mineralized

structures in the local area;

  • The generation of domains shells from the composited assay data, influenced by the structural

control surfaces;

  • Coding of the block model framework with the domain shell information;
  • Estimation of the Au grade into the block model, using the azimuth and dip information collected

from the structural control surfaces;

  • The structural information was used to rotate the variogram model into the local mineralized trend

orientation. Estimation was performed using ordinary kriging;

  • Coding of the model using solids created by the Wassa Mine Geology group to define Measured

and Indicated Mineral Resources. The classification was based on the drill density observed on a

section by section basis; and

  • Depletions and validation of the model.

14.6.3 Wassa Grade Estimation

Using the models of local angles and local variograms, SRK performed the grade estimation using ordinary

kriging methodology. The LG and HG estimation used the parameters in Table 14-34. The parameters

differ from previous models and are based on an estimation sensitivity analysis conducted in January 2020.

The selection of an appropriate set of estimation parameters was based on ensuring a good quantile

quantile comparison of the resultant estimated grades distribution to change of support corrected

distributions for each of the LG and HG domains. This should ensure an appropriate level of smoothness.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 153

Table 14-34 LR model Estimation Parameters

Pass

Composites

Maximum

Composites per

Borehole

Search Ellipse

GSLIB

Min.

Max

Svx

Svy

Svz

A1

A2

A3

(m)

(m)

(m)

1

3

8

2

50

50

50

270

-50

0

2

2

12

4

90

90

50

270

-50

0

3

1

15

200

200

200

270

-50

0

The first estimation run required at least two holes with the aim to localize grade estimates. The second

pass was slightly more relaxed, requiring fewer samples found within a larger search radius. The third

estimation pass considered search ellipses sized at least twice the variogram ranges, with the aim of

estimating most of the blocks unvisited by the first two passes. As the estimation considered a stationary

search ellipsoid, these ranges were selected to ensure that local estimation yielded estimates that

conformed to the local anisotropy and local variograms.

After estimation of each domain, the LG and HG domain grades were then combined into a single block

grade based on a percentage weighted average of the estimated grade based on fill volume of the

respective Mineral Resource wireframes. These single block grades were used to generate the swath plots.

For the SR model, SRK (Moscow) performed the grade estimate using same estimation methodology

employed at the underground mine since the start of production. Hard boundaries were used to prevent

mineralized domain and halo domain information from mixing. Composites from inside the halo domain

were only allowed to influence the grade estimation inside the halo wireframe, whilst composites from

inside the mineralized domain were only allowed to influence the grade estimation inside the mineralized

wireframe. Grade estimation was performed using Ordinary Kriging. The parameters for the estimation

have been provided in Table 14-35.

Table 14-35 SR model estimation parameters

Pass

Composites

Maximum composites

per Borehole

Search Ellipse

Min

Max

Long

mX

Intermediate

mY

Short

mZ

1

6

18

5

60

30

15

2

4

24

No Limit

120

60

30

3

1

24

5

200

200

100

The variogram model was oriented along 270° azimuth, 50° dip, 20° plunge to the south.

14.6.4 Hwini Butre Father Brown – Adoikrom

The estimation is performed using ordinary kriging with uncapped and capped gold grades. The number of

composites and maximum search radius utilized for each vein unit in each deposit are shown in Table

14-36. The influence of outliers is visually evident in the HG unit.

Table 14-36 Kriging search parameters for each vein unit in each deposit

Deposit

Vein Unit

Maximum Search (m)

Maximum Composites

FBZ

HW

250

8

FBZ

HG

500

4

FBZ

FW

500

4

ADK

HW

250

4

ADK

HG

1000

24

ADK

FW

1000

2NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 154

Two block models were produced one for FBZ the other for ADK. No rotation was applied to the models.

Block sizes were chosen to reflect the geometry of the deposits. Grade data for each of the modelled units

was interpolated into the individual structures only. Block model parameters for FBZ and ADK are

summarized in Table 14-37 and Table 14-38.

Table 14-37 Father Brown block model parameters

Coordinate

Origin

Boundary size

Block Size (m)

X

175681.47

1443

1

Y

32345.73

683

2

Z

1176.72

482

2

Table 14-38 Adoikrom Zone block model parameters

Coordinate

Origin

Boundary size

Block Size (m)

X

175731.38

718

1

Y

32394.43

804

2

Z

1271.61

721

2

The density values used for the tonnage estimate were provided by GSR, and are detailed in Table 14-39.

Table 14-39 Hwini Butre rock density

Oxidation State

Value (t/m3 )

Fresh

2.7

14.6.5 Benso

A block model was produced for the whole Benso area. No rotation was applied to the model. Block sizes

were chosen to reflect the average spacing of drill lines along the strike. Grade data for each of the

modelled units was interpolated into the individual structures only, with soft boundaries between oxidation

states, and subsequently reported as oxide or fresh. Block model parameters for Benso are summarized in

Table 14-40.

Table 14-40 Benso block model parameters

Coordinate

Origin

Block Size (m)

No. of Blocks

X

173750

12.5

300

Y

56000

25

160

Z

1205

10

60

Block grades for each of the mineralized zones were estimated using OK. OK was carried out in four passes

for each mineralized zone, and the search parameters for the individual domains are shown in Table 14-41.

The discretization grid was set at 5 x 2 x 1 (xyz) in all cases. The search ellipsoids are relatively large

compared to the variogram ranges, but as there is quite a high data density the blocks were usually

estimated with data significantly closer than the edges of the ellipsoid. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 155

Table 14-41 Benso ellipsoid search neighbourhood parameters

Domain

Search 1

Search 2

Subriso East

X

100

200

Y

80

160

Z

20

40

Min. Samples

4

4

Max. Samples

36

36

Subriso West,

G Zone and I

Zone

X

100

200

Y

80

160

Z

20

40

Min. Samples

4

4

Max. Samples

36

36

GSR modelled the oxidation surface to determine the boundary between oxide and fresh material. No

transition zone was modelled. The density values used for the tonnage estimate were provided by GSR and

are detailed in Table 14-42.

Table 14-42 Benso rock density

Oxidation State

Value (t/m3 )

Oxide

1.8

Fresh

2.7

14.6.6 Chichiwelli

A block model was produced for the whole Chichiwelli area. No rotation was applied to the model. Block

sizes were chosen to reflect the average spacing of drill lines along the strike. Grade data for each of the

modelled units was interpolated into the individual structures only, with soft boundaries between oxidation

states, and subsequently reported as oxide or fresh. Block model parameters for Chichiwelli are

summarized in Table 14-43.

Table 14-43 Chichiwelli block model parameters

Coordinate

Origin

Block Size (m)

No. of Blocks

X

631,093.64

12.5

100

Y

580,787.20

25

60

Z

1216 (max)

8

65

Block grades for each of the mineralized zones were estimated using OK. OK was carried out in four passes

for each mineralized zone, and the search parameters for the individual domains shown below in Table

14-44. The discretization grid was set at 5x2x1 (xyz) in all cases. The search ellipsoids are relatively large

compared to the variogram ranges, but as there is quite a high data density, the blocks were usually

estimated with data significantly closer than the edges of the ellipsoid. Octants were used on the 1st and

2 nd pass searches with three consecutive empty sectors, however they were not applied on the 3rd search

pass, hence the same number of minimum and maximum samples for the 2nd and 3rd searches.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 156

Table 14-44 Chichiwelli ellipsoid search neighbourhood parameters

Domain

Search 1

Search 2

Search 3

Rotation

Parameters

East

X

60

120

120

Azimuth: 20

Y

60

120

120

Dip: 60

Z

20

40

40

Min. Samples

3

3

3

Max. Samples

80

80

80

West

X

80

160

160

Azimuth: 20

Y

80

160

160

Dip: 60

Z

10

20

20

Min. Samples

3

3

3

Max. Samples

80

80

80

GSR modelled the oxidation surface to determine the boundary between oxide and fresh material. No

transition zone was modelled. The density values used for the tonnage estimate were provided by GSR and

are detailed in Table 14-45.

Table 14-45 Chichiwelli rock density

Oxidation State

Value (t/m3 )

Oxide

1.8

Fresh

2.68

14.7 Model Validation and Sensitivity

14.7.1 Wassa

SRK checked the resultant LR block model by considering: (1) visual comparisons of block grades and nearby

composites via a sectional approach; (2) swath plots for the combined LG and HG domains along northing,

easting and a vertical swath; and (3) change of support checks. Sectional checks showed good consistency

between the informing data and local estimated blocks, and also good conformity of grade trends to the

local folds in the mineralization. In general, the swath plots showed that in areas of abundant data, the

model matches well with the composite grades in that moving average window. Mismatches in the

informing composites and the average block grades are attributed to those regions of the model that are

sparsely sampled, specifically in the southern extent of the mineralized zone as shown in Figure 14-27.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-27 South-North Swath Plot Comparing Estimated Grades and Informing Capped Composites (SRK, 2020)

Histogram bars correspond to block tonnages in the February 2020 long-range Mineral Resource model

South of 19,400 North, the estimated grades and the composite grade profiles are more erratically

behaved. This is attributed to the presence of fewer composites with some very high-grade intersections,

and the continuity of the grade shells in the southern area. Mineral Resources in the southern portion of

the estimate have all been classified as Inferred Mineral Resources to reflect the lower confidence.

SRK anticipates that additional drilling in this area may impact the continuity of the grade domains and

dampen the influence of these higher-grade intervals. SRK understand that GSR have conducted

subsequent studies comparing 2018 to 2020 long- and short-range models; these comparisons

demonstrate that year on year, the impact of additional drilling has historically increased the Inferred and

Indicated Mineral Resources.

SRK also compared the ordinary kriging block model distribution with the declustered, change-of-support

corrected distribution of the informing composites for the LG and HG domains (Figure 14-28). Declustering

mitigates the influence of preferential sampling of borehole data; this often results in a distribution of

composites whose mean statistic is often comparable to that of the estimated model. Further, a change-of

support correction is applied to account for the volume difference between the composite scale and the

final block volume scale. Figure 14-28 shows the quantile-quantile comparison of the gold distribution

from the block model and the expected grade distribution following declustering and change-of support

corrections for the LG and HG domains. Overall, the mean grades from the block model are reasonably

close to those predicted from declustering. The quantile-quantile plot shows that the block model is

comparable to that predicted by the change-of-support for the HG domain, and slightly smoother than

predicted for the LG domain.

The preliminary block model was delivered on February 28, 2020 for further review by GSR. The sub

blocked Surpac model was delivered on March 3, 2020.

Page 157NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-28 Quantile-Quantile Comparison of Block Model Grades to Declustered Change-of-Support Corrected

Gold Distributions for LG (left) and HG (right) domains (SRK, 2020)

For the SR model, validation included the following processes:

  • Sectional visual check to ensure that the mineralized domain was completely enclosed by the halo

domain;

  • Sectional visual check to ensure that the mineralized domain enclosed continuous high grade assay

values and that the halo domain enclosed the lower grade isolated assay values;

  • Sectional visual check to ensure that the domain shells were influenced by the structural control

surfaces;

  • Sectional visual check to ensure that composite assay values and block model grades were

consistent with each other;

  • Volume check, to ensure coded block model volumes are close to original wireframe volumes;
  • Check that capping of the 2m composite assay values was performed correctly;
  • Check between the block model and the 2m capped composite values statistics for similar values;
  • Swath plots of the block grades versus the capped 2m composite values in the Easting, Northing

and Elevation directions to ensure that the block grade estimate was valid; and

  • Comparison between the latest short-range block model tonnes and grade and the previous short

range block model tonnes and grade. Any difference in tonnes and grade was attributed to the

addition of new drilling.

Swath plots reporting the comparison between the block model estimated grade and the capped 2m

composite grade has been provided in Figure 14-29, Figure 14-30 and Figure 14-31.

Page 158NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 14-29 SWATH plot in the E-W direction X dimension. Blue line represents Block model Estimated grades and

Red is 2m drill hole composites grades (SRK, 2020)

Figure 14-30 SWATH plot in the N-S direction Y dimension. Blue line represents Block model Estimated grades and

Red is 2m drill hole composites grades (SRK, 2020)

Page 159NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 160

Figure 14-31 SWATH plot in the elevation direction Z dimension. Blue line represents Block model Estimated grades

and Red is 2m drill hole composites grades (SRK, 2020)

The data, as presented in the swath plots, showed that the block estimation respected the underlying drill

hole composite dataset and that the block model estimate was valid.

14.7.2 Hwni-Butre

14.7.2.1 Thickness models

In order to validate the thickness estimates a nearest neighbor model is generated for the thickness of each

vein unit of for each deposit. Swath plots comparing the data distribution, nearest neighbor estimates and

kriging estimates are generated. Table 14-46 shows a summary comparing the global mean of each model

for FBZ. The difference ranges from -6.34% to 7.67%.

Table 14-46 Global mean comparison between nearest neighbor and kriged thickness models for FBZ.

FBZ Variable

NN Mean

(m)

Kriging Mean

(m)

% Difference

HW Thickness

1.54

1.45

-6.34

HG Thickness

1.28

1.39

7.67

FW Thickness

1.23

1.25

1.89

Table 14-47 shows a summary comparing the global mean of each model for ADK. The difference ranges

from 0.93% to 12.41%.

Table 14-47 Global mean comparison between nearest neighbor and kriged thickness models for ADK. Variable

ADK Variable

NN Mean (m)

Kriging Mean (m)

% Difference

HW Thickness

1.92

2.08

7.63

HG Thickness

1.93

1.95

0.93

FW Thickness

1.15

1.31

12.41NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 161

14.7.2.2 Gold models

The gold grade data reproduction is also checked. The scatterplot of measured and estimated gold grades

at data locations for FBZ and ADK are shown in Figure 14-32. The least reliable estimates for FBZ are listed

in Table 14-48. The least reliable estimates for ADK are listed in Table 14-49. The scatter plots for both FBZ

and ADK indicate good data reproduction, Figure 14-32. Although the estimates, when compared to the

raw (uncapped) drill hole assay data are less accurate than the drill assay, all but one is under stating the

grade. This means the estimate is conservative in these areas.

Figure 14-32 Measured and estimated gold grades at data locations (RMS, 2020)

Table 14-48 List of least reliable estimates FBZ

Hole id

Min Zones

AUModified

Estimate

Error

A FBRGC0950072

HG

166.72

88.26

-78.46

B FBRGC0980109

HG

192.00

122.63

-69.37

C FBZDD059

HG

253.00

196.52

-56.48

D FBRGC0950039

HG

140.60

92.76

-47.84

E FBRGC0980164

HG

91.92

51.63

-40.29

Table 14-49 List of least reliable estimates ADK

Hole id

Min Zones

AUModified

Estimate

Error

A ADKGC164

HG

8.71

57.97

49.26

B ADKGC042

HG

106.71

59.87

-46.84

C ADK-62

HG

136.38

101.67

-34.71

D ADKGC0960037

HG

104.92

73.22

-31.70

E ADK-71

HG

8.17

33.48

25.30

In addition to the validation above a nearest neighbor model was generated for each vein unit for each

deposit for uncapped and capped gold grades. Swath plots comparing the data distribution, nearest

neighbor estimates and kriging estimates were generated. The swath plots for HG units in the FBZ zone are

shown in Figure 14-33. Table 14-50 shows a summary comparing the global mean of each model for FBZ.

The difference ranges from -3.8% to 8.3%.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 162

Figure 14-33 Swath plot comparison of composites, nearest neighbor estimates and kriging estimates for uncapped

and capped grades in HG for FBZ deposit (RMS, 2020)

Table 14-50 Global mean comparison between nearest neighbor and kriged Gold models for FBZ

Variable

Vein Unit NN

Mean

Kriging Mean

% Difference

AUModified

FW

0.33

0.36

8.28

AUModified3

FW

0.30

0.30

1.72

AUModified5

FW

0.31

0.32

3.38

AUModified

HG

4.20

4.51

6.92

AUModified30

HG

3.71

4.00

7.39

AUModified46

HG

3.83

4.14

7.41

AUModified

HW

0.33

0.32

-3.17

AUModified3

HW

0.33

0.31

-3.79

AUModified5

HW

0.33

0.32

-3.48

A nearest neighbor model was generated for the ADK estimate for each deposit for uncapped and capped

gold grades. Swath plots comparing the data distribution, nearest neighbor estimates and kriging estimates

were generated and plots for HG units are shown in Figure 14-34. Table 14-51 shows a summary

comparing the global mean of each model for ADK. The difference ranges from -043% to 3.09%.

Figure 14-34 Swath plot comparison of composites, nearest neighbor estimates and kriging estimates for uncapped

and capped grades in HG for ADK deposit (RMS, 2020)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 163

Table 14-51 Global mean comparison between nearest neighbor and kriged Gold models for ADK

Variable

Vein Unit NN

Mean

Kriging Mean

% Difference

AUModified

FW

0.58

0.58

1.14

AUModified3

FW

0.57

0.58

1.28

AUModified5

FW

0.58

0.58

1.13

AUModified

HG

5.03

5.19

3.09

AUModified16

HG

4.77

4.75

-0.43

AUModified23

HG

4.87

4.93

1.26

AUModified

HW

0.91

0.92

0.85

AUModified4

HW

0.9

0.91

0.93

AUModified5

HW

0.9

0.91

0.91

Swath plots comparing the nearest neighbor estimates and kriging estimates for the densely sampled area

for FW, HG and HW units in FBZ deposit were created. The swath plot restricted to the densely sampled

areas does not show bias when compared to the nearest neighbor estimates for any of the vein units in the

FBZ deposit. Table 14-52 shows a summary comparing the global mean of each model for FBZ. The

difference ranges from -0.9% to 2.2%.

Table 14-52 Global mean comparison between nearest neighbor and kriged Gold models for FBZ within the densely

sampled area

Variable

Vein Unit

NN Mean

Kriging Mean

% Difference

AUModified

FW

0.77

0.78

1.23

AUModified3

FW

0.71

0.72

1.29

AUModified5

FW

0.73

0.74

1.4

AUModified

HG

10.39

10.29

-0.92

AUModified30

HG

8.58

8.58

0.04

AUModified46

HG

9.41

9.38

-0.29

AUModified

HW

0.62

0.64

2.24

AUModified3

HW

0.57

0.58

0.57

AUModified5

HW

0.59

0.59

0.89

Swath plots comparing the nearest neighbor estimates and kriging estimates for the densely sampled area

for FW, HG and HW units in ADK deposit were also constructed. The swath plot restricted to the densely

sampled areas does not show bias when compared to the nearest neighbor estimates for any of the vein

units in the ADK deposit. Table 14-53 shows a summary comparing the global mean of each model for ADK.

The difference ranges from -1.9% to 0.5%.

Table 14-53 Global mean comparison between nearest neighbor and kriged Gold models for ADK within the densely

sampled area

Variable

Vein Unit NN

Mean

Kriging Mean

% Difference

AUModified

FW

0.99

0.99

0.51

AUModified3

FW

0.96

0.96

0.11

AUModified5

FW

0.97

0.97

0.33

AUModified

HG

6.39

6.38

-0.13

AUModified16

HG

5.52

5.53

0.08

AUModified23

HG

5.84

5.84

0.04

AUModified

HW

1.11

1.09

-1.89

AUModified4

HW

1.06

1.05

-0.86

AUModified5

HW

1.07

1.06

-0.99NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 164

In order to determine how the estimate performed in areas of sparse drill hole data Swath plots comparing

the nearest neighbor estimates and kriging estimates for FW, HG and HW units in FBZ were created. The

swath plot restricted to the sparsely sampled areas is consistently lower for nearest neighbor estimates for

the FBZ deposit except for the HG unit at high U coordinate. High U coordinate correspond to extrapolation

at deeper area of the deposit. Table 14-54 shows a summary comparing the global mean of each model for

FBZ. The difference ranges from -4.8% to 9.6%.

Table 14-54 Global mean comparison between nearest neighbor and kriged Gold models for FBZ within the sparsely

sampled area

Variable

Vein Unit NN

Mean

Kriging Mean

% Difference

AUModified

FW

0.29

0.32

9.57

AUModified3

FW

0.27

0.27

1.80

AUModified5

FW

0.27

0.28

3.77

AUModified

HG

3.73

4.07

8.43

AUModified30

HG

3.34

3.65

8.71

AUModified46

HG

3.41

3.74

8.88

AUModified

HW

0.31

0.30

-4.46

AUModified3

HW

0.31

0.29

-4.79

AUModified5

HW

0.31

0.30

-4.50

Swath plots comparing the nearest neighbor estimates and kriging estimates for the sparsely sampled area

for FW, HG and HW units in ADK deposit were also created. The swath plot restricted to the sparsely

sampled area shows consistently lower nearest neighbor estimates for the HW unit for the ADK deposit.

The nearest neighbor estimate is mostly higher for the FW unit. The HG unit for ADK show reasonable

match with exception of high U coordinates. The high U coordinates correspond to the deeper zones of the

deposit. Table 14-55 shows a summary comparing the global mean of each model for ADK. The difference

ranges from -0.5% to 1.4%.

Table 14-55 Global mean comparison between nearest neighbor and kriged Gold models for ADK within the

sparsely sampled area

Variable

Vein Unit NN

Mean

Kriging Mean

% Difference

AUModified

FW

0.55

0.56

1.20

AUModified3

FW

0.55

0.55

1.39

AUModified5

FW

0.55

0.56

1.21

AUModified

HG

4.95

5.12

3.31

AUModified16

HG

4.73

4.71

-0.46

AUModified23

HG

4.82

4.88

1.34

AUModified

HW

0.90

0.91

1.04

AUModified4

HW

0.90

0.91

1.04

AUModified5

HW

0.90

0.91

1.04

It is the opinion of the QP that the validation exercises of the block model above show that the estimate is

robust and accurate with errors within acceptable ranges.

14.7.3 Benso

The block models were validated by comparing the block model mean grades with the declustered

composite mean grades and through validation slices through the block models.

The mean grades for each of the estimated block models were compared to the declustered mean grade

for the composite input data. Each of the modelled zones was compared separately. The differences

between the declustered mean composite grades and the block grades are relatively small, indicating that

the model is similar to the input data on a global scale.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The block model was also compared to the composite grades within defined sectional criteria in a series of

validation slices, the results of which are displayed on graphs to check for visual discrepancies between

grades along the defined coordinate line. The expected outcome of the estimation process is to observe a

relative smoothing of block model grades around the composite values.

Overall, the estimation of the Benso domains is robust and the results have been verified to a reasonable

degree of confidence. Globally, the block model average grade is relatively similar to that of the

declustered input data, indicating that no biases have been introduced.

The sectional validation slices show a reasonable correlation between the composite grades and the block

model grades and it appears that a reasonable degree of smoothing has taken place for the majority of the

domains.

14.7.4 Chichiwelli

The block models were validated by comparing the block model mean grades with the declustered

composite mean grades and through validation slices through the block models.

The mean grades for each of the estimated block models were compared to the declustered mean grade

for the composite input data. Each of the modelled zones was compared separately. The differences

between the declustered mean composite grades and the block grades are relatively small with the largest

differences up to 10% for a few of the less well sampled domains, indicating that the model is similar to the

input data on a global scale.

The block model was also compared to the composite grades within defined sectional criteria in a series of

validation slices, the results of which are displayed on graphs to check for visual discrepancies between

grades along the defined coordinate line. The expected outcome of the estimation process is to observe a

relative smoothing of block model grades around the composite values.

Overall, the estimation of the Chichiwell domains is robust and the results have been verified to a

reasonable degree of confidence. Globally, the block model average grade is relatively similar to that of the

de-clustered input data, indicating that no biases have been introduced.

The sectional validation slices show a reasonable correlation between the composite grades and the block

model grades and it appears that a reasonable degree of smoothing has taken place for the majority of the

domains.

14.8 Mineral Resource Classification

Block model quantities and grade estimates for the Wassa HBB Project were classified according to the CIM

Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014).

Mineral Resource classification is typically a subjective concept. Mineral Resource classification should

consider the confidence in the geological continuity of the mineralized structures, the quality and quantity

of exploration data supporting the estimates and the geostatistical confidence in the tonnage and grade

estimates. Appropriate classification criteria should aim at integrating all concepts to delineate regular

areas at similar Mineral Resource classification.

The geological modelling honors the current geological information and knowledge. The location of the

samples and the assay data are sufficiently reliable to support Mineral Resource evaluation.

The sampling information was acquired primarily by diamond core and RC drilling on sections spaced at

variable distances between the different deposit areas.

In situ dry bulk density has been estimated to a sufficient level to inform tonnages.

Using the above criteria a 3D surface and solid were created to separated areas of higher confidence

(Indicated Mineral Resources) from those of less confidence (Inferred Mineral Resources).

Page 165NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 166

14.8.1 Wassa

GSR classified the long-range Mineral Resource model and SRK used these to code an interim model

constructed in January 2020, Figure 14-35. The GSR classification surfaces and solids did not change from

the January 2020 Interim model and were also used to classify the final model created in February 2020.

All blocks above the Indicated Mineral Resource surface and within the solid mesh were classified as

Indicated Mineral Resources. No Mineral Resources were classified as Measured in the long-range

Resource model.

Indicated Mineral Resources were classified where drilling was up to 50 m spacing, with Inferred Mineral

Resources being classified where drill spacing was greater than 50 m.

SRK noted that blocks classified as Indicated blocks are informed by composites within an average distance

less than 22 m from the estimated block, with more than 4 holes on average (Figure 14-36). Inferred

Mineral Resources were supported by informing composites within an average distance of 56 m of the

estimated block from an average of 2 holes.

Figure 14-35 Wassa LR model Indicated Mineral Resource classification surface and solids. All blocks above surface

and within solid mesh were classified as Indicated Mineral Resources (GSR, 2021)

To provide quantitative support analyses for the classification scheme adopted by GSR, SRK extracted some

statistics pertaining to the classified blocks based on an optimized pit generated by GSR. For this analysis,

SRK used a cut-off grade of 0.4 g/t gold and 2.1 g/t gold for open pit and underground Mineral Resources,

respectively.

Table 14-56 shows the breakdown of the Open Pit blocks above 0.4 g/t gold cut-off grade, based on Mineral

Resource category, domains and also distance metrics to the nearest 3 holes. The Indicated blocks account

for 99% of the contained metal within the pit, of which 38% comes from the HG and 61% comes from the

LG domain. Overall, the open pit blocks are based on an average of 15 m distance to the closest 3 holes (or

equivalently 25 metre drillhole spacing) and are mostly estimated in the first estimation pass.

Table 14-57 shows a similar breakdown for underground blocks above 2.1 g/t cut-off, based on Mineral

Resource category, domains and also distance metrics to the nearest 3 holes. Unlike the open pit blocks,

only 22% of underground blocks are classified as Indicated with the remaining 78% Inferred. Indicated

blocks are largely supported by data from 4 or more holes estimated in the first pass, found within 21 m of

the block and corresponding to drillhole spacing that is 25 m or less. Inferred blocks comprise 78% of metal

content from underground blocks, of which 71% is from the HG domain and 7% from LG. Statistical analysis

showed that approximately 60% of the metal within Inferred blocks are in areas of less than 100 m drillhole

spacing, 30% in areas of 100-150 m spacing, 5% from 150- 170 m and 5% from greater than 170 m spacing.

N

S

400 mNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 167

Figure 14-36 Estimation metrics associated to Indicated (top) and Inferred (bottom) classified Resources (SRK, 2020)

Table 14-56 Composition of Classified Blocks for Open Pit Extraction Above a Cut-Off Grade of 0.4 g/t Gold

Category

3 Holes

within

(m)

Avg.

Pass

Avg. No.

Holes

Avg.

Data

Dist for

Estimate

(m)

Avg.

Dist to 3

holes

(m)

Max.

Dist to 3

holes

(m)

Tonnage

Contained

Metal

(oz)

% Metal

Indicated

1.0

4.6

20.3

15.3

113.6

27,629,017

1,303,918

99%

HG

1.0

4.6

20.7

13.4

41.3

3,760,615

504,887

38%

unlimited

1.0

4.5

27.4

0.0

0.0

1,801

217

0%

25

1.0

4.9

15.1

8.3

16.8

1,814,004

226,671

17%

50

1.0

4.4

26.4

18.5

32.6

1,815,578

258,562

20%

140

1.1

3.4

31.6

26.5

41.3

129,231

19,437

1%

LG

1.0

4.7

20.2

15.6

113.6

23,868,402

799,031

61%

unlimited

1.3

4.3

26.1

28.4

113.6

223

12

0%

25

1.0

4.8

14.1

9.6

17.0

10,825,800

354,562

27%

50

1.0

4.6

23.4

18.7

33.9

11,577,012

391,625

30%

140

1.0

4.1

32.9

29.5

61.2

1,465,366

52,832

4%

Inferred

1.2

3.7

37.7

37.2

66.1

148,215

9,532

1%

LG

1.2

3.7

37.7

37.2

66.1

148,215

9,532

1%

50

1.0

4.7

26.3

22.0

29.4

20,339

1,935

0%

140

1.2

3.5

39.7

39.9

66.1

127,876

7,598

1%

Total

1.0

4.6

20.3

15.4

113.6

27,777,231

1,313,451

100%NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 168

Table 14-57 Composition of Classified Blocks for Underground Extraction Above a Cut-Off Grade of 2.1 g/t Gold

Category

3 Holes

within

(m)

Avg.

Pass

Avg. No.

Holes

Avg. Data

Dist for

Estimate

(m)

Avg.

Dist to 3

holes

(m)

Max.

Dist to 3

holes

(m)

Tonnage

Contained

Metal (oz)

% Metal

Indicated

1.0

4.3

21.1

16.0

74.5

13,176,385

1,873,291

22%

HG

Domain

4800

1.0

4.3

20.8

15.2

51.8

11,116,448

1,673,516

20%

unlimited

1.0

3.9

33.6

0.0

0.0

8,783

1,119

0%

25

1.0

4.6

14.0

8.6

17.2

6,579,654

1,085,569

13%

50

1.0

4.3

26.6

19.7

34.0

2,484,389

324,510

4%

140

1.1

3.2

35.4

31.6

51.8

2,043,622

262,319

3%

LG

Domain

8800

1.0

4.2

23.0

19.9

74.5

2,059,937

199,774

2%

unlimited

2.0

1.0

17.2

73.0

74.5

1,161

80

0%

25

1.0

4.7

13.5

9.7

16.4

764,421

79,349

1%

50

1.0

4.5

24.0

19.5

34.3

646,069

61,059

1%

140

1.0

3.3

33.2

32.5

55.8

648,286

59,287

1%

Inferred

1.9

2.0

54.1

66.2

199.0

51,682,594 6,678,108

78%

Domain

4800

1.9

2.0

54.2

65.2

190.9

45,714,950

6,083,754

71%

unlimited

2.3

1.4

67.2

90.0

190.9

15,774,728

2,113,514

25%

25

1.1

3.9

19.3

10.4

16.1

70,945

8,392

0%

50

1.0

3.4

28.6

22.0

34.0

1,059,985

124,326

1%

140

1.7

2.3

48.1

53.4

98.8

28,809,293

3,837,522

45%

Domain

8800

1.8

1.9

53.3

73.1

199.0

5,967,644

594,354

7%

unlimited

2.1

1.3

58.5

96.4

199.0

3,172,757

338,150

4%

25

1.0

4.3

17.9

11.2

14.8

12,218

918

0%

50

1.0

4.1

27.6

21.8

32.4

99,418

8,440

0%

140

1.7

2.4

50.0

54.9

97.3

2,683,251

246,846

3%

Total

1.6

2.6

44.8

52.0

199.0

64,858,979 8,551,399

100%

For the SR model, Mineral Resource classification was performed by wireframing the Measured and

Indicated Mineral Resources, based on drill spacing displayed on section. For sections between 20,500 mN

and 19,725 mN, sections were spaced every 12.5 m along northing. For sections 19,725 mN to 19,350 mN,

sections were spaced every 15.0 m along northing.

For Measured Mineral Resources:

  • between 20,500N and 19,725N, defined in areas where the drill intercepts were consistently no

greater than 10m apart, up dip or down dip, along the mineralized structures, on each 12.5mN

spaced section; and

  • Between 19,725N and 19,350N, defined in areas where the drill intercepts were consistently no

greater than 13m apart, up dip or down dip, along the mineralized structures, on each 15.0mN

spaced section.

For Indicated Mineral Resources:

  • Indicated Mineral Resources were classified for blocks in the model that were not classified as

Measured Mineral Resources but were within a domain shell, trimmed against a boundary solid,

used to define the limits of the use of the SR model in the final model. Outside of this boundary,

the LR model is relied upon. The boundary solid typically extended outwards from the tightly

defined Measured resource a maximum distance of approximately 100 to 120 meters vertically or

horizontally.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

An example demonstrating the classification of resources on the 645m RL has been provided in Figure

14-37. The image shows the mineralization classified as either Measured or Indicated Mineral Resources in

the SR model. The image also shows mineralization that is located outside the boundary solid. Mineral

Resources and classification for this material would be informed by the LR model.

Figure 14-37 645m RL section showing resource classification, boundary solid and drill holes (GSR, 2020)

Page 169NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 170

14.8.2 Hwini Butre – Father Brown – Adoikrom

Mineral Resource Classification for Hwini Butre generally follows the same general principles as those

applied at Wassa. Classification has been assigned using a combination of drillhole spacing, geological and

confidence in mineralization interpretation, as well as slope of regression values from the estimation

process. The classification was modelled visually by digitizing a wireframe in order to define contiguous

zones of confidence.

The surface used to define Mineral Resource classification was extended approximately half the drill hole

spacing on section, as this is where confidence in the geological interpretation was considered to reduce.

Indicated Mineral Resources have been defined in the areas of Father Brown and Adoikrom where drilling is

sufficient to demonstrate geological and grade continuity to a reasonable level. The Inferred Mineral

Resources have been constrained by two 3D solids that have included the wider spaced drilling at depth

(100 to 200m spacing), shown in Figure 14-38. All other material outside of the 3D mesh/surface

constraints remained unclassified.

Figure 14-38 Father Brown and Adoikrom Indicated Mineral Resource surface and Inferred Mineral Resource solids.

All material above Magenta surface was classified as Indicated Mineral Resources all material below surface and

within cyan (ADK) and red (FBZ) 3D meshes was classified as Inferred Mineral Resource

N

S

200 m

ADK Inf

FBZ Inf

IND SurfaceNI 43-101 Technical Report (March 2021) Wassa Gold Mine

14.8.3 Benso

Classification for Benso generally follows the same principles applied at Wassa and Hwini Butre.

Classification has been carried out using a combination of drillhole spacing, geological and wireframe

confidence and was modelled by digitizing a wireframe.

The Indicated Mineral Resource wireframe was extended approximately half the drill hole spacing on

section, as this is where confidence in the geological interpretation was considered to reduce. Indicated

Mineral Resources have been defined in the Subriso East, Subriso West and G Zone areas of Benso where

drilling is sufficient to demonstrate geological and grade continuity to a reasonable level (nom. 25 x 25 m).

14.8.4 Chichiwelli

Classification for Chichiwelli generally follows the same general principles as those applied at Wassa, Hwini

Butre and Benso, with classification carried out using a combination of drillhole spacing, geological and

wireframe confidence, and was modelled visually by digitizing a wireframe.

Wireframes were digitized for East Domain and West Domain, with the areas inside the modelled solids

considered to be Indicated Mineral Resources, and outside, Inferred Mineral Resources.

The majority of the Chichiwelli Mineral Resource has been classified as Indicated Mineral Resources. For

the three additional deposits covered by the Chichiwelli MRE, an Inferred classification has been applied.

14.9 Mineral Resource Statement

The Mineral Resources have been prepared in accordance with CIM Definition Standards for Mineral

Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and the CIM Estimation of

Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November

29, 2019.

Mineral Resources are reported inclusive of Mineral Reserves.

The Wassa Mineral Resource Estimates are a combination of the long-range (LR) and short-range (SR)

models.

The “reasonable prospects for eventual economic extraction” (RPEEE) requirement implies that the

quantity and grade estimates meet certain economic thresholds and that the Mineral Resources are

reported at an appropriate COG, taking into account extraction scenarios and processing recoveries.

In order to determine the quantities of material offering “reasonable prospects for economic extraction” by

open pit mining, GSR used a pit optimizer and reasonable mining assumptions to evaluate the proportions

of the block model (Indicated and Inferred blocks) that could be “reasonably expected” to be mined from

an open pit. The assumptions of open pit mining were only assumed for the Benso, Chichiwelli and HBB

other prospects. No open pit Mineral Resource are reported herein for Wassa.

The optimization parameters are based on actual costs from the operations. The reader is cautioned that

the results from the pit optimization are used solely for the purpose of testing the “reasonable prospects

for economic extraction” by an open pit and do not represent an attempt to estimate Mineral Reserves.

GSR considers that the blocks located within the conceptual pit shells show “reasonable prospects for

economic extraction” and can be reported as a Mineral Resource.

The underground Mineral Resources were reported above an economic cut off based on a $1500/ ounce

gold price and mining, processing and general administrative costs that were adjusted from actual costs at

the Wassa underground operation. Table 14-58 and Table 14-59 shows the Mineral Resource statements

for the Wassa main and HBB deposits.

Page 171NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 172

Table 14-58 Wassa Measured and Indicated Mineral Resource, as at 31 December 2020

Table 14-59 Wassa Inferred Mineral Resource, as at 31 December 2020

Notes to the Mineral Resource estimate:

  • The Mineral Resource estimate complies with the requirements of National Instrument 43-101 and

has been prepared and classified in accordance with the CIM Definition Standards for Mineral

Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and the CIM

Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM

Council on November 29, 2019;

  • Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves;
  • Underground deposits within the Mineral Resource are reported at a cut-off grade of 1.4 g/t;
  • Open pit deposits within the Mineral Resource are reported at a cut-off grade of 0.55 g/t, within

optimized pit shells calculated at a $1,500 /oz gold selling price;

  • The Mineral Resource models have been depleted using appropriate topographic surveys;
  • Mineral Resources are reported in-situ without modifying factors;
  • No open pit resource has been reported for the Wassa deposit, as engineering studies have

determined Wassa will be mined by underground methods only; and

  • All figures are rounded to reflect the relative accuracy of the estimate.

Measured & Indicated Mineral Resource, at 31 December 2020

Meas. & Ind.

Mineral Resource

at 31 December 2019

Measured Resource

Indicated Resource

Meas. & Ind.

Mineral Resource

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Wassa OP

29.18

1.29

1,206

Wassa UG

5.90

4.45

843

18.96

3.55

2,162 24.85

3.76

3,005 16.20

3.89

2,027

Father Brown

/Adoikrom UG

1.31

7.96

335

1.31

7.96

335

0.91

8.67

254

Benso OP

1.38

2.50

111

1.38

2.50

111

Chichiwelli OP

1.11

1.75

62

1.11

1.75

62

HBB Other OP

0.62

1.21

24

0.62

1.21

24

2.51

2.32

187

TOTAL

5.90

4.45

843

23.37

3.59

2,694 29.26

3.76

3,537 48.81

2.34

3,675

Inferred Mineral Resource

at 31 December 2020

Inferred Mineral Resource

at 31 December 2019

Mt

Au g/t

koz

Mt

Au g/t

koz

Wassa OP

0.62

1.31

26

Wassa UG

70.50

3.39

7,689

58.82

3.75

7,097

Father Brown

/Adoikrom UG

2.66

5.30

454

1.88

6.08

367

Benso OP

0.05

3.37

5

Chichiwelli OP

0.05

2.22

4

HBB Other OP

0.77

1.31

32

0.42

2.14

29

TOTAL

74.02

3.44

8,183

61.74

3.79

7,519NI 43-101 Technical Report (March 2021) Wassa Gold Mine

14.10Mineral Resource Risks

During estimation of the Mineral Resources, the following risks were identified:

  • At Wassa, the geometry of gold mineralization is complex and will require tight spaced drilling prior

to extraction.

  • The Inferred Mineral Resource in the southern portion of the Wassa deposit is informed by wide

spaced drilling. It is the opinion of the QP that the global estimate in this area is within the

accuracy limits to be classified as an Inferred Mineral Resource but the geometry of the mineralized

zones will change with additional definition drilling.

  • In the Southern portion of the Wassa LR model, additional definition drilling may impact the

continuity of the grade domains and dampen the influence of higher-grade intervals. GSR have

conducted subsequent studies comparing 2018 to 2020 long and short-range models. The

comparisons demonstrate that historically, the addition of more drilling has resulted in larger

Inferred and Indicated Resource estimates.

  • Reporting of the Wassa underground resource at 1.4 g/t within the modelled 1.5 g/t isoshell may

result in tonnages being underestimated and grades overstated. During 2021, the modelling

parameters will be reviewed as to ensure the estimate is appropriate for the cut-off grade.

  • The Inferred Mineral Resources at FBZ and ADK have been classified based on drill hole spacing in

excess of 100m in some cases and there is risk associated with the grade estimates in these areas.

The wider spaced drilling has however demonstrated the continuity of the mineralized structure

and through further drilling the average grade of the inferred resource should be realized.

Beyond the risks disclosed here and in Section 25.2 not material risks have been identified.

Page 173NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 174

15 MINERAL RESERVES

15.1 Cut-off Grade

The cut-off grade applied for the Wassa UG Mineral Reserve is 1.9 g/t for stoping and development. This is

a decrease from 2.4 g/t for the previous declaration, with the change driven by lower operating costs,

achieved from increasing underground mining rates that have been sustained through 2019 and 2020.

Table 15-1 Wassa UG cut-off grade calculation

An assessment was completed during 2020 for cut-offs from 1.5-3.0 g/t. Stope shapes were generated for

each cut-off, indicative schedules were developed by applying vertical advance benchmarks and costs were

estimated using fixed and variable rates (lower $/t at higher rates).

Preliminary NPV’s (pre-tax) were calculated at $1,300 /oz and results showed peak NPV generated across

the range of 1.6-2.0 g/t . 1.9 g/t was selected as the cut-off for calculation of the Reserve as the associated

5,000 t/d ore mining rate (1.8 Mtpa), is considered close to full capacity of the current mining system.

Figure 15-1 Wassa UG cut-off optimization

Unit

Realisation Costs

Mining

$/t

Processing

$/t

TSF & Projects

$/t

Site G&A

$/t

Total, Realisation Cost

$/t

Dilution Adjustment

%dil

Net Realisation Cost

$/t

Selling Costs/Adjustments

Government Royalty

% sales

RG Stream Adjustment

% sales

Total, Sell Cost/Adjustments

$/oz

Revenue

Gold Price

$/oz

Processing Recovery

%rec.

Total, Realised Revenue

$/cont.oz

$/cont.g

Cut-off Grade

Reserve Cut-off Grade

g/t

Parameter

32.41

18.32

1.13

9.17

61.03

5.0%

8.4%

5.0%

64.08

1.9

1,300.00

95.0%

1,060.80

34.11

174.20NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 175

15.2 Modifying Factors

Modifying factors were applied to calculate the Wassa UG Mineral Reserve as follows:

  • Stopes: based on back analysis of actual stope performance from 2020.

o Mining Dilution: 5.0%

o Mining Recovery: 96.1%

  • Development: based on back analysis of actual stope performance from 2020.

o Mining Dilution: 0.0%

o Mining Recovery: 100.0%

Diluting material is assumed to contain no gold.

The effective modifying factors for the combined stope and development ore yield:

o 100.8% of in-situ ore tonnes;

o 95.8% of in-situ grade; and

o 96.6% of in-situ contained ounces.

Modifying factors were determined from analysis of the stope performance for 2020 to end of November

and are a more conservative approach than the previous declaration which assumed 0% dilution and 100%

stope recovery. The change is mostly due to improving systems for monitoring and tracking stope

excavation performance.

15.3 Mineral Reserve Statement

The Mineral Reserves have been prepared in accordance with CIM Definition Standards for Mineral

Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and the CIM Estimation of

Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November

29, 2019.

Table 15-2 Wassa Mineral Reserve, as at 31 December 2020

Notes to the Mineral Reserve estimate:

  • The Mineral Reserve estimate complies with the requirements of National Instrument 43-101 and

has been prepared and classified in accordance with the CIM Definition Standards for Mineral

Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and the CIM

Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM

Council on November 29, 2019;

  • The Mineral Reserve is reported at a cut-off grade of 1.9 g/t, calculated at a $1,300 /oz gold selling

price;

  • Modifying factors are applied as 5.0% dilution and 96.1% recovery for stopes;
  • Material based on Measured Mineral Resources are reported as Proven Mineral Reserves;
  • Material based on Indicated Mineral Resources are reported as Probable Mineral Reserves;

Mineral Reserve, at 31 December 2020

Mineral Reserve

at 31 December 2019

Proven Reserve

Probable Reserve

Mineral Reserve

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

Mt

Au g/t

koz

UG, Panels 1 & 2

4.28

3.28

451

4.48

2.99

430

8.75

3.13

881

7.42

3.72

889

UG, Panel 3

2.06

2.94

195

2.06

2.94

195

Open Pit

9.92

1.57

500

Stockpiles

0.69

0.58

13

0.69

0.58

13

1.06

0.62

21

TOTAL

4.97

2.91

464

6.54

2.97

625

11.50

2.94

1,089 18.41

2.38

1,410NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Material based on Inferred Mineral Resources are excluded from Mineral Reserve;
  • Economic analysis of the Mineral Reserve demonstrates economic viability at $1,300 /oz gold price;

and

  • All figures are rounded to reflect the relative accuracy of the estimate.

15.4 Mineral Reserve Risks

The Mineral Reserve estimate could be materially affected should assumptions not be realized for:

  • Underground mining productivity and unit costs;
  • Geotechnical conditions requiring a material change to the mine design;
  • Processing performance (throughput and recovery) and unit costs; and
  • Failure to maintain operating permits in good standing.

Page 176NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16 MINING METHODS

16.1 Mineral Resources Considered in Mining Plan

The Wassa Underground Mine (WUG) commenced development in 2015 and declared commercial

production in January 2017.

The Wassa property has an established record of successful permitting applications from project

commencement in 1998 to present. These are detailed in Section 20.1.2.

16.1.1 Mineral Resource Inclusions

Mineral Resources considered in this assessment are as at December 2020 and consist of two geological

models:

  • Short-Range (SR) Model (bm201201_v4):

Estimate for mineralization proximal to current underground mine. SR model is applied north of

19,350 mN and below 745 mRL to the 350 mRL. It contains material classified as Measured and

Indicated Resource.

  • Long-Range (LR) Model (srkwasmar20e):

Estimate for mineralization in all areas not defined by the SR model and is applied from 19,240 to

19,350 mN and above 745 mRL. It contains material classified as Measured, Indicated and

Inferred Mineral Resource and Inferred Mineral Resources are excluded from consideration.

Figure 16-1 Mineral Resources considered in Mineral Reserve and models applied

Page 177NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.1.2 Definitions

Figure 16-2 illustrates the following definitions used to describe the different mining quantities.

  • Panel: Each panel defines a progressive phase of definition drilling and capital development. The

definition can be flexible but new panels are defined by their requirement for new access

infrastructure (eg: Panel 3 vs Panel 1-2), a change in mining method (Panel 2 vs Panel 1) or a new

phase of definition drilling followed by an investment decision (eg: Panels 4, to 5, to 6, etc).

  • Area: Areas are semi/continuous zones of mineralization, which require extraction in a connected

sequence but are geotechnically independent from other areas within the panel. Panels can extend

across multiple areas where the panel boundaries are designed to permit sequence independence.

  • Stope: A stope is a single production excavation which follows a defined sequence to complete the

production cycle (eg: development, drilling, blasting, loading, filling).

  • Lift: Stopes across multiple levels are mined in a series of lifts, as they progress through each level,

i.e. a four-lift stope is four levels high.

Figure 16-2 Schematic of Wassa location descriptors

16.2 Mining Locations

The underground mine has been divided into 3 zones which are shown in the plan in Figure 16-3 and

longitudinally in Figure 16-4.

  • Panels 1 & 2:

Current zones of mining, include B-Shoot, F-Shoot and Hanging-wall. Panel 1 is from 20,400 mN,

south to 19,730 mN (+/-10m) and vertically from 745 mRL to 520 mRL. Panel 2 lies further south,

from 19,700 mN (+/-10m) to 19 240 mN and vertically from 695 to 345 mRL. Mineral Resource in

the mine plan for Panels 1 and 2 is classified as Measured and Indicated. Natural surface level is

nominally 1,000 mRL meaning Panels 1 and 2 range from approximately 250 to 650 m depth.

  • Panel 3:

The upper mine zones of B-Shoot, F-Shoot and 242, were included in the December 2019 Mineral

Reserve Statement to be mined by open pit methods. This assessment now proposes a change to

underground extraction (refer 16.3.1.1.1 for discussion).

Panel 3 runs from 20,200 mN, south to 19,700 mN (+/-10m) and vertically from 945 down to 745

mRL. Mineral Resources in the plan for Panel 3 are all Indicated. The zone also contains Inferred

Mineral Resource that is not included in the mine plan. Panel 3 ranges from approximately 50 to

250 m depth.

Page 178NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-3 Wassa mine design and asbuilt, plan view (GSR, 2021)

Page 179NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-4 Wassa mine design and asbuilt, longitudinal view

16.3 Current and Upper Mining Zones (Panels 1-3)

This section covers the extraction of ore north of 19,240 mN, being Panels 1, 2 and 3.

Wassa commenced underground development in 2015 and stoping production in 2017. During the

establishment of the underground mine, open pit mining was occurring in parallel to deplete the Main and

242 pits. Open pit mining was completed in 2017.

Figure 16-5 Wassa underground production history

Page 180NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 181

16.3.1 Mine Design

Panels 1, 2 and 3 will continue to be mined by underground methods using the Long Hole Open Stoping

(LHOS) method, with 25 m level spacing.

16.3.1.1 Stoping Methodology

16.3.1.1.1 Upper Zones Method Change

The December 2019 Mineral Reserve included mineralization above the current underground workings and

below the Main pit, as well as below the 242 pit, to be extracted by open pit methods. These upper zones

are now collectively referred to as Panel 3.

During 2020, trade-off reviews were completed to determine the optimal extraction method.

The trade-offs showed that the optimal extraction method for the upper zones was by underground, rather

than open pit. The advantages of underground extraction being:

  • Improved selectivity: enables focus on extraction of high margin mineralization. This has resulted

in a decrease in total ounces, but metal removed from the inventory is the higher unit cost, lower

grade material.

  • Reduced capital demand: the smaller scale underground plan will have a lower upfront capital

demand than the large cutbacks required for open pit extraction. This further enables bringing

forward production from the upper zones.

  • Elimination of interactions: between active open pit and underground operations.

Table 16-1 Upper mine inventory change, OP to UG

16.3.1.1.2 Panels 1 and 3

  • Stope length is 25 m along strike with 6-10 m pillars between.
  • Stope width is full width of the orebody which can be up to 35 m but is usually 15-25 m.
  • Stopes are mined with uphole blastholes drilled from below. The stope lifts are extracted in a top

down sequence; each stope lift is extracted below the open stope void above. Up to four stope lifts

are extracted to create a continuous excavation up to 100 m high.

  • In Panels 1 and 3, the 100 m height limit usually enables full extraction of the orebody without the

need for sill pillars. Where this is not the case, a sill pillar is left in the level between the sets of

stopes.

  • Mined voids are generally left open with some loose rock fill to dispose of waste or for

opportunistic pillar recovery.

  • Narrower ore zones (<15 m) are mined as longitudinal stopes with progressive placement of rock

fill to minimize ore loss in pillars.

  • Stopes at the south end of Panel 1 will utilize paste backfill within approximately 100 m of the

panel boundary. Use of paste further north is limited by distribution pressures.

16.3.1.1.3 Panel 2

  • The introduction of paste backfill permits a change to increase the extraction ratio.
  • Primary stope length is 20 m with 20 m pillars left between, which will then be mined as secondary

stopes after filling and curing of the primaries.

Design Inventory

Tonnes

‘000 t

Au grade

g/t

cont.Au

‘000 oz

* Implied Grade of Variance ounces/tonnes

Variance

-7,857

1.21*

-305

Underground

Open Pit

9,920

1.57

2,063

2.94

195

500NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Stope width is full width of the orebody which can approach 50 m but is usually 15-25 m.
  • Primary stopes are mined with uphole blastholes drilled from below. The stope lifts are extracted

in a top-down sequence; each stope lift is extracted below the open stope void above, shown in

Figure 16-6. Up to four stope lifts are extracted to create a continuous excavation up to 100 m

high, which are filled with paste fill as a single fill mass.

  • Secondary stopes are mined with blastholes drilled from below with each stope lift extracted in a

bottom-up sequence, shown in Figure 16-7. To minimize paste exposure in the side-walls, each

stope lift is planned to be filled before extracting the lift above. As experience with paste fill

increases, there is an opportunity that the secondary stopes could be extracted in multiple lifts

before filling. This would deliver a more productive mine schedule but this plan assumes the more

conservative approach.

  • Combined stope excavations up to 100 m high are planned before a sill pillar is introduced. The

first sill pillar in Panel 2 lies between the 520 and 545 mRL levels.

  • Sill pillars can be extracted after the secondary stopes are backfilled and sill pillar extraction

assumes 60% recovery of the full stope.

Figure 16-6 Stope cycle for Panel 2 primary stopes

Figure 16-7 Panel 2 primary/secondary stope extraction sequence, transverse stopes

The primary / secondary sequence in Panel 2 extracts the first pass of stopes to full design height (4-lifts,

100 m), mining every second stope along strike (the primary stopes), with pillars left between. The pillars

are extracted as secondary stopes after sufficient primary stope voids complete paste backfilling.

In Panel 2, extraction of the first pass of primary stopes is well progressed. Paste backfilling and

subsequent mining of the first secondary stopes is planned in 2021.

Figure 16-8 shows progression of the generic primary/secondary sequence, which includes:

  • The first stope is generally located in the centre of the block and the mining front radiates from the

centre toward the peripheries, with primary stopes mined to full height of the block (4-lifts, 100 m).

Page 182NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Secondary stopes follow the primary stope front with a lag distance of 120-140m along strike to

create a sufficient buffer from active primary stopes and development.

  • Secondary stopes will initially be constrained to one lift per stope, to limit exposure dimensions of

the paste fill mass in stope walls.

  • Extraction of the sill pillar commences when there is a sufficient distance from secondary stopes in

the blocks above and below. Each crosscut into the sill pillar is scheduled to be redeveloped in time

for the uphole stopes to be mined.

  • This resulting sequence has primary stope extraction almost, if not fully, complete before the first

secondary stope is mined. It creates a production profile which is high in the early years of primary

stoping, then slows as secondary stopes are mined and becomes low when the block is only

producing from stopes in the sill pillar.

Figure 16-8 Stope cycle for Panel 2 secondary stopes

16.3.1.2 Stope Design

Mine design for Panels 1-3 was completed by the Wassa mine technical team in January 2020 as part the

planning for the December 2020 update of the Mineral Reserve.

Optimal stope shapes were developed from the Mineral Resource block model using Datamine Mineable

Shape Optimizer (MSO) software. MSO is a design algorithm which processes a geological block model

against user defined geometrical parameters to produce optimized stope shapes. MSO inputs were:

  • Cut off Grade: 1.9 g/t
  • Stoping width (minimum/maximum): 5 – 100 m
  • Minimum pillar between adjacent stopes: 10 m
  • Minimum hanging/foot-wall dip angle: 80°

Optimization shapes were validated by manual checks to remove outliers and updated with production

designs where applicable.

Page 183NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.1.3 Development Design

The methodology used for the development design was:

  • Operating development, Levels: both in ore and waste, designed to provide access for drilling and

loading of stopes;

  • Capital development, Decline: linking of level accesses with inclined development (1:7 grade),

including stockpiles to facilitate development;

  • Capital development, Levels: infrastructure on each level located at the required access position

along strike, to enable the stope extraction sequence (access, stockpiles, electrical cuddy, paste fill

access, footwall accesses); and

  • Capital development – Infrastructure: attachment of infrastructure to the main decline and level

accesses, including: ventilation network extensions, sumps and drainage system, and emergency

egress (escapeway) network.

Panels 1 and 2 are accessed via the Daniel Owiredu Portal (formerly Portal 1), located in the Starter Pit. The

Main decline is positioned east of B-Shoot which has variable dip. Maximum ramp grade is 1:7 and follows

the plunge of the deposit south toward the deeper levels of Panel 2. Levels are accessed every 25 metres

through level access drives connecting the ramp to each level’s footwall drive.

The upper zones will be mined as Panel 3 with two new decline accesses due to their spatial distance from

the Main decline:

  • Upper B-Shoot decline portal will be in the southern end of the Main pit and connects the Main

decline at the 760 mRL. Duplicating the main decline enables the B-Shoot Upper material to be

extracted in parallel with Panels 1 and 2, plus also forms part of a haulage loop system.

  • 242 decline will be mined in the footwall of the 242 shoot which is north of the mineralized zone. It

is remote from any B-Shoot infrastructure and will be an independent ramp.

Figure 16-9 shows an isometric view of the asbuilt and planned underground development for Panels 1 to

  1. Figure 16-10 shows a typical level layout for Panels 1/2.

Figure 16-9 Oblique view of Wassa Panels 1-3, asbuilt and planned development

Page 184NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Panel 1

Decline

Panel 2

UG Workshop

570 Diamond Drill

Drive (DDD)

Figure 16-10 Typical level layout, Panels 1-2 570 mRL

Figure 16-11 Oblique view of Panels 3 242 Area, planned development and stopes

Page 185NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 186

Figure 16-12 Oblique view of Panels 3 B-Shoot Area, planned development and stopes

16.3.1.4 Design Quantities

The design quantities defining the Mineral Reserve (as at 31 December 2020) and are summarized in Table

16-2.

Table 16-2 Wassa Panels 1-3, design quantities for Mineral Reserve

Panels 1-2

B-Shoot

Panel 3

B/F-Shoot

Panel 3

242

Ore Mined, Development

‘000 t

1,143

166

93

g/t

2.98

2.85

3.70

‘000 oz

110

15

11

share% oz

X

X

X

Ore Mined, Stopes

‘000 t

7,611

1,079

724

g/t

3.15

2.71

3.25

‘000 oz

771

93

76

Ore Mined, Total

‘000 t

8.755

1,245

818

g/t

3.13

2.71

3.30

‘000 oz

881

109

87

Ore Mined, Total

‘000 t

10,818

g/t

3.09

‘000 oz

1,076

Development, Total

m

44,173

Dev’t Capital

m

20,392

Dev’t Operating

m

23,781

Vertical Development

m

2,776

Mined to Waste

‘000 t

2,469

Paste Backfill

‘000 m3

2,967NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.2 Geotechnical

Geotechnical characterization and design parameters used in the mine design for Panels 1-3 are based on:

  • Wall mapping in permanent openings and ore drives to define the structural discontinuities;
  • Geotechnical data available in from surface exploration and underground drilling logs;
  • Logs of underground boreholes that had been subject to detailed geotechnical logging;
  • A limited set of laboratory strength and deformation test results;
  • Empirical support classification assessment to determine the support requirement for the

permanent drives;

  • Empirical Stability Graph (Mathews et al, 1981) assessments to determine the maximum stable

spans of the stopes; and

  • Numerical modelling to assess the stability and stress distributions around the stope spans and the

crown pillar.

Geotechnical characterization has been done using Q classification values (Barton et al, 1974), for input to

the Empirical Stability Graph Method, and Geological Strength Index (GSI, Marinos et al 2007) classification

values.

16.3.2.1 Structural Data

A number of faults have been identified orientated at right angles to the limbs of the fold. These are normal

faults with downthrows of up to 5 m. They are characterized as fairly tight with little to no evidence of

shearing adjacent to the contacts. Some were identified to contain in-filling material.

The rock mass structure has little variance between each lithology. The small scale discontinuities can be

related to the major scale deformational processes that have affected thedeposit. Several joint sets have

been identified from the relevant data sources and have been considered for the mine design criteria.

Based on the structural assessment of the geotechnical mapping, the joint sets presented in the stereonet

plot shown in Figure 16-13 and summarized in Table 16-3 were used for the stope stability assessment.

Figure 16-13 Stereonet plant of Wassa joint set database

Page 187NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 188

The dominant discontinuity sets in all domains, shown in Figure 16-13 are:

  • The orebody parallel foliation (F);
  • A moderately north-east dipping joint set (J1);
  • A joint set trending south-east (J2);
  • Joint set J3 is a moderately developed sub-horizontal set; and
  • Joint set 4 (J4) is steeply dipping, north trending.

In this analysis, the mean discontinuity orientations presented in Table 16-3 have been used.

Table 16-3 Joint sets used for stope design

16.3.2.2 In-Situ Stress

Over-coring stress measurements were completed in September 2019 to measure in-situ stress levels in the

mine.

The measurements were taken at two sites using the CSIRO HI-Cell method. The sites are located in the

hanging-wall at 645-DD7 and in the footwall at the 570 decline.

The stress measurement was rated as Excellent for the 570 decline according to the stress test rating

system used by the service supplier (industry standard). The 645-DD7 stress measurement was disregarded

due to the test site being considered within the mining induced stress zone of excavations and not a valid

reflection of the virgin in-situ stress field.

The results from the-570 decline are shown in Table 16-4 and the interpreted depth gradient is shown in

Figure 16-14.

Table 16-4 570 decline stress measurement

Discontinuity Set

Dip

Dip Direction

Comments

Foliation

16.53

11.61

Tightly healed foliation planes

J1

Set of tightly healed North-east trending joints

J2

1.64

1.33

Set of tightly healed South-east trending joints

J3

1.66

1.37

Set of sub-Horizontal North-west trending joints

J4

19.83

14.31

Set of steeply dipping North trending joints

Principal Stress

Magnitude

(Mpa)

Depth

(m)

Ratio

Gradient

(MPa/m)

Dip

Direction

Major

26.5

430

2.23

0.062

339°

Intermediate

18.9

430

1.59

0.044

69°

Minor

11.9

430

1.00

0.028

83°

219°NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 189

Figure 16-14 Principal stress measurement Magnitude vs Depth

16.3.2.3 Rock Quality

Based on the structural assessment of the geotechnical mapping, the rock mass quality is classified Very

Good, using Barton’s (Barton et al, 1974) classification and Geological Strength Index (GSI) rating systems.

Table 16-5 contains the rock mass condition data of the Wassa geotechnical domains, which were used for

the stope stability assessment and ground support design.

Table 16-5 Wassa rock mass characterization parameters (Barton et al, 1974)

0

200

400

600

800

1000

1200

1400

1600

0

20

40

60

80

100

120

Magnitude (MPa)

Principal Stress with Depth

Expected Wassa Mine Stress Gradient

Wassa 645 Site 1 Stress Measurement

Wassa 570 Site 2 Stress Measurement

Parameter

Footwall / Orebody / Hanging-wall

Source

MIN

MAX

Average

Rock Quality Desc.

RQD%

85

90

85

Geotechnical and mapping

Joint Number

Jn

6

9

6

Borehole structural data and mapping

Joint Roughness

Jr

3

4

3

Detailed geotechnical logs & mapping

Joint Alteration

Ja

1

0.75

1

Detailed geotechnical logs & mapping

Q’

43

53

48

Rock Mass Quality

Very Good

Very Good

Very Good

Geol. Strength Index

GSI

78

80

78

Underground mapping & inspections

Unconfined Compressive

Strength

UCS

Mpa

110

160

135

Rocklab laboratory test result

Unconfined Tensile

Strength

UTS

MPa

16

18

17

Rocklab laboratory test result

Young’s Modulus

GPa

70

80.5

75.3

Rocklab laboratory test result

Poisson’s Ratio

0.28

0.32

0.3

Rocklab laboratory test result

Density

t/m3

2.79

2.81

2.8

Rocklab laboratory test result

Depth below Surface (m)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.2.4 Geotechnical Design, Development

Barton’s Q support classification system was applied to estimate the support requirement for the

development headings, which are nominally designed at 5.5 m wide.

Using and Excavation Support Ratio (ESR) of 1.3, as defined by Barton and Grimstad (1993) for permanent

mine openings, results are plotted in Figure 16-15. The development excavations are plotted in red and are

assessed to be within Category 1 (No Support Required). This aligns with observations of a Very Good rock

mass with little or no fallout and spalling.

Notwithstanding the results of the analysis, GSR applies a standard reinforcement pattern of friction bolts

and surface mesh to the back and upper walls of all development headings. This level of support plots in

Category 3 (Systematic Support) in Figure 16-15.

Figure 16-15 Support, Barton’s Q-Index chart (Barton and Grimstad, 1993)

16.3.2.5 Geotechnical Design, Stopes

16.3.2.5.1 Modified Stability Number

The Q’ value derived from the geotechnical characterization (Barton et al, 1974) has been used, along with

the stability graph parameters A, B and C to determine the Modified Stability Number (N’) (Potvin, 1988)

for stope back, side-walls (hanging/foot) and end-walls.

The stress parameter A was estimated by calculating the gravitational stress generated from the weight of

the overburden rock above the mining. The structural parameters B and C were derived from an

assessment of the interaction of the dominant joint sets with the stope boundaries.

Calculated N’ for the Q’ value derived from the rock mass characterization for both the longitudinal and

transverse stopes are presented in Table 16-6 and Table 16-7.

Page 190NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 191

Table 16-6 Modified Stability Number (N’) for Panels 1-3, transverse stopes (Potvin, 1988)

Table 16-7 Modified Stability Number (N’) for Panels 1-3, longitudinal stopes (Potvin, 1988)

Parameter

Stope Wall, Transverse

Comments

Back

Side

End

Q’

47.9

47.9

47.9

From mapping and core RQD, Jn, Jr, Ja

UCS, Sigma C

Mpa

130

130

130

Average intact rock strength

Depth

m

500

500

500

Average depth below surface, Panel 2

Max. Principal Stress, Sigma

1

Mpa

13.5

13.5

13.5

Estimated overburden stress

Stress : Strength Ratio

1:

9.6

9.6

9.6

Factor A

1.0

1.0

1.0

Angle between Stope Face &

Daylighting Joint

15°

15°

45°

Critical Joint for all back and

side-walls is J3, end-wall is J4.

Factor B

0.2

0.2

0.5

Potential Failure Mode

Gravity

Slabbing

Slabbing

Gravity or Slabbing

Dip of Stope Face

90°

64°

Factor C

2

8

5

N = Q’ x A x B x C

19.2

76.7

119.8

N-value for all stopes >=64° slope

Parameter

Stope Wall, Longitudinal

Comments

Back

Side

End

Q’

47.9

47.9

47.9

From mapping and core RQD, Jn, Jr, Ja

UCS, Sigma C

Mpa

130

130

130

Average intact rock strength

Depth

m

500

500

500

Average depth below surface, Panel 2

Max. Principal Stress, Sigma

1

Mpa

14.6

14.6

14.6

Estimated overburden stress

Stress : Strength Ratio

1:

8.1

8.1

8.1

Factor A

0.9

0.9

0.9

Angle between Stope Face &

Daylighting Joint

15°

45°

15°

Critical Joint for all back and

side-walls is J3, end-wall is J4.

Factor B

0.2

0.2

0.5

Potential Failure Mode

Gravity

Slabbing

Slabbing

Gravity or Slabbing

Dip of Stope Face

64°

90°

Factor C

2

4.9

8

N = Q’ x A x B x C

17.3

106.3

69.0

N-value for all stopes >=64° slopeNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 192

16.3.2.5.2 Stable Slope Design Geometry

Table 16-8 summarizes the calculated range of stable stope and design geometries for the expected rock

mass conditions for Transverse and Longitudinal Open Stoping Methods in Panels 1-3. The orientation of

the measurement axes is shown in Figure 16-16.

Table 16-8 Stable stope dimensions, Panels 1-3

Figure 16-16 Stope axes measurements

The nominal designs for transverse and longitudinal stopes were plotted on the Matthews Stability graph

and are shown in Figure 16-17 and Figure 16-18. All faces plot in the stable portion of the graph, without

additional support.

This indicates that for a 30 m wide ore zone, stopes of 20 m width by 100 m height will be stable which is

confirmed by field observations of current excavations.

Stope Dimension

Transverse Stope

Longitudinal Stope

MIN

MAX

Design (m)

MIN

MAX

Design (m)

Height

m

25

100

100

<15

25

25

Strike Length

m

25

25

25

<60

70

70

Width across Strike

m

15

30

25

<15

15

15

Dip, end/side-walls

65°

65°

65°

65°

65°

65°NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-17 Matthews Stability Graph, transverse stopes (Mathews et al, 1981)

Figure 16-18 Matthews Stability Graph, longitudinal stopes (Mathews et al, 1981)

Page 193NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.2.6 Geotechnical Design, Major Pillars

16.3.2.6.1 Existing Pillars, B-Shoot

A crown pillar exists between the Main pit where B-Shoot has been mined below from underground. In

addition, there are a number of sill pillars remaining between mined stopes underground, which are a mix

of open void and loose rock fill.

Stability analysis was conducted using Phase 2 software which calculated factors of safety:

  • Crown Pillar, B-Shoot Main pit and 720-N1 stope = 1.58
  • Sill Pillar, 720-N1 and 745-S1 = 1.58

This indicates that in both situations a stable pillar can be maintained, Figure 16-19.

Figure 16-19 B-Shoot Pillars, modelled factors of safety from Phase 2 software, (GSR, 2018)

16.3.2.6.2 Future Pillars, Panel 3

Panel 3 stopes are proposed to be excavated close to the 242 and Main B-shoot pits.

At the time of modelling the B-Shoot pillars, stope designs for Panel 3 were not complete, so no assessment

was completed.

The indicative minimum design thickness of the crown pillars is approximately 20 m which is considered

reasonable at this early stage but further geotechnical investigation will be required to confirm stability

prior to mining.

Page 194NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.2.7 Geotechnical Design, Ventilation Shafts

Ventilation shafts are planned for Panels 2 and 3 which will be excavated by raisebore with some possible

use of drilling and blasting. The proposed locations of the ventilation shafts have not been geotechnically

assessed and will require geotechnical data collection (drill holes) and evaluation to assess ground

conditions to determine the unsupported diameter.

The first major ventilation shaft is planned to be raisebored in 2021 and includes drilling of a diamond drill

hole for geotechnical logging prior as part of the work program.

16.3.3 Hydrogeology

Hydrogeological investigations were undertaken in 2016 and 2019. Key conclusions for the Panel 1-3 were:

  • Inflow of groundwater occurs along discreet zones of faulting and fracturing.
  • Hydraulic testing of the underground mining regions to depths of 800 m below surface showed

generally the formation is not water bearing and has generally very low permeability, although

localized high permeability zones have been identified at depth with potential permeability of up to

2 l/s measured.

  • Pit sumps in B-Shoot (Starter and Main) and 242 are possibly hydrogeologically connected to the

underground workings. They have dual-use as surge sumps to manage surface runoff and staging

points for the underground dewatering system. This functionality means that generally, sumps

aren’t full but do hold sufficient water that there is potentially a recirculating groundwater load.

A main dewatering system was constructed in 2020 and planned for commissioning in 2021. Addition of

the new pump station will allow the Starter pit sump to be dedicated for collection of incident rainfall and

surface runoff, which will reduce sump inventory and likely reduce flows from hydraulic connection.

16.3.4 Backfill

Different backfill systems and stoping methods are used across Panels 1-3.

16.3.4.1 Rock Fill

In Panels 1 and 3, the nominal stope design mines stope voids, left unfilled, with ore pillars between.

Uncemented rock fill is applied in irregular locations to increase recovery of mineralization by avoiding the

creation of, or enabling the recovery of, ore pillars. Rock fill is sourced from development waste and tipped

directly into stope voids by truck, or rehandled by loader from stockpile.

16.3.4.2 Paste Fill

A feasibility study for the application of paste backfill at Wassa was completed by Outotec in 2018. Plant

construction was completed at the end of 2020, Figure 16-20, and the full system is planned for

commissioning early in 2021. Design capacity is 4,000 t/d of dry tailings processed to produce 120 cu.m/h

of cemented paste fill. Depending on utilization, comparable plants support mining rates of 1.5-2.6 Mtpa.

16.3.4.2.1 Test Work

The feasibility study program tested material characterization, rheology and strength and concluded Wassa

tailings to be suitable for production of paste fill:

  • Dewatering, including thickening and vacuum filtration, was achieved through proven unit

processes typical of most backfill plants;

  • Typical primary stopes sizes (20 mL x 20 mW x 25 mH) will require 4.5% cement to achieve the

required strength of 270 kPa. Secondary stopes will require 3% cement to achieve the minimum

threshold strength of 150kPa; and

  • Underground distribution is amenable to gravity distribution (rather than pumping) with the

location of the surface plant relative to the underground stopes.

Page 195NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.4.2.2 Filter and Mixing Plant

Paste fill will be produced in a filtration and mixing plant with the following processes:

  • Tailings will be pumped as the full-stream discharge from the CIL plant in batches with automated

changeover and flushing between the alternate discharge to the TSF. The pipeline corridor has

secondary containment over the 3 km length.

  • Tailings are processed in thickener and underflow thickened tailings are held in an agitated storage

tank which which creates buffer capacity between the batches of tailings pumped from CIL and

continuous filtration.

  • Ceramic disc filters produced tailings cake which is delivered by conveyor to a paste mixer where

binder (cement) and thickened tailings are added to achieve the required density and binder

content.

  • Surplus water (thickener overflow) is recycled to the process water network for re-use in the main

processing plant.

  • Mixed paste is transferred into a hopper which discharges to a borehole which supplies the

underground distribution network.

The paste plant is operated from a dedicated control room with access to monitoring data from pressure

sensors in the underground distribution network. In addition, the CIL plant control room can monitor

operations and alarms in the paste plant, with both control rooms able to operate the tailing pumping

processes from the CIL to paste plants. The paste plant is shown in Figure 16-20.

Figure 16-20 Wassa paste plant Dec-2020, thickener and storage tank in foreground

Page 196NI 43-101 Technical Report (March 2021) Wassa Gold Mine

16.3.4.2.3 Underground Distribution

Underground distribution is via a borehole to the 620 mRL, approximately 440 m long, shown in Figure

16-21. The borehole is duplicated for redundancy and to allow periodic cleaning to prevent blockage.

Paste will be distributed by 8 inch steel pipes and can be distributed by gravity to all stopes in Panel 2.

Stopes in the south end of Panel 1 can also be reached by modifying the fill mix to include more moisture,

which will require offsetting increased binder addition.

Figure 16-21 Paste fill distribution modelling

16.3.5 Ventilation

Primary ventilation flows at Wassa are modelled using VentSim software with the model validated using

results of volume and pressure surveys through the mine.

16.3.5.1 Design Criteria

Ghanaian mining regulations prescribe:

  • Maximum velocity of 6 m/s in travelling roadways;
  • Minimum flow 0.06 m3 /kW/s for diesel engine capacity;
  • Minimum velocity of 0.2 m/s in headings, 0.1 m/s in large openings;
  • 32.5ºC wet bulb maximum working temperature; and
  • Carbon monoxide must be continuously monitored in return airways and information transmitted

to surface.

The ventilation system is designed to meet these regulations as a minimum, with airflow volumes in

Panels 1-3 determined based on the following criteria:

  • Up to 9 working areas at any time;
  • 50 m3 /s, per working area.

Page 197NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 198

16.3.5.2 Network Design, Panels 1 and 2

The current installed ventilation network, servicing Panels 1 and 2 has surface connections clustered north

of the operating mining areas.

Primary intake points are:

  • Daniel Owideru Portal (Portal 1) collared in the Starter Pit; and
  • Portal 3, 670 mRL intake shaft and 695 mRL waste pass, collared in the Main Pit.

Primary exhaust points are:

  • Portal 2, collared in the Starter Pit with 4 x 132 kW fans in parallel at the portal entrance; and
  • 695 mRL exhaust shaft, collared in the Main Pit with 2 x 280 kW fans in series on the 695 mRL level.

A ventilation review was completed by SRK(US) in 2020 which included updating the ventilation model for

current and future operations. Surveyed and modelled airflows as measured in October 2020 are shown in

Table 16-9. Model accuracy is considered adequate by SRK.

Table 16-9 Wassa ventilation model calibration, Dec-2020

To adequately ventilate the complete extraction of Panels 1 and 2, additional main airways and other

changes to the current circuit are required to provide intake and exhaust capacity south of the current

working areas:

  • Construction of a 5.5 m diameter exhaust shaft from surface to 570 mRL, with installation of new

primary fans;

  • Construction of a 5.5 m diameter intake shaft from surface to 575 mRL; and
  • Removal of the exhaust fans in Portal 2 and reversing airflow to become intake.

The new circuit will increase total airflow to approximately 590 m3 /s, with 190 m3 /s exhausting via the

existing 695 mRL fans and 400 m3 /s via the new southern exhaust shaft (RAR1). This will provide sufficient

flow to operate 9 working areas with 50 m3 /s per location. Figure 16-22 shows the Panel 1 and 2

ventilation circuit to end of life.

Construction of the two new shafts and installation of the new primary exhaust fans are budgeted to

commence in 2021 and be completed early 2022.

% Error

Intake Airways

Portal 1 (DO Portal)

m3/s

-11%

Portal 3

m3/s

-7%

670 mRL Intake Shaft

m3/s

+3%

670 mRL Waste Pass

m3/s

Intake, Total

m3/s

-4%

Return Airways

Portal 2 (4 x 132 kW)

m3/s

-4%

695 mRL Level (2 x 280 kW)

m3/s

-12%

Intake, Total (1,088 kW)

m3/s

-8%

Fan Pressure

Portal 2

kPa

-1%

695 mRL Level

kPa

+16%

1,105

1,284

441

406

Unit

Survey

1,436

1,426

415

400

221

212

220

194

Location

Measure

8 3

119

149

4 9

VentSim Model

9 3

128

145

4 9NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-22 Wassa Panels 1 and 2 ventilation circuit to end of life

16.3.5.3 Panel 3

16.3.5.3.1 B-Shoot Upper

The Upper B ventilation circuit integrate with Panel 2 with connections for both exhaust and intake (via

decline) at 745 mRL, shown in Figure 16-23. An optional exhaust shaft will be included in the mine plan to

provide ventilation independence (approximately 100 m3 /s), enabling activity in B-Shoot to be ventilated

without compromizing capacity to the main Panel 2 production area.

The ‘Extended Haulage Ramp’ shown in Figure 16-23 is a ramp to create a haulage loop in Panels 1 and 2.

Figure 16-23 Wassa Panel 3, B-Shoot Upper ventilation circuit

16.3.5.3.2 242

The 242 mining area is spatially separated from the rest of the underground mine and has an independent

ventilation network. Preliminary ventilation designs are preliminary only but reflect a conservative design

approach to ventilate the area.

The current design is shown in Figure 16-24 with the following features:

  • Exhaust via a connecting ramp to the Main pit. As well as exhaust ventilation, this drive will be

used for definition drilling and as a second egress.

  • Intake via the access decline.

Page 199NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-24 Wassa Panel 3, 242 ventilation circuit

The two exhaust fan positions in Panel 3 plan to re-use the four 132 kW fans currently located in Portal 2.

Although detailed models are not yet completed, it is anticipated that, given the similarity to their current

duty, with two fans in parallel each position provides approximately 100 m3/s to ventilate two working

areas in each area.

16.3.6 Mining Services

16.3.6.1 Electrical

The underground electrical system has been designed and installed according to Ghanaian mining

regulations and to efficient mining standards and will have high availability, medium utilization and low

operating maintenance. The high voltage circuit above 570 level is 6.6 kV and 1 kV for low voltage. The

high voltage circuit below 570 level in Panel 2 will be 11kV, with 1kV outlets for mining equipment. The

total underground feed from both the 6.6kV and 11kV circuits is approximately 13.0 MVA., split 5.0MVA to

the 6.6kV circuit via the Starter Pit and 8.0MVA to the 11kV circuit via a borehole to 570 level.

Panel 3’s electrical circuit will use the 6.6kV circuit because of Upper B and 242’s proximity to the already

installed infrastructure. Panel 2 below 570 level will use the 11kV circuit. Refer to Figure 18-4 for the site’s

basic electrical layout line diagram.

16.3.6.2 Compressed Air

The compressed air system comprises 2 x 90 kW compressors located on surface at the Starter Pit portal.

Compressed air is distributed underground via a 110 mm poly pipe down the main decline. Due to pressure

drop along the reticulation and incremental increases in duty, an additional compressor is planned.

16.3.6.3 Service Water

A 30,000 litre water tank is installed above the portal area to supply the underground mine with service

water for drilling, dust suppression and general use. The service water tank is filled using the 90 kW Flygt

pump that is permanently installed in the Starter pit sump. Service water is reticulated throughout the

mine by 110 mm HDPE lines installed in the primary headings and reducing to 63 mm HDPE for supply to

end use locations.

16.3.6.4 Underground Dewatering

The underground mine dewatering system is designed and installed to remove both ground water and service

water (collectively called mine water), including up to 10% by volume solid particles.

The mine dewatering system contains the following staging in the upper part of the mine:

  • 18kW decline face pumps which pump to sumps on operating levels;
  • 37kW pumps transfer initially settled water to either mono pumps or 90 kW Flygt pumps, which

pump to the starter pit sump outside the main portal.

Page 200NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The system dewaters to the Starter Pit sump at a rate of 35 l/s and, where required, up to 65 l/s. The F Shoot

mining area will continue to use this system; the rest of the B Shoot mining areas will use a recently installed

permanent pump station on 620 mRL.

The permanent pump station at the 620 mRL level can pump 80 l/s over a 440m total dynamic head. The

pump station pumps directly to the surface via a borehole to surface settling and discharge routes. The

station uses cascading settling sumps to drop out as many solids as possible prior to pumping to surface.

The station uses multistage pumps to meet the total dynamic head and flow rate required. A borehole

connects the pump station to surface with a 200 mm NB steel rising main installed.

As the mine progresses at depth beyond the 620 mRL level, additional staging pumps will be utilized and

directed to the 620 mRL pump station. These pumps will be similar to existing pumps with sublevel 37 kW

Flygt pump and for main dewatering at depth a 90 kW Flygt pump and, if required, supported by a 55 kW

Mono pump. A reduced dewatering system above the 620 mRL pump station will remain in place to

intersect inflow at higher levels and dewater to the Starter Pit sump on surface. The dewatering system is

shown in Figure 16-25.

The recently installed 620 mRL pump station is shown in Figure 16-26.

Figure 16-25 Underground dewatering longitudinal view

Page 201NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-26 620 mRL main pump station

16.3.7 Mining Schedule

Mining quantities for Panels 1-3 were scheduled using MineSched software, with spatial links between

development and stoping, and capacity constraints which reflect the methodology and sequence outlined

above.

The mine schedule calculates all physical quantities which are input into the cost estimate.

  • Definition Drilling: geological diamond drilling required to define the mineralization. Drilling is

capitalized where the material being targeted is not yet classified as Mineral Reserve or production

is planned two or more years after drilling.

  • Development: Lateral and ramp development to access and support stoping. Heading types which

support production from a number of stopes are classified as capital (decline, stockpiles, level

access, footwall drives, vent access, orepass access, dewatering) and access for production from

one stope are operating (stope crosscut, ore drives).

  • Vertical Development: Vertical development (long hole raise or raisebore) for ventilation, egress,

orepass or other infrastructure, which are all capitalized. Raising required for stope blasting is not

quantified and is included in the $/t unit cost for stope blasting.

  • Backfill: Paste fill volume placed.
  • Waste Material: waste generated from lateral and vertical development activities, including any

material which may be placed as rock fill.

  • ROM Material: Material generated from development and stoping and sent for processing.
  • Haulage: Estimated haulage quantities, calculated from planned tonnes mined and average

one-way lead distance.

Page 202NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 203

The key scheduling constraints applied were:

  • Maximum advance rate from a single heading: 4.5 m/d for decline, 6.0 m/d for other lateral;
  • Maximum total advance rate: 27 m/d (820 m/mth);
  • Maximum ore tonnage from a single stope: 3,000 t/d; and
  • Maximum total tonnage: 6,200 t/d in 2021 and 6,800 t/d thereafter when Panel 3 development

commences.

Milestones assumed in the scheduling of Panels 1-3 are:

  • Continued extraction from Panels 1 and 2 from 2021;
  • Initial development from Panel 3 in mid-2022;
  • Stoping commences from Panel 3 in 2025;
  • Sill pillar extraction in Panel 2 commences 2024;
  • Development completed 2025;
  • Primary and secondary stopes completed in 2025; and
  • Sill pillar extraction (and all other activity) completed in 2026.

The schedule quantities are shown in Table 16-10.

Table 16-10 Wassa mining schedule quantities for Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Definition Drilling

Resource Dev’t & Infill

‘000 dd.m

36.0

5.0

15.0

5.0

Grade Control

‘000 dd.m

13.5

12.3

13.1

12.2

6.5

Total Dev’t

‘000 dd.m

49.5

17.3

28.1

17.2

6.5

Development

Capital

m.adv

2,582

5,943

6,756

5,111

Operating

m.adv

7,272

4,996

5,289

5,926

296

Total Dev’t

m.adv

9,855

10,939

12,045

11,037

296

Vertical Development

v m

977

891

464

443

Backfill

‘000 fill.m3

546

597

592

621

445

166

Material Movement

Waste, tonnes

‘000 t

463

657

737

609

3

ROM, tonnes

‘000 t

1,784

1,826

1,804

1,939

2,020

1,445

ROM, Au grade

g/t

3.08

3.11

3.29

3.07

2.94

3.10

ROM, cont.Au

‘000 oz

176.7

182.5

190.6

191.3

191.0

144.1

Total Movement

‘000 t

2,247

2,483

2,541

2,549

2,023

1,445

Haulage

Tonnes x Kilometres

Mtkm

6.8

8.0

8.7

9.3

6.7

4.8

Avg. Distance

km

3.01

3.22

3.43

3.64

3.33

3.33

1,076.3

13,287

44.3

3.33

20,392

23,781

44,173

2,776

2,967

2,469

10,818

3.09

Total/avg

118.6

61.0

57.6NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-27 Lateral development schedule for Mineral Reserve

Figure 16-28 Ore mining schedule for Mineral Reserve

Page 204NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 16-29 Underground Production History and Mineral Reserve plan

16.3.8 Mobile Equipment

The current mining fleet at Wassa is a mixture of the original low-cost, pre-owned fleet from when the

mine was established and new units which have been commissioned as the project has modernized and

productivity has grown. The forward plan at Wassa assumes that this cycling out of older units with new

equipment will continue:

  • Development Jumbos: Current fleet is four Sandvik DD421 twin-boom jumbos which continue as

the standardized development machine.

  • Production Drills: Current fleet is three rigs, one each of Sandvik DL411/421/431 which are the

same class machine (89-115 mm top-hammer) with different boom configurations. This machine

will continue as the standardized blasthole drilling machine, possibly with different boom

configuration or replacement of a longhole drill with a small raisebore/boxhole rig for stope slots.

  • UG Loaders: Current fleet is four 18 t class LHD’s (two older Cat R2900G and one Sandvik LH517)

and two 21 t class machines (Sandvik LH621), which will be standardized to the LH621. Fleet

numbers in early years have been adjusted to reflect operation of the smaller units until they are

cycled out of the fleet.

  • UG Truck: Current fleet is eight 40 t class articulated trucks (Volvo A45G) which are planned to

upgrade to 60 t class machines (Volvo A60H), with the first larger truck budgeted for 2021. Fleet

numbers in early years are adjusted to reflect the smaller units until they are cycled out of the fleet.

Machine numbers for the mobile equipment fleet categories were estimated using the productivity

assumptions shown in Table 16-11 and the resulting fleet schedule is shown in Table 16-12.

Page 205NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 206

Table 16-11 Mobile fleet productivity assumption

Table 16-12 Mobile fleet schedule for Mineral Reserve plan

Development Jumbo

  1.  

4

5

5

5

1

Production Drill

  1.  

2

2

2

3

3

2

UG Loader

  1.  

6

5

4

4

3

3

UG Truck

  1.  

8

9

7

8

6

4

ROM & Ancillary

  1.  

9

1 0

1 0

1 0

8

6

CY26

Machine Type

CY21

CY22

CY23

CY24

CY25

UofM

Development Jumbo

m.adv

Production Drill

sto.t

UG Loader

all.t

UG Truck

tkm

ROM & Ancillary

all.t

Machine Type

Tonne Kilometres

Driving Quantity

119,250

Total Tonnes, Ore+Waste

22,500

Capacity per Unit

Description

per mth

Metres Advanced, Total

220

Stope Tonnes

65,000

Total Tonnes, Ore+Waste

60,000NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 207

17 RECOVERY METHODS

17.1 Processing History

Wassa started industrial scale processing in 1998 utilizing a heap leach (HL) to recover gold from the ore.

The process involved crushing, screening and agglomeration of the mined feed material before being

stacked on leach pads which were irrigated with a weak cyanide solution to recover the gold. The solution

was processed through carbon columns, stripped from the loaded carbon and smelted through to gold doré

bars. Actual recoveries of 55-60% did not achieve planned recovery of 85% which led to the suspension of

operations in 2001.

In 2003 a feasibility study commenced to evaluate construction of the current CIL plant. The study results

were positive and the plant was constructed in 2004 and commissioned in 2005. The CIL plant uses

crushing, milling and CIL and was designed to process 3.5 Mtpa from a feed blend comprising 45% fresh

material, 25% oxidized material and 30% reclaimed spent HL material. Spent HL material reclaimed from

the pads was added to the mill feed via a scrubber until this material was depleted in 2014. After that, mill

feed consisted of fresh material from the open pit until 2016 when underground material was introduced

to the feed. Open pit mining was completed in 2018 and since then, the predominant feed has been

underground ore with supplementary addition of open pit stockpiles fresh, low grade ore.

Table 17-1 Historic plant production, grades and recoveries

17.2 Flow Sheet Description

Gold recovery is achieved using conventional CIL technology, although the plant itself contains a few

atypical features due to its history and development.

The plant flowsheet has transitioned from the historical HL processing and currently consists of the

following operations:

  • A four-stage fine crushing circuit incorporating an open circuit primary jaw crusher followed by

secondary, tertiary and quaternary cone crushers with the secondary and tertiary crushers

operated in closed circuit with sizing screens. A single secondary, two tertiary and four quaternary

crushers give a nominal crushed product size from the crushing circuit of 80% <8 mm.

  • Two independent milling circuits, each comprising a 5.03 m diameter x 6.7 m long ball mill fitted

with 3 MW motors feeding individual clusters of classifying cyclones. Reported mill product size is

around 80% <75 µm.

  • Two separate gravity gold recovery circuits using 48” Knelson centrifugal concentrators process a

portion of the classifying cyclone feed in each mill circuit.

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

CY14

CY15

CY16

CY17

CY18

CY19

CY20

Feed, from Heap Leach

Tonnes

‘000 t

928

324

147

214

188

8

146

9 6

Au grade

g/t

0.64

0.30

0.73

0.59

0.39

0.24

0.30

0.30

Feed, from Open Pit

Tonnes

‘000 t

2,824

2,863

2,506

2,434

2,579

2,507

2,695

2,629

2,495

2,444

1,926

526

161

375

Au grade

g/t

1.34

1.52

2.78

2.36

2.01

2.09

2.27

1.40

1.46

1.27

1.27

0.76

0.65

0.79

Feed, from Underground

Tonnes

‘000 t

178

691

1,075

1,388

1,636

Au grade

g/t

2.06

3.03

4.18

3.57

3.13

Total Feed

Tonnes

‘000 t

3,691

3,752

3,187

2,653

2,648

2,767

2,515

2,841

2,725

2,495

2,623

2,617

1,601

1,549

2,011

Au grade

g/t

0.90

1.17

1.40

2.67

2.22

1.90

2.08

2.17

1.36

1.46

1.32

1.73

3.06

3.27

2.70

cont.Au in Feed

‘000 oz

107

141

143

228

189

169

168

198

119

117

112

146

157

163

174

Recovery

Gravity

g/t

19.3% 19.1% 22.7% 26.5% 27.0% 49.6% 51.4% 35.4% 22.6% 24.0% 22.2% 25.8% 28.4% 25.7%

CIL

g/t

72.8% 74.8% 72.4% 68.3% 67.3% 45.0% 43.1% 57.3% 70.8% 69.5% 71.9% 69.9% 67.1% 69.3%

Total

g/t

88.8%* 92.1%* 93.9%* 95.1%* 94.8%* 94.3% 94.6% 94.5% 92.7% 93.4% 93.5% 94.0% 95.7% 95.6% 95.0%

Au Produced

‘000 oz

98*

130*

135*

217*

179*

160

159

188

110

109

104

137

151

155

165

* CY06-09 recovered includes metal to GIC, Produced is poured only

Total/avg

2,051

1.92

35,983

3.43

4,968

2,100

0.52

28,964

1.76

65.3%

94.4%

29.1%

2,226NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 208

  • The gravity concentrate from the Knelson concentrators is leached using an intensive leach reactor

in combination with an electrowinning cell to recover the precious metals as a sludge prior to

refining. The tails from the centrifugal concentrators are returned to the milling circuits.

  • Classifying cyclones and pre-leach thickener. The thickener underflow feeds a transfer vessel

together with the secondary cyclone underflow where cyanide is added before the slurry is

transferred to the CIL circuit. Oxygen is injected into the transfer line after the transfer pumps.

The transfer pipeline acts as an In-Line Reactor (ILR), where most leaching occurs.

  • Adsorption occurs in the counter current CIL circuit, consisting of six stages of agitated vessel each

of 2500 m3 , providing an overall residence time of 18-20 hours at a 7,400 t/d mill capacity.

Hydrogen peroxide is added periodically to CIL tank 1 to maintain the dissolved oxygen level.

Activated carbon is retained in each tank using interstage basket screens and is moved counter

current to the slurry flow using submerged vertical spindle pumps in each tank. Loaded carbon is

recovered from the first CIL stage.

  • Loaded carbon is acid washed and then stripped of gold using caustic soda in an 11.5 t pressure

Zadra elution system with the gold electrowon onto steel mesh before smelting.

  • Eluted carbon is thermally regenerated and returned to the last stage of the CIL circuit.
  • The gravity gold concentrate and electrowon gold are smelted separately to produce doré bars.
  • Additional supporting facilities include:

o Two, 2.1 t/d capacity pressure swing absorption oxygen plant located in the milling area;

o emergency diesel powered generators.

The key plant design and operating parameters are shown in Table 17-2 and a schematic flowsheet for the

Wassa plant is presented in Table 17-2. The schematic incorporates the new densifying cyclone and

thickening circuit currently being installed.

The Wassa process plant is currently operating below design capacity due to limited feed supply. 2.0 Mt of

ore was processed in 2020 compared to nameplate capacity of 2.7 Mtpa.

The Wassa process operation achieved certification with the International Cyanide Management Code in

early November 2009 and was recertified in 2017 and again in 2020.

Table 17-2 Key plant design and operating parameters

Parameter

Unit

Fresh Ore Feed

Design

Current Operations

Nominal throughput

Mtpa

2.65

1.60

Crushing Circuit Product

% passing

80%< 8mm

80%< 8mm

Crushing Circuit Utilization

%

75

75

Plant Design Availability

%

92

92

Mill product grind

% passing

70%<75 micron

70%<75 micron

CIL Feed Density, Design/Current

% Solids

40

40 (CIL tanks – measured)

CIL Feed Density, with thickener

% Solids

44-46

44-46

CIL Retention Time (calculated)

h (total)

20

33NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 17-1 Wassa processing plant flow sheet

Page 209NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 210

17.2.1 Plant Accounting

Plant throughput is reported based on the belt weighers installed on the conveyors feeding the two ball

mills from the crushed material stockpile. There is also a belt weigher installed on the crushing circuit

product to the crushed material stockpile.

Plant performance and accounting is assessed based on samples of feed and tailings taken automatically

using inline slurry samplers, which are composited into 12 h shift accounting samples. The feed sample is

taken after the milling and gravity circuit before transfer to the CIL circuit and the gold recovered by gravity

and smelted separately is added to calculate the plant feed grade. The feed and tail slurry samples are

analysed using bottle roll laboratory tests to assess the BLEG tests.

Slurry samples are filtered and washed and solids are pulverized to 95% <75 µm before being subject to

BLEG (bulk leach extractable gold) bottle roll extraction. BLEG tests are run for 8 hours at high cyanide

concentration. Solutions from BLEG test and slurry filtrate are analysed by gold extraction into an organic

phase and then measured by atomic adsorption spectroscopy (AAS). Extended BLEG tests are also done to

confirm that all the recoverable gold has been extracted during the standard BLEG leach period. The BLEG

tails are periodically fire assayed to determine residual gold in the samples not recovered in the BLEG tests

(gold potentially locked in silica, pyrite or other sulphide minerals). Initially, a BLEG factor was used in

assessment of the total gold in the plant tails to determine the overall plant gold recoveries. However, GSR

has continuously improved its BLEG testing process so that the tests achieve complete gold dissolution.

Periodic fire assays on the residue of the tails from the BLEG tests confirm the efficiency of the BLEG tests.

The gold recovered by gravity is leached, electrowon and smelted separately and this is added to the gold

in the mill product sample to determine the gold grade in the feed. A sample is taken of crushed ore from

the feed to the ball mills and this is used as a check measurement on the plant feed grade although is not

used for accounting purposes.

Reconciliation is undertaken monthly between the gold produced and the gold present in the feed and

tails. This also considers the changing gold inventory on the plant from month start to month end. Based

on the reconciliation the reported head grade is adjusted to correlate with the monthly gold production.

17.3 Processing Schedule

Table 17-3 shows the processing schedule quantities for the Mineral Reserve plan.

Table 17-3 Processing schedule quantities for Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Feed, from Underground

Tonnes

‘000 t

1,711

1,893

1,996

2,228

2,001

338

Au grade

g/t

3.14

3.01

2.95

2.95

2.89

3.03

cont.Au in Feed

‘000 oz

173

183

190

211

186

3 3

Feed, from LG Stockpile

Tonnes

‘000 t

361

100

225

Au grade

g/t

0.62

0.61

0.61

cont.Au in Feed

‘000 oz

7

2

4

Total Processed

Tonnes

‘000 t

2,072

1,993

1,996

2,228

2,001

563

Au grade

g/t

2.70

2.89

2.95

2.95

2.89

2.06

cont.Au in Feed

‘000 oz

180

185

190

211

186

3 7

Recovery

g/t

94.4%

94.3%

94.1%

93.9%

93.6%

90.8%

Au Produced

‘000 oz

170

175

178

199

174

3 4

Total/avg

10,167

2.99

976

686

0.62

1 4

10,852

2.84

990

93.9%

930NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 17-2 Processing schedule for Mineral Reserve plan

Figure 17-3 Gold Production schedule for Mineral Reserve plan

Page 211NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 17-4 Processing Production History and Mineral Reserve Plan

Figure 17-5 Gold Production History and Mineral Reserve plan

Page 212NI 43-101 Technical Report (March 2021) Wassa Gold Mine

18 INFRASTRUCTURE

The locations of mining areas and major infrastructure at Wassa are shown in Figure 18-2, including:

  • Main roads, towns and power lines;
  • Open pit voids and waste storage areas;
  • Processing facilities;
  • Tailings storage facilities; and
  • Site accommodation.

Key infrastructure locations around the main site area are shown in Figure 18-1 and a site layout in Figure

18-2, which shows both the local mine grid and UTM grid (WGS84 30N). Figure 18-3 shows the same site

layout image plus the underground workings surveyed at the end of December 2020.

Figure 18-1 Wassa key infrastructure (GSR, 2018)

Page 213NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 18-2 Wassa site layout (GSR, 2021)

Page 214NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 18-3 Wassa site layout and underground workings (GSR, 2021)

18.1 Electrical Infrastructure

18.1.1 Power Supply

Wassa has two power supply sources. The site is connected to the national grid, along with on-site power

generation.

Grid power from the national power supplier (VRA) via a network operated by GridCo comes from a 161 kV

line to local substation where power is transformed down through a 33 MVA transformer to 34.5 kV. The

grid connection has been the primary site power supply since commissioning in 2006.

An on-site power station was constructed during 2020 to improve long-term reliability of the power supply.

The plant is owned and operated by Genser under an agreement and contains two 34.5kV, 16.5MW gas

turbines. The plant was commissioned in early 2021 and now supplies all site power except for the site

accommodation camp.

With on-site generation, the grid connection is retained, permitting use of the grid for standby supply.

Page 215NI 43-101 Technical Report (March 2021) Wassa Gold Mine

18.1.2 Site Distribution

Power is supplied to the main site substations at 34.5 kV with a major upgrade completed in 2020.

  • The processing plant and other surface facilities are fed via the GSR substations, which are 16 MVA

and 18 MVA capacity and distribute at 6.6 kV. They are sized for the plant to operate at the full

2.7 Mtpa throughput rate.

Figure 18-4 Site electrical distribution

  • The underground mine is supplied by three 34.5/6.6 kV substations:

o One 5.0 MVA capacity transformer with two 2000 kVA 400 V diesel generators with

switching and transformers to distribute at 6.6 kV to distribution substations in the

underground mine and associated locations, where it is locally stepped down as required to

1000 V, 415 V and 240 V. Spare switches are available for future requirements.

o Two 4.0 MVA transformers were added in 2020 when distribution was expanded to provide

capacity for the paste plant and ventilation fans required to extract the Reserve.

Distribution voltage was increased from 6.6kV to 11kV and the project included installing a

new switch yard to split the feed between the 34.5kV/6.6kV circuit servicing mine via the

Portal bench and the new 34.5kV/11kV circuit which connects to a ring main unit at 570

level via a single point suspended 185mm2 XLPE cable in a raisebored service hole.

The 11kV project has capacity to be readily expanded and Figure 18-4 shows a simplified

line diagram, with the conceptual expanded HV circuit shown in yellow shading.

Page 216NI 43-101 Technical Report (March 2021) Wassa Gold Mine

18.2 Surface Water Management

Water diversion structures are installed as required to prevent inflow of surface runoff from the

surrounding topography. Within the pit crests, water inflow is a combination of rainfall and groundwater.

Each of the four catchments within the Main pit complex (Figure 18-5) have a storm water collection sump

which is designed for a 1:100 year, 24 hour duration event (241 mm). Catchment modifications have been

completed to manage flow directions and capacity requirements at each sump. The dewatering discharge

from the pit sumps is used across the site (eg: process plant, dust suppression) and excess water is directed

to settling and drainage systems prior to release.

Figure 18-5 Wassa Main pit catchments

  • Starter Pit: has direct connectivity to underground workings via the two portals at 905 mRL. The

sump below the portal entrances has 115% of the capacity required for the design rainfall event.

Service and emergency pump systems are installed to maintain low operating levels and provide

surge capacity to draw down the sump during and after a rainfall event.

o Service – 45 l/s (electric submersible pump with 160 mm HDPE pipe); and

o Emergency – 165 l/s (diesel pump set with 2x 160 mm HDPE pipes).

  • B-Shoot Pit: has direct connectivity to underground workings via the portal, waste rock pass and

vent shaft breakthoughs at the 844 mRL. The sump in the bottom of the B-Shoot pit has 200% of

the capacity required for the design event.

A single diesel pump set with 2x 160 mm HDPE pipes is installed with 150 l/s capacity.

  • 242 Pit: currently has limited connectivity to underground workings through groundwater seepage

only. However, this will change with underground development of the Panel 3, 242 area, although

Page 217NI 43-101 Technical Report (March 2021) Wassa Gold Mine

the surface water management plan will remain consistent with the current strategy to catch water

in the 242 pit sump to prevent entry into underground workings.

Current sump capacity is 360% of the design requirement and will reduce to 138% when the new

portal at 940 mRL is cut to establish the underground workings.

A single diesel pump set with 2x 160 mm HDPE pipes is installed with 150 l/s capacity.

  • South East Pit: currently has limited connectivity to underground workings through groundwater

seepage only. Sump capacity is 240% of the design requirement.

A single diesel pump set with 2x 160 mm HDPE pipes is installed with 150 l/s capacity.

  • The pump network is maintained regularly and sufficient spare equipment is on site including one

of the electric submersible pumps and two of the diesel pump sets.

18.3 Workshops and Other Site Buildings

The following engineering workshops are in place to support site operations:

  • Processing Fixed Plant: located near the processing plant to support its activity.
  • Surface Mobile Equipment: located between the administration area and equipped with offices,

overhead cranage, services and welding bay to support the former open pit mining fleet.

  • Underground has three workshop areas to support the underground mining fleet:

o Surface, located near the underground offices with offices, services and 1000 V power

supply for equipment testing;

o Starter pit portal bench: lube and service bay, with 1000 V test panel; and

o Underground workshop at 595 mRL: this facility is in the final stages of construction

(excavation, support, concreting and water management are complete) and is planned for

completion in 2021-Q2. It will be used to service drilling equipment and loaders and

reduce tramming time to surface.

  • Light Vehicles: located near the warehouse.

Other buildings on site include:

  • Administration offices;
  • Kitchen and messing facilities;
  • Diesel fuel storage;
  • Warehouse and dry goods storage;
  • Metallurgical laboratory; and
  • Core processing and logging facility.

18.4 Site Accommodation

Employees reside both on-site, or in surrounding towns and villages.

On-site accommodation is located at the Tara Camp 3 km northwest of the mine site as well as at Camp 2

located within the Akyempim village.

Facilities include:

  • Accommodation for both single employees with some houses for families;
  • Company medical and health clinic including primary care, laboratory, pharmacy, radiology

ambulance and detention services;

  • Kitchen and messing facilities;
  • Recreation facilities including gymnasium, tennis court, swimming pool and bar; and
  • Commissary.

Page 218NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Accommodation is currently being expanded to provide additional capacity to permit more personnel to

reside on site during their roster-cycle and reduce risk of pandemic exposure. The accommodation

expansion project is shown top-left of Figure 18-6.

Figure 18-6 Tara Camp

18.5 Waste Rock Storage

The waste dumps are located adjacent to the Main and South Akyempim pit complexes. Waste from

underground operations is either placed in underground stope voids or hauled to the waste dump locations

shown in Figure 18-7.

Waste dumps were designed and then permitted in 2017, to allow an additional 88 Mt of storage of waste

from the underground and Main pits Cut 3 cutback. The 419 waste rock dump, south of the Main pit, is the

currently active waste placement area. The permitted storage at the site is sufficient for the waste volume

scheduled to be mined alongside the Mineral Reserve.

Page 219NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 18-7 Waste dump locations (Golder, 2016)

Dumps are designed with 10 m bench height with 10 m wide berms and consider operational and

rehabilitation phases. For operations, as-dumped designs have 37° batter angles (natural angle of repose)

with wider berms and final rehabilitation applies 25° batters to achieve the overall slope of 22°. A nominal

dump section is shown in Figure 18-8.

Asbuilt and designed dumps include the following features:

  • Adequate drainage to ensure that any discharge from the waste dump is contained for settlement

and/or monitoring, to enable compliance with the EPA effluent discharge limits.

  • The top surface of the dump, and any berms partway up the dump slopes, are constructed to shed

water away from the surface of the dump.

  • Water collecting drains are constructed around the perimeter of the dump to route discharges and

runoffs into settlement and monitoring ponds.

Figure 18-8 Section through nominal waste dump design

Page 220NI 43-101 Technical Report (March 2021) Wassa Gold Mine

18.6 Tailings Storage

There are two tailings storage facilities at Wassa which are described below and shown in Figure 18-9:

  • TSF 1:

TSF 1 is located northwest of the processing plant at the head of a southerly draining valley and

immediately adjacent to the historical leach pad area. Ground levels range from 1000 mRL on the

valley floor to above 1060 mRL on the surrounding hills.

It is a cross valley impoundment created by the construction of a main embankment in the south

with confining saddle embankments at the north of the facility. Containment to the east and west

is provided by natural ridges. Access is via unsealed access road west of the plant site area.

The catchment area of TSF 1 is estimated to be approximately 140 Ha, of which 124 ha is covered

with tailings as the facility proceeds through closure revegetation trials.

Deposition into TSF 1 ceased in 2019 with paddock deposition completed to achieve the

approximate closure surface topography requirements of the closure landform.

Re-vegetation trials commenced in 2017 towards the next land use and by the end of 2020

revegetation planting was mostly complete.

  • TSF 2:

TSF 2 is located in the valley system that trends eastward from the north embankment of TSF 1. It

is approximately 2.5 km from the processing plant and 1.3 km downstream of TSF 1 Saddle Dam 5.

TSF 2 has a footprint of 260 ha, of which 72 ha have been developed to date, and lies within a total

project area of 340 ha including buffer zones.

The remaining capacity of TSF 2 is well in excess of that required for processing of ore defined by

the Mineral Reserve, both before and after allowing for use of tails solids in paste backfill.

Figure 18-9 Wassa TSF 1 and TSF 2 aerial view (August 2020)

Figure 18-10 is a photograph taken from the north of TSF 1, looking southeast in November 2020. In the

image the following features can be seen:

  • Revegetated TSF 1 to the right;
  • Active deposition into TSF 2, Cell 1 in background left; and
  • Basin preparations of TSF 2, Cell 2 in the foreground.

Page 221NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 18-10 View from north of TSF 1 looking southeast (November 2020)

18.6.1 History

TSF 1 was commissioned August 2004 to meet the tailings storage needs for the mine life associated with

construction of the CIL plant. Since starter embankment construction, embankments raises have been

designed, permitted and constructed up to the final elevation at 1039 mRL.

During planning for TSF 2 in 2009 and 2010, alternatives were considered for additional tailings capacity,

with four potentially feasible options:

  • Two different locations for new TSF’s;
  • Increasing elevation of TSF 1 to 1049.5 mRL; and
  • Increasing elevation TSF 1 whilst progressing a new TSF.

The selected option was to construct a new facility (TSF 2). The new TSF required development of a

Resettlement Action Plan (RAP) which ultimately determined the RAP scope to include resettlement of the

entire community of Togbekrom.

In compliance with the requirements of the EPA’s Environmental Assessments Regulations, 1999 (L.I.

1652), GSWL registered a new TSF project with the EPA in May 2010 and obtained authorization to proceed

to permitting in July 2010. An Environmental Scoping Report was submitted to the EPA in March 2011 and

later, and EIS was submitted for the construction and operation of the proposed TSF 2. The EIS was

approved by the EPA in April 2013 (EPA/EIA/383) and conditions of the EIA permit led to GSWL re-designing

the TSF 2 facility to accommodate a geomembrane liner.

While conducting the impact assessments and the preparation of the EIS, GSWL sought permission to raise

the TSF 1 by an additional 5 m and for continued deposition between August 2011 and May 2015. All

embankments have subsequently been constructed to the final permitted elevation of 1039 mRL.

Page 222NI 43-101 Technical Report (March 2021) Wassa Gold Mine

In March 2015, GSWL obtained permitting to expand TSF 1 into the disused heap leach area that was

located directly east of TSF 1. The 16.2 ha extension provided 2.09 Mt additional storage capacity

conventional deposition (embankment spigotting) and in over 2.17 Mt of capacity, primarily through

paddock deposition (spigotting from day walls) across the entire TSF 1, to achieve the optimal drainage

design, ahead of TSF 1 closure.

GSWL applied to the EPA in July 2014 for the renewal of the TSF 2 permit in compliance with the

requirements of the EPA Environmental Assessment Regulations, 1999 (L.I. 1652) and Section 3.7 of the

EPA Permit (EPA/EIA/383) after the facility was re-designed to accommodate a geomembrane liner. The

EIS for TSF 2 was updated in January 2014, following advice from the EPA permitting was issued in January

2016 with an effective date of November 2015 (EPA/EIA/442).

The development of TSF 2 necessitated resettlement of some 105 households within the Togbekrom and

surrounding hamlets to New Ateiku, approximately 10 km north. All the affected people affected by the

project were successfully relocated to their new homes in Q1 of 2013. The RAP has been successfully

completed.

TSF 2 has current design capacity of some 41 Mt of tailings, which provides approximately 15 years capacity

at 2.7 Mtpa throughput. It will be constructed in three cells and 11 stages. The cellular design provides

flexibility to modify stage raises and enable dry season construction for various throughput rates.

At the time of permit renewal, the TSF 2 design had been revised to a cellular arrangement with lining of

the entire basin with HDPE geomembrane. In February 2016, the Mines Inspectorate Division of the

Minerals Commission directed that, as per the Minerals and Mining Regulations, 2012 (L.I. 2182), the TSF 2

design be constructed with a compacted soil liner (CSL). As GSWL was well advanced with development of

TSF 2 at the time, dispensation was granted for HDPE lining of TSF 2 Cell 1, with all future cells and stage

raises to incorporate a compacted soil liner.

TSF 2 Cell 1 construction commenced in July 2016. Verbal approval from the Inspectorate Division to start

deposition was given in February 2017 and EPA approval followed in April. Deposition started May 2017.

In July 2017, the Mines Inspectorate Division had completed their review and recommended the re-design

of TSF 2 with a compacted soil liner to the Chief Inspector of Mines for approval.

In 2017, GSWL commenced an EIA to support the submission of a Supplementary EIS for TSF 2 Cell 2. The

Supplementary EIS was submitted to the EPA in October 2018 with the compacted soil liner design (Figure

18-11). The TSF 2 Cell 2 Supplementary EIS was permitted in August 2020 and Environmental Permit issued

in November 2020 (EPA/EIA/533).

Page 223NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 18-11 TSF 1 and TSF 2 layout (Geosystems, 2018)

Page 224NI 43-101 Technical Report (March 2021) Wassa Gold Mine

18.6.2 TSF 2 Details

18.6.2.1 Geotechnical Characterization

A detailed geotechnical investigation comprising sub-soil, in-situ and laboratory testing of soils of the TSF 2

basin was carried out by Knight Piésold Consulting Ltd using test pitting, cable percussion drilling, standard

penetration testing, permeability testing, moisture content, grading, Atterberg Limits tests, consolidation

tests, triaxial testing on undisturbed soil samples and falling head permeability tests.

Results established the soil profile of the basin, the strength of the foundation soils, and the permeability of

the different soil types, to inform in the design of the TSF embankments, base and environmental

protection features.

The TSF 2 basin is characterized by a rugged and dissected ground profile that defines the soil profiles in the

area according to topographical location. Two main soil types are found in the TSF footprint:

  • Alluvial soils formed by deposition of eroded materials from the surrounding hills; and
  • Residual soils formed in-situ from the chemical weathering of the underlying base rocks.

Soils can be classified as either of:

  • High ground and side-slope soils that are found along slopes and crests of hills, plateau and other

high ground that characterizes the TSF footprint; or

  • Basin valley and embankment foundation soils that dominate the valleys and low-lying areas.

Guelph permeability tests conducted on nearby surface soils in the valley floor indicated that in some areas

the soils have very low permeability (lower than 1.0 x 10-8 m/s). In-situ falling head permeability tests

showed that the residual soils, at depths greater than 1.0 m, have a relatively high permeability.

Laboratory falling head permeability tests corroborated the field studies and showed that in the valley

floor, very low permeability strata exists to approximately 1.0 m depth.

18.6.2.2 TSF 2 Design

The TSF 2 design comprises three cells separated by embankments, a temporary embankment and a series

of perimeter saddle dams, providing primary containment to ensure that tailings are contained within the

valley basin. Other key environmental protection features of the design to enable efficient and appropriate

water management include:

  • Lining of the base with geomembrane and/or compacted soil liner;
  • Spillway;
  • Decant barge;
  • Secondary confinement;
  • Ground water drains; and
  • Basin under-drains.

The TSF 2 design assumed a processing rate of 2.7 Mtpa. The facility is designed for a storm capacity of:

  • Containment of a 1:100 year, 24 hour duration event with allowance for wave run-up and no flow

through the spillway; and

  • Safe discharge of a 1:1000 year, 24 hour duration event.

The design of the TSF 2 meets the requirements of the Minerals and Mining (Health, Safety and Technical)

Regulations, 2012 (L.I. 2182) and takes due consideration of the recommendations of the International

Committee on Large Dams (ICOLD), the Australian Committee on Large Dams (1999) and the Canadian Dam

Association guidelines (2007).

Page 225NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 226

Following release of the Global Industry Standard on Tailings Management in August 2020, GSR engaged its

Engineer of Record to complete a gap analysis against the standard which is expected to be completed in

  1.  

TSF 2 is being constructed in stages and stage storage capacities are presented in Table 18-1. Alternative

stage raises have been evaluated to facilitate annual raising during suitable construction weather

conditions (Knight Piésold, 2017).

The useful life of TSF 2 will be prolonged by the commencement of paste fill in 2021. On average 40-60% of

tails solids are estimated to be used in paste fill and deposited underground.

Beach and bathymetry surveys conducted in September 2020 indicate the current design allows for

approximately 33 Mt of further capacity. The Mineral Reserve plan requires processing of 10.8 Mt of ore

and schedules estimate 5.0 Mt of the resulting tails solids will be used for paste backfill. Even with the

most conservative of paste fill estimates, TSF 2 has more than sufficient design capacity to support

extraction of the Mineral Reserve.

Table 18-1 TSF 2 stage design details

18.6.2.3 Stability Analysis

Stability analyses were conducted for static and seismic loading conditions and static post liquefaction

conditions for critical embankments and stages using SLOPE/W® and the Morgenstern-Price method of

analysis, which considers force and moments equilibrium of circular slips.

A conservative peak seismic design horizontal ground acceleration of 0.1 g, obtained from “Seismicity of

Southern Ghana: Causes, Engineering Implications and Mitigation Strategies” by N.K. Kumapley (1996), was

employed in the pseudo static analyses.

For the stability analyses on the upstream slopes, the worst-case scenario was considered, where no

tailings are present in front of each embankment stage. For the stability analyses of the downstream

slopes, the worst-case scenario was also considered, where the TSF was full to capacity in front of each

stage raise (1 m below crest). Modelling scenarios assessed drained and undrained conditions and worst

case-phreatic conditions. The assumed conditions combine to present a conservative analysis.

The minimum Factor of Safety (FOS) values calculated for all conditions on both the downstream and

upstream slopes were found to meet, and in some conditions exceed the Minerals and Mining (Health,

Safety and Technical) Regulations, 2012 (L.I. 2182) requirements for factors of safety.

Stability of the facility was also assessed under the condition where, following the design seismic event, the

tailings may be subjected to liquefaction. Seismic stability assessment of the various embankments was

conducted in the undrained condition for upstream failure and static drained condition for downstream

failure. Tailings were modelled with a residual post-liquefied undrained strength but with no earthquake

loading. The minimum FOS values calculated for the post-liquefied condition of the downstream and

upstream slopes meet and, in some conditions exceed, the regulatory requirements.

Storage

Cell

Crest

Beach

Density Stage

Cum.

Stage

Cum.

Mth

Annual

mRL

mRL

t/m3

Mt

Mt

mth

mth

m/mth

m/yr

1

1,011.5 1,010.5

1.10

3.24

3.24

14.4

14.4

1.3

15.0

1

1,018.5 1,017.5

1.10

3.63

6.87

16.1

30.5

0.4

5.2

1

1,203.0 1,022.0

1.10

3.14

10.01

14.0

44.5

0.3

3.9

1

1,010.0 1,009.0

1.10

3.34

13.35

14.8

59.3

1.2

14.6

3

1,001.0 1,000.0

1.10

3.01

16.36

13.4

72.7

1.0

12.1

3

1,007.8 1,006.8

1.10

2.90

19.26

12.9

85.6

0.5

6.3

2+3

1,012.5 1,011.5

1.25

3.35

22.61

14.9

100.5

0.3

3.8

2+3

1,015.0 1,014.0

1.29

3.33

25.94

14.8

115.3

0.2

2.0

2+3

1,017.4 1,016.4

1.33

3.52

29.46

15.6

130.9

0.2

1.8

2+3

1,020.0 1,019.0

1.37

3.64

33.10

16.2

147.1

0.2

1.9

2+3

1,023.0 1,022.0

1.40

7.86

40.96

34.9

182.0

0.1

1.0

Levels

3

5

9

1 0

1 1

2

Stage

1

8

7

Embankment

Capacity

Duration/Life

Rate of Rise

Inundation

Height

Area

m

18.5

25.5

ha

34.6

46.0

30.0

61.5

4

18.5

37.8

14.0

36.5

6

20.8

37.3

33.0

111.2

37.0

133.5

25.5

71.0

28.0

98.8

30.4

110.5NI 43-101 Technical Report (March 2021) Wassa Gold Mine

19 MARKET STUDIES AND CONTRACTS

19.1 Market Studies

All gold from Wassa is shipped to a South African gold refinery under a long-term sales contract. Shipping is

in the form of doré bars, which average approximately 90% gold by weight with the remaining portion

being silver and other metals. The sale price is generally set with reference to the London p.m. fix on the

day of the shipment to the refinery.

Gold is a freely traded commodity on the world market and whilst the selling price is subject to fluctuation,

the volume of gold produced at Wassa will not be material to the supply/demand balance and will not

influence the selling price.

This report considers two gold price assumptions:

  • Base Case: for Mineral Reserve estimation and economic test – $1,300 /oz flat; and
  • Consensus Case: consensus long-term forecast of 27 banks and financial institutions, as at the end

of January 2021:

o 2021 – $1,944.26 /oz;

o 2022 – $1,879.70 /oz;

o 2023 – $1,772.87 /oz;

o 2024 – $1,715.61 /oz; and

o 2025 and beyond (long-term) – $1,584.68 /oz.

19.2 Contracts

The following major contracts are in place to support the Wassa operations:

  • Gold sales contract is in-place with Rand Refinery in South Africa;
  • Electricity supply (on-site gas generation) – Genser Energy Ghana;
  • Fuel and lubricants supply – Ghana Oil Company;
  • Electricity transmission from VRA – GRIDCo;
  • Electricity supply – VRA;
  • Explosives and associated systems – AEL (AECI Ghana Ltd);
  • Medical services – International SOS;
  • Bulk lime supply – Carmeuse Lime Products (Ghana);
  • Site security – Magnum Force Security; and
  • Freight forwarding and logistics – Racing Link Express.

All contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered

consistent with industry norms. Contract management processes are in place and resourced so that

contracts re-tendered and/or renewed as they approach expiry.

Page 227NI 43-101 Technical Report (March 2021) Wassa Gold Mine

20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR

COMMUNITY IMPACT

20.1 Relevant Legislation and Required Approvals

The minerals and mining sector in Ghana is governed by Act 703. It requires mines to obtain environmental

approvals from relevant agencies as outlined in Table 20-1. Ghanaian environmental legislation is well

developed and enforced by the Environmental Protection Agency (EPA).

20.1.1 Permitting Requirements in Ghana

20.1.1.1 Environmental Assessment Requirements

Environmental aspects in Ghana are regulated by the EPA Act, 1994 (Act 490). The EPA’s primary legislation

for regulation and monitoring of mineral operations are the Environmental Assessment Regulations, Legal

Instrument 1652 of 1999 (L.I. 1652), which cover requirements for:

  • Environmental permitting;
  • Environmental Impact Assessment (EIA);
  • Preparation of preliminary environmental reports and environmental impact statements (EIS);
  • Environmental certificates;
  • Environmental Management Plan (EMP); and
  • Reclamation bonding.

The EPA grants environmental approval to projects through an Environmental Permit, which is issued

subject to the findings of an EIA, which is documented in an EIS and also covers social aspects. For a mine,

an EIS must include a reclamation plan and a provisional EMP. Prior to formal review by the EPA, the EIS

may be subject to public exhibition and hearing, with responses from regulators and community to be

incorporated into the EIS before an Environmental Permit is granted.

Two years from receipt of an Environmental Permit, an Environmental Certificate is required from the EPA

to confirm:

  • Commencement of operations;
  • Acquisition of all permits and approvals;
  • Compliance with mitigation commitments in the EIS and/or EMP; and
  • Submission of annual reports to EPA as required.

Within 18 months of commencing operations an EMP must be submitted to and be approved by the EPA. A

provisional EMP is included in the EIS which is then updated and incorporated into the mine’s active EMP

which is updated every three years over the mine’s life. EMP’s are submitted to and approved by the EPA.

Mines in Ghana are required to have a reclamation plan (Regulation 14 of L.I. 1652) and mining operations

submit annual environmental reports (Regulation 25 of L.I. 1652) and monthly environmental monitoring

results to EPA, with commentary where values exceed limits and response plans as required.

Relevant guidelines and standards are provided under Act 490, including the Mining and Environmental

Guidelines (1994) which provide guidance for: EIS and EMP contents; reclamation plans; EIA procedures;

effluent and emission standards; ambient quality and noise levels; and economic instruments.

The EPA conducts routine monitoring of environmental parameters for mines and the results obtained are

cross-checked with the monthly results submitted by operations and compared to relevant standards.

The EPA is empowered to suspend, cancel, or revoke Environmental Permits in the event of a breach of L.I.

1652, the permit conditions or the mitigation commitments in the EMP.

Page 228NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 229

Table 20-1 Primary environmental approvals for mines in Ghana

20.1.1.2 Minerals and Mining Requirements

Act 703 establishes laws on the process for obtaining mineral rights, the administration and management

of these rights and protection of the environment. Supporting Act 703 are the Minerals and Mining

Regulations, 2012 which cover:

  • General aspects (L.I. 2173);
  • Compensation and resettlement (L.I. 2175);
  • Explosives (L.I. 2177);
  • Support services (L.I. 2174); and
  • Health, safety and technical requirements (L.I. 2182).

Regulatory institution

Approvals & Permits

Compliance

Environmental Protection

Agency

Established under the

Environmental Protection

Agency Act, 1994 (Act

490), responsible for

enforcement of

environmental regulations.

Environmental Permit

Under Section 18 of the Mining Act, 2006 (Act 703), and the

Environmental Assessment Regulations, 1999 (L.I. 1652), of the EPA, the

holder of a mineral right requires an Environmental Permit from the EPA

in to undertake any mineral operations.

Approved Environmental Management Plan

EMP to be submitted within 18 months of commencement of operations

and updated every three years (Regulation 24 of L.I. 1652).

Environmental Certificate

Must be obtained from EPA within 24 months of commencement of an

approved undertaking (Regulation 22 of L.I. 1652).

Reclamation plan

Mine closure and decommissioning plans to be prepared and approved

by the EPA (Regulation 14 of L.I. 1652).

Reclamation bond

Mines must post a reclamation bond based on an approved reclamation

plan (Regulation 22 of L.I. 1652).

Reporting

Mines submit monthly returns and

annual environmental reports to the

EPA.

Inspections

EPA undertakes regular inspections to

ensure compliance.

Enforcement

EPA may suspend, cancel or revoke

an Environmental Permit or

certificate and prosecute breaches.

Minerals Commission and

Mines Inspectorate

Division

Established under the

Minerals and Mining Act,

2006 (Act 703), the

Minerals Commission

administrate mineral rights

in trust for the people of

Ghana.

Exploration and mining operating plans

Operating Permit from Inspectorate Division required to commence

operations. Changes to operating plans to be approved by the Chief

Inspector of Mines.

Emergency response plan

An approved emergency response plan must be in place.

Resettlement plan

Resettlement plans to be approved by the district planning authority,

according to requirements for compensation & resettlement in L.I.

  1.  

Closure Plan

Closure plan to comply with Regulations 273 to 277.

Other

A number of other minor permits and licences are required to support

operations (eg: explosives).

Reporting

Mines submit monthly and quarterly

returns.

Inspections

Mines Inspectorate undertakes

regular inspections to ensure

compliance.

Enforcement

Regulations 21 and 22 allow the

Mines Inspectorate to issue

improvement and/or prohibition

notices for contraventions of the

Regulations.

Water Resources

Commission

Established under the

Water Resources

Commission Act, 1996 (Act

522), WRC is responsible

for regulation and

management of the use of

water resources.

Approvals for water usage

Under Section 17 of the Mining Act, 2006 (Act 703), the holder of a

mineral right may obtain, divert, impound, convey and use water from a

watercourse or underground reservoir on the land of the subject of the

mineral right, subject to obtaining the requisite approvals under Act 522.

The Water Use Regulations, 2001 (L.I. 1692), regulate and monitor the

use of water.

Reporting

Holders submit quarterly and annual

reports to the WRC.

Inspection

WRC can inspect works and ascertain

abstraction volumes.

Enforcement

Act 522 and L.I. 1692 prescribe

sanctions for breaches.

Forestry Commission and

Forestry Services Division

In accordance with Section 18 of the Mining Act, 2006 (Act 703), a

holder of a mining right must obtain necessary approvals from the

Forestry Commission.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The following regulations have particular relevance to environmental and social management:

  • Minerals and Mining (Health, Safety and Technical) Regulations 2012 (L.I. 2182): requirements for

approval of mine closure plans and TSF hazard classes outlining requirements for embankment

design, factors of safety, impoundments, freeboard, discharge systems, safety arrangements,

monitoring, planning, auditing and closure.

  • Mining General Regulations 2012 (L.I. 2173): promote preferential employment of Ghanaians and

procurement from Ghanaian suppliers. Mines prepare localization plans to achieve this and submit

periodic reports (monthly, six-monthly and annual) detailing Ghanaian and expatriate staff

numbers, payments of salaries and wages, royalty and corporate tax.

  • Mines (Support Services) Regulations, 2012 (L.I. 2174): extend the requirement to preferentially

employ Ghanaians to providers of services to mines.

  • Mines (Compensation & Resettlement) Regulations, 2012 (L.I. 2175): require that people displaced

to conduct mining operations are resettled to suitable alternative land and that livelihoods and

living standards are improved. The resettlement plan must be approved by the district planning

authority and then given effect by the Minister responsible for Mines.

GSWL has submitted its localization plan to the Minerals Commission covering expatriate staff and the

company remains in full compliance with the regulatory requirements.

GSR is listed on the Ghana stock exchange and continues to submit its annual financial reports as required.

20.1.1.3 Water Resource Legislation Requirements

The Water Resources Commission Act, 1996 (Act 552) establishes the Water Resources Commission (WRC)

and sets requirements regulating the use of water resources. The Water Use Regulations, 2001 (L.I. 1692),

and Drilling Licence and Groundwater Development Regulations, 2006 (L.I. 1827), complement the Act by

specifying the requirements for obtaining permits for water use, water rights, and priorities for water use;

and water drilling licences, and well construction requirements; respectively.

20.1.2 Permitting of Existing Operations

A summary of environmental approvals held by GSWL is provided in Table 20-2 and can be summarized as:

  • 1998 – Satellite Goldfields Limited (SGL): EIS effected approval for development of Wassa, including

the original extent of the Main pits complex (South East, 242, F-Shoot, B-Shoot, South, Main South

and 419 pits) and processing via a heap leach operation.

  • Sep-2002: GSR purchased the project, recommencing operations under Wexford Goldfields Limited

(WGL), with ownership 90% GSR and 10% Government of Ghana.

  • 2004 – WGL: EIS effected approval to construct and commence processing via carbon-in-leach (CIL)

and establishment of the tailings storage facility (TSF 1).

  • 2005: GSR acquired St Jude Resources (SJR) and with it, Hwini Butre and Benso properties to the

south.

  • 2006: Permitting to extend open pit mining to South Akyempim.
  • 2007: Hwini Butre and Benso (HBB) EIS permitted expansion of open pits with processing at Wassa.
  • 2010: GSWL (Wassa) Pits Expansion EIS permitted cutbacks at 242, South, Main South, F & B

Shoots. A further EIS effected approval of the Benso G-Zone waste rock dump.

  • 2011, 2012, 2013: TSF 1 stage raises to 1035.5 mRL, 1037 mRL and 1039 mRL respectively.
  • 2015: TSF 1 extension, establishment of TSF 2 and permitting of underground exploration.
  • 2016: TSF 2 re-design and re-permitting.
  • 2017: Permitting to incorporate underground mining, pit cut back and waste dump extensions.
  • 2020: Permitting of TSF 2 Cell 2.

Page 230NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 231

Table 20-2 Environmental approvals obtained for Wassa mine

Approval

Permit No.

Date of Issue Expiry Date

Comments

Environmental Protection Agency – Environmental Permits to commence operations

Approval of the Satellite Goldfields Limited

Wassa project EIS

n/a

1998

There are no formal approval documents on

record

EIA and EMP for Exploration in Subri River

Forest Reserve

n/a

2004

There are no formal approval documents on

record

Environmental Permit for the Wassa Power

Project

Form D

(0010335)

7-May-2004

n/a

Based on Volta River Authority Wexford Power

Project 161 kV Power Transmission Line Bogoso

to Akyempim Environmental Scoping Report

(2003)

Environmental Permit to pursue operations

EPA/EIA/112

18-Mar-2004

n/a

Based on Wexford Goldfields Limited Wassa

project EIS (2004)

Hwini Butre Permit

EPA/EIA/175

24-Feb-2006

n/a

St Jude Resources (Ghana) Limited based on

Hwini Butre EIS and Subriso EIS

Benso Subriso Permit

Detox Plant and Discharge to Kubekro Creek

Approval

Letter

23-Dec-2005

n/a

South Akyempim Environmental Permit

EPA/EIA/190

2-Jun-2006

n/a

Based on EIS on South Akyempim Project (2005)

Hwini Butre/Benso Project Environmental

Permit

EPA/EIA/247

2-Oct-2007

n/a

Based on the Hwini Butre and Benso EIS (2005)

Wassa Pits Expansion Project Environmental

Permit

EPA/EIA/322

20-Dec-2010

n/a

Based on Wassa Pits Expansion EIS (2010)

G-Zone Waste Rock Dump Environmental

Permit

EPA/EIA/323

13-Dec-2010

n/a

Based on Supplementary EIS for G-Zone Waste

Dump (2010)

TSF 1 embankment raise to 1035.5 mRL

Letter

4-Aug-2011

n/a

TSF 1 embankment raise to 1037 mRL

Letter

9-May-2012

n/a

Environmental Permit for Mineral Exploration

(Manso)

EPA/PR/PN/770

4-Sep-2012

3-Sep-2014 New permit not presently required

TSF 2 Permit

EPA/EIA/383

5-Apr-2013

4-Oct-2014

Based on corresponding EIS (2013)

TSF 1 embankment raise to 1039 mRL

Letter

12-Apr-2013

n/a

Father Brown/Dabokrom Supplementary EIS

Letter

Invoiced 14-

Jan-2014

Based on Father Brown/Dabokrom Impact

Prediction Study (2012)

TSF 1 extension Environmental Permit

EPA/EIA/419

13-Mar-2015

n/a

Based on TSF 1 extension EIS (2014)

TSF 2 (re-design) Environmental Permit

EPA/EIA/442

25-Nov-2015

n/a

Based on TSF 2 EIS (2015)

Wassa Underground Exploration Permit

EPA/PR/PN/929

3-Jul-2015

4-Jul-2017

Transitioned to EPA/EIA/508

Wassa Expansion Project Environmental Permit

EPA/EIA/508

30-Oct-2017

n/a

Based on Wassa Expansion EIS (2016)

TSF 2 Cell 2

EPA/EIA/533

28-Aug-2020

n/a

Based on TSF 2 Cell 2 SEIS (2018)

Environmental Protection Agency – Environmental Certificate

Environmental Certificate

EPA/EMP/055

Sep-2006

Sep-2009

2006-2009 EMP

Environmental Certificate

EPA/EMP/093

Apr-2011

Apr-2014

Submitted as required by law in 2010.

EPA approved for period 2011-2014

Environmental Certificate

Invoiced

2014

Submitted as required by law in 2013. 2014-17

EMP renewal processed by EPA in 2014

Environmental Certificate

EPA/EMP/221

Jun-2020

Dec-2021

Submitted as required by law in 2017

EPA approved for period 2020-2021

Water Resources Commission

Permission to divert Adehesu creek at South

Akyempim

n/a

6-Dec-2006

n/a

Water Use Permit Diversion of Ben and Subri

Streams

n/a

27-Mar-2008

n/a

Water Use Permit (C Zone fish cages)

GSWLID455/17

27-Jun-2017

26-Jun-2020

Application for renewal submitted Aug-19 and

permit issuance pending. No activity underway.

Water Use Permit (Mpohor)

GSWLID212/19

1-Jan-2019

31-Dec-2021

Water Use Permit (Benso)

GSWLID193/19

1-Jan-2019

31-Dec-2021

Water Use Permit (Akyempim)

GSWLID134/1/20

1-Jan-2020

31-Dec-2022

Water Use Permit (dewater Wassa Main and

Starter)

GSWLID134/2/20

1-Jan-2020

31-Dec-2022

Water Use Permit (bores and 242)

GSWLID134/3/20

1-Jan-2020

31-Dec-2022

District Assembly

Togbekrom Resettlement Plan

WEDA/DEV 15

9-Jan-2013

n/a

Wassa East District Assembly

Awunakrom Resettlement Plan

AWDA/DEV 21

4-Mar-2013

n/a

Ahanta West District AssemblyNI 43-101 Technical Report (March 2021) Wassa Gold Mine

20.1.3 Environmental Certificate and EMP for Overall Operations

GSWL (then WGL) received the first Environmental Certificate for Wassa for the period September 2006 to

September 2009. Since that time GSWL has routinely submitted the 3-yearly EMP as required to maintain

the Environmental Certificate in good standing.

The most recent renewal was initiated by submitting the updated EMP to the EPA in December 2017.

Following review by the EPA, the Environmental Certificate was invoiced in June 2018, the EMP was

finalized and resubmitted, then the Environmental Certificate was issued in 2020.

The Environmental Certificate and the EMP cover all concessions managed by GSWL including Wassa, Hwini

Butre (suspended), Benso (suspended) and associated infrastructure including the HBB access road.

20.1.4 Notable Conditions of Approval

The Environmental Permit and EIS require a reclamation bond to be posted within one year of commencing

operations. The initial reclamation bond for Wassa was posted in November 2004 has been updated

periodically as new projects or changes are approved. At the end of 2020 the GSWL bond was $13,672,231.

The mining leases contain conditions relevant to environmental management. The Wassa Mining Lease

(LVB7618/94), Benso Mining Lease (LVB26871/07), and Hwini Butre Mining Lease (LVB1714/08) contain

conditions to limit encroachment of mining activities on community infrastructure, disturbance of

vegetation, conservation of resources, reclamation of land and prevention of water pollution.

20.1.5 Permitting of Future Operations

Future changes to the plan which would likely trigger the need for a new permitting are:

  • Increasing processing capacity above 2.7 Mtpa;
  • Introduction of infrastructure or a new activity outside the permitted footprint, specifically

construction of a hoisting shaft to service the Southern Extension area, although infrastructure that

can be located within the current open pit excavation is not expected to be subject to EIS/EIA.

If required, the indicative approval timeline for an EIS/EIA process is approximately 2.5 years.

20.2 International Requirements

20.2.1 Environment and Conservation

The Government of Ghana is party to a number of international treaties relating to the environment:

  • Ramsar Convention on Wetlands of International Importance (there are five designated Ramsar

sites along the coast of Ghana but none in the Wassa project area).

  • Convention of International Trade in Endangered Species.
  • United Nations Framework Convention on Climate Change.

Ghana has more than 1,000 IUCN-management protected areas, including 317 forest reserves

(EarthTrends, 2003). There are two forest reserves near the Wassa project area; the Bonsa River Forest

Reserve and the Subri River Forest Reserve. Approximately 12 km of the Hwini Butre Benso access road

traverses the Subri River Forest Reserve.

20.2.2 Human Rights

In 2005 GSR, with full support of its Board of Directors wrote to the UN Secretary General as a statement of

commitment to adopt the United Nations Global Compact (www.unglobalcompact.org) and GSR continues

to integrate the Global Compact principles in its business activities.

GSR’s 2019 Corporate Responsibility Report (formerly Sustainable Development Report) is the 14th public

report on how the company is contributing to advance Ghana’s performance against the Sustainable

Development Goals in the Global Compact.

Page 232NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The 2019 report incorporated enhanced disclosures including:

  • Global Reporting Initiative (GRI) standards;
  • Sustainability Accounting Standards Board (SASB), Metals and Mining Sustainability Accounting

Standards;

  • Mining Local Procurement Reporting Mechanism (Mining LPRM);
  • World Gold Council, Conflict Free Gold Standard disclosure;
  • Investor Mining and Tailings Safety Initiative (IMTSI) disclosure; and
  • World Gold Council, Responsible Gold Mining Principles (RGMPs) disclosure.

20.2.3 Anti-Corruption

The Government of Ghana was designated Extractive Industries Transparency Initiative compliant in 2010.

To support this GSR provides annual public reports, declaring payments to the Government of Ghana, with

significant contributions made by GSR businesses to the end of 2019:

  • GSWL payment of more than $259 M over the previous decade; and
  • In 2019, the expected royalty distributions from GSWL operations including those to the Office of

the Administrator of Stool Lands, Traditional Authorities, Stool Lands and District Assemblies, was

over $10.2 M.

GSR are registered in the US and Canada, so are subject to the US Dodd-Frank Wall Street Reform and

Consumer Protection Act, the US Foreign Corrupt Practices Act and the Canadian Corruption of Foreign

Public Officials Act. Internal GSR policies address these items for GSR management.

20.2.4 Voluntary Codes

GSR has adopted a number of voluntary international codes and standards pertaining to corporate

responsibility and apply to the Wassa operations:

  • Cyanide management – full certification to International Cyanide Management Code since 2010;
  • TSFs – current TSF 1 and TSF 2 designs align with the ICOLD requirements;
  • Gold mining and processing – as a member of the World Gold Council, GSR ascribes to the

Responsible Gold Standard and the Responsible Gold Mining Principles; and

  • Resettlement, land acquisition, and compensation – since 2009, GSR has ensured all resettlement

projects conform to the International Finance Corporation’s Performance Standard 5 on Land

Acquisition and Involuntary Resettlement.

GSR has corporate assurance processes which include independent review, audit and/or validation to

ensure conformance of the principles ascribed in these codes and standards.

20.3 Environmental and Social Setting

20.3.1 Biophysical Setting

The concession area falls within the wet semi-equatorial climatic zone of Ghana and is characterized by an

annual double maxima rainfall pattern occurring in the months of May to July and September to October.

Average annual rainfall measured at the nearest meteorological station (Ateiku) is 1,996 ± 293 mm.

Average annual rainfall measured at the Wassa weather station is approximately 1,750 mm.

20.3.2 Hydrology

20.3.2.1 Existing Catchment and Flow Paths

The Wassa operations lie within the Pra River basin which is one the two major rivers draining south

western Ghana. The Pra Basin is located in south central Ghana (Figure 20-1) and is extensive, with several

river systems traversing the basin.

Page 233NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Topographic elevation of the Pra basin is from sea level, up to 800 m. The highest elevations are to the

north and at the eastern edges of the basin, where elevations of 800 m are common. The southern

sections are relatively flat to slightly undulating and there are a few peaks in the central regions. The

nature and orientation of the highlands determine the flow direction of the drainage network in the basin.

The Wassa mining lease area is drained by tributaries of the Pra, namely the Toe to the far south, Kubekro

to the east and the Petetwum to the north. The Petetwum River flows directly into the Pra River and is fed

by the Petetwum, Nankadam, and Kumue streams. The Subiri River, locally known as Subri, which drains

the western end of the concession, is a tributary of the Bonsa.

Figure 20-1 Pra River basin and location of Wassa

The topography of the Wassa site area is generally undulating, dissected by steep-sided valleys and incised

by an extensive, largely dendritic drainage network (Figure 20-2).

The project site is located high in its local catchments such that most surface water comes from rainfall

runoff, rather than stream flows entering the site.

Page 234NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 20-2 Wassa topography and drainage with sub-catchments

20.3.2.2 Surface Water Management

Multiple surface water studies have been undertaken over the project’s life, the most relevant to the

current project being:

  • 2015 feasibility study to establish underground mining (SRK); and
  • Various studies in 2010-2014 for initial TSF 2 permitting and subsequent redesign and permitting

(Knight Piesold and Geosystems Consult).

Established surface water management features on site include a stream diversion around the processing

plant and administration area, TSF drainage diversions and a French drain to prevent water inflow to the

southern end of the Main pit area. These water management features were engineered and constructed as

permitted through EIS/EIA processes.

In addition to these main features, secondary drainage works are in place around site to direct water runoff

from dumps and roads, away from active mining areas or toward dewatering infrastructure.

Surface water management features are maintained by the surface earthworks and underground mining

workgroups as needed.

20.3.3 Hydrogeology

The Wassa site falls in within the Birimian Province and it is characterized by aquifers of the Birimian

metasediments and metavolcanics and the Tarkwaian aquifers.

Extensive baseline studies were conducted in 1995 and 1996 by Minerex Environmental Limited prior to the

development of Wassa operations which were extended by subsequent EIA/EIS processes.

In 2015 and 2019 expanded hydrogeological field studies were conducted by Golder Associates to testing

hydrogeological conditions in the underground Mineral Resource. Hydraulic (packer) testing was

conducted on selected exploration holes to provide data for conceptual and numerical hydrogeological

models. The two programs found the main lithological units to be saprolite, saprock, fractured and fresh

bedrock.

Page 235NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Groundwater typically occurs in a shallow, weathered zone aquifer and a fractured deeper bedrock aquifer.

The aquifers have overall low permeability (4 x 10-7 m/d), significantly enhanced along tabular zones where

interconnected joint sets, faulting and/or quartz vein occur (6 x 10-2 m/d).

Inflow to the underground workings occurs along these discreet zones of faulting and fracturing (Figure

20-3), however these higher permeability areas are isolated, forming a very small percentage of the overall

rock mass and therefore only localized higher inflow in the underground workings (Figure 20-4).

Figure 20-3 Conceptual underground water flow path model (Golder, 2016)

Page 236NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 20-4 Conceptual groundwater model (Golder, 2016)

Ground water elevation contours show that generally the groundwater flows in a south-westerly direction

following the major topographical features, with the site primarily drained by the Kubekro catchment

network of streams. Near the active open pits, the prevailing hydraulic head is towards the open pit in

response to the active pit dewatering (Figure 20-5).

Page 237NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 20-5 Groundwater contours and flow (Golder, 2016)

Page 238NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 20-6 Conceptual geo-environmental model, E-W section (Golder, 2016)

At Wassa shallower gold deposits have been extracted from pits with voids now empty or in various stages

of backfilling with waste rock. Waste rock not used for backfilling is stockpiled in waste rock dumps

adjacent to or west of the Main pit complex (Figure 20-6). Precipitation on these catchments and storm

water inflow into mining areas also contributes to underground water make.

To understand these influences environmental stable isotope (ESI) signatures were investigated by Golder

in 2017 to identify the origin of water ingress into the underground workings. ESI analysis provides the

measurable variation of the stable isotopes against the natural values (Dansgaard, 1964). The analysis

found that key pits share a common water source with the underground water bearing zones which

suggests the pits and underground workings are hydraulically connected.

Due to the potential connection between the surface and underground workings, water volumes in the pits

are monitored to ensure water inventory is managed. These controls complement the surface water

management systems described in Section 18.2.

Data from the various hydrogeological studies have informed numerical groundwater model (FEFLOW)

development. The model suggests that the permeability will decrease with depth in the saprolite to act as

a confining horizon (Golder, 2016). Groundwater recharge is considered low (approximately 10 mm/a or

0.5-1.0%). The reported dewatering rates pumped to the underground mine range from 5-10 l/s and from

the underground mine ranges from 45-120 l/s. The implications are:

  • The drawdown (dewatering cone) from the operations is not expected to have any significant effect

on existing (community) groundwater boreholes;

  • Groundwater in the shallow weathered zone and deeper bedrock aquifers flows from the elevated

areas towards the rivers, following the topography;

  • Preliminary modelled underground water production is within current permitted abstraction; and
  • The receiving environment will not receive underground mine leachate in the recovered state and

no decant is expected to occur. Additionally, leachate from mine waste rock dumps is controlled by

the cone of depression and is not expected to impact on the receiving environment.

Page 239NI 43-101 Technical Report (March 2021) Wassa Gold Mine

20.3.4 Geochemistry

The Wassa rocks show a calcium-alkaline affinity. Metasediments, metavolcanics and diorite have an

apparent enrichment in rare earth elements compared to primitive mantle, whilst the metamorphic rocks

appear to be deep water sedimentary in origin.

Total element concentrations and extent of enrichment were assessed using the geochemical abundance

index (GAI) (after Fortescue 1992 and Price 1997) and show a high enrichment in bismuth, sulphur and

tungsten in all rock types except for quartz vein (low sulphur). Rocks are also enriched in arsenic, boron,

lithium, antimony, barium, tellurium, cadmium and copper. These elements are environmentally significant

as they are associated with sulphides, carbonates and phosphates, which are reactive minerals.

The potential for acid rock drainage (ARD) was originally assessed in the original Wassa EIA (SGS, 1998).

Subsequent studies (SGS 2002, Scott Wilson 2004, Golder 2016 and 2019) have expanded knowledge of the

geochemical regime. Representative samples of open pit and underground host rock lithologies have been

analysed utilizing X-ray diffraction (XRD), X-ray fluorescence (XRF) (whole rock analysis), leach extraction tests

and acid base accounting.

A study for the Southern Extension Inferred Mineral Resource, utilized samples identified from geochemical

logging of over 1,853 m of core and targeted areas of geochemical risk – rock expected to be subject to blast

fracture or overbreak and demonstrating acid rock drainage risk, contact zones, weak zones of heavy foliation

or friability and similar. These studies have been complemented by extensive review of elemental analyses

including 21,000 inductively coupled plasma mass spectrometry (ICP-MS) results and 18,800 portable XRF

analyses.

The study findings were:

  • The sulphur content of rock materials from the pits, dumps and underground is highly variable.
  • The acid potential (AP) of the different rock types from the pits (mean=5.2 kg CaCO3 eqv/t), waste

(mean=4.6 kg CaCO3 eqv/t) and underground (mean=6.7 kg CaCO3 eqv/t) is generally low. This

becomes more variable across all lithological units in the Inferred Mineral Resource (mean 2.6 –

33 kg CaCO3 eqv/t, max 32 – 155 kg CaCO3 eqv/ton).

  • The neutralization potential (Bulk NP) of rock samples from pits (mean=97 kg CaCO3 eqv/t), waste

rock (mean=92 kg CaCO3 eqv/t) and underground (mean=111 kg CaCO3 eqv/t) is generally very high

and continues in Inferred Mineral Resource across all lithological units (mean 52 – 162 kg CaCO3

eqv/t) except quartz vein (0.15 kg CaCO3 eqv/t).

  • Ankerite represents a significant proportion of total carbonates in the rock at Wassa. Whilst

ankerite has limited neutralizing capacity under oxidizing field conditions, the paste pH (8.3-10.1) is

generally alkaline indicating availability of excess buffering capacity. Acid-neutralizing dolomite is a

major mineral in the diorite, phyllite and mafic rocks in the Inferred Mineral Resource.

  • Classification of ARD potential (Morin & Hutt 2007, MEND 2009) shows that the majority of rock

samples are not potentially acid generating (Figure 20-7 to Figure 20-10). Diorite, phyllite and

mafics in the Southern Inferred Resource have 8.5% of samples with potential for generating acid.

  • Alternative classification methods (Price et al. 1997, Soregaroli & Lawrence 1997) also indicate the

majority of samples have no acid generating potential (Figure 20-11 to Figure 20-14).

Analysis of the geochemistry of the rocks intersected at Wassa has consistently shown that the rock

lithologies, ore and waste, are not acid generating (NAG) which is validated by over two decades of mining.

Whilst there are some samples from the Southern Inferred Mineral Resource area that are potentially acid

generating they are not common, only in isolated intervals and the majority (88%) of samples from this

area having low or no risk of acid-generation. This suggests the overall chemistry of the water make is will

be circum-neutral.

Page 240Figure 20-7 Paste pH vs NPR for Open Pit

Figure 20-8 Paste pH vs NPR for Waste

Figure 20-9 Paste pH vs NPR for Underground

Figure 20-10 Paste pH vs NPR for South Inferred

Figure 20-11 NPR vs S% for Open Pit

Figure 20-12 NPR vs S% for WasteNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 242

Figure 20-13 NPR vs S% for Underground

Figure 20-14 NPR vs S% for South Inferred

20.3.5 Water Quality

Baseline studies (MEL 1996c) found that groundwater in valley areas had been resident in the aquifer

longer and is more saturated with respect to calcium carbonate (higher calcium bicarbonate signature)

than groundwater from more elevated plateau areas (neutral ionic signature and low ionic strength).

Shallow groundwater in the area generally ranges from slightly acidic to basic, reflecting the nature of the

soils, as well as the lack of connection between the aquifers. Studies show shallow groundwater is often

acidic (Geosystems 2013, 2015) and water quality in deeper bores reflects greater saturation of neutralizing

minerals resulting from greater confinement, and associated longer residence time, of the deeper aquifer.

Nitrate and nitrite concentrations are low, as is phosphorus concentration of groundwater, reflecting the

low contents in the rocks from which the soils develop and the intense leaching of the soils.

Water quality is monitored at Wassa operations for both surface and ground water (GSWL Annual

Environmental Report 2019). Sites have been routinely sampled since 2003 with external laboratory

analysis conducted since 2012. The parameters analysed are compared to the Water Resources

Commission’s Raw Water Criteria and Guidelines for Domestic Water Use, as well as the EPA’s sector

specific effluent quality guidelines for discharges into natural water bodies (EPA guidelines).

Surface water in the vicinity of the open pits, on average, conforms to the EPA Effluent Quality Guidelines.

Occasional peaks in suspended sediment and nitrogen from the operations are removed by mine

dewatering treatment processes. Elevated levels of iron reflect the baseline conditions and rock

geochemistry. GSWL’s interpretation of the data is that both surface water and groundwater quality has

remained consistent with the findings of the Wassa Gold Project Environmental Baseline Study (SGS, 1996)

and EIS (SGS, 1998) and associated specialist studies (MEL 1996a, b and c) throughout operations.

The groundwater quality at Wassa and therefore the mine water inflows and discharges are affected by the

host rock geochemistry as well as the geo-environmental context. To understand the quality of

leachate/water expected from the underground mine synthetic precipitation leaching procedure (SPLP) and

net acid generation leach tests (NAG leach) were conducted (Golder 2016, 2019).

Leachate generated by NAG leach tests represents complete and instantaneous oxidation and leaching of

all reactive minerals and can be considered an indication of worst-case drainage quality. Under field

conditions, sulphide oxidation and release of elements occurs gradually and as such, concentrations in mine

drainage are expected to be lower than NAG leachate chemistry at any given time (INAP, 2010).

Results indicate that measured constituents will not exceed water quality guidelines in the underground

mine drainage. The underground mine drainage for the current underground workings and the broader

Mineral Resource area were predicted to be generally neutral to alkaline with low concentrations of TDS,

sulphate and metals. This is validated by the history of routine underground mine water quality sampling.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

20.3.6 Air Quality

Air quality is routinely monitored at Wassa by monthly 24-hour measurement of total suspended particulate,

particulate matter, depositional dust, oxides of nitrogen and nitrogen dioxide.

Prevailing air quality is also monitored at communities near the operational area and results generally exhibit

low levels of particulates. This reflects the mostly rural nature of the area and sources which are mostly

anthropogenic and include domestic activities such as open fire cooking, agriculture and movement of

people. The exception is the seasonal Harmattan which brings dry and dusty winds from the Sahara across

West Africa.

2017 impact assessment studies incorporated predictive modelling using the AERMOD dispersion model.

Modelling results predict ground level concentrations and deposition rates of modelled emissions using a

regional mesoscale meteorological dataset (MM5) over the modelling domains.

Results predicted that even with worst-case conditions and without mitigation, ground level concentrations

of key emissions at the nearest sensitive receptors met the majority of the applicable Regulations. As

modelling illustrated that cumulative conditions of worst-case weather (single worst 24 hr) and seasonal

Harmattan peaks may exceed 24 hr ground level concentrations for PM10 and TSP the operations employ an

array of dust suppression mitigations throughout dry season conditions.

Model predictions have since been validated by air quality monitoring results with mine derived emissions

demonstrated as within regulated ambient air quality guidelines.

20.3.7 Noise and Vibration

Noise is routinely monitored at the nearest neighboring villages of Akyempim and Kubreko. Results show

that noise emanations are predominantly local anthropogenic sources and not the result of activities at

Wassa.

Studies were undertaken for the 2017 impact assessment using CadnaA software (ISO 9613 compliant) to

model sound propagation under a variety of meteorological conditions. Meteorological data derived from

the MM5 data was utilized to develop a baseline noise model calibrated to the existing monitoring results.

Results predicted that even with worst-case conditions and without mitigation, noise levels at receptor sites

were within EPA guidelines for ambient noise in all modelled scenarios. Model predictions have since been

validated by noise monitoring results which have measured no mine derived exceedances.

The 2017 impact assessment also carried out modelling for blast induced vibration utilizing the United States

Bureau of Mines (USBM, 1980) ground vibration propagation equations, and the ICI formula for estimation

of air blast overpressure (ICI, 1990). Results predicted that even with worst-case conditions, ground vibration

and blast overpressure at the nearest receptors were within levels in the Minerals and Mining (Explosives)

Regulations (L.I. 2177).

Model predictions have since been validated by blast monitoring results that demonstrate conformance to

regulatory limits.

20.3.8 Biodiversity

A number of biodiversity surveys have been conducted across Wassa:

  • 1996: baseline study prior to the commencement of operations, covering the entire site

(SGS, 1996).

  • 2010: Main pits expansion, covering the open pit areas and potential waste dump locations.
  • 2012: TSF 2 footprint in a valley north of TSF 1 (Geosystems, 2015).

20.3.8.1 Flora

Wassa is located in a transitional area between moist, semi-deciduous forest and wet rainforest zones.

Baseline conditions illustrated degraded vegetation, impacted by logging and farming activities. Whilst the

Page 243NI 43-101 Technical Report (March 2021) Wassa Gold Mine

baseline study (1996) did not record any endangered plant species, under ongoing pressure conservation

status of species is routinely reclassified.

As at 2016 the IUCN had identified Tieghemella heckelii as endangered, and Mitragyna stipulosa,

Turraeanthus africanus, and Guarea cedrata as vulnerable. Three species identified in the baseline study at

Genus level that may have modified conservation status in the present day, including Terminalia,

Entandrophragma and Pterocarpus-sp. These are primarily timber tree species overexploited for a variety

of uses.

For species of conservation significance, GSR actively propagates a number of these for use in mine site

revegetation. Since 2010, more than 22,000 seedlings of these species have been propagated for use in

mine site reclamation. The TSF 2 EIS (Geosystems 2013, 2015) indicates this mitigation should not only

reverse the impact from disturbance, but also improve the local conservation status of these species.

Additionally, areas identified as hosting high quality unprotected remnant forest stands have been

specifically avoided for future mine activities.

20.3.8.2 Forest Reserves

There are two forest reserves in the vicinity of Wassa:

  • Bonsa River Forest Reserve; and
  • Subri River Forest Reserve.

The satellite site at Benso is 17 km west of the southern part of the Subri River Forest Reserve and 12 km of

the Hwini Butre Benso access road traverses the reserve. The Globally Significant Biodiversity Area within

the Subri River Forest Reserve is not impacted by the road.

The Subri River Forest Reserve covers approximately 590 km2 and is an actively managed reserve currently

logged on a 40-year cycle with approximately 2,590 ha of the reserve used for silvicultural research. The

reserve forms part of the watershed between the Bonsa and Pra Rivers and is traversed by their tributaries,

resulting in extensive areas of swampy vegetation.

20.3.8.3 Fauna

The 1996 baseline study found no species of small mammal, bats, birds, herpetofauna, or amphibians of

outstanding conservation merit. Of the large mammals, several species were reported as being of

conservation significance, although it was necessary to traverse more than 10 km into the Forest Reserve to

observe any of these species, likely due to high hunting pressures and impacts of logging activities, which

have continued since 1996. Notable species observed in the various surveys and their current classification

are:

  • Necrosyrtes monachus (Hooded Vulture) – critically endangered, owing to indiscriminate poisoning,

trade for traditional medicine, hunting and persecution;

  • Kinixys homeana (Hinge-back tortoise) – vulnerable;
  • Psittacus erithacus (Grey Parrot) – vulnerable, owing to international pet trade;
  • Scotonycteris ophiodon (Pohle’s Fruit Bat) – near threatened;
  • Phataginus tricuspis (African White-bellied Pangolin) – vulnerable;
  • Anomalurus pelii (Pel’s Flying Squirrel) – near threatened in 1996, data deficient currently.

The 2012 survey for the TSF 2 assessment included terrestrial and aquatic species. Of the 314 ha surveyed,

0.3% was uncultivated and the fauna of the project area was relatively impoverished, likely reflecting

indiscriminate hunting and agricultural clearing. The study found no species of Lepidoptera, amphibians,

reptiles, birds or aquatic species listed as having conservation significance by IUCN. Of the mammal species

identified, a single African White-bellied Pangolin was located in the wider project area.

Page 244NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 245

20.3.9 Social Setting

20.3.9.1 Administrative Setting, Settlements and Land Ownership

The Wassa Mine is located in a rural setting with no major urban settlements within 30 km. It lies in the

Wassa East District, part of the Western Region of Ghana, 40 km north of Daboase (district capital), 65 km

north of Takoradi (regional capital) and 35 km north-east of the city of Tarkwa.

The nearest villages are Akyempim, Akyempim New Site (formally Akosombo, resettled early in Wassa

operations) and Kubekro. The Togbekrom community was resettled Ateiku to permit construction of TSF 2.

Table 20-3 Communities around Wassa

The District Assembly is the supreme organ charged with the administration and supervision of

development activities in the district and the District Chief Executive is the most senior government official.

In addition to the governmental administration, the project operates within the Wassa Fiase Traditional

Area, with its Paramountcy at Tarkwa. Within the traditional structure, the Paramount Chief (Omanhene) is

the head and exercises traditional control over the divisional and sub-divisional chiefs (Adikro) of

communities (traditional towns and villages).

The 1992 Constitution of Ghana provides for three categories of land ownership or holding: customary

(stool/skin) lands (78%); state (or public) lands (20 %); and vested (or public) lands (2 %). Customary lands

are managed by traditional authorities in accordance with customary laws, although the State exerts

considerable control over administration of these lands. Land access is only available under leasehold.

As the lands within the Wassa concession are mineralized, the minerals are state-owned with the mineral

rights granted to GSWL under the Minerals and Mining Act, 703, 2006. The Constitution of Ghana (1992),

State Lands Act (1962), Minerals and Mining Act 703 (2006), Minerals and Mining (Compensation and

Resettlement) Regulations (2012), Mining and Environmental Guidelines, Environmental Protection Agency

Act 490 (1994) and Environmental Assessment Regulations (1999) each have provisions pertaining to land

access, including land acquisition, land and farm compensation and resettlement.

All land affected by activities proposed in this assessment are traditionally in the ownership of the

Mamponso Stool of the Wassa Fiase Traditional Area. The relationship between the Divisional Stool Chiefs

and the inhabitants is based on tenancy, where tenants typically pay annual rent as a portion of their

annual crop returns.

20.3.9.2 Socioeconomic Setting

The Wassa Mining Lease (LVB 87618/94) area is 52.89 km2 and by December 2019, was subject to

approximately 940 ha of disturbance from mining and associated activities. GSWL has provided

compensation for a total of 1,294 ha of land due to both direct disturbance and for buffer areas.

Socioeconomic study of Wassa mine host communities’ highlights:

  • Land Use – prior to mining, the main use was farming, mostly cocoa with lesser crops of oil palm,

maize intercropped with cassava, and plantain. There were also compound farms around villages

and hamlets for crops of coconut, cocoyam, avocado pear, citrus, mango, maize and cassava in

mixtures. There were no commercial plantations farmed and commercial logging was almost

Community

Divisional Area

Estimated Population

(SGS 1996)

Population

(WEDA 2013)

Akyempim

Mamponso

2,500

2,533

Akosombo

Mamponso

n/a

166

Kubrekro

Anyinabrem

300

335

Nsadweso

Anyinabrem

2,400

1,541

Togbekrom

Anyinabrem

Not measured

674NI 43-101 Technical Report (March 2021) Wassa Gold Mine

entirely restricted to the portion of the Subri River Forest Reserve. This remains consistent today,

with addition of land use for the mine and supporting activities.

  • Livelihood – prior to mining, most people were dependent on crop farming which was also the

principal source of employment. Farming was dominated by migrant farmers from other regions of

Ghana, using land owned by indigenous families on a leasehold basis. More recently, livelihoods

are still mostly agricultural with approximately two-thirds of economically active people employed

in agriculture and one quarter in mining/quarrying, manufacturing and wholesale/retail sectors.

  • Housing – more than half of homes in the district are constructed from mud/earth, roofing

materials are generally metal sheet.

  • Water Supply – most people in the district obtain water for drinking and domestic use from

boreholes or rivers/streams with one-fifth of households using external pipes and/or public

standpipes.

  • Energy – less than half of households use mains electricity for lighting and most use wood or

charcoal for cooking.

  • Sanitation – most households cannot access formal waste disposal facilities. Most waste is

dumped in public open space and liquids are generally disposed in compounds/streets or gutters.

  • Communications – approximately one-third of the population over 12 years of age own mobile

phones and very few households have landline telephones.

  • Health – malaria is a common illness experienced by the catchment communities and remains a

serious public health concern nationally. It is regarded as a leading cause of morbidity and

mortality, especially among pregnant women and children under five years (NDPC & UNDP 2010).

Other common ailments in the area are respiratory tract infections and diarrhoea.

  • Education – literacy in the Western Region was 58.2 % in 2008, biased toward males (68%) and

remains largely unchanged at the most recent census. Attendance of primary and middle/junior

school is higher in the Wassa East District than the Western Region generally and in 2010 literacy

for ages over 11 years was 75%. Recently, there has been increasing female attendance at the

primary and junior school levels although approximately 10% fewer females complete school than

males (NDPC & UNDP 2010).

20.4 Environmental and Social Management

20.4.1 Golden Star Corporate Commitment

GSR has policies pertaining to:

  • Environment;
  • Community Relations;
  • Human Rights;
  • Community Development and Support; and
  • Safety, Health and Wellbeing.

To support these policies, GSR demonstrates management commitment through provision of dedicated,

skilled personnel in the disciplines of environment, safety, health, community affairs, resettlement and

security. In 2020, GSWL employed 81 people in these disciplines, representing 11% of the total workforce.

Environmental expenditure in 2020 represented approximately 2% of total operating expenditure.

GSR supports achievement of its corporate policies through training and development of its workforce.

Over 49,000 personnel hours were committed to training at the Wassa operations in 2019.

Page 246NI 43-101 Technical Report (March 2021) Wassa Gold Mine

20.4.2 Social Investment

20.4.2.1 Golden Star Development Foundation

The primary vehicle for GSR’s social investments is the community-led Golden Star Development Foundation,

which is funded annually with $1/oz Au produced and 0.1% of pre-tax profit. Under the foundation umbrella,

GSWL works with local Community Mine Consultative Committees (CMCC), government bodies, and third

party non-governmental organizations (among others) to strategize and implement a variety of community

development projects and programs.

In 2020, GSR contributed over $0.20 M to the foundation, bringing contributions to date to over $4 M.

20.4.2.2 Golden Star Oil Palm Plantation (GSOPP)

Golden Star Oil Palm Plantation (GSOPP) is a community-based oil palm plantation company established in

2006 as a non-profit subsidiary of GSR.

GSOPP applies the small-holder concept of sustainable agribusiness, which addresses environmental, food

access, and community concerns. Currently, development is sponsored by GSR as part of its local economic

development program. The goal is that plantations will become self-supporting in the future as small-hold

farmers pay back their start-up loans to GSOPP to sustainably fund future investment.

GSR commits $1/oz Au produced to the program, resulting in over $8.1 M in funding as at year end 2019. To

date, GSOPP has established 1,512 ha of plantations and in 2019, produced and sold over 13,000 tonnes of

oil palm fruit.

In 2018, GSOPP was expanded into the parts of TSF 1 that had reached closure elevation and in 2020 the

development planting at TSF 1 was completed.

Figure 20-15 GSOPP oil palm plantation on TSF 1

Page 247NI 43-101 Technical Report (March 2021) Wassa Gold Mine

20.4.2.3 Capacity Building and Livelihood Enhancement

Employment, particularly for youth, continues to be the foremost concern to the Wassa catchment

communities. Education and training initiatives are extended through community out-reach programs,

which aim to impart lasting educational benefits.

The Golden Star Skills Training and Employability Program (GSSTEP) provides training in practical and

technical skills to young people in sectors unrelated to mining, contributing to diversification of the local

economy’s employment base. This program has also been integrated into many of the negotiated

resettlement agreements that conform to the IFC Performance Standard 5 on involuntary resettlement.

Inaugurated in 2009, by the end of 2019, 14 GSSTEP programs had been run, for over 600 youth providing

skills in masonry, commercial cookery, carpentry, mobile phone repairs, building, electrical, beading and

jewellery making, hair dressing, fabric bag and sandal making.

In 2013, GSWL initiated a pilot Community Youth Apprenticeship Program (CYAP), which provided local

residents a one-year work program at Wassa. The pilot project enrolled 44 young people from 15

catchment communities in various disciplines but mostly mechanical trades. As a result of CYAP, local

graduates were better positioned to fill skilled employment vacancies within the company to further boost

local hiring. Following from the success of CYAP, the program is being implemented again in 2020 to

provide a further pool of local youth vocation training in the mining sector.

Since 2010 GSR has provided opportunities for extended education with over 800 attachment/work

experience students, over 700 tertiary graduates through the Ghana national service program, 164

graduate traineeships, 84 apprenticeships and 143 post-graduate sponsorships.

GSR also provides scholarships for underprivileged students attending secondary school. Since 2008, the

company has provided scholarships for over 1,080 children. A further 3,000 registered dependents of

employees are also supported through annual educational subsidies.

20.4.2.4 Corporate Responsibility

In accordance with its commitment to the UN Global Compact, GSR supports and respects internationally

proclaimed human rights within their sphere of influence. GSR’s policies on Community Relations and

Human Rights outline the commitment to create a company culture where the protection of human rights

are an integral and sustainable part of the operations, including performance management systems.

GSR periodically conducts human rights reviews with major suppliers and results reported to the GSR

Corporate Responsibility Committee. This provides further assurance that GSR is not complicit in any

human rights abuses, even where they may be occurring indirectly through the supply chain.

GSR has processes and training in place to prevent harassment and discrimination.

GSR has a safety management system and safety improvement programs to minimize harm and embed

safety management into the operations. Recent improvements include:

  • Risk management system enhancements;
  • Crisis and emergency management system upgrades and training;
  • Safety culture surveys; and
  • Safety leadership training.

GSR engages in accurate, transparent, and timely two-way consultation with local stakeholders to

communicate about the business and address the needs of local partners. Regular dialogue with

stakeholders is conducted via public meetings, open houses, and sensitization forums. Improved

understanding of stakeholders’ issues and concerns helps to realize sustainable solutions.

As a catalyst for sustainable economic development in the host communities, GSR plays a role in enhancing

relationships with partners to maximize benefits accrued to the stakeholder communities. The aim of

Page 248NI 43-101 Technical Report (March 2021) Wassa Gold Mine

investments in local communities is to have a strategic approach which creates lasting, meaningful benefits

for local communities and contributes a positive long-term legacy around the operations.

In the area of security and human rights, in 2014, GSR commenced a program of training and awareness

with its security personnel and military personnel, in the Voluntary Principles on Security and Human

Rights. By the end of 2019, over 740 security personnel had been trained and the Voluntary Principles are

now part of induction for new security personnel.

20.4.2.5 Environmental and Social Management System

Environmental management is addressed through an Environmental and Social Management System (EMS)

developed in-line with an ISO 14001 EMS. It provides the operation with a program which addresses the

legal and corporate needs for monitoring and reporting. The EMP and the associated Environmental

Certificate provide the legal framework for GSWL environmental management, whilst EIS’ and associated

Environmental Permits provide the legal framework for project developments.

Community management at GSWL is conducted by specialist community affairs and development

personnel. GSWL has established a series of CMCC’s with the local communities and an Apex CMCC collects

the recommendations and presents them to the company entities (eg: Golden Star Development

Foundation) on behalf of the three concession areas (Wassa, Hwini Butre and Benso). The aim is to ensure

full representation across the GSWL operations occurs without interference from GSWL.

The CMCC’s are responsible for selecting development projects and assisting with understanding of

community concerns and needs. Development opportunities for the stakeholder communities are funded

by either the Golden Star Development Foundation, or directly from GSWL.

In November 2019 GSWL reached milestone Memoranda of Understanding (MOU) with its Wassa host

communities. Developing the MOU’s involved all four catchment communities, two resettlement

communities and two divisional areas. Representatives included the Traditional Council, Queen Mothers,

Members of Parliament, Districts Assembly, as well as specific representation from both women and youth

to ensure inclusion and diversity. Implementation of the MOU’s, covering Relationship and Sustainable

Livelihoods, Local Employment and Contracts, and Development Foundation, commenced in 2020 with the

re-constitution of the CMCC. Institutionalization of the agreed new modalities will continue in 2021.

GSWL maintains a grievance mechanism enabling catchment communities to document concerns and

grievances for investigation and/or action. The mechanism is well publicized by GSWL and used actively by

the community and other stakeholders. Details of registered grievances and resolutions are recorded and

reported internally and to the regulators.

20.5 Environmental and Social Issues

Environmental and social issues – those that could affect permitting, operations and/or social licence – can

be material to the company.

Community expectations and sensitivities have the potential to affect social licence, land access and permit

issuance. Issues of primary concern for local stakeholder communities include employment, involvement in

local supply chain and amenity. Management of these issues is pivotal to strengthening of relationships

and ensuring business continuity.

20.5.1 Employment

The main socioeconomic concern for most stakeholders in the local community is employment, where

working at the mine is viewed as a preferred occupation. The mine life for the Mineral Reserve and

potential of the large Inferred Mineral Resource, is expected to receive local support. The potential for

employment growth will be tempered by expected productivity increases, requiring ongoing management

of expectation in host communities.

Page 249NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Enhanced productivity is assumed to be driven by more efficient stoping methodology, increasing

application of technology and efficiencies due to the economies of scale, as installed capacity becomes fully

utilized. GSR will continue to focus on the development of vocational skill in the host communities to

create an enabling environment for local employment and associated enhanced business continuity.

Whilst the operations will not provide full employment to all people seeking work, the Memorandum of

Understanding on Local Employment and Contracts provides agreed modalities for affirmative action to

employ from local stakeholder communities.

  • All vacant positions are advertized locally first, then nationally;
  • Local people are used exclusively for unskilled positions, and preferably for skilled positions;

Wassa draws most of its workforce from the Western Region. To support the commitment to local

employment, GSWL has the CYAP program discussed above to build local vocational capacity.

20.5.2 Local Procurement

The GSWL MOU on Local Employment and Contracts builds on the history of building local procurement

capacity around Wassa. The MOU specifies specific contract services to be provided by local community

companies (eg: heavy equipment and quarrying) and additionally commits that if a local community

company rates equally with non-local on the tender assessment criteria, they will be awarded the works.

In partnership with the German development agency (GIZ), the National Vocational Training Institute (NVTI)

and the District Assembly, Golden Star and GSWL have joined a partnership program focussed on improving

the employment situation of over 2,000 people in the catchment communities through upskilling and value

chain development. Program activities include technical training for certification, enterprise coaching and

development, support to industry association development, upgrading of secondary technical education

and training of lead farmers, amongst other elements.

20.5.3 Resettlement and Compensation

Where physical, social and/or economic displacement is anticipated, GSWL applies the requirements of the

International Finance Corporation, Performance Standard 5 for land acquisition and involuntary

resettlement. If compensation is required for future operations this it is done in accordance with

applicable laws, and GSWL Farm Compensation and Land Acquisition procedures. Previous application of

these processes by GSR has shown that resettlement can be achieved with positive outcomes, evidenced

most recently with the resettlement of the Togbekrom community to Ateiku in 2013.

20.5.4 Unauthorized Small-Scale Mining

In Ghana, small-scale artisanal mining is termed galamsey. It is mostly unauthorized or illegal and is often

associated with environmental degradation, safety hazards and general community and social concerns.

20.5.4.1 Strategic Approach

GSR has numerous proactive programs to support the maintenance of land access security and reduce local

community uptake of illegal and conflicting land uses, including:

  • Extensive social enterprise initiatives, such as the Golden Star Oil Palm Plantation (GSOPP) that

provide sustainable alternative livelihoods and wealth creation.

  • Local content including local procurement programs to retain and enhance the value of the

operations retained by host communities, eg LOCOM’s partnership at the former GSR Bogoso

Prestea mine resulted in redirecting 250 former illegal miners to providing contract services to

support the mine’s operations, to the order of $30 M of works over recent years, enabling local

employment and opportunity.

  • Ongoing review of tenure and relinquishment of concessions deemed non-prospective, avoids

potential competition over access land or minerals. GSR has undertaken programs of engagement

and collaboration with the Minerals Commission, legal small-scale mining associations and

community organizations to cede areas of concessions to facilitate legal small-scale mining.

Page 250NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Designing closure plans that recognize the potential next land use as legal small-scale mining so

that synergies between large and small-scale mining can be leveraged.

  • Youth skills development programs to provide skills training and support for small and micro

enterprise business initiation, providing mainstream employment and income generating activities.

  • School sustainability clubs to educate children on environmental, safety, health and sanitation

issues, enabling educated decision making on livelihoods as they leave school to seek employment.

  • Maintenance of a three-tiered engagement structure with host communities with each forum

incorporating a wide array of community representation including women and youth.

20.5.4.2 Security Management

GSR discloses annually against the World Gold Council Conflict-Free Gold Standard although Wassa is not

located in a country or region designated as conflict affected or high-risk. GSR’s Policy on Human Rights

highlights the company’s commitment to implement programs on ethical conduct and human rights in

support of the Voluntary Principles on Security and Human Rights.

GSR engages private security companies at Wassa for site access control, patrol, protection services,

security monitoring and intelligence gathering. Security providers are:

  • Trained in the Voluntary Principles on Security and Human Rights; and
  • Do not bear arms, in compliance with Ghanaian law.

General security services are complemented by public security support for bullion movements which is

arranged with local Police. Where public security intervention is required, this can be requested through

the District or Regional Security Councils.

GSWL records any incidents of incursion by members of the community into active mining or reclamation

areas in the company incident reporting system. The system is designed so that that all incidents are

investigated, with corrective actions identified and implemented to prevent reoccurrence.

GSR reports security related incidents verbally to the District Security Council via meetings and direct

contact, mining related incidents to the Minerals Commission via statutory submissions and

pollution/environmental related incidents to the Environmental Protection Agency via the statutory report

submissions. In the case of illegal mining incursions these are typically be reported to all three regulators.

In the community relations context, GSR engages with traditional leaders, opinion leaders and local elected

government representatives for involvement as necessary in the investigation, management or other

intervention related to any land use or competition related issues.

GSR is of the opinion that galamsey around Wassa has little potential to impact the current or future

operations. The main project site is well secured, with other infrastructure located between the Wassa

main pits complex and the nearest community. Generally, the removal of unauthorized persons from the

wider project area has posed no difficulty, with persons moving on as requested. The underground mine

entrance is located within the existing open pit complex, such that unauthorized small-scale mining is not

expected to adversely affect the underground operations.

20.5.5 Process Water Balance and Discharge to Environment

The process water balance model at Wassa indicates that under normal conditions discharges from the TSF

to the receiving environment should not be required. In the event discharge is required, there is an

approved detoxification plant to treat cyanide from supernatant waters. No discharges from TSF have been

required since 2010.

20.5.6 Geochemistry

Characterization testing of ore and waste rock evidence low potential for acid generation (Section 20.3.4).

Geochemical management incorporates ongoing characterization of core to assess the geochemical

Page 251NI 43-101 Technical Report (March 2021) Wassa Gold Mine

properties of future ore and waste sources for variability against the current predicted state of all materials

having low acid generation potential.

20.5.7 Legacy Issues

GSR has been responsible for managing Wassa for over 20 years. In 2002, when GSR assumed

responsibility, Wassa was an open pit operation with heap leach processing. Since then, the former heap

leach area has been encompassed within TSF1 and most of the open pit excavations have been

rehabilitated or expanded by subsequent mining.

Disturbances by the legacy operations are covered by the Reclamation Security Agreement and Wassa

closure plan and financially addressed by the company asset retirement obligations as well as the bond

required by the EPA. There are no other legacy issues associated with the GSWL site.

20.5.8 Amenity

GSR conducts regular environmental monitoring and continues to demonstrate high levels of conformance

to regulatory standards for water, air, noise and vibration. The involvement of local host community

members in elements of the monitoring program, grievance mechanisms, as well as transparent reporting

of performance in stakeholder engagement, also contributes to understanding of management of amenity.

20.6 Closure Planning

Closure concepts and provisional plans are included in the various permitting documents received over the

project’s life and are updated in the Environmental Management Plan (three yearly update). The annual

Mining Operating Plan also contains details related to closure and reclamation.

Rehabilitation and closure of the existing operations (including processing plant, TSF’s, pit excavations,

waste dumps and transport corridor) are covered under the EMP, Reclamation Security Agreement and

associated bank guarantee (bond). As new expansions are permitted, GSWL develops a conceptual closure

plan that is incorporated into the applicable EIS.

GSR applies two methodologies for estimation of closure costs:

  • Asset Retirement Obligations (ARO), as defined by International Financial Reporting Standards; and
  • Practical Closure Plan (PCP).

Both methodologies are updated annually and utilize:

  • Costing of works assumes mixture of mine operations and standalone contractors;
  • No provision for ongoing water treatment as the closure plan assumes, and modelling indicates,

mine workings will be flooded but will not result in decant; and

  • Post-closure community costs are excluded as none are anticipated or currently committed.

The methodologies differ in that:

  • Scrap value is excluded from the ARO;
  • Infrastructure handover, eg handover of roads to local government or buildings to host

communities, is excluded from the ARO; and

  • Progressive reclamation and operational synergies are excluded from the ARO.

This economic analysis assumes the costings in the PCP will be realized, as the company has continued to

demonstrate realization of progressive revegetation (eg TSF revegetation) and operational synergies (eg

concurrent backfilling of pits with waste rock), and host community have established an expectation of

hand-over of key community infrastructure.

For the purposes of conservatism, an additional $3.0 M has been added to allow for unanticipated future

disturbance associated with the extended operating life.

Page 252NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 253

Closure costs include all tenure associated with GSWL including Wassa, Hwini Butre and Benso concessions.

Table 20-4 Closure cost estimates, at Dec-2020

Methodology

Asset Retirement Obligation

(ARO, $M)

Practical Closure Plan

(PCP, $M)

Wassa Concession, current disturbance

16.53

11.61

Benso Concession, current disturbance

1.64

1.33

Hwini Butre Concession, current disturbance

1.66

1.37

Total

19.83

14.31NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 254

21 CAPITAL AND OPERATING COSTS

21.1 Introduction

GSR’s prepared capital and operating cost estimates with the following bases:

  • All costs are in US dollars (US$/$). This is consistent for both historic actuals and forward looking

expenditures, where the majority of costs (including local Ghana costs) are aligned to US$,

negating the effect of exchange rates.

  • Expenditures aligned to physical schedules over the life of the project.
  • Forward estimates calibrated to 2020 actual spend (Jan-Dec 2020).

21.2 Capital Costs

Wassa is currently operating at full production, as defined by the current Mineral Reserve and future

capital expenditure consists of:

  • Growth Capital: to expand or increase capacity of the operation from the current established base,

including expediting primary access to new mining areas to increase extraction rates.

  • Sustaining Capital: for ongoing access of production areas within the established operation.

21.2.1 Cost Estimation, Capital

21.2.1.1 Major Projects

Major Projects are one-off expenditures for specific projects required to deliver the project plan.

Estimate basis and timing of expenditures are shown in Table 21-1.

It is notable that there are no major project costs for the processing plant or other surface infrastructure.

Currently installed processing and infrastructure capacity are sufficient to meet the planned higher mining

rates so capital expenditure in these areas is sufficiently allowed for in the Minor Projects classification.

Table 21-1 Cost estimate, Major Projects for Mineral Reserve plan

21.2.1.2 Mine Development

Mine Development capital costs are estimated as an allocation of a share of mining operations costs

attributable to capital works, factored by physical quantities.

  • Lateral Development: factored by lateral development metres advance (m.adv);
  • Vertical Development: 100% to capital for raises at average rate of $5000/m for all profiles (vary

from 1.8, 2.4, 3.5 to 6.0m diameter); and

  • Overheads: factored by total material mined (all.t).

Timing

Year

Upper Mine, Establish

2022

Vent, Fans RAR1

2020-21

Expenditure

$ ‘000

Description

5,000

7,500

Portal construction & establishment of services.

Development commences mid-2022

Fans (1.5-2MW) pow er dist. (shaft in Mine Dev’t).

Budget 2021 has shaft in 2021 and fans 21-22NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 255

Table 21-2 Mine development capital allocation for Mineral Reserve plan

21.2.1.3 Minor Projects

Minor Projects are the capital expenditures required to support delivery of the physicals schedule.

  • Are additional to the share of operations costs that are recharged to capital;
  • Estimation method is fixed/variable model, driven by a physical quantity; and
  • Base is actual spend.

Minor Projects are estimated in the following groups:

  • Mining UG: including, but not limited to: power distribution, ventilation equipment, dewatering

equipment and facilities, mine water and compressed air services, major maintenance projects,

technical equipment and support facilities.

  • Geology UG: definition drilling in the following categories:

o Resource Development: intended to upgrade inferred resource to indicated. Timing is to

be completed ahead of capital investment for mining panel (decline and access

development).

o Resource Infill: increase drill density of indicated material to reduce spatial risk to permit

accurate development positioning. Timing is to provide a drilled inventory 2-3 years ahead

of stoping.

  • Processing: including, but not limited to: major maintenance projects, corrosion management,

insurance spares, technical equipment and support facilities.

  • G&A: including, but not limited to: accommodation and administration facilities, IT infrastructure,

supply facilities, light vehicles, sustainability projects and emergency equipment.

  • TSF: incremental raises of the TSF. Tails quantities are reduced to account for tails solids used in

paste backfill. 2021 costs are per the 2021 budget and will deliver the Stage 2 cell expansion,

thereafter expenditure is estimated on a $/t basis to construct cell raises for the quantity of tails

required the following year.

Table 21-3 Cost estimate, Minor Projects for Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Lateral Development

$M

7.8

17.7

19.9

15.4

Share to Capital

%

54.3%

56.1%

46.3%

Vertical Development

$M

4.9

4.5

2.3

2.2

Share to Capital

%

100.0%

100.0%

100.0%

100.0%

Mine Overheads

$M

0.6

1.1

1.1

0.9

Share to Capital

%

12.4%

22.1%

23.2%

18.2%

Total

$M

13.2

23.2

23.4

18.5

Share to Capital

%

55.4%

56.8%

46.5%

258.0%

3.7

13.2%

78.3

Total/avg

60.7

44.3%

13.9

100.0%

UofM

Mining UG

ug.all.t

Geology UG

ug.ddm.cap

Processing

mill.t

G&A

mill.t

TSF

mill.t.tsf

Tonnes Processed

0.50

Expenditure

$ ‘000

33,173

Description

Resultant Rate

$/ROM.t mined

Driving Quantity

Total Material Mined, UG

18,268

Tonnes Processed

1.69

9,789

Tails Solids to TSF

0.90

3.07

Definition Drilling, UG

5,459NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 256

21.2.1.4 Mobile Fleet

Fleet schedules have been determined and calculated for the following machine categories:

  • Development Jumbo;
  • Production Drill;
  • UG Loader;
  • UG Truck; and
  • Ancillary, includes all minor equipment (eg: Integrated toolcarrier, charging units, ROM Loader,

Rockbreaker) which for estimation are considered a like-for-like fleet.

Light vehicles are included in the Minor Projects cost allowances.

Table 21-4 Mobile Fleet, categories

Detailed fleet schedules are presented in Table 21-5 and the capital replacement schedule is shown below.

Nominal machine type, cost and life are based on the current preferred fleet and 2021 budget estimates.

Table 21-5 Cost estimate, Mobile Fleet replacement schedule for Mineral Reserve plan

21.2.2 Capital Allocations, Growth and Sustaining

Growth capital is defined as that required to materially increase capacity or extend mine life. For this

study, capital expenditures are allocated to growth where they relate to expanding operations to new

mining areas.

  • Major Projects: Infrastructure required to expand the underground mine, being the southern

exhaust ventilation upgrade (RAR1) and establishment of the upper mining zone (Panel 3).

  • Mine Development: Capital development to access new mining areas.
  • Definition Drilling: drilling for Panel 3 (Upper mine).
  • Minor Projects, excluding definition drilling: share of these costs, weighted by proportion of Mine

Development cost for growth. Includes mining, processing and G&A.

  • Mobile Fleet: weighted share, as per Minor Projects.

The allocation methodology of growth capital has an expected accuracy of +/-30%, where the error will

result in misallocation of capital to either of growth/sustaining.

CY21

CY22

CY23

CY24

CY25

CY26

Development Drill

  1. units

2

1

$M

2.80

1.40

Production Drill

  1. units

1

1

$M

1.40

1.40

UG Loader

  1. units

1

1

$M

1.40

1.40

UG Truck

  1. units

1

2

1

3

$M

0.97

1.93

0.97

2.90

ROM & Ancillary

  1. units

1

1

2

$M

0.40

0.40

0.80

Total

  1. units

2

6

2

5

1

2

$M

1.37

6.53

2.37

5.70

1.40

0.80

Total/avg

3

4.2

2

2.8

2

2.8

7

6.8

4

1.6

1 8

18.2

Life

years

Development Jumbo

7

Production Drill

7

UG Loader

6

UG Truck

4

ROM & Ancillary

8

Type

Sandvik DD421

Sandvik DL421

Sandvik LH621

Volvo A60H

various

Nominal Cost

US$ ‘000

1,400

1,400

1,400

965

400

Nominal UnitNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 257

Table 21-6 Capital cost summary for Mineral Reserve plan

21.3 Operating Costs

Operating costs have been estimated as follows:

  • Analysis of 2020 Jan-Dec YTD actual spend;
  • Analysis of share of fixed and variable cost for each activity, at the cost element level (eg: fuel,

labour, consumables);

  • Calculation of periodic spend, driven by scheduled units of a physical activity; and
  • Review of step change fixed costs where higher physical rates are planned.

21.3.1 Cost Estimation, Operating

Operations costs are estimated in the following groups.

  • Mining, Development: operating share of lateral development, including labour, energy,

consumables and equipment maintenance for drilling, blasting, ground support, loading, hauling

and secondary ventilation. Cost estimate is driven by lateral development advance and based on

2020 actuals.

Costs are factored up from current rates, linearly with the average haulage distance each year, to

reflect the increasing trucking fleet and ventilation needs. Rates are consistent, ranging from

$2,945 – $3,010 /m.adv.

CY21

CY22

CY23

CY24

CY25

CY26

Growth Capital

Mine Development

$M

5.1

8.9

9.0

3.6

Mining UG

$M

Definition Drilling

$M

5.1

0.7

2.1

0.7

Processing

$M

Site G&A

$M

TSF

$M

Mobile Fleet

$M

Projects, Ventilation

$M

4.8

2.8

Projects, Other

$M

5.0

Total Growth

$M

15.0

17.4

11.1

4.3

Unit Cost per Proc.t

$/t

7.69

8.18

6.16

2.20

Unit Cost per rec.oz

$/oz

8 8

9 8

6 2

2 4

Sustaining Capital

Mine Development

$M

8.1

14.3

14.4

14.9

Mining UG

$M

6.4

6.8

6.9

7.0

6.0

Definition Drilling

$M

Processing

$M

1.1

1.1

1.1

1.1

1.1

Site G&A

$M

3.7

3.7

3.6

3.7

3.7

TSF

$M

4.6

1.4

1.6

2.2

Mobile Fleet

$M

1.4

6.5

2.4

5.7

1.4

0.8

Projects, Ventilation

$M

Projects, Other

$M

Total Sustaining

$M

25.3

33.9

29.9

34.5

12.2

0.8

Unit Cost per Proc.t

$/t

13.01

15.93

16.57

17.81

6.04

0.48

Unit Cost per rec.oz

$/oz

149

192

166

192

6 8

6

Total Capital

Growth

$M

15.0

17.4

11.1

4.3

Sustaining

$M

25.3

33.9

29.9

34.5

12.2

0.8

Total

$M

40.3

51.3

41.0

38.8

12.2

0.8

Unit Cost per Proc.t

$/t

20.70

24.12

22.73

20.00

6.04

0.48

Unit Cost per rec.oz

$/oz

237

290

227

215

6 8

6

Total/avg

26.6

8.6

7.5

5.0

47.7

4.15

4 7

51.7

33.2

5.5

18.3

9.8

184.3

16.02

18.2

136.6

11.87

133

47.7

136.6

180NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 258

  • Mining, Production: ore production from stoping, including labour, energy, consumables and

equipment maintenance for slotting, drilling, blasting, loading and hauling. Cost estimate is driven

by stope ore tonnes and based on 2020 actuals.

Costs are factored up from current rates, linearly with the average haulage distance each year, to

reflect the increasing trucking fleet and ventilation needs. Rates vary from $21.41 /stope.t in 2021,

to $19.70 /stope.t in 2025 (last year of full production). Rates decrease slightly over time with

increasing stope tonnage offsetting the cost impact of longer haulage distances.

  • Mining, Backfill: labour, energy, consumables and maintenance for the paste filter plant,

underground distribution and stope barricades. Cost estimate is driven by volume of paste placed

and, as there is not operating history (commissioning planned for 2021-Q1) costs are per the 2021

site budget, informed by the 2018 feasibility study (nominally $17/m3 from 2021).

Backfill volumes assume all 95% of ore voids are filled.

  • Mining, Surface Haulage: haulage of ore from the portal bench to processing run-of-mine pad,

including labour, energy, consumables and equipment maintenance for loading and hauling. Cost

estimate is driven by total ore tonnes and based on 2020 actuals.

  • Mining, Overheads: general support services for the underground mine, including labour,

consumables and services for technical, management and administrative personnel. Cost estimate

is driven by total tonnes mined and based on 2020 actuals. Cost estimate is driven by grade control

drill metres and based on 2020 actuals.

  • Mining, Geology: labour, consumables and contractor drilling costs for grade control drilling (from

Indicated to Measured), muck sampling and technical support.

  • Processing: labour, energy, consumables, maintenance and services for the processing plant,

including crusher feed, comminution, leaching, tailings deposition and laboratory. Cost estimate is

driven by ore tonnes processed and based on 2020 actuals.

  • General and Administration (G&A): labour, consumables, maintenance and services for the site

G&A functions, including general management, human resources, community and social

responsibility, safety, security, emergency services, environmental, finance, supply and information

technology. Cost estimate is driven by ore tonnes processed and based on 2020 actuals.

  • Refining: transport, security, refining and transaction costs for selling gold. Cost estimate is driven

by ounces produced and based on 2019 actuals ($4.50/oz), as 2020 costs were inflated ($9.00/oz)

during the period of Covid-19 disruption where gold was transported out of Ghana on charter

flights, rather than regular commercial services which have since returned.

Table 21-7 Cost estimate, Operating for Mineral Reserve plan

UofM

Mining, Development

m.adv

Mining, Production

stope.t

Mining, Backfill

fill.m3

Mining, Surface Haulage

ROM.t

Mining, Overheads

ug.all.t

Mining, Geology

ug.ddm.op

Processing

mill.t

G&A

mill.t

Refining

rec.oz

1.27

9,665

Description

Lateral Development

Stope Material

Paste Backfill

ROM Material

Driving Quantity

Resultant Rate

$/ROM.t mined

7.05

18.24

4.87

220,378

Tonnes Processed

20.37

99,942

Tonnes Processed

9.24

Grade Control Drilling, UG

13,767

0.89

24,399

Total Material Mined, UG

2.26

197,269

52,640

Expenditure

$ ‘000

76,247

4,610

Au Produced

0.43NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 259

Table 21-8 Operating cost summary for Mineral Reserve plan

21.4 Closure Costs

Closure costs are as estimated annually and this assessment applies the Practical Closure Plan values

discussed in Section 20.6.

Closure costs for all concessions under GSWL are allowed for, including Wassa, Benso and Hwini Butre to

the south.

Consistent with the mine closure plans, closure costs are planned to occur both progressively over the mine

life (for Benso and Hwini Butre) and at the completion of operations (for Wassa).

There is potential that Wassa earthworks may be brought forward once final waste dump volumes and

designs are confirmed which could result in $3-5 M of the Wassa costs being brough forward to occur in

parallel with the HBB work.

Table 21-9 Closure cost summary for Mineral Reserve plan

CY21

CY22

CY23

CY24

CY25

CY26

Mining

Development

$M

21.9

14.9

15.6

17.8

6.1

0.0

Production

$M

30.0

32.2

32.3

33.7

38.5

30.7

Paste Backfill

$M

9.4

10.0

9.9

10.3

8.2

4.8

Surface Haulage

$M

1.6

1.8

1.9

1.9

1.5

1.1

Overheads

$M

4.1

3.8

3.8

4.0

4.5

4.1

Refrigeraton

$M

Geology

$M

3.0

2.9

3.0

2.9

2.0

Total Mining

$M

70.1

65.5

66.4

70.5

60.8

40.7

Unit Cost per ROM.t

$/t

39.29

35.89

36.82

36.35

30.10

28.15

Unit Cost per rec.oz

$/oz

412

371

368

391

340

295

Processing

Processing

$M

37.1

39.6

35.2

37.0

38.1

33.4

Total Processing

$M

37.1

39.6

35.2

37.0

38.1

33.4

Unit Cost per Proc.t

$/t

19.08

18.62

19.50

19.09

18.88

19.97

Unit Cost per rec.oz

$/oz

218

224

195

206

213

242

Site G&A

Site G&A

$M

16.7

17.1

16.4

16.7

16.9

16.1

Refining

$M

0.8

0.8

0.8

0.8

0.8

0.6

Total Site G&A

$M

17.5

17.9

17.2

17.5

17.7

16.7

Unit Cost per Proc.t

$/t

8.99

8.44

9.53

9.03

8.77

10.00

Unit Cost per rec.oz

$/oz

103

101

9 5

9 7

9 9

121

Total Operating

Mining

$M

70.1

65.5

66.4

70.5

60.8

40.7

Processing

$M

37.1

39.6

35.2

37.0

38.1

33.4

Site G&A

$M

17.5

17.9

17.2

17.5

17.7

16.7

Total Operating

$M

124.7

123.1

118.8

125.1

116.6

90.7

Unit Cost per Proc.t

$/t

64.11

57.89

65.85

64.48

57.74

54.32

Unit Cost per rec.oz

$/oz

733

696

658

694

652

657

76.2

197.3

52.6

9.7

24.4

13.8

374.0

Total/avg

220.4

104.6

699.0

60.76

34.57

365

220.4

220.4

19.16

215

99.9

682

374.0

4.6

104.6

9.09

102

Total

Wassa

1.2 3.5 3.5 2.3

1.2

Benso

0.1 0.4 0.4 0.3 0.1

Hw ini-Butre

0.1 0.4 0.4 0.3 0.1

Total

0.3 0.8 0.8 0.5

1.4 3.5 3.5 2.3

1.2

$1.4M

$11.6M

$1.3M

$14.3M

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 260

22 ECONOMIC ANALYSIS

The Wassa Mineral Reserve has been valued using discounted cash flows at an appropriate discount rate to

determine a Net Present Value (NPV). The effective date is 31 December 2020.

Sensitivity analyses were performed for variations in gold price, gold grade, operating costs and capital

costs to determine their relative importance as value drivers.

The economic analysis includes mining and processing of ore defined by the Mineral Reserve only.

22.1 Assumptions

Table 22-1 below shows the key inputs and assumptions used to develop the economic model.

The discount rate selected for the NPV calculation is 5% which reflects GSR’s view of the cost of capital, and

risk associated with the project, commodity price and country of operation.

Analyses have been conducted using two gold price assumptions:

  • Base Case: for Mineral Reserve estimation and economic test – $1,300 /oz flat; and
  • Consensus Case: consensus long-term forecast of 27 banks and financial institutions, as at the end

of January 2021:

o 2021 – $1,944.26 /oz;

o 2022 – $1,879.70 /oz;

o 2023 – $1,772.87 /oz;

o 2024 – $1,715.61 /oz; and

o 2025 and beyond (long-term) – $1,584.68 /oz.

Table 22-1 Key life of mine inputs and assumptions used in the economic model for Mineral Reserve

Parameter

Unit

Mine Life

years

Underground Mining

ROM, Development

Mt

g/t

cont.koz

ROM, Stope

Mt

g/t

cont.koz

ROM, Total

Mt

g/t

cont.koz

Waste Mined, Total

Mt

Development, Capital

km.adv

Development, Operating

km.adv

Vertical Dev’t, Capital

‘000 vm

LG Stockpile

Mt

g/t

cont.koz

Processing

Throughput Capacity

Mtpa

Au Recovery, Average

%

Au Recovery, Minimum

%

Au Recovery, Maximum

%

Au Produced & Sold

koz

Au Sales

Au Price, Base Case

$/oz

Au Price, Consensus Case

avg. $/oz

Price Escalation

Inflation

%

1.4

3.01

136

9.4

3.11

940

10.8

3.09

1,076

2.5

20.4

Value

6

23.8

44.2

0.7

0.58

13

2.70

94.1%

94.7%

0% (nil)

1,751

1,024

1,300NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 261

22.2 Stream, Taxes and Royalty

22.2.1 Stream

Royal Gold holds a two tier gold stream over the Wassa LOM production:

  • Tier 1: delivery of 10.5% of all production at 20% of gold price until 240,000 ounces have been

delivered; and

  • Tier 2: delivery of 5.5% of all production at 30% of gold price for all ounces thereafter.

The opening balance of the Tier 1 stream for this economic analysis is 120,003 oz.

22.2.1.1 Taxes and Royalty

The income tax rate in Ghana is 35% of taxable earnings. The royalty rate is 5% of gross revenue. The

government of Ghana holds a 10% free carried interest in the project. Taxation calculations have been

prepared by GSR based on current application and legislation which may be subject to change beyond the

scope of this assessment.

22.3 Economic Results, Base Case

The Mineral Reserve base case presents a positive economic return at $1,300 /oz with after-tax NPV at 5%

of $121.1 M (100% Basis). Table 22-2 shows the projected cash flows from the economic analysis and Table

22-3 shows the detailed results of the evaluation (NB: IRR cannot be calculated as all year cash flows are

positive).

Table 22-2 Cash flows, Mineral Reserve economic analysis – Base case

Figure 22-1 Cash Flows by Year for Mineral Reserve – Base case

Unit

Net Revenue (post Stream)

$M

Operating Costs & Royalties

$M

Cash Flow from Operations

$M

Tax

$M

Capital, Growth & Sustaining

$M

Cash Flow after Tax & Capital

$M

Pre-tax NPV (5%)

$M

Post-tax NPV (5%)

$M

Pre-tax IRR

%

Post-tax IRR

%

212.2

121.2

Value

1,219.9

703.5

147.5

108.4

184.2

147.5

n/a

n/aNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 22-3 Mineral Reserve economic analysis – Base case

Page 262NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 263

22.4 Economic Results, Consensus Case

The Mineral Reserve is economically viable at the consensus price ($1,944 – 1,585 /oz), with an after-tax

NPV at 5% of $335.6 M (100% Basis). Table 22-4 shows the projected cash flows from the economic

analysis and Table 22-5 shows the detailed results of the evaluation (NB: IRR cannot be calculated as all

year cash flows are positive).

Table 22-4 Cash flows, Mineral Reserve economic analysis – Consensus case

Figure 22-2 Cash Flows by Year for Mineral Reserve – Consensus case

Unit

Net Revenue (post Stream)

$M

Operating Costs & Royalties

$M

Cash Flow from Operations

$M

Tax

$M

Capital, Growth & Sustaining

$M

Cash Flow after Tax & Capital

$M

Pre-tax NPV (5%)

$M

Post-tax NPV (5%)

$M

Pre-tax IRR

%

Post-tax IRR

%

560.2

335.6

Value

1,643.6

703.5

394.2

262.2

184.2

394.2

n/a

n/aNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 22-5 Mineral Reserve economic analysis – Consensus case

Page 264NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 265

22.5 Sensitivity

Sensitivity analyses were completed for the Mineral Reserve for both the Base and Consensus cases.

Results presented are NPV at 5% discount rate, after tax.

Table 22-6 Sensitivity results for the Mineral Reserve at different gold prices and discount rates

Discount

Rate

1,200/oz

Base

1,300/oz

1,400/oz

1,500/oz

1,600/oz

1,700/oz

Consensus

1,751/oz

avg.

1,800/oz

1,900/oz

0%

$93 M

$147 M

$202 M

$257 M

$311 M

$360 M

$394 M

$421 M

$475 M

5%

$75 M

$121 M

$168 M

$214 M

$260 M

$302 M

$336 M

$353 M

$400 M

7.5%

$67 M

$110 M

$153 M

$196 M

$239 M

$278 M

$311 M

$325 M

$368 M

10%

$61 M

$101 M

$141 M

$181 M

$221 M

$256 M

$289 M

$300 M

$340 M

22.5.1 Economic Sensitivity of Base Case

Figure 22-3 Sensitivity analysis of the Mineral Reserve base case ($1,300 /oz)

Table 22-7 Sensitivity results of the Mineral Reserve base case ($1,300 /oz)

Sensitivity

-30%-

-25%-

-20%-

-15%-

-10%-

-5%-

+0%

+5%

+10%

+15%

+20%

+25%

+30%

Gold price

$ M

-82

-33

1

3 1

6 1

9 1

121

151

181

212

242

272

302

Processed gold grade

$ M

-78

-31

2

3 2

6 2

9 1

121

151

181

212

244

276

308

Growth capital cost

$ M

134

132

130

128

125

123

121

119

117

115

113

110

108

Sustaining capital cost

$ M

157

151

145

139

133

127

121

115

109

103

9 7

9 1

8 5

Operating cost: mining

$ M

217

201

185

169

153

137

121

105

8 9

7 3

5 7

4 1

2 5

Operating cost: processing

$ M

177

168

159

149

140

131

121

112

102

9 3

8 4

7 4

6 5

Operating cost: G&A

$ M

147

142

138

134

130

125

121

121

117

113

108

104

100

Sensitivity

-2.5%- -2.0%- -1.5%- -1.0%- -0.5%-

+0%

+0.5% +1.0% +1.5% +2.0% +2.5%

Gold Recovery

$ M

106

109

112

115

118

121

124

127

130

133

136NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 266

22.5.2 Economic Sensitivity of Consensus Case

Figure 22-4 Sensitivity analysis of the Mineral Reserve consensus case (av. $1,751 /oz)

Table 22-8 Sensitivity results of the Mineral Reserve consensus case (av. $1,751 /oz)

Sensitivity

-30%-

-25%-

-20%-

-15%-

-10%-

-5%-

+0%

+5%

+10%

+15%

+20%

+25%

+30%

Gold price

$ M

9 0

131

172

213

254

295

336

376

417

458

499

540

581

Processed gold grade

$ M

9 3

134

174

214

255

295

336

376

416

458

502

545

588

Growth capital cost

$ M

349

346

344

342

340

338

336

333

331

329

327

325

323

Sustaining capital cost

$ M

371

365

359

353

347

342

336

330

324

318

312

306

300

Operating cost: mining

$ M

431

415

399

383

368

352

336

320

304

288

272

256

240

Operating cost: processing

$ M

392

382

373

364

354

345

336

326

317

308

298

289

280

Operating cost: G&A

$ M

361

357

352

348

344

340

336

331

327

323

319

314

310

Sensitivity

-2.5%- -2.0%- -1.5%- -1.0%- -0.5%-

+0%

+0.5% +1.0% +1.5% +2.0% +2.5%

Gold Recovery

$ M

315

319

323

327

331

336

340

344

348

352

356NI 43-101 Technical Report (March 2021) Wassa Gold Mine

23 ADJACENT PROPERTIES

There is no relevant information relating to adjacent properties.

Page 267NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24 OTHER RELEVANT DATA AND INFORMATION

24.1 Southern Extension PEA Introduction

24.1.1 Cautionary Statement

The Preliminary Economic Assessment (PEA) is conceptual and outlines a mining inventory which is entirely

based on an Inferred Mineral Resource. Inferred is the lowest level of confidence for a Mineral Resource

and there is no certainty that further geological drilling will result in the determination of higher Mineral

Resource classification, nor that production and financial outcomes will be realized. Mineral Resources that

are not Mineral Reserves do not have demonstrated economic viability.

The term ‘ROM material’ is used in this assessment to describe potentially economic Mineral Resource

included in the mining and processing plans.

Where the term “ore” is used in various parts of this section it is to use common terms describe items of

mine infrastructure (eg: “ore pass”, “ore bin”, “ore drive” etc.) and metallurgical aspects (“whole of ore”)

without implying economic value.

24.1.2 Basis to Include Inferred Mineral Resources in a Potential Mill Feed Plan

The Wassa underground mine commenced development in 2015 and declared commercial production in

January 2017. There is a history of successfully converting Mineral Resources (including inferred) to

production from underground using the methods outlined in this assessment.

The Wassa property has an established record of successful permitting applications from project

commencement in 1998 to present. These are detailed in Section 20.1.2 (Permitting of Existing

Operations).

On these bases, GSR considers it reasonable to include Inferred Mineral Resources in the PEA mining

production and processing plans for the purpose of informing the PEA economic assessment.

In the event that any of the ROM material is upgraded to enable classification as Mineral Reserve, it will be

declared as such but ROM material should not be considered Mineral Reserve on the basis of this

assessment. Section 15 of this Technical Report should be referred to for the declared Wassa Mineral

Reserve.

24.1.3 Scope of the PEA

The scope of the PEA is to outline an underground mining method, together with supporting infrastructure

and sustainability plans, to extract the potentially economic portion of the Wassa Gold Mine Inferred

Mineral Resource.

The PEA has been prepared within the following framework:

  • Underground mining rate increased to fully utilise the installed processing capacity (2.7 Mtpa);
  • Production schedules to appropriately consider conversion risk of the Inferred Mineral Resource;
  • Methodologies and design quantities based on proven, currently available technologies;
  • Costs to reflect current operational experience; and
  • Minimise capital demand needed to establish full production.

The intent of the framework is to present a deliverable plan which can be executed with GSR’s current

operational and financing capacity.

Potential enhancements outside this framework are presented as opportunities outside of the PEA

outcomes and can be investigated as part of the forward work plan.

Page 268NI 43-101 Technical Report (March 2021) Wassa Gold Mine

There are no significant changes required for the processing plant to process the potential feed schedule.

Surface infrastructure needed to support the mining method is ventilation and refrigeration related,

including raisebored shafts, exhaust fans and refrigeration plant. The majority of the proposed capital plan

expenditure is contained in underground lateral and vertical development mining. The PEA mining method

relies on paste fill; the paste fill plant was constructed in 2020 and is to be commissioned in Q1 2021.

Based on the mining plan described in the PEA, no additional material permitting is expected to be

required. GSR and GSWL have extensive experience in the Ghanaian regulatory regime and have

throughout the operations history obtained all required regulatory permitting within projected timelines.

The Ghanaian regulatory regime itself is well defined and permitting processes are defined by regulation.

Should future studies identify the requirement for any additional permitting there is no reason to expect

that these would be unduly delayed.

24.1.4 Definitions

The following descriptors are used for the Southern Extension mining quantities. They are consistent with

those used for Panels 1-3 with some additional features.

  • Panel:

Each panel defines a progressive phase of definition drilling and capital development. The

definition can be flexible but new panels are defined by their requirement for a new phase of

definition drilling followed by an investment decision (eg: Panels 4, to 5, to 6, etc).

  • Area:

Areas are semi/continuous zones of mineralization, which require extraction in connected

sequence but are geotechnically independent from other areas within the panel, for the purposes

of stope sequencing. Areas can extend across multiple panels where the panel boundaries are

designed to permit sequence independence.

  • Block:

Blocks are groups of stopes, mined as independent production districts. Generally 125 m high, they

consist of four production levels, plus a sill pillar to separate from the block above. They are

established to facilitate efficient stope production with separable mine infrastructure (vent, access,

materials handling) so minimize the interactions between different blocks.

  • Stope:

A stope is a single production excavation which follows a defined sequence to complete the

production cycle (eg: development, drilling, blasting, loading, filling).

  • Lift:

Stopes across multiple levels are mined in a series of lifts, as they progress through each level, ie: a

four-lift stope is four levels high.

  • Split:

Where the width of mineralization is larger than the allowed stope width, stopes will be broken

into a series of splits across strike.

The descriptors are illustrated in Figure 24-1

Page 269NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-1 Illustration of Wassa location descriptors

24.2 Mineral Resources used in the PEA

The Mineral Resources considered in the PEA are as at December 2020 and are entirely Inferred Mineral

Resource. The Long-Range model (srkwasmar20e) was used, south of 19,240mN or below 300 mRL.

Mineral Resources above and north of this area inform the Mineral Reserve and are excluded from the PEA.

Figure 24-2 Mineral Resources considered in Southern Extension PEA (LR model only)

Page 270NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3 Mining Methods

24.3.1 Introduction

The Southern Extension has the potential to expand the underground production profile if the Inferred

Mineral Resource is successfully converted to production. Figure 24-3 and Figure 24-4 respectively show

the scale of the Southern Extension and the arrangement of the mining areas across the deposit.

The Southern Extension will be accessed from existing underground workings via two declines, one on each

side of the production panels. Panels 4-8, shown in Figure 24-3, continue in numbering from those in the

current and upper mining zones.

Duplicate Ramp

(Haulage Loop)

Panel 4

Panel 5

Panel 6

Panel 7

Panel 8

Figure 24-3 Longitudinal Section looking east, showing the Southern Extension Panels

Page 271NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Panel 4

Panel 5

Panel 6

Panel 7

Panel 8

Figure 24-4 Cross sectional view, Southern Extension, highlighting the width and complexity across the deposit

24.3.2 Mine Design

24.3.2.1 Introduction

The general layout of the Southern Extension zone is shown in Figure 24-5. The large mineralized footprint

in the southern zone is accessed from two declines, east and west of the mineralization. The distribution of

mineralization varies between the upper (4-6) and lower (7-8) panels. The layout of the production blocks

is also different in the upper and lower panels.

  • Panels 4-6: Three large production blocks on the east side with numerous smaller production

blocks to the west. Blocks are spread across and along strike of the deposit, creating multiple

independent production blocks.

  • Panels 7-8: Reasonably uniform and continuous blocks on both sides of the deposit, merging at

depth. More consistent geometry could be influenced by relatively wide spaced drilling (all of the

Southern Extension classified as Inferred Resource), but panels 7 and 8 have the lowest drill hole

density). However, should the geometry break apart with further drilling, the mining and access

strategy is flexible in that the modular production blocks, with access from the two declines, can be

moved around to match the geometry of the defined mineralization.

Page 272NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-5 Oblique view of the Southern Extension showing twin decline layout (looking northeast)

24.3.2.2 Stoping Methodology

The majority of stopes in the Southern Extension zone will be mined using bottom-up, transverse Long Hole

Open Stoping, with occasional longitudinal stopes where deposit widths are less than 15 m. Nominal stope

lift dimensions are 20m along strike, up to 30m wide and 25 m height (level spacing), regardless of stope

type and sequence used. The number of lifts mined in a single stope varies depending on the stope type

and sequence, with between one and four lifts per stope (25-100 m height).

24.3.2.2.1 Transverse Stoping

Transverse stopes are designed where planned width is above 15 m. Transverse stopes are planned to

extract the majority of the mineralization and have the following characteristics:

  • On each level, the stope is accessed by a single crosscut, mined from the footwall drive through the

full thickness of mineralization and centrally located along the 20m strike span.

  • Each lift will be opened by a slot, proposed to be mechanically excavated with a boxhole from the

lower level of the lift, leaving a cap before breakthrough into the top drill access. Blast holes will be

drilled down from the top access in transverse rings.

  • For the lowest lift in a production block, an intact trough will be left on each side of the crosscut.

o The trough consists of material that is inefficient to recover with the stope above (complex

blasting and difficult remote loading).

o Troughs will be angled so that blasted material rills toward the extraction crosscut,

improving the overall productivity over the stope life.

Page 273NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 274

o Material can be recovered with the extraction of the sill pillar from the block below.

o For all lifts above, the lower level will be formed by the fully opened crown of the lift

below, so will not require troughing.

Generic sections for a primary transverse stope are shown in Figure 24-6, and the generic extraction

sequence for the stope cycle is shown in Figure 24-7.

Figure 24-6 Schematic of a 4-lift primary transverse stope (illustration not to scale)

Sill

Lift 1

Sill

Lift 4

Lift 3

Lift 2

Lift 1

Filled

Filled

Cross Section

Longitudinal Section

A

A

A

A

Trough

Trough

Footwall

Drive

Cross Cut

Trough

Trough

Drawpoint

Production

rings

Broken

stocks

Plan

Drawpoint

Cross-cut

Uphole stope

removes sill

Footwall

Drive

Drawpoint

Cross-

20 m

25 m

25 m

25 m

25 m

25 m

12 – 30 m

20 m

25 m

Uphole lift

Downhole liftsNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 275

Figure 24-7 Generic downhole stope activity sequence

24.3.2.2.1.1 Primary/Secondary Sequence

The primary secondary sequence extracts the first pass of stopes to full-height (4-lifts, 100 m) stopes,

mining every second stope along strike (the primary stopes), with alternating pillar between. The pillars are

extracted later as the secondary stopes after sufficient stope voids complete paste backfilling.

The primary/secondary sequence has advantages:

  • Quick ramp-up of production rate after stoping commences. Minimal interactions between

primary stopes due to the pillars in between each.

  • Lower strength paste backfill or waste rock from development, can be applied in secondary stopes,

to reduce cost (although not considered in this assessment due to the low level of the study).

Lower

Middle

Upper

1

2

3

4

5

6

Boxhole Drilling

Blast, Mass

Loading

Loading

Loading

Loading

Boxhole Drilling

Boxhole Drilling

Prod. Drilling

Prod. Drilling

Blast, Slot

Blast, for Void

Lower

Middle

Upper

12

7

8

9

10

11

Loading

Loading

Loading

Loading, Cleanout

Paste Fill

Paste Fill

Fill Capping

Paste Fill

Blast, Slot

Blast, for Void

Blast, MassNI 43-101 Technical Report (March 2021) Wassa Gold Mine

The primary/secondary sequence has disadvantages:

  • Creates higher mining induced stress conditions in the pillars which can be problematic during

extraction of the secondary stopes and potentially the primary stopes.

  • Mining rate during latter stages of the block is reduced as extraction of the sill pillars cannot

commence until late in the block life as a higher proportion of the block tonnes need to be

extracted to create sufficient distance between active secondary stopes and those extracting the

sill pillar.

Primary-secondary is applied in the upper parts of the Southern Extension zone as it enables rapid ramp-up

of the underground mining rate to match the plant capacity but is limited to approximately 1,000 m depth

where the induced stress conditions have been assumed to prevent use further down. This aligns with the

bottom of Panel 6 at -30 mRL.

Figure 24-8 shows progression of the generic primary/secondary sequence:

  • First stope is generally located centrally in the block and the mining front advances to north and

south, with primary stopes mined 4-lifts high (100 m).

  • Secondary stopes follow the primary stope front with a lag distance of 120-140m along strike to

create sufficient buffer between active primary stopes, development of secondary crosscuts and

extraction of secondary stopes, a large distance (120-140m).

  • Secondary stopes are constrained to two lifts per stope, to limit exposure dimensions of the paste

fill mass in stope walls.

  • Extraction of the sill pillar commences when there is a sufficient distance from secondary stopes in

the blocks above and below. Each crosscut into the sill pillar is scheduled to be redeveloped in time

for the uphole stopes to be mined.

  • This resulting sequence has primary stope extraction almost, if not fully, complete before the first

secondary stope is mined; it creates a production profile which is high in the early years of primary

stoping, slows as secondary stopes are mined and becomes low when the block is only producing

from stopes in the sill pillar.

Figure 24-8 Primary/secondary stope extraction sequence, transverse stopes

Page 276NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.2.2.1.2 Pillarless Retreat Sequence

The pillarless retreat sequence extracts all stopes in single-pass fronts to the north and south. No pillars

are left, with each stope mined directly alongside the fill mass of the stope before.

The pillarless retreat sequence has advantages:

  • Reduced step-out distance and removal of pillars/secondaries, will improve redistribution of mining

induced stress.

  • Not needing a second-pass mining front for secondary stopes, permits earlier extraction of the sill

pillar which creates a more consistent production profile over the life of the production block and

improves management of induced stress in the sill pillar.

The pillarless retreat sequence has disadvantages:

  • Slower ramp-up of the production rate, although more consistent across the life of the block.
  • Requires high-strength paste backfill in all stopes as they will all have sidewalls exposed.

Pillarless Retreat is applied in the deeper parts of the Southern Extension zone as it better manages mining

induced stress. In this assessment, the transition point is assumed to be approximately 1,000 m depth but

will require refining as the study progresses and the in-situ stress field and response to mining is better

understood. The change to pillarless retreat is at the top of Panel 7. Figure 24-9 shows the stages of the

pillarless retreat sequence used in the design:

  • The two single-pass stoping fronts start roughly in the centre and retreat to the block peripheries.
  • The downhole stopes are two lifts high (50 m).
  • Extraction of the sill pillar commences when there is a sufficient distance from each of the active

stope fronts. Crosscut development in the top level of the block will then be re-developed or

rehabilitated after the risk of undercutting the block above has been eliminated.

Figure 24-9 Pillarless retreat stope extraction sequence, transverse stopes

Page 277NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 278

24.3.2.2.2 Longitudinal Stoping

Longitudinal stopes are applied for stopes less than 15 m. The narrower width enables each stope to be

mined from a single ore drive along the strike of the mineralization. Apart from the access direction,

extraction methodology will be consistent with that used for transverse stopes, with the exception that

trough will not be left for the bottom lifts, rather they will be silled out prior to blasting the downholes

above.

Longitudinal stopes will be sequenced such that the first stope will be up to 4 lifts high, and thereafter two

lifts, in the same arrangement as the Pillarless Retreat sequence for transverse stopes.

24.3.2.2.3 Wide Width Mining

In sections of the deposit wider than 30 m, multiple transverse stopes must be sequenced across the

deposit width. In these circumstances, a 10m thick pillar between parallel stopes is left insitu. This means

that primary stopes always contain four rock walls, and secondary stopes contain up to two paste filled

walls. Figure 24-10 shows a generic arrangement for wide width mining.

Figure 24-10 Generic wide-width mining (illustration not to scale)

24.3.2.3 Stope Design

Mine design for Panels 4-8 was completed by AMC Consultants in October 2020, under direction of the

Golden Star corporate technical services team.

Optimal stope shapes were developed from the Mineral Resource block model using MSO software

consistent to the same methods applied to Panels 1-3.

The MSO inputs were:

  • Cut off Grade: 2.3 g/t Au in Panels 4 and 5, 2.9 g/t Au in Panels 6, 7 and 8
  • Stoping width (minimum/maximum): 5 m – 30 m
  • Minimum pillar between adjacent stopes: 10 m
  • Minimum hanging/foot-wall dip angle: 80°

Optimization shapes were validated by manual checks to remove outliers.

“Split” 1

“Split” 2

“Split” 1

“Split” 2NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 279

24.3.2.4 Modifying Factors

The modifying factors applied to the in-situ stopes tonnes and grade are shown in Table 24-1 and are

reflected in the stope inventories contained in the PEA production plan.

Table 24-1 Stope Modifying Factors contained in the MSO settings

Modifying Factor

Panels 4 – 6

Panels 7 & 8

Dilution

7.5% at 0.0 g/t Au

13.0% at 0.0 g/t Au

Stope Recovery

95%

75%

Panels 4, 5 and 6 have had modifying factors applied which are approximate the operating mine’s

performance with increased dilution, which is considered appropriate to reduce scheduled stope grades

reported from the Inferred Mineral Resource.

Panels 7 and 8 have had more conservative modifying factors applied for the following reasons:

  • Geotechnical conditions are not well assessed in the deeper panels and mining conditions may

negatively impact dilution and recovery; and

  • Definition drill hole spacing in Panels 7 and 8 is wider than above and the application of more

conservative factors is considered prudent.

The conservative modifying factors applied to Panels 7 and 8 are a major mitigant of the resource risk

inherent to the PEA. Reducing stope recovery by 20%, compared to factors applied in the upper panels,

reduces planned gold production by approximately 500-550 koz.

Development in mineralization above the cut-off grade has been assigned 30% dilution in all Panels to

reflect a lower grade delivered to the ROM, consistent with the treatment of stopes.

Table 24-1 shows the conversion of the Inferred Mineral Resource in each panel after application of cut-off

grades and modifying factors. The proportion of contained metal converted to the PEA mining plan

appropriately considers geological risk, with 54% of metal included in the PEA inventory in Panels 4 and 5

where there is more definition drilling, which decreases to 48% for the deeper panels 7 and 8 where

definition drilling is widely spaced.

Table 24-2 Conversion of Inferred Mineral Resource to PEA inventory

Units

Panel 4

Panel 5

Panel 6

Panel 7

Panel 8

Total

Inferred Mineral

Resource,

in-situ

Mt

7.8

11.5

8.6

19.6

18.6

66

Au g/t

3.0

3.1

2.7

4.0

3.6

3.4

Moz

0.76

1.14

0.74

2.52

2.14

7.3

PEA Inventory

Mt

4.1

5.5

3.1

9.4

7.8

30

Au g/t

3.3

3.5

3.7

4.3

3.8

3.8

Moz

0.42

0.61

0.37

1.31

0.94

3.6

Conversion to PEA

Inventory

%Moz

54%

49%

48%

50%

Cut-off Grade

Au g/t

2.3 g/t

2.9 g/t

Modifying Factors,

Stopes

7.5% Dilution

95.0% Recovery

13.0% Dilution

75.0% Recovery

24.3.2.5 Development Design

The Southern Extension will be accessed from infrastructure in place for extraction of the Mineral Reserve.

Decline Ramps, ventilation airways and services (power, water, air) are assumed to be pre-existing and

available to use for the access and extraction of the Southern Extension zone.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.2.5.1 Main Accesses

The Southern Extension zone will be divided into East and West sides with independent decline access on

each. Mineralization has a large plan footprint (up to 850 m along and over 300 m across strike) and dual

access reduces lateral development required to access all of the large footprint and reduces interactions

between production blocks. Ramp grades are 1:7 and have connecting link drives at the bottom of each

block (nominally 125 m vertically). The twin decline approach either side of the deposit enables:

  • Definition drilling platforms directly off the decline, rather than establishing large drill-drives into

the hanging-wall as would be the case for a single footwall decline;

  • Greater independence between production blocks, maximizing productivity;
  • Simplification of level layouts with greater consistency, particularly for Panels 4-6 where single

access levels would otherwise need to access up to 300 m across the deposit;

  • Higher hauling capacity, enabled by establishment of a one-way hauling loop in the two ramps to

surface and the resulting efficiency improvements;

  • Improved long term infrastructure stability by keeping ramps and shafts well distanced from

production areas, compared to a single decline position, if it were more centrally located; and

  • Secondary egress from the mine.

Figure 24-11 shows the east decline and its mining areas and Figure 24-12 shows the west.

Figure 24-11 East decline, oblique looking north-west

Page 280NI 43-101 Technical Report (March 2021) Wassa Gold Mine

The east ramp will take-off from the main decline at the southern end of Panel 2 in the current mining

zone, and the west ramp will connect from the 570-DDD hanging-wall drill drive being developed for

definition drilling of Panels 4 and 5. Design of these connections will be optimized as the project progresses

and deposit knowledge increases.

Each ramp is positioned to cover the strike length of mineralization down to approximately 1,500 m depth.

Ramps will have long straights running roughly parallel the strike of the deposit, providing good coverage

for definition drilling platforms and improved mining efficiency with better traffic management, reduced

truck driveline wear and more efficient/effective road maintenance.

Figure 24-12 West decline, oblique view looking north-east

24.3.2.5.2 Production Blocks

Stopes will be grouped into production blocks. Each block is designed to be mined independently of

neighbouring blocks, separated with respect access, geotechnical and ventilation aspects.

The preliminary geotechnical assessment recommended that to be independent, blocks should be

separated by at least 40 metres horizontally and on level (25 m) vertically. Natural boundaries between

mineralized areas generally permit independence between blocks, but where mineralization is more

continuous, pillars are placed throughout the mining areas to create independence between blocks and for

managing stope heights.

Page 281NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Production blocks have been designed with independent infrastructure for ventilation and materials

handling, to support rapid stope turnover. The consistent layouts, facilitate mining and scheduling

repeatability, improving efficiency. The main features of production blocks include:

  • Separable ventilation network, separated from the decline and other blocks, which delivers fresh

air to the working levels via intake raises connecting to footwall accesses at the end of the block.

This ensures the active stope headings, where most work outside of air-conditioned cabins occurs,

will receive first use of the fresh air. In contrast, if the decline is used to distribute fresh air, air

would be contaminated by equipment in the decline before reaching the stope headings, which

would reduce its cooling efficiency.

  • Dual-purpose orepass/return ventilation raise:

o Exhaust point for each level, connecting to the return air network via the bottom level of

the block, facilitating removal of dust generated in the pass directly with return air flows

from the block. The dual-purpose system is designed to rationalize the number of airways

and will be achieved by through the use:

▪ Regulators on the bottom level to manage the total airflow through the block;

▪ Ore sizing rings on top of the finger raise at each tipping point, to regularize block

airflow shared between each level;

▪ Plug covers in orepass fingers to isolate level flow as required; and

o Decouples truck loading activities from stope loading on the levels above, specifically

remote loading and potential automation applications.

  • Ore bin between the bottom level and the truck haulage level below, separate from the ore-pass

system, remove the constraint where the loading rate on the bottom level may be constrained if

the orepass is filled with material from levels above; and

  • Footwall access drive, parallels the strike of mineralization for cross-cut access and grade-control

drilling. Footwall drives are stood-off from mineralization minimum 25 m.

The generic set-out of the production blocks has a significant benefit that it is modular and can be designed

to match the geometry of the defined mineralization. Similar concepts are applicable whether the stope

groups are anywhere from 150 m, up to 500 m along strike. This makes the layout particularly suitable to

represent future production layouts in Panels 6-8 where drilling density of the Inferred Mineral Resource is

low and there remains likelihood that with more drilling, interpretation of the mineralization geometry will

change. This is contrary to other design layouts which could have shown increased development and cost

efficiency but would have been reliant on large continuous zones of mineralization.

The consistent layout of production blocks means they will generally be developed in a consistent

sequence:

  • Phase 1:

Capital development on top and bottom levels of the block are prioritized to access ventilation

positions and platforms for resource infill drilling (refer Section Geological Definition Drilling).

  • Phase 2:

Remaining footwall and other level capital development is completed to access intake and exhaust

airways, including the orepass.

Concurrently, the main intake and exhaust airways are developed.

Haulage and truck loading development is completed below the block.

  • Phase 3:

Grade control drilling is done from the footwall drives, targeting an inventory of three years stoping

to defined, ready for production.

Internal block ventilation airways (including dual-use orepass and fingers) are constructed to

prepare the block for operations.

Page 282NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Operating stope crosscuts and ore drives, will be mined just in time within the stope production

cycle. Opportunities to improve the crosscut layouts and “stubbing in” with footwall drive

development (to minimize interruptions during production phase) will be addressed in future work.

Figure 24-13 shows a generic longitudinal view of a production block, showing the ventilation connections

and infrastructure arrangement. Figure 24-14 shows an indicative production block level (295 mRL) and the

consistent layout features which are applicable, regardless of production tonnage in the block. It also

highlights the spread of mining areas in Panels 4 and 5 and suitability of access with two declines which

simplifies the level layouts.

Figure 24-13 Generic production block layout with primary/2ndary sequence and vent flows, longitudinal view

Page 283NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-14 Level layout (295 mRL) showing deposit width and twin decline arrangement, plan view

24.3.2.5.3 Truck Haulage and Connecting Link Drives

The east and west declines will be connected, nominally every 125 m vertical height with truck loading

infrastructure positioned on connecting levels. These levels, along with the two declines, are used to

create one-way haulage which results in efficient traffic management and haulage cycle times. The

connections will also create secondary means of egress, i.e. there are two directions to travel in to exit the

mine from any production block in production.

On each haulage level there is at least one truck loading position on each side of the deposit, where passes

will deliver material dumped by loaders on the levels above. The load out arrangement consists of a truck

loop mined around the bottom of the two ore bins which sit between the bottom level of the block above

and the truck haulage so that each bin has sufficient volume to facilitate process separation between stope

and truck loading. The truck-loading horizon is approximately one level below the bottom stoping horizon

of the block.

Truck loading at the bottom of passes will be amenable to the use of loading infrastructure (eg: feeder) but

this assessment simplistically assumes trucks are filled by loaders as this best represents current processes

in Panels 1 and 2 upon which the cost estimate is based. Loading bays are designed with an elevated

loading position, to maximize loading efficiency. Trade-off studies are required as the project progresses to

evaluate the automated loading infrastructure which where production block tonnages are sufficient to

justify the establishment cost.

Figure 24-15 shows a haulage level arrangement with the level connection between the two declines.

Page 284NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-15 Haulage level arrangement, 470 mRL

24.3.2.6 Geological Definition Drilling

Definition drilling of the Southern Extension Panels will be drilled progressively as the declines advance.

Drilling is planned in three different categories:

  • Resource Development: intended to upgrade Inferred Mineral Resource to Indicated. Timing is to

be completed ahead of capital investment for mining panel (decline and access development) and

will occur as the western decline reaches the top of each new Panel. The intent is to mitigate

capital risk by providing at least an indicated confidence level in each Panel before committing to

progressing the decline.

  • Resource Infill: increase drill density of Indicated Mineral Resource material to reduce spatial risk to

permit accurate development positioning. Timing is to provide a drilled inventory 2-3 years ahead

of stoping.

  • Grade Control: final drilling before stope block is ready for production. Drilling will be from

footwall accesses on each level and timed to ensure that the following year’s production is drilled

to the highest confidence classification (1-1.5 years drilled inventory). The intent is enabling the

geological controls to be defined and minimize grade risk for the upcoming budget year.

Approximate locations of Resource development drilling platforms are shown in Figure 24-16. This drilling,

along with Resource infill drilling, will be done from diamond drilling platforms mined off the western

decline and will provide up to 50% of the total pierce points.

Page 285NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 286

The drilling profile and Panel stope timing is outlined in Table 24-3. Resource development drilling will be

done in time to allow the declines to advance continually.

Figure 24-16 Oblique view, approximate Resource development and infill drilling horizons, looking north west

Table 24-3 Proposed Resource diamond drilling quantities relative to stope timing by Panel

Activity

Quantity

Units

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18

Drilling

Resource Dev’t & Infill

749

‘000m

32 61 45 77 48 81 79 69 53 66 65 50 23

Grade Control

424

‘000m

2 5 17 31 34 36 36 38 38 37 36 35 30 12

Stopes in Production

Panel 4

3.8

Mt

Panel 5

5.2

Mt

Panel 6

2.9

Mt

Panel 7

8.6

Mt

Panel 8

7.2

MtNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 287

24.3.2.7 Design Quantities

The design quantities for Panels 4-8 for the Southern Extension Zone are summarized in Table 24-4.

Table 24-4 Wassa Panels 4-8 mine design quantities

24.3.3 Geotechnical

The approach to the geotechnical assessment for the Southern Extension is consistent with Panels 1-3.

The geotechnical data set is considered appropriate for this assessment. Data from drill hole logging, face

mapping and other sources, will continue to be collected as the Southern Extension potentially progresses

through the project development and production stages.

24.3.3.1 Geotechnical Data

24.3.3.1.1 Drill Hole Database

In the Southern Extension zone, the geotechnical drill hole database includes 89 holes and 60,196 m of

core.

  • Rock Quality Designation (RQD) has been logged for all core; and
  • Joint Set Number (Jn) has been logged for 57,141 m of core.

Figure 24-17 shows the drill holes with RQD values assigned. Colour range is from blue, showing good

quality or competent rock, through to red showing low quality or weak rock.

Southern Extension Zone

Panel 4

Panel 5

Panel 6

Panel 7

Panel 8

Mined to ROM, Stopes

‘000 t

3,797

5,212

2,914

8,623

7,151

g/t

3.32

3.51

3.73

4.38

3.83

‘000 oz

405

587

349

1215

881

share% oz

12%

17%

10%

35%

26%

Mined to ROM, Development

‘000 t

161

250

167

783

594

g/t

3.00

3.12

2.88

3.64

3.18

‘000 oz

15.5

25.0

15.5

91.8

60.6

Mined to ROM, Total

‘000 t

3,958

5,461

3,081

9,406

7,744

g/t

3.31

3.49

3.68

4.32

3.78

‘000 oz

421

612

365

1,307

942

Development, Total

m

25,522

34,351

19,955

51,854

36,161

Dev’t Capital

m

13,648

16,356

12,178

24,031

17,415

Dev’t Operating

m

11,874

17,996

7,777

27,824

18,746

Vertical Development

m

3,943

4,623

2,616

5,255

3,176

Mined to Waste

‘000 t

1,638

2,205

1,281

3,329

2,321

Paste Backfill

‘000 m3

1,059

1,454

813

2,405

1,995NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-17 Geotechnical drill hole data in Southern Extension, plan (left) and longitudinal (right) views

(OreTeck, 2020)

Spatial density of the geotechnical logging data set was measured by calculating the distance from each 5 m

grid point in the rock mass model to the nearest neighbouring point. Stope blocks were then classified by

the spatial density of material within the stope shape, with the results classified into four categories:

  • Good: stope <=30 m from a geotechnically logged hole;
  • Medium: stope 30-60 m from a geotechnically logged hole;
  • Low: stope 60-90 m from a geotechnically logged hole; or
  • Insufficient: stope >90 m from a geotechnically logged hole.

The data density is generally Good to Medium for the higher Panels 4 and 5. The deeper panels 6-8 have

Low to Insufficient data density, which is commensurate with the wider drill hole spacing at depth. The

density is acceptable for this assessment but further data will be required as the project progresses.

Additional drill hole logging will also require additional parameters to inform higher level geotechnical

assessments:

  • Q values;
  • Rock Mass Rating (RMR); and
  • Geological Strength Index (GSI).

24.3.3.1.2 In-Situ Stress

In-situ stress measurements have been collected and are discussed in Section 16.3.2.2, along with the

interpreted in-situ stress gradient.

Figure 24-18 shows the Wassa in-situ stress gradient and reference lines for mines and regions which

experience various levels of in-situ stress damage.

The interpreted principal stress gradient is based on a single data point and, whilst suitable for this

assessment, it is considered indicative only. As the project progresses, additional in-situ stress

measurements will required to better inform the geotechnical interpretation.

Based on Figure 24-18, the onset of stress damage can be expected at depths around 800 m to 1000 m

below surface. The mine plan in this assessment includes a change from primary/secondary stope

sequencing to pillarless retreat sequencing at this depth to manage the impact of mining induced stress and

potential seismicity.

Page 288NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 289

Figure 24-18 Wassa preliminary principal stress gradient with reference mines and regions (OreTeck, 2020)

0

200

400

600

800

1000

1200

1400

1600

0

50

100

150

200

Magnitude (MPa)

Principal Stress with Depth

Mine A – Low stress damage

Mine B – High stress Damage

Mine C – Low stress Damage

Yilgarn (Westeran Australia)

Sudbury (Ontario Canada)

Wassa Mine Stress Gradient

Wassa 645 Site 1 Stress Measurement

Wassa 570 Site 2 Stress Measurement

Depth below Surface (m)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.3.2 Geotechnical Rock Mass Model

A geotechnical rock mass model was created for the Southern Extension using the geotechnical drill hole

database. The rock mass model includes data for RQD, field strength estimates and Joint Set Number (Jn)

with estimates of Barton’s Q values, Q’ (Barton et al, 1974), GSI and RMR rock mass characterization

systems. A plan view and cross section of the point model is shown in Figure 24-19.

Figure 24-19 Geotechnical rock mass model in Southern Extension, showing Q-prime in plan (left) and cross-section

(OreTeck, 2020)

24.3.3.3 Geotechnical Design, Stopes

The Modified Stability Graph (MSG) method (Matthews, 1981; Potvin, 1988) described in 16.3.2.5.1 was

used to assess the Southern Extension stope stability.

Observations from the site Ground Control Management Plan for Joint Roughness (Jr) and Joint Alteration

(Jw) were applied in the rock mass model to calculate Q-prime in the Matthews modified stope stability

assessment to determine stable, unsupported stope side-walls (hanging) and crowns. The RQD values were

used to estimate Barton Q values to calculate the stable stope dimension.

Modifying factors, B and C described in Section 16.3.2.5.1 were adopted for the Southern Extension.

Modifying factor, A, which accounts for induced mining stress and intact rock strength, was adjusted with

increasing depth, using the overburden weight and depth of stoping below surface. This approach will be

refined to include the in-situ stress gradient once additional in-situ stress measurements are available.

Numerical modelling will be required to determine the expected mining induced stress field at increasing

mining depths.

24.3.3.3.1 Panels 4 and 5

The preliminary stope stability parameters for transverse and longitudinal stopes in Panels 4 and 5 of the

southern extension are summarized in Table 24-5 and Table 24-6.

The unsupported stable design hydraulic radii are plotted on the stope stability curve shown in Figure 24-20

for expected rock mass conditions and current design stope hanging-wall geometries are summarized in

Table 24-7.

Page 290NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 291

Table 24-5 Modified Stability Number (N’) for Panels 4 and 5, transverse stopes (after Potvin, 1988)

Table 24-6 Modified Stability Number (N’) for Panels 4 and 5, longitudinal stopes (after Potvin, 1988)

Parameter

Stope Wall, Transverse

Comments

Back

Side (Hanging)

Q’

50

50

From Rock Mass Model values

UCS, Sigma C

Mpa

130

130

Depth

m

850

850

At 170 mRL

Max. Principal Stress, Sigma

1

Mpa

25

25

Estimated overburden stress,

subject to in-situ stress measures

Stress : Strength Ratio

1:

5.2

5.2

Factor A

0.6

0.6

Angle between Stope Face &

Daylighting Joint

15°

15°

Critical Joints, based on Panels 1-3

Factor B

0.2

0.2

Average dip of stopes is 70°

Potential Failure Mode

Gravity

Slabbing

Gravity or Slabbing

Dip of Stope Face

75°

Hanging-wall dip angle from initial

MSO stope shapes

Factor C

2

6.4

N = Q’ x A x B x C

12

38

Expected Stable Hydraulic Radius

6.3

10.1

Parameter

Stope Wall, Longitudinal

Comments

Back

Side (Hanging)

Q’

50

50

From Rock Mass Model values

UCS, Sigma C

Mpa

130

130

Depth

m

850

850

At 170 mRL

Max. Principal Stress, Sigma

1

Mpa

25

25

Estimated overburden stress,

subject to in-situ stress measures

Stress : Strength Ratio

1:

5.2

5.2

Factor A

0.6

0.6

Angle between Stope Face &

Daylighting Joint

15°

15°

Critical Joints, based on Panels 1-3

Factor B

0.2

0.5

Average dip of stopes is 70°

Potential Failure Mode

Gravity

Slabbing

Gravity or Slabbing

Dip of Stope Face

75°

Hanging-wall dip angle from initial

MSO stope shapes

Factor C

2

6.4

N = Q’ x A x B x C

12

96

Expected Stable Hydraulic Radius

6.3

13.8NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 292

Figure 24-20 Unsupported stable stope spans for expected rock mass conditions and current design hydraulic radii

(Mathews, 1981; Potvin, 1988)

Table 24-7 Stable stope dimensions, Panels 4 and 5

24.3.3.3.2 Panels 6-8

Insufficient geotechnical data is available in Panels 6-8 to conduct the assessment done for panels 4 and 5.

Geotechnical conditions have been assumed to be consistent with the panels above so similar design

criteria have been assumed, with additional consideration for in-situ stress conditions requiring a change in

mining method at depth.

Stopes in Panel 6 have been designed using the Panel 4 and 5 dimensions, recognizing that Panel 6 is lies

between 800 and 1,000m depth. Further studies may recommend that this panel use pillarless retreat

sequencing or shorter primary stope heights.

The vertical stable stope spans for Panels 7 and 8 have been reduced to 50 m based on the empirical stable

stope span assessment, which considers the increased maximum mining induced stress with depth.

Changing the stope sequence to Pillarless Retreat will also be required to manage mining induced stress.

Unsupport Stable Transverse HW

Unsupport Stable Longitudinal HW

Unsupport Stable Transverse Design (HW)

Unsupport Stable Longitudinal Design (HW)

Stope Dimension

Transverse Stope

Longitudinal Stope

MIN

MAX

Design

MIN

MAX

Design

Primary 2ndary

Height

m

25

100

100

50

25

50

25

Strike Length

m

20

20

20

20

<60

75

60

Width across Strike

m

15

30

30

25

<15

15

15

Dip, end/side-walls

75°

75°

75°

75°

75°

75°

75°NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-21 contains a heat map of the stope unsupported hydraulic radii determined by the geotechnical

assessment.

Figure 24-21 Unsupported hanging-wall stable hydraulic radii for Southern Extension, longitudinal view

(OreTeck, 2020)

24.3.3.4 Mining Induced Seismicity

As the Southern Extension is developed and the stoping progresses below 800 m, the risk of strain bursting

could emerge because of the estimated in-situ stress gradient and the competent rock mass conditions and

mining induced seismicity, which may occur. Further assessment and numerical modelling is required to

investigate the expected stress environment and response to mining.

A seismic network of approximately 5 geophones will be completed during mining of Panels 4 and 5 to

establish a seismicity and rock noise baseline. The system will be required prior to commencing below

800-1000 m threshold depth (200-0 mRL). The progression of mining induced seismicity will then be

measured and analysed to provide a better understanding of the rock mass response to ahead of mining in

Panels 6, 7 and 8.

24.3.4 Hydrogeology

In 2019, GSR undertook hydrogeological studies to test hydrogeological conditions in the Southern

Extension zone. Testing identified a fresh rock aquifer with low primary porosity and narrow, higher

permeability zones along discreet zones associated with fracturing/faulting/shearing. These are isolated

and will generally form a very small percentage of the overall rock mass and will only cause localized higher

inflow in the underground workings. Base case modelling indicated that the underground would likely

produce an average of 1,149 m3 /d (13.3 l/s) at the end of the 2021, increasing to 4,250 m3 /d (49.2 l/s) at

the end of 2024.

Page 293NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.5 Backfill

Backfill for stopes in Panels 4-8 will include both cemented paste and unconsolidated rock fill.

24.3.5.1 Paste Fill

Paste backfill is the primary fill system proposed for stopes in Panels 4-8.

Paste will be supplied from the recently constructed plant and properties are assumed to be consistent

with paste filling in Panels 1 and 2.

The increased mining rate is at the upper end of the benchmark capacity which can be supported by the

current paste plant and an allowance for capital expenditure to upgrade capacity is included. This is likely

to be achieved through establishment of new boreholes and distribution, but also may require additional

filtration capacity in the plant.

24.3.5.2 Rock Fill

Rock fill is also planned in Panels 4-8 primarily as a method of disposing development waste to avoid

hauling to and dumping at surface.

Waste rock can be dumped in the following stope void types, without the resulting fill mass negatively

impacting neighbouring stopes:

  • Secondary stopes which are at least two lifts above a sill pillar;
  • Secondary stopes with no planned stoping immediately below;
  • End stopes in any sequence with no planned stoping alongside; or
  • Where waste rock can be integrated into the fill mass by placement during the paste fill cycle

(eg: core and shell), although this results in extending duration of the fill cycle due to the relatively

slower rate of waste rock generation, compared to paste filling.

24.3.6 Ventilation

Initial development of the Southern Extension zone will utilize the Panel 2 ventilation circuit, which will

require the intake and exhaust shafts planned for construction in 2021/22 to be increased to 6.0 m

diameter.

The ventilation design for Panels 4-8 includes the following high level concepts:

  • Duplicated infrastructure on the east and west sides of the mine.
  • One each side of the mine, two intake/exhaust circuits:

o Decline circuit: intake via the decline ramp and exhaust via series of raises connected to the

decline. This circuit supports advancing the decline ramp face and ventilation of activity on

the decline itself; and

o Production circuit: intake raises will deliver fresh (possibly refrigerated, depending on

timing) air to the block for first use on the levels, and exhaust via a series of raises,

connected to the bottom level of the block.

These circuits will connect to the main ventilation infrastructure which will consist of 5.0-6.0 m diameter

shafts to surface for intake and exhaust, pending geotechnical assessment of unsupported diameters.

Ventilation quantities have been determined using 5.5 m diameter main infrastructure shafts.

Page 294NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.6.1 Main Infrastructure

The ultimate ventilation network has been designed to deliver 1,150 m3 /s airflow which is required in 2032.

It will include 3 exhaust shafts and 2 intake shafts, which modelling has assumed as unsupported 5.5 m

diameter shafts, although 6.0 m diameter would improve ventilation efficiency and operating cost, subject

to geotechnical assessment. Figure 24-22 shows the ventilation circuit with main fan installation timing.

The shafts parallel to the production blocks have been modelled at 3.5 m diameter which is considered

appropriate to this level of assessment. However, one of the priority opportunities for future optimization

is to increase these shafts to larger diameters and improve network efficiency.

Figure 24-22 Wassa Panels 4-8, ventilation stages, oblique view

24.3.6.2 Production Block Circuits

A generic production block ventilation set up is shown in Figure 24-23. Each production block will be

serviced by two 3.5 m diameter raises, one each for intake and exhaust which will connect to the main

airways. This diameter was selected to permit construction with a medium size-class raise drill and ensure

no geotechnical risk but requires further investigation to confirm diameter as there are benefits if these

shafts can be developed with larger profiles.

Page 295NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Intake: air is delivered directly from the intake raise to the working levels where the majority of

work done outside air-conditioned machine cabins is conducted.

This, along with the use of orepasses to remove trucks from the production levels, is a key element

to maximizing ventilation network efficiency. Separating the highest quality air from contaminants

and heat (ie: truck hauling) maximizes the benefit of that air and minimizes energy wasted on

airflow volumes and refrigeration, by moving it to a working area in a haulage decline.

  • Exhaust: is via the dual-use orepass, which will connect at the bottom of the block, to the block’s

exhaust raise. A regulator at the base of the raise will control total volume through the block and

flow on the levels above will be controlled by covering the orepass fingers.

Temporary ventilation restrictions will be required to prevent open stope voids short-circuiting the

exhaust system which will likely result in low airflow and failure to remove dust and contaminants

on the level.

With the 3.5 m diameter raises, each block can sustain three simultaneous working levels with 30 m3 /s

(90 m3 /s total) where higher flow rates will require larger diameter, or duplicate, airways. 30 m3/s per

working level is lower than that needed in Panels 1-3 as trucks are not loaded on the level in Panels 4-8.

Reduction of diesel equipment, through full electrification or hybrid units, provides opportunities to further

reduce the airflow demand on each level.

Figure 24-23 Panels 4-8, production block ventilation flows

24.3.6.3 Decline Circuits

Each of the east and west declines will be ventilated with a separate circuit separate from the production

blocks. The decline circuits will be exhausted by a series of raises (either 3.5 m raisebore or 4 x 4 m long

hole raises, depending on length) which will pull up to 190 m3 /s through the decline ramps.

Twin 200 kW fans with 1400 mm low resistance duct will enable secondary vent runs of up to 500 m

between airway extensions (approx. 70 m vertical spacing), assuming 30 m3 /s airflow at the face.

The mine schedule places the highest development priority on the decline ventilation circuit, followed by

advancing the next leg of the decline ramp, then level development to establish the new production block

ventilation circuit.

Page 296NI 43-101 Technical Report (March 2021) Wassa Gold Mine

24.3.6.4 Surface Fans

The Southern Extension primary exhaust fans have been forecast to develop the applied pressures and

require the motor power shown in Figure 24-24, assuming 5.5 m diameter main shafts. Applied pressure

does not include fan losses. Intake fans have been selected to ensure that there is sufficient velocity

maintained in the ramps and across the production levels. Surface fan configurations were not assessed in

this study, however, GSR will seek to standardize its fan motor size across its main fans.

Figure 24-24 Primary fan applied pressure (air density 1.1 kg/m3 ) and motor power (75% efficiency)

24.3.6.5 Refrigeration

A basic climatic study was completed by SRK to estimate the potential for refrigeration, assuming a reject

temperature of 30.0°C as the design limit for acclimated workers.

The heat load associated with the rock mass was not considered in this assessment because of the low

projected virgin rock temperature through most of the mine. Measurements will be required as the

development deepens as the project progresses and a thermal model will be required.

Refrigeration requirements based on heat loads were estimated for:

  • Auto compression;
  • Electrical equipment (including fans); and
  • Mobile equipment.

A psychrometric heat balance was developed to provide a basic comparison, or indication, of a refrigeration

requirement. The three components used for this initial analysis include auto compression, equipment

loads, and the natural cooling capacity of the unrefrigerated air. The calculations and assumptions are on

the mobile fleet schedule; Y13 has the highest refrigeration requirement, which is shown by heat source in

Figure 24-25. Figure 24-26 shows the refrigeration demand over the total scheduled life.

Figure 24-25 Heat loads and cooling summary for Y12 (SRK, 2021)

Page 297NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-26 Estimated refrigeration capacity over mine life (SRK, 2021)

24.3.7 Mining Schedule

Mining quantities for Panels 4-8 were scheduled using Deswik software, with spatial links between

development and stoping, and capacity constraints which reflect the methodology and sequence outlined

above.

The key scheduling assumptions applied were:

  • Advance rates:

o Single heading: maximum 100 m/mth for decline heading group (face, stockpiles and vent

accesses);

o Multiple heading/Levels: maximum 180 m/mth for groups once primary ventilation is

established past the level;

  • Maximum ROM material from a single stope: 2,300 tonnes per day; and
  • Total Material Movement: up to 2.7 Mtpa to ROM and 1.0 Mtpa to waste.

Milestones assumed in the scheduling of Panels 4-8 are:

  • Year 1: Definition drilling, targeting upgrade of the Inferred Mineral Resource in Panel 4 and 5,

feasibility study for Panels 4 and 5 commences;

  • Year 2: Definition drilling and feasibility study for Panels 4 and 5 completed, project approved and

development initiated late in year;

  • Year 3: Development commences with some development material to ROM;
  • Year 5: Development ongoing, first stope production;
  • Year 6: Ramp up of stoping rate;
  • Year 7/8: Stoping ramped up and mining rate from Panels 4-8 matches processing capacity;
  • Years 9-16: Mining rate to ROM maintained at processing capacity, with reducing development rate

from year 13 onwards; and

  • Year 17: Mining complete.

The Southern Extension mining schedule is contained in Table 24-8.

Page 298NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 24-8 Wassa mining schedule quantities, Southern Extension PEA

Page 299NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-27 Lateral development schedule for Southern Extension PEA

Figure 24-28 ROM material mining schedule for Southern Extension PEA

24.3.8 Mobile Equipment

The mobile equipment fleet for Panels 4-8 is assumed to be the standardized machine types planned for

Panels 1-3. The planned higher mining rate and depth of Panels 4-8, particularly in later years, will require

truck haulage rates to increase well above what is currently required at Wassa – more than four times

higher in peak years.

The haulage plan in this assessment is validated by a haulage simulation completed by SRK in December

2020 (SRK,2020 a & b). Various scenarios were simulated:

  • 2020 haulage quantities to calibrate model;
  • Comparison of 40 t vs 60 t trucks;
  • Limiting haulage capacity for single ramp, hybrid loop consisting of a single decline in the Southern

Extension and dual ramp system above 595 mRL and one-way loop decline configurations; and

  • Truck fleet estimation for Panels 4-8 mining schedule.

Page 300NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 301

The results indicated:

  • For 40 t trucks in a single decline configuration, the current production rate of 5,000 t/d (1.8 Mtpa)

is approaching the system’s limiting capacity, which supports the planned upgrade to 60 t units;

  • Limiting capacity of 60 t trucks with a single decline, is in the order of 7,000 t/d (2.6 Mtpa),

indicating that increasing the mining rate to match installed processing capacity will require the

haulage system to operate at maximum capacity and will realize reduced efficiency due to traffic

interactions in the single ramp;

  • Limiting capacity of 60 t trucks with two decline ramps through from the working levels through to

surface, creating a one-way haulage loop, creates a system which is limited only by loading unit

capacity and how many trucks can be supported by the ventilation system. Rates in excess of

10,000 t/d (3.6 Mtpa) should be achievable.

Truck fleet numbers in the mining schedule were calibrated to match the simulation numbers with <1%

variance of truck-years in the two estimates.

The fleet schedule for Panels 4-8 is shown in Table 24-9.

Table 24-9 Mobile fleet schedule, Southern Extension PEA

24.3.9 Mine Services

24.3.9.1 Dewatering

This study assumes pumping stations will be installed similar to the one recently constructed at the

620 mRL, which will pump approximately 400 m vertically to surface. Similar stations will be required

around the 220, -180 and -500 mRL levels. The base case simplistically assumes these stations pumping in

series, but more optimal solutions are likely to be developed as the project progresses.

24.3.9.2 Electrical

Panels 4-8 will connect into the 11 kV circuit at 570 level ring main unit, which is supplied 8.0 MVA from

surface. The 11 kV circuit will be extended throughout the Southern Extension using substations

(11 kV/1 kV 2.0MVA) placed every 5-6 levels which will result in approximately one substation per

production block. The Southern Extension will continue to use 1 kV distribution to electrical starter boxes

for equipment, fans and pumps.

The surface electrical infrastructure network is expandable to allow for increased loads in the mine

required for additional work areas or increased electrification (eg: electric trucks), defined as “Phase 2

expansion” in Figure 24-29. Phase 2 can incorporate an 11 kV ring main. Further work is required to define

and schedule electrical loads which will then define the requirement for the Phase 2 expansion.

2

2

6

6

6

6

6

6

6

6

5

3

2

2

2

1

2

4

4

4

4

4

4

4

4

4

4

2

1

1

3

3

6

6

6

6

6

5

5

5

4

4

3

1

1

5

7

12 13 15 15 16 18 19 17 17 18 10

1

2

7

8

14 14 14 14 14 14 13 12 11 11 6

Machine Type

Development Jumbo

Production Drill

UG Loader

UG Truck

ROM & Ancillary

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Abbreviations: kV: kilo-volt; kVA: kilo-volt

amperes; MVA: mega-volt amperes; Sub:

sub-station; RMU: ring main unit

Figure 24-29 Electrical distribution with Phase 2 expansion required to support Southern Extension

24.3.9.3 Other services

Compressed air and water supply for each decline will connect from Panel 2’s circuit. Additional

compressors for the air circuit and a pressure reduction strategy for the water supply will be determined in

future studies.

24.4 Metallurgical Testing

A test work program was completed in September 2018 characterizing the comminution and metallurgical

performance of samples selected from the Southern Extension. The test work was completed by the

Minerals Engineering Department of the University of Mines and Technology, Tarkwa.

24.4.1 Scope

The metallurgical evaluation test work program included the following investigations:

  • Head Assays (gold only);
  • Bond Ball Work Index (BBWi);
  • Gravity Concentration;
  • Leachability vs Grind test work;
  • Preg-Robbing Characterization;
  • Diagnostic Leaching; and
  • Reagent Consumption test work.

Test work details and conclusions are taken from “Profiling of Mining Zones at Golden Star Resources,

Wassa Mine” September 2018.

24.4.2 Sampling and Head Assays

The seven composites were selected from drill core in Lower F Shoot (Pod 1), Upper F Shoot (Pod 2) and B

Shoot (Pod 3). A summary of the selected intervals is presented in Table 24-10 and locations in Figure

24-30.

Page 302NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 303

Table 24-10 Metallurgical Composite Sample Location

Met Sample ID

Hole ID

Interval (m)

Weight (kg)

Grade (Au g/t)

WUG-SLC-18MET001

(Lower F Shoot)

BS17DD385D2

539.0 – 554.2

19.46

1.10

BS17DD385D2

559.0 – 624.4

37.95

4.84

BS17DD385M

1046.0 – 1074.0

32.81

4.16

Total WUG-SLC-18MET001

90.22

3.79

WUG-SLC-18MET002

(Lower F Shoot)

BS17DD385D3

752.0 – 790.0

42.94

7.91

BS18DD388D1

544.3 – 591.0

59.55

2.17

Total WUG-SLC-18MET002

102.49

4.58

WUG-SLC-18MET003

(Lower F Shoot)

BS17DD385D3

790.0 – 885.0

107.35

3.88

Total WUG-SLC-18MET003

107.35

3.88

WUG-SLC-18MET004

(Upper F Shoot)

BS18DD388D2

279.6 – 330.2

57.18

2.96

BS18DD388M

1005.0 – 1042.1

41.92

5.44

Total WUG-SLC-18MET004

99.10

4.01

WUG-SLC-18MET005

(Upper F Shoot)

BS18DD388D2

337.2 – 346.2

10.17

3.13

BS18DD388M

1042.1 – 1077.4

39.89

3.87

Total WUG-SLC-18MET005

50.06

3.72

WUG-SLC-18MET006

(B Shoot)

BS18DD389M

722.0 – 396.1

30.71

4.00

BS18DD389M

766.0 – 351.6

25.59

3.10

Total WUG-SLC-18MET006

56.30

3.59

WUG-SLC-18MET007

(B Shoot)

BS17DD385D1

293.1 – 315.1

24.86

3.89

BS17DD385D1

345.1 – 367.1

24.86

2.71

BS17DD385M

869.2 – 886.0

18.98

2.60

BS17DD385M

915.0 – 929.9

20.23

3.42

Total WUG-SLC-18MET007

88.93

3.18NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 304

Figure 24-30 Metallurgical Sample Drillhole Location

Each composite was crushed and blended, then submitted for assay with results summarized in Table

24-11. There is significant variation in several of the composites between the assay head grade and the

calculated head grade based on weighted core assays. This typically suggests the presence of coarse free

gold within the sample which can cause variance in assay results both within a single blended sample and

between core splits as observed here. This is consistent with operating experience at Wassa underground

mine where there is significant variation in assay repeatability and high gravity recoverable gold content in

both geological and metallurgical samples.

Table 24-11 Metallurgical Composite Head Assay

Met Sample ID

Head Grade

Assay 1

Assay 2

Average

Weighted Avg.

of Intervals

Au g/t

Au g/t

Au g/t

Au g/t

WUG-SLC-18MET001

5.34

5.15

5.25

3.79

WUG-SLC-18MET002

5.09

5.16

5.13

4.58

WUG-SLC-18MET003

4.55

4.47

4.51

3.88

WUG-SLC-18MET004

4.75

5.09

4.92

4.01

WUG-SLC-18MET005

3.78

4.04

3.91

3.72

WUG-SLC-18MET006

4.24

4.01

4.13

3.59

WUG-SLC-18MET007

3.91

3.99

3.95

3.18NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 305

24.4.3 Comminution Tests

BBWi tests were undertaken on all composites at a closing screen size of 106 µm to give a mill product of

around 75-80% passing 75 µm. The results are summarized in Table 24-12.

Similar to the 2015 Feasibility Study test work on samples in the current mining areas, the BBWi results of

13.6-15.7 kWh/t indicate moderate hardness. There is no strong trend of increasing BBWi with depth

based on the current results, shown in Figure 24-31.

Table 24-12 Bond Ball Work Index Results

Met Sample ID

Bond Ball

Average

P80

BBWI

RL

kWh/t

m

WUG-SLC-18MET001

71

15.7

50

WUG-SLC-18MET002

72

14.4

-145

WUG-SLC-18MET003

72

14.8

-295

WUG-SLC-18MET004

65

13.8

50

WUG-SLC-18MET005

71

15.0

-35

WUG-SLC-18MET006

67

13.6

-350

WUG-SLC-18MET007

75

14.7

250

Figure 24-31

Ball Mill Bond Work Index against sample depth (mRL)

24.4.4 Gravity Recovery Tests

Gravity recovery test work was carried out on all seven composites at two different grind sizes (P80 700 µm

or P40 106 µm). The coarser grind represents a typical cyclone underflow feed to a centrifugal

concentrator after screening off the >1.0 mm fraction. The second, finer, feed was tested to establish what

additional liberation of free gold occurs that can be recovered by gravity concentration. All tests were

carried out on a laboratory scale Knelson concentrator.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 306

A summary of the results is presented in Table 24-13. There is some increase in gold recovered to

concentrate for finer ground samples but any consideration of feeding a more finely ground product would

need to assess the overall recovery/cost benefit to the flowsheet.

Table 24-13 Gravity Recovery Gold – Summary

Met Sample ID

Gravity Recovery (%)

P80 700µm

P40 106µm

WUG-SLC-18MET001

40.6

41.8

WUG-SLC-18MET002

29.1

42.3

WUG-SLC-18MET003

15.1

27.7

WUG-SLC-18MET004

19.1

28.0

WUG-SLC-18MET005

24.0

31.2

WUG-SLC-18MET006

16.5

21.6

WUG-SLC-18MET007

19.7

26.8

24.4.5 Leaching Tests

Leaching test work was carried out on all the composites to assess multiple variables including:

  • Grind sensitivity;
  • Preg-robbing characterization;
  • Diagnostic Leaching; and
  • Reagent Consumption.

24.4.5.1 Grind Sensitivity

Grind sensitivity cyanide leach tests were done on all composites at three different grinds (P40, P60 and

P80 106µm) for whole of ore feed with otherwise consistent leaching conditions (pH and NaCN

concentration). The grind sensitivity tests were carried out as direct leach only on whole of ore feed (not

gravity concentration tails) and as such, the leach extraction results can only be used for assessment of

relative grind sensitivity. A summary of the results is presented in Figure 24-32.

All composites showed some degree of grind sensitivity with the B-Shoot composites showing the least

variation across grind sizes. Tests utilizing lead nitrate as a leach additive indicated no improvement of

leach recovery or reducing cyanide addition to maintain leach extraction or cyanide concentration.

Figure 24-32 Direct Leach – Grind Sensitivity Summary NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 307

24.4.5.2 Preg-Robbing

Preg-robbing characterization tests were completed on all composites to test for any gold adsorption

potential from naturally occurring organic carbon in the samples. Any gold adsorbed by the naturally

occurring organic carbon presents as unleached gold in tailings. The characterization is achieved by

comparing direct leach gold extraction with carbon-in-leach (CIL) gold extraction as generally activated

carbon can adsorb leached gold-cyanide complexes faster than any naturally occurring organic carbon

resulting in limited ‘robbing’ of the leached gold in solution. The results are summarized in Figure 24-33.

Moderate preg-robbing is observed in the Lower F-Shoot composites, less in the Upper F-Shoot composites

and minimal in the B-Shoot composites. This suggests there may be lithological differences between the

deposit zones or potential for increasing preg-robbing with relative depth.

Figure 24-33 Preg-robbing Characterization Summary

24.4.5.3 Reagent Consumption

Reagent consumption tests were completed under standard leach conditions to establish baseline reagent

consumption data and any trends in consumption across the composites. Results are summarized in Table

24-14.

There was no observable variation in lime consumption across the composites although the natural pH is

trending in the F-Shoot composites compared against the B-Shoot composites. The cyanide consumption is

also relatively higher in the F-Shoot composites. This could be an indication of increased reactive sulphides

in the F-Shoot compared to the B-Shoot.

Table 24-14 Reagent Consumption Summary

Met Sample ID

Reagent Consumption

Natural

Ca (OH)2

CaO eq.

NaCN

pH

Kg/t

Kg/t

Kg/t

WUG-SLC-18MET001

9.1

1.0

0.8

0.17

WUG-SLC-18MET002

9.3

1.0

0.8

0.18

WUG-SLC-18MET003

9.3

1.0

0.8

0.15

WUG-SLC-18MET004

9.3

1.0

0.8

0.19

WUG-SLC-18MET005

9.6

1.0

0.8

0.13

WUG-SLC-18MET006

9.5

1.0

0.8

0.13

WUG-SLC-18MET007

9.6

1.0

0.8

0.14NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 308

24.4.5.4 Diagnostic Leach

A diagnostic leach was completed on the composites. Results are summarized in Table 24-15. Reasonable

variation can be seen in the free-milling component of the composites. As the work was completed on

whole ore and not gravity tailings, depending on the coarse gold component (which is typically difficult to

leach in any reasonable time frame), the ‘free milling’ component could be under-represented.

Table 24-15 Diagnostic Leach Summary

Met Sample ID

Distribution

Free-milling

Carbonates

Sulphides Carbonaceous Quartz Locked

WUG-SLC-18MET001

88.1%

2.4%

4.1%

3.1%

2.4

WUG-SLC-18MET002

84.5%

1.9%

6.3%

4.4%

2.8

WUG-SLC-18MET003

85.4%

1.4%

2.8%

3.8%

6.6

WUG-SLC-18MET004

93.8%

1.2%

2.4%

1.8%

0.9

WUG-SLC-18MET005

89.4%

1.2%

5.1%

2.7%

1.6

WUG-SLC-18MET006

92.2%

0.7%

3.7%

2.0%

1.4

WUG-SLC-18MET007

89.5%

1.1%

4.4%

2.9%

2.2

24.4.6 Test Work Findings

The level of detail, type of test work and sample representivity of the metallurgical tests completed for the

Inferred Mineral Resource which forms the Southern Extension, is sufficient to develop metallurgical

performance criteria to support generation of a plant feed schedule for this preliminary assessment.

Further test work is required to inform future studies and provide the requisite level of confidence as the

project progresses toward any potential development decision.

24.4.6.1 Comminution

The BBWi results for the Southern Extension composites tested are similar to those of the 2015 Feasibility

Study test work, suggesting that the Southern Extension will likely have a similar performance in any

moderate to fine grinding environment as material mined from underground to date.

24.4.6.2 Gravity Concentration and Leaching

Based on a limited number of test samples, the test work results indicate material from the Southern

Extension can potentially deliver similar recovery profiles to material currently processed.

There is some risk evident with all composites showing some level of preg-robbing (very mild to moderate),

although the observed degree of preg-robbing is considered manageable within the existing Wassa process

plant. Further work is required to characterize the issue and better understand the underlying controls

(lithology, depth, zonal). All future test work should be carried out on gravity tails to reduce head grade

variation and provide more definitive leach performance data.

The composites tested were amenable to gravity concentration at coarse feeds typical of cyclone underflow

in the Wassa processing plant. There is a potential opportunity increase gold recovery to concentrate by

changing the concentrator feed stream to cyclone feed rather than cyclone underflow. This can be

assessed in the next phase of work.

Some level of grind sensitivity was observed for the Southern Extension. Additional test work and

cost/benefit analysis is required to select the optimal grind size but tests indicate that material from the

Southern Extension will perform similarly to current material.

Reagent consumption data from the test work is generally aligned with that achieved in the 2015 Feasibility

Study suggesting similar performance to material currently being processed.

The diagnostic leach suggested minor amounts of gold is locked in quartz, carbonaceous material and

sulphides. The latter two can generally be addressed through pre-leach aeration, optimal grind size and NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 309

Carbon-in-leach. Future diagnostic work should be completed on gravity tails rather than whole of ore to

deliver more definitive/absolute performance data rather than relative performance data.

Future leach test work should consider finer grind leach conditions as well as optimizing reagents and

air/oxygen addition on gravity tails. Mineralogy of the gravity tails and leach tails is also required to

support the optimization and diagnostic leach test work.

24.5 Recovery Methods

It is proposed that the Southern Extension will use the same recovery methods as currently employed at

Wassa. No additions or alterations to the processing plant have been assumed in this preliminary

assessment.

Metal recovery calculations through the process plant are consistent with the approach for current

operations with the additional consideration that recoveries for higher grade material are capped at 95.0%.

Further metallurgical testing will seek to confirm and optimized plant configuration for processing material

from the Southern Extension.

The processing schedule is shown in Table 24-16.

Figure 24-34 Processing schedule for Southern Extension PEANI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 24-16 Processing Schedule, Southern Extension PEA

Page 310NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 24-35 Gold Production schedule for Southern Extension PEA

24.6 Infrastructure

Wassa is an operating site and its installed infrastructure will continue use during the development and

operation of the Southern Extension. Additional capital items for the Southern Extension include:

  • Main ventilation fans, described in section 24.3.6.4
  • Refrigeration plant, described in section 24.3.6.5
  • Potential paste fill expansion, described in section 24.3.5.1

The requirement for an electrical expansion will be assessed during further studies. Section 24.3.9.2

outlines a possible surface and underground configuration. Electrical equipment is included in the scope of

general sustaining capital allowance.

24.7 Environmental, Permitting and Social and Community Impact

The following items are relevant to the PEA:

  • Environmental and Permitting

o Permitting: The expansion of underground mining operations outlined in this assessment

are not anticipated to require additional permitting. Whilst this study does indicate a

material increase in production from current levels, it is within the current permitted limits.

o TSF: Planned tailings volumes are will be met by the approved TSF design capacity. The TSF

facility was designed for high tonnage open pit mining and will be sufficient to store the

balance of tailings calculated in the new plan, after accounting for tails solids used in paste

backfill.

o Hydrogeology: Additional modelling for the southern extension is in development and will

continue to inform mine dewatering and water management design.

o Biodiversity: The expansion of underground mining operations outlined in this assessment

are not anticipated to cause further impact to flora and fauna. All proposed surface

facilities lie within previously impacted areas.

  • Social and Community Impact

o Resettlement and Compensation: The expansion of underground mining operations

outlined in this assessment is not anticipated to trigger the requirement to resettle people,

with plans for mining, tailings and waste rock storage accommodated by existing permits

and previously compensated lands.

Page 311NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 312

24.8 Closure Planning

Closure costs include all tenure associated with GSWL including Wassa, Hwini Butre and Benso concessions.

The PEA estimates $3.0 M for closure activities associated with the Southern Extension.

24.9 Capital and Operating Costs

Costs for this assessment were estimated using methodology and classification consistent with that applied

to Panels 1-3.

24.9.1 Capital Costs

24.9.1.1 Cost Estimation, Capital

24.9.1.1.1 Major Projects

Estimate basis and timing of major projects required for the Southern Extension are shown in Table 21-1.

Table 24-17 Cost estimate, Major Projects for Southern Extension PEA

24.9.1.1.2 Mine Development

Mine development cost allocations to capital were calculated consistent with the methodology for

Panels 1-3.

Table 24-18 Mine development capital allocation for Southern Extension PEA

Timing

Year

Vent, Fans RAR2

Y4

Vent, Fans RAR3

Y6

Vent, Refrigeration

Y5, 8

Paste Plant, Expansion

Y6

Technical Studies

Y1/2, 6, 10

7,500

Replicate of RAR1, timing from mine schedule

20,000

SRK Report guides 10MWR in 25 and 10WR in 28.

Benchmark estimate of $1M per MWR

7,500

Estimate for expansion of current plant and

distribution in first year of Sth-Ext stoping.

2,400

Technical Studies to progress Southern Extension.

Duplicated for each new phase in Y6 and Y10.

7,500

Replicate of RAR1, timing from mine schedule.

Cost is based on supplier budget quote.

Expenditure

Description

$ ‘000

Lat. Development

100% 85% 75% 65% 55% 50% 50% 50% 50% 40% 40% 40% 40% 40% 40% 38%

Cost $M

3.1 9.6 12.4 26.6 22.6 21.4 21.7 22.3 22.2 17.9 18.5 16.0 10.5 7.9 7.9 7.5

Vert. Development

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cost $M

0.7 2.5 3.6 9.0 7.8 8.1 8.1 8.1 8.1 8.1 8.1 6.7 4.0 2.7 2.7 2.7

Mine Overheads

100% 86% 73% 47% 29%

17%

17%

17%

17%

14%

14%

12%

9%

6%

6%

11%

Cost $M

0.1 0.2 0.3 0.7 0.5

1.0

1.0

1.0

1.0 0.8 0.8 0.7 0.5 0.3 0.3 0.4

Refrigeration

29%

17%

17%

17%

17%

14%

14%

12%

9%

6%

6%

11%

Cost $M

0.6 0.3 0.7 0.7 0.7 0.6 0.6 0.5 0.4 0.3 0.2 0.4

Total

88% 79% 66% 47% 32% 16% 16% 16% 16% 14% 14% 12% 9% 6% 6% 9%

Cost $M

3.8 12.3 16.4 36.3 31.5 30.8 31.5 32.0 31.9 27.4 28.0 24.0 15.3 11.1 11.1 11.0

90.8

9.5

6.0

15.8%*

354.5

Total

248.2

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 313

24.9.1.1.3 Minor Projects

Minor Projects costs are estimated consistent to methodology used for Panels 1-3 with lower unit costs

resulting from the fixed and variable costs being applied over increased annual production.

Table 24-19 Cost estimate, Minor Projects for Southern Extension PEA

24.9.1.1.4 Mobile Fleet

Mobile fleet categories and machine capacity assumptions are consistent to those applied for Panels 1-3.

Table 24-20 shows the purchases required to deliver the scheduled mining for the Southern Extension.

Table 24-20 Cost estimate, Mobile Fleet addition/replacement schedule for Southern Extension PEA

24.9.1.2 Capital Allocations, Growth and Sustaining

For this assessment of the Southern Extension zone all capital expenditure is allocated to growth until 5% of

the total production inventory is mined and the zone is considered to be in full production.

The allocation methodology of growth capital has an expected accuracy of +/-30%, where the error will

result in misallocation of capital to either of growth/sustaining.

UofM

Mining UG

ug.all.t

Geology UG

ug.ddm.cap

Processing

mill.t

G&A

mill.t

TSF

mill.t.tsf

23,035

Tails Solids to TSF

0.57

12,657

Tonnes Processed

0.31

39,256

Tonnes Processed

0.97

84,943

Total Material Mined, UG

2.10

60,366

Definition Drilling, UG

1.49

Expenditure

Driving Quantity

Resultant Rate

$ ‘000

Description

$/ROM.t mined

Dev Drill

2

1

2

2

1

Cost $M

2.80

1.40 2.80 2.80 1.40

LH Drill

1

1

1

2

Cost $M

1.40

1.40 1.40 2.80

UG Ldr

1

1

1

2

1

1

1

1

2

1

1

Cost $M

1.40

1.40 1.40 2.80 1.40 1.40 1.40 1.40

2.80 1.40

1.40

UG Truck

1

4

2

3

4

6

2

4

6

7

5

6

Cost $M

0.97

3.86 1.93 2.90 3.86 5.79 1.93 3.86 5.79 6.76

4.83 5.79

Ancillary

1

1

5

1

2

1

1

3

3

6

1

2

2

Cost $M

0.40 0.40 2.00 0.40 0.80 0.40

0.40 1.20 1.20 2.40 0.40 0.80 0.80

Total

5

1

1 1

4

7

7

9

7

1 0

1 1 1 5

2

7

9

Cost $M

5.6 0.4 8.7 3.7 6.5 7.1 10.0 7.9 9.3 9.8 12.0 1.8 5.6 8.0

Total

8

11.2

5

7.0

1 3

96.3

18.2

5 0

48.3

2 9

11.6

105

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 314

Table 24-21 Capital cost summary for Southern Extension PEA

24.9.2 Operating Costs

Operating costs are estimated consistent to methodology used for Panels 1-3 with the general trend that

lower unit costs resulting from the fixed and variable costs being applied over increased annual production.

Haulage allowances in the development and operating costs increase significantly over the project as

mining depth increases. Haulage costs start at $3.08 /t in year 2 with 3.3 km average haul, increases to

$5.36 /t in year 9 with 5.7 km average haul and peak in year 16 at $9.01 /t with 9.6 km average haul to the

portal bench.

Costs are added for refrigeration to allow for energy, consumables and maintenance for the refrigeration

plant. Cost estimate is based on indicative benchmark ratios provided by SRK with the ventilation study.

Assumes power cost calculated as 250 kW electrical power per MWR, 8,000 hours per year at a diversity

factor of 0.75 and the Genser supplied power rate of $0.135 /kWh. Allowance of 20% of the power cost is

added for refrigerants, consumables, and maintenance.

Growth

Mine Dev’t

3.9 12.8 17.1 40.4 24.2

Mining UG

0.2 0.6 0.9 3.0 6.7

Def’n Drill

4.5 8.4 6.0 10.3 7.6 8.8

Processing

0.0 0.0 0.2

1.0

G&A

0.0 0.0 0.2 2.9

TSF

0.1 0.2 0.9 3.5 2.1

Mob. Fleet

5.6 0.4 8.7 2.9

Proj. Vent

7.5 10.0 7.5

10.0

Proj. Other

0.4 0.4

8.3

0.8

Growth

4.9 12.9 25.2 37.1 73.5 64.4

10.0

0.8

$/ROM.t

897 475 343 98.3 61.0

3.7

0.3

$/rec.oz

8,896 4,723 3,617 1,004 485

34

3

Sustaining

Mine Dev’t

7.6 30.8 31.5 32.1 31.9 27.4 28.0 24.0 15.3 11.1 11.1 11.0

Mining UG

2.1 8.7 8.7 8.7 8.7 8.7 8.6 8.4 7.6 7.3 7.4

Def’n Drill

2.8 11.2 9.7 7.5 9.4 9.3 7.1 3.4 0.1

Processing

0.3

1.3

1.3

1.3

1.3

1.3

1.2

1.2

1.2

1.2

1.2

G&A

0.9 3.9 3.9 3.9 3.9 3.9 3.8 3.8 3.8 3.8 3.8

TSF

0.7 2.8 2.8 2.8 2.8 2.8 2.6 2.1 1.9

1.9

Mob. Fleet

0.8 6.5 7.1 10.0 7.9 9.3 9.8 12.0 1.8 5.6 8.0

Proj. Vent

Proj. Other

Sustaining

15.0 65.2 64.9 66.2 65.8 62.5 61.2 54.9 31.7 30.9 31.6 11.0

$/ROM.t

14.2 24.1 24.0 24.5 24.4 23.3 23.2 20.8 12.7 12.6 12.5 7.7

$/rec.oz

113 227 220 229 229 172 180 177 108 95

106 76

Total Capital

Grow th

4.9 12.9 25.2 37.1 73.5 64.4

10.0

0.8

Sustaining

15.0 65.2 64.9 66.2 65.8 62.5 61.2 54.9 31.7 30.9 31.6 11.0

Total

4.9 12.9 25.2 37.1 73.5 79.5 65.2 74.9 66.2 66.6 62.5 61.2 54.9 31.7 30.9 31.6 11.0

$/ROM.t

897 475 343 98.3 75.2 24.1 27.7 24.5 24.7 23.3 23.2 20.8 12.7 12.6 12.5 7.7

$/rec.oz

8,896 4,723 3,617 1,004 599 227 254 229 232 172 180 177 108 95

106 76

$98.3M

$11.2M

$45.7M

$1.2M

$3.2M

$6.8M

Total

$261.8M

$84.9M

$60.4M

$12.7M

$39.3M

$23.0M

$17.6M

$35.0M

$9.9M

$229M

7.72

66

$228.8M

$560.8M

$790M

26.65

228

$78.7M

$561M

18.93

162

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 315

Table 24-22 Cost estimate, Operating for Southern Extension PEA

Table 24-23 Operating cost summary for Southern Extension PEA

UofM

Mining, Development

m.adv

Mining, Production

stope.t

Mining, Backfill

fill.m3

Mining, Surface Haulage

ROM.t

Mining, Overheads

ug.all.t

Mining, Refrigeration

ug.all.t

Mining, Geology

ug.ddm.op

Processing

mill.t

G&A

mill.t

Refining

rec.oz

15,552

Au Produced

0.38

520,782

Tonnes Processed

12.87

203,111

Tonnes Processed

5.02

39,270

Total Material Mined, UG

1.43

73,430

Grade Control Drilling, UG

1.82

21,554

ROM Material

0.53

54,183

Total Material Mined, UG

1.34

601,928

Stope Material

14.88

123,984

Paste Backfill

3.07

Resultant Rate

$ ‘000

Description

$/ROM.t mined

256,770

Lateral Development

6.35

Expenditure

Driving Quantity

Mining

Dev’t

1.3 3.5 10.9 18.5 21.4 21.7 22.3 22.2 26.9 27.8 24.0 15.7 11.8 11.8 12.4

Production

0.1

0.3 8.0 16.7 48.7 50.0 52.7 51.9 52.8 55.3 57.5 56.3 58.0 60.1 33.6

Backfill

0.1 1.7 3.3 10.7 10.7 10.7 10.7 10.5 10.3 11.2 12.1 12.5 12.9 6.8

Surf. Haul

0.0 0.0 0.1 0.5 0.9 2.0 2.0 2.0 2.0 2.0

1.9

1.9

1.8

1.8

1.8 0.9

Overheads

0.1 0.7 4.8 4.8 4.8 4.8 4.9 4.9 4.9 4.8 4.8 4.9 3.7

Refrig’n

1.7

1.7 3.4 3.4 3.4 3.5 3.5 3.6 3.8 3.9 3.9 3.7

Geology

0.2 0.6

1.8 3.5 6.6 6.6 6.6 6.6 6.5 6.5 6.4 6.2 6.1 5.4 2.8

1.2

Mining

0

2

6

25

48

96

99

102 101 107 110 109 101 98

98

62

$/ROM.t

20.2 36.0 54.4 32.9 37.8 35.5 36.7 37.9 37.6 40.0 41.8 41.3 40.1 40.2 39.0 51.7

$/rec.oz

201 359 574 336 365 334 336 355 353 294 324 353 342 301 331 427

Processing

Processing

0.2 0.7

1.5 10.2 14.4 47.4 47.4 47.4 47.4 47.1 46.5 46.7 44.8 44.0 44.9 30.0

Process’g

0

1

1

10

14

47

47

47

47

47

47

47

45

44

45

30

$/ROM.t

14.0 13.6 13.7 13.7 13.7 17.6 17.6 17.6 17.6 17.6 17.7 17.6 17.9 18.0 17.8 21.0

$/rec.oz

138 135 144 140 109 165 161 164 165 129 137 151 152 135 151 206

G&A

Site G&A

0.0 0.1 0.3

1.7 2.5 18.5 18.5 18.5 18.5 18.4 18.3 18.4 18.0 17.9 18.1 15.5

Refining

0.0 0.0 0.1 0.3 0.6

1.3

1.3

1.3

1.3

1.6

1.5

1.4

1.3

1.5

1.3 0.7

G&A

0

0

0

2

3

20

20

20

20

20

20

20

19

19

19

16

$/ROM.t

2.8 2.6 2.8 2.8 2.9 7.3 7.3 7.3 7.3 7.5 7.5 7.5 7.7 7.9 7.7 11.3

$/rec.oz

28

26

29

28

23

69

67

69

69

55

58

64

66

59

65

111

Total Operating

Mining

0

2

6

25

48

96

99

102 101 107 110 109 101 98

98

62

Processing

0.2 0.7

1.5 10.2 14.4 47.4 47.4 47.4 47.4 47.1 46.5 46.7 44.8 44.0 44.9 30.0

G&A

0.0 0.1 0.3 2.1 3.1 19.8 19.8 19.8 19.8 20.1 19.9 19.7 19.4 19.4 19.4 16.2

Total

1

3

8

37

66

163 166 170 169 174 177 176 165 161 163 108

$/ROM.t

37.0 52.3 70.9 49.3 62.4 60.4 61.6 62.8 62.5 65.1 67.0 66.4 65.7 66.0 64.6 75.9

$/rec.oz

367 520 747 504 496 568 564 588 588 479 520 568 560 496 547 744

$52.8M

$39.5M

$73.4M

Total

$252.3M

$1,166M

$520.8M

$218.7M

$1,905M

64.29

551

151

$203.1M

$15.6M

$219M

7.38

63

$1,166M

39.33

337

$520.8M

$521M

17.58

$602.0M

$124.0M

$21.6M

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 316

24.9.3 Closure Costs

The closure cost allowance is the practical closure estimate for Wassa discussed in Section 20.6 plus $3.0 M

for the Southern Extension zone.

Closure costs for the satellite deposits at Benso and Hwini Butre are not included in this assessment.

Table 24-24 Closure cost summary for Southern Extension PEA

Y16

Y17

Y18

Y19

Y20

Y21

Y22

Y23

Y24

Y25

Wassa

2.2 3.7 3.7 2.2

1.5 0.7 0.7

Total

2.2 3.7 3.7 2.2

1.5 0.7 0.7

Total

$14.6M

$14.6M

Y1-15

NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 317

24.10 Economic Analysis

The PEA inventory has been valued using discounted cash flows at an appropriate discount rate to

determine a Net Present Value. The effective date is 31 December 2020.

Sensitivity analyses were performed for variations in gold price, gold grade, gold recovery, operating costs,

capital costs and exchange rates to determine their relative importance as value drivers.

24.10.1 Cautionary Statements

  • Certainty of Preliminary Economic Assessment:

The preliminary economic assessment is conceptual. It includes Inferred Mineral Resources that

are considered too speculative geologically to have the economic consideration applied to them to

enable their classification as Mineral Reserve. There is no certainty the preliminary economic

assessment will be realized.

  • Mineral Resources Are Not Mineral Reserves:

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

24.10.2 Assumptions

Table 24-25 below shows the key inputs and assumptions used to develop the economic model.

Table 24-25 Key life of mine inputs and assumptions used in the economic model, PEA

Parameter

Unit

Mine Life

years

Underground Mining

ROM, Development

Mt

g/t

cont.koz

ROM, Stope

Mt

g/t

cont.koz

ROM, Total

Mt

g/t

cont.koz

Waste Mined, Total

Mt

Development, Capital

km.adv

Development, Operating

km.adv

Vertical Dev’t, Capital

‘000 vm

LG Stockpile

Mt

g/t

cont.koz

Processing

Throughput Capacity

Mtpa

Au Recovery, Average

%

Au Recovery, Minimum

%

Au Recovery, Maximum

%

Au Produced & Sold

koz

Au Sales

Au Price,Base Case

$/oz

Au Price, Consensus Case

$/oz

Price Escalation

Inflation

%

3,456

1,300

Value

16

29.6

3.83

3,644

10.7

83.6

82.5

1.9

3.30

205

27.7

3.86

3,439

2.70

94.8%

95.4%

1,585

166.2

0% (nil)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 318

24.10.3 Stream, Taxes and Royalty

24.10.3.1 Stream

Royal Gold holds a two tier gold stream over the Wassa LOM production:

  • Tier 1: delivery of 10.5% of all production at 20% of gold price until 240,000 ounces have been

delivered; and

  • Tier 2: delivery of 5.5% of all production at 30% of gold price for all ounces thereafter.

The economic assessment for the PEA assumes remaining balance of the Tier 1 stream is 12,435 oz.

24.10.3.2 Taxes and Royalty

The income tax rate in Ghana is 35% of taxable earnings. The royalty rate is 5% of gross revenue. The

government of Ghana holds a 10% free carried interest in the project. Taxation calculations have been

prepared by GSR based on current application and legislation which may be subject to change beyond the

scope of this assessment.

24.10.4 Economic Results, Base Case

The project is potentially economically viable at the Base Case gold price assumption ($1,300 /oz), with an

after-tax NPV at 5% discount rate, of $ 452.2M (100% Basis). Table 24-28 shows the projected cash flows

from the economic analysis and Table 24-27 presents the detailed results of the evaluation.

Table 24-26 Cash flows, PEA economic analysis – Base Case

Figure 24-36 Cash Flows by Year for Southern Extension – Base Case

Unit

Net Revenue (post Stream)

$M

Operating Costs & Royalties

$M

Cash Flow from Operations

$M

Tax

$M

Capital, Growth & Sustaining

$M

Cash Flow after Tax & Capital

$M

Pre-tax NPV (5%)

$M

Post-tax NPV (5%)

$M

Pre-tax IRR

%

Post-tax IRR

%

+46.7%

+36.8%

852.1

748.7

452.2

Value

4,313.2

1,920.6

852.1

527.2

789.5NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 319

Table 24-27 Economic Analysis – Base CaseNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 320

24.10.5 Economic Results, Consensus Case

The project is potentially economically viable at the Consensus Case long-term gold price assumption

($1,585 /oz), with an after-tax NPV at 5% discount rate, of $ 783.5M (100% Basis). Table 24-28 shows the

projected cash flows from the economic analysis and Table 24-29 presents the detailed results of the

evaluation.

Table 24-28 Cash flows, PEA economic analysis – Consensus Case

Figure 24-37 Cash Flows by Year for Southern Extension – Consensus Case

Unit

Net Revenue (post Stream)

$M

Operating Costs & Royalties

$M

Cash Flow from Operations

$M

Tax

$M

Capital, Growth & Sustaining

$M

Cash Flow after Tax & Capital

$M

Pre-tax NPV (5%)

$M

Post-tax NPV (5%)

$M

Pre-tax IRR

%

Post-tax IRR

%

+65.9%

+53.2%

1,421.0

1,268.8

783.5

Value

5,257.7

1,920.6

1,421.0

853.7

789.5NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Table 24-29 PEA Economic Analysis – Consensus Case

Page 321NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 322

24.10.6 Sensitivity Analysis of the PEA

Sensitivity analyses were completed for the PEA Base and Consensus cases. Results presented are NPV at

5% discount rate, after tax.

Table 24-30 Sensitivity results for the Southern Extension PEA at different gold prices and discount rates

Discount

Rate

1,200/oz

Base

1,300/oz

1,400/oz

1,500/oz

Consensus

1,585/oz

1,600/oz

1,700/oz

1,800/oz

1,900/oz

0%

$653 M

$852 M

$1,052 M $1,252 M $1,421 M $1,452 M $1,629 M $1,807 M $1,985 M

5%

$336 M

$452 M

$568 M

$685 M

$783 M

$801 M

$905 M

$1,008 M $1,111 M

7.5%

$242 M

$332 M

$423 M

$513 M

$590 M

$604 M

$684 M

$764 M

$845 M

10%

$174 M

$245 M

$316 M

$388 M

$448 M

$459 M

$522 M

$585 M

$648 M

24.10.6.1 Economic Sensitivity of PEA Base Case

Figure 24-38 Sensitivity analysis of the Southern Extension PEA base case ($1,300 /oz)

Table 24-31 Sensitivity results of the Southern Extension PEA base case ($1,300 /oz)

Sensitivity

-30%-

-25%-

-20%-

-15%-

-10%-

-5%-

+0%

+5%

+10%

+15%

+20%

+25%

+30%

Gold price

$ M

-9

7 1

149

225

301

377

452

528

603

679

755

830

906

Processed gold grade

$ M

-11

6 9

148

225

300

376

452

528

604

680

756

832

907

Growth capital cost

$ M

507

498

488

479

470

461

452

443

434

425

416

407

398

Sustaining capital cost

$ M

552

536

519

502

486

469

452

435

419

402

385

369

352

Operating cost: mining

$ M

655

622

588

554

520

486

452

418

384

351

317

283

249

Operating cost: processing

$ M

543

528

513

497

482

467

452

437

422

407

392

377

362

Operating cost: G&A

$ M

487

481

475

470

464

458

452

446

441

435

429

423

417

Sensitivity

-2.5%- -2.0%- -1.5%- -1.0%- -0.5%-

+0%

+0.5% +1.0% +1.5% +2.0% +2.5%

Gold Recovery

$ M

414

422

429

437

445

452

460

467

475

483

490NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 323

24.10.6.2 Economic Sensitivity of PEA Consensus Case

Figure 24-39 Sensitivity analysis of the Southern Extension PEA consensus case ($1,585 /oz)

Table 24-32 Sensitivity results of the Southern Extension PEA consensus case ($1,585 /oz)

24.11Conclusions and Interpretations

The following conclusions are made from the PEA:

  • Resource and Definition Drilling:

The geometry of the Southern Extension mineralization supports a progressive definition drilling

strategy where panels are sequentially drilled.

o The PEA assumes panels are progressively drilled from underground workings as the

declines progressively access the top of each block.

o The drilling density for the Southern Extension currently supports its classification as an

Inferred Mineral Resource. Due to the wide drill spacing at depth there is a risk that the

geometry of mineralization in the Panels 7 and 8 may be more fragmented than currently

modelled and the mine design and modifying factors have been applied to reflect this risk.

  • Mine Design:

The mine design, schedule and infrastructure proposed for the Southern Extension are based on

conceptual designs and locations.

o The geotechnical assessment of the Southern Extension has used one stress measurement

taken at the 570 level. The stress gradient determined from this one measurement can

only be interpreted as indicative.

Sensitivity

-30%-

-25%-

-20%-

-15%-

-10%-

-5%-

+0%

+5%

+10%

+15%

+20%

+25%

+30%

Gold price

$ M

199

297

394

491

589

686

783

881

978

1075

1172

1269

1366

Processed gold grade

$ M

197

295

393

490

588

686

783

881

978

1076

1173

1271

1368

Growth capital cost

$ M

838

829

820

811

802

793

783

774

765

756

747

738

729

Sustaining capital cost

$ M

884

867

850

834

817

800

783

767

750

733

717

700

683

Operating cost: mining

$ M

987

953

919

885

851

817

783

750

716

682

648

614

580

Operating cost: processing

$ M

874

859

844

829

814

799

783

768

753

738

723

708

693

Operating cost: G&A

$ M

818

812

807

801

795

789

783

778

772

766

760

755

749

Sensitivity

-2.5%- -2.0%- -1.5%- -1.0%- -0.5%-

+0%

+0.5% +1.0% +1.5% +2.0% +2.5%

Gold Recovery

$ M

735

745

754

764

774

783

793

803

813

822

832NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 324

o The change from primary/secondary to pillarless retreat stope sequencing is nominally

planned at 1,000 m depth but cannot be determined without further measurements and

modelling to determine the in-situ stress conditions and rock mass response to mining.

o The lateral development connections between the Southern Extension and Panel 2 are not

optimized.

o The locations of the Southern Extension main ventilation shafts are not considered final;

the proposed unsupported diameters of the shafts have not been confirmed by

geotechnical drilling.

o The refrigeration requirement estimated for the mine is based on a factored equipment

requirement plan and has not considered the in-situ rock temperature.

  • Mine Operation:

The mining methods and techniques selected and discussed in the PEA can be implemented by the

Wassa operation.

o Development, production drilling, loading and hauling rates are based on current

productivities with minor improvements.

o The Southern Extension mining method uses downhole stope drilling which is a change

from Panel 2’s uphole drilling.

o The Southern Extension relies on paste fill to achieve the planned recovery and mining

rates. Wassa is yet to commission its paste fill plant (planned in Q1 2021).

  • Metallurgy:

The metallurgical test work from the 2018 Southern Extension is based on a limited number of

holes. The assessment concludes that the 2018 test work returned similar results to the 2015

Feasibility Study metallurgical test work. It is reasonable to suggest, for this preliminary level of

study, that processing performance for the Southern Extension feed will be similar to material

currently treated.

  • Economic Analysis:

The economic evaluation is based on a PEA level of study. The production schedule in based on

Inferred Mineral Resource that are not Mineral Reserves and do not have demonstrated economic

viability. There is no certainty that the results in the PEA will be realized.

The preliminary economic assessment of the Inferred Mineral Resource of the Southern Extension

zone shows production from this area is potential economically viable.

For the Inferred Mineral Resource (Southern Extension zone):

o Growth Capital:

$228.8 M;

o Development Duration: 6 years;

o Production Phase Life: 11 years;

o Production Phase Rate: 294 koz/yr;

o All-in Sustaining Cost: $778 /oz; and

o After-tax NPV5%:

▪ Base Case ($1,300 /oz):

$452.2 M (100% basis)

▪ Consensus Case ($1,585 /oz): $783.5 M (100% basis)

Further studies based on updated Mineral Resource estimates as definition drilling is completed will assist

in optimizing the project and clarifying the risk profile.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 325

24.11.1 Risks

The risks outlined in this section are specific the PEA and do not include risks outlined in Section 25.2 which

continue to exist for the Southern Extension.

24.11.1.1Geology, Mining and Processing

Table 24-33 contains the key risks for geology, mining and processing.

Table 24-33 Geology, Mining and Processing risks for Southern Extension

Risk

Description

Risk Management / Mitigation

Geological

continuity

Additional Definition Drilling and

geological models do not support PEA

mining method, adversely impacting the

production rate and project value.

Resource definition drilling to higher levels of

confidence will occur ahead of capital development and

project investment decisions.

Production Block layout is modular and is adaptable to

variable geometry.

More conservative modifying factors are applied to

panels where drill density is lowest.

Geotechnical

conditions

In-situ rock stress and rock mass

response to mining induced stresses

adversely impact the production rate

and project value.

Complete recommended geotechnical program to test

the parameters assumed in the mining method.

Limited geotechnical data indicates ground conditions

are consistent with current areas which are very good.

Pillarless sequence with paste fill is planned at depth

and can be applied higher up if required.

Gold grade

achieved

Grade and volume are overestimated

because the Mineral Resource is only

classified as Inferred, incorrectly

elevating the gold production profile

and project value

Assessment is described as a PEA with appropriate

disclosure regarding the Inferred Mineral Resource and

is presented separately to Mineral Reserves.

Further definition drilling will be completed to increase

resource confidence and will be incorporated in future

studies ahead of capital investment decisions.

Development

advance rate

Development advance rates assumed in

the PEA are not met, adversely

impacting schedule adherence,

production profile and project value

Development advance rates are higher than current

rates achieved on site, but improvement assumptions

are reasonable.

Fleet numbers, ventilation quantities and refrigeration

planning support the development schedule.

Stope turnover

Stope turnover rate is lower than

scheduled, adversely impacting annual

production rates and project value.

Design and methodology applies extra infrastructure

and access to allow consistent stope layouts and

blasting sequences.

25 m level spacing permits good drilling accuracy.

Plant feed

variability

Plant feed metallurgical variability

increases with material from the

Southern Extension, leading to lower

gold recovery (eg: mild preg robbing

which increases with depth).

Limited test work to date has not identified any fatal

flaws.

GSR will undertake a metallurgical testing program in

parallel with Resource definition and infill drilling of

Panels 4 and 5.

24.11.1.2 Capital and Operating Costs

The majority of the required growth capital is for mine development to access and establish the production

blocks. Wassa is an operating site and has already installed most of the infrastructure for the increased

underground production rate, including site power upgrades and the paste fill plant.

Operating cost estimates for mining activities have a high level of confidence as they based on actual costs

in 2020. However, the low geological confidence retains the risk that the mine design and activity

quantities and subsequent operating cost, are exposed to change as more drilling information is collected,

as outlined in Table 24-34.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 326

Table 24-34 Economic risks for Southern Extension

Risk

Description

Risk Management / Mitigation

Capital Costs

Capital costs significantly increase,

adversely impacting project value

Capital development costs are progressively incurred

rather than lump sum.

Future studies with increased resource confidence will

determine economic viability ahead of capital

investment decisions.

Operating Costs

Unit operating costs significantly

increase due to productivity

assumptions not being met, adversely

impacting project value

Operating costs reflect current actual costs for mining

activities which are calculated from a spatial mine

design, rather than generic factors.

GSR is undertaking organization and operating system

re-design, and mining modernization to increase labour

productivity.

24.11.2 Opportunities

24.11.2.1Geological Drilling

Geological definition drilling in this assessment is scheduled to deliver the associated mine plan and Panels

are progressively drilled as the declines access the top of each new panel.

Additional drilling to target increasing the Inferred Mineral Resource and expediting drilling to bring

forward knowledge about the deeper panels should be considered as opportunities, as outlined in Table

24-35.

Table 24-35 Geological Drilling opportunities for Southern Extension

Opportunity

Description

Realization

Additional drilling to grow

the Inferred Resource

The Southern Extension zone is open to the

South, North (below Panels 1/2) and up-dip.

Larger Mineral Resource could extend

project life and could enable higher

production rate and subsequent economies

of scale.

Additional definition drilling outside

the defined Inferred Mineral Resource

to increase it.

Expedite drilling of deeper

Panels 6-8

Mineral Resource at depth shows materially

higher grades and continuity of

mineralization but is based on wide spaced

drilling and is not scheduled for drilling until

year 10.

Conservative modifying factors have been

applied in deeper panels to mitigate the risk

of geological continuity fragmenting.

Bringing forward expenditure to

expedite drilling of Panels 6-8 would

confirm good grade and continuity in

current geological model.

Modifying factors could be adjusted to

be consistent with other panels and

increase recovered grade and ounces.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 327

24.11.2.2 Productivity and Mine Design

Mine design optimization and productivity improvements are the main opportunities to be assessed in

future work. Table 24-36 contains the opportunities identified.

Table 24-36 Mine design and productivity opportunities for Southern Extension

Opportunity

Description

Realization

Increase level spacing

25 m level spacing is based on current

operating methods, equipment and low

geological confidence.

Level spacing could potentially be increased

to 30-50 m which would reduce lateral

development per ROM tonne mined,

reducing costs and potentially increasing

production rates.

Definition drilling will increase

confidence of the Inferred Mineral

Resource and further technical work is

required to confirm viability of

increased level spacing in terms of

both selectivity and operability.

Increase stope size

Geotechnical conditions may be favourable

for increasing the strike length of stopes (to

reduce number of cross-cuts) and/or height

(more lifts per stope/bigger blocks) which

would increase dev’t yield (ROM t/m.adv) ad

reduce cost.

Future geotechnical assessment and

modelling to challenge/validate design

assumptions, along with definition

drilling and design review.

Refine ventilation design

An alternative option was identified to

exhaust part of the Southern Extension via

sealed off workings in the existing mine.

This would negate the need to develop one

or more new shafts to surface.

Further ventilation studies.

Optimize design between

Panel 2 and Southern

Extension

Optimize design between Panel 2 and 4 to

reduce duplicated development and

potentially bring forward mining of Panel 4

stopes by extracting with the Panel 2

sequence.

Future studies based on increased

geological confidence.

Combine PEA and Panels 1-3 into

single mine design (currently designed

as two separate zones).

Increase machine

productivity through

technology

Semi/full automation to increase shift

operating time and remove operators from

hazardous areas.

Highest likelihood applications are

production drilling and drawpoint loading.

Progress GSR technology roadmap

which is being established.

Current projects are introduction of

tele-remote loading and digitalization

of production data.

Haulage Infrastructure

Replacement of truck haulage with

infrastructure system (eg: shaft hoisting,

conveyor, Rail-Veyor).

Capital demand would be offset by large

reduction in operating costs with automated

systems, reduced diesel consumption and

reduced ventilation demand.

Haulage options study to design

different systems, estimate capital

and operating costs, then complete

trade-off analysis,

Truck loading systems

Current design assumes loaders digging from

open passes to load trucks.

Feeder systems could be installed to

automate loading, increasing efficiency and

reducing operating cost.

Trade-off analyses in further technical

studies (capital vs operating,

operational flexibility vs efficiency).NI 43-101 Technical Report (March 2021) Wassa Gold Mine

25 CONCLUSIONS AND INTERPRETATIONS

25.1 Conclusions

Based on the data in this report, the Qualified Persons conclude that the information has been interpreted

appropriately and that it supports the economic analysis.

The following interpretations and conclusions are made by the Qualified Persons in their respective areas of

expertise, based on the review of data contained in this Technical Report.

25.1.1 Mineral Titles and Agreements, Surface Rights and Royalties and Encumbrances

  • The mineral rights for the Wassa concession granted to GSWL under the Minerals and Mining Act

2006 (Act 703) are in good standing, supporting the declaration of a Mineral Resource and Mineral

Reserve for the Wassa operation. GWSL holds the necessary mining leases, surface rights, major

approvals and permits required for its operations.

  • GWSL’s Wassa Mining Lease contains a 5% royalty on gross revenue payable quarterly to the

Government of Ghana. GSWL also pays a gold stream to Royal Gold Inc. and its wholly owned

subsidiary RGLD Gold AG (RLGD). The royalty payments and tax to government are payable prior to

the RGI and RGLD stream payments.

25.1.2 Exploration, Drilling and Analytical Data Collection

  • The Wassa mineralization is classified as an Eoeburnean folded vein system and is the only such

deposit recognized to date within the Ashanti belt.

  • The understanding of the geological setting, lithologies and structural and alteration controls on

the mineralization is sufficient to support estimation of Mineral Resources and Mineral Reserves.

  • The understanding of the mineralization style and setting are well understood and can support a

declaration of Mineral Resources.

  • The exploration programs completed to date are appropriate for the style of deposits reported on.

There is significant potential for the discovery of additional mineralization, particularly around the

Wassa underground deposit where the Mineral Resource is open to the south and at depth.

  • The sampling methods used to collect the raw data are acceptable for Mineral Resource

estimation.

  • Sample preparation, analysis and security are performed to a standard that is fit for use in Mineral

Resource and Mineral Reserve estimation.

  • The quantity and quality of the lithological, structural, collar and down-hole survey data collected

during the exploration and delineation drilling programs are sufficient to support Mineral Resource

and Mineral Reserve estimates.

  • QA/QC programs adequately address issues of precision and accuracy. Duplicates, CRMs and

blanks are routinely submitted with batches to monitor laboratory quality. Umpire analysis has

been completed and is planned when further exploration drilling is completed in 2021.

25.1.3 Metallurgical Test Work

  • The 2015 metallurgical test work program for the Wassa Underground Feasibility Study remains

relevant to, and reflective of, the processing plant’s metallurgical performance.

  • The locations of the test work samples reasonably represent the blend of mineralization in the

plant feed scheduled in the Mineral Reserve estimate.

  • The 2015 metallurgical test work did not identify any significant issues for processing plant

performance, which has been validated by the plant’s performance in the years since the test work

program.

Page 328NI 43-101 Technical Report (March 2021) Wassa Gold Mine

25.1.4 Mineral Resource Estimates

  • Mineral Resources are estimated as:

o Measured and Indicated Mineral Resource: 29.3 Mt at 3.76 g/t, containing 3.54 Moz; and

o Inferred Mineral Resource: 74.0 Mt at 3.44 g/t, containing 8.18 Moz.

  • The Mineral Resources have been prepared in accordance with the 2014 CIM Definition Standards

and 2019 Best Practice Guidelines. Mining is assumed by underground methods at Wassa and

Hwini Butre, and open pit methods at all other locations.

  • Mineral Resources have a reasonable expectation of economic extraction, with estimates

constrained as follows, assuming $1,500 /oz gold selling price:

o Open Pit: constrained by open pit optimization shell and cut-off grade; and

o Underground: constrained by cut-off grade.

  • Factors which may impact the Mineral Resource estimate include changes in the following

parameters:

o Economic: gold price assumed, cut-off grade assumptions;

o Geological: interpretations of mineralization geometry and continuity, grade continuity,

density and domain assignments; and

o Mining and Processing: geotechnical, mining method and metallurgy recovery assumptions.

25.1.5 Mineral Reserve Estimates

  • Proven and Probable Mineral Reserves are estimated as 11.5 Mt at 2.94 g/t, containing 1.09 Moz.
  • The Mineral Reserves have been prepared in accordance with the 2014 CIM Definition Standards

and 2019 Best Practice Guidelines. Mining will be by underground long hole open stoping. The

former open pit component of the Mineral Reserve has been replaced by underground extraction.

  • Mineral Reserves are supported by a positive economic test assuming $1,300 /oz gold selling price.
  • Factors which may impact the Mineral Reserve estimate include changes to the following

parameters:

o Economic: gold price assumed; capital and operating cost input assumptions;

o Geological: interpretations of mineralization geometry, continuity and other aspects which

may influence estimation of the Mineral Resource;

o Technical: geotechnical assumptions; dilution and stope recovery performance;

o Operational: development advance rates, stope turnover rates and infrastructure

performance and duties required, availability of skilled personnel;

o Regulatory: maintaining the good standing of mining leases, rights and permits; and

o Environmental and social: maintaining social license to operate;

  • The cut-off grade selected for the Mineral Reserve is appropriate and facilitates the company’s

objectives;

  • The Mineral Reserve assumes that the paste plant is commissioned in Q1-2021 and achieves its

designed performance. Stope cycle activities will now incorporate paste fill preparation, filling and

curing activities.

25.1.6 Mining Methods

  • The geotechnical conditions support the stoping methods and dimensions selected.
  • The mine plan and schedule use:

o Conventional underground mining practices and equipment to carry out long hole open

stoping, consistent with currently employed techniques;

o Demonstrated mining rates based on recent development and stoping performance;

Page 329NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • The introduction of paste fill will require integrating into the stope cycle sequence to enable

secondary stoping to commence.

  • The ventilation quantity increases to 590 m3 /s to support 9 working areas independently.
  • The mobile equipment plan will introduce 60 t trucks from 2021, phasing out the 40 t trucks as

their useful life comes to an end.

25.1.7 Recovery Methods

  • Recovery methods in the processing plant and forward recovery assumptions (average 94.1%) and

are supported by test work and plant history.

  • The processing plant capacity exceeds mine production in all years for the Mineral Reserve plan.
  • No plant upgrades are required to process the mine production plan.

25.1.8 Environmental, Permitting and Social Considerations

  • GSWL has submitted, received approval for, and remains in compliance of, all of its environmental

and social regulatory requirements. Its Environmental and Social Management System has been

developed in-line with an ISO 14001 system.

  • GSR complies with international requirements on environmental and conservation, human rights,

and anti-corruption. It has adopted voluntary international codes on corporate responsibility:

o Cyanide management;

o TSF design;

o Responsible Gold Standard and Responsible Gold Mining Principles; and

o IFC’s Performance Standard 5 on Land Acquisition and Involuntary Resettlement.

GSR has corporate assurance processes which include independent review, audit and/or validation

to ensure conformance of the principles ascribed in these codes and standards.

  • GSWL has posted and periodically updates its reclamation bond. At the end of 2020 the GSWL

bond was $13,672,231.

  • GSWL has installed water diversion infrastructure to limit the amount of water making contact with

the operation.

  • Hydrogeological studies have informed GSWL’s groundwater model, which has determined:

o Water drawdown from operations is not expected to have a significant impact on

community groundwater boreholes; and

o The receiving environment will not receive underground mine leachate in the recovered

state and no decant is expected to occur. Additionally, leachate from mine waste rock

dumps is controlled by the cone of depression and is not expected to impact on the

receiving environment.

  • Periodic geochemistry studies have consistently shown that the rock lithologies, ore and waste, are

not acid generating (NAG) and is validated by over two decades of mining.

  • Water quality has been routinely sampled since 2003 and externally analyzed since 2012.

Groundwater quality study results indicate that measured constituents will not exceed water

quality guidelines in the underground mine drainage.

  • GSR demonstrates its corporate commitment to environmental and social responsibilities through

provision of dedicated and skilled staff in environment, safety, health, community affairs,

resettlement and security disciplines.

  • The company supports a number of community and social initiatives, including:

o Golden Star Development Foundation for community and social development projects;

o Golden Star Oil Palm Plantation, a sustainable agribusiness sponsored by GSR as part of its

local economic development program, which aims to become self-supporting; and

Page 330NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 331

o Capacity building and livelihood enhancement, which provides practical and technical skills

training to young people in sectors unrelated to mining. The local procurement supply

chain capacity is further strengthened through GSR’s and GSWL’s partnership programs.

These initiatives proactively aim to build capacity and diversify the economy of local communities

as well as reduce uptake of small-scale illegal mining.

25.1.9 Capital and Operating Costs

  • Capital costs: Wassa is a steady state operation in which:

o Capital costs include capitalized mine development, equipment replacements, fixed plant

maintenance projects, TSF capacity increases and other minor projects;

o Capital costs are split between growth to expand production, and sustaining capital to

support the existing capacity;

o The growth capital cost for the life of mine is $47.7 M; and

o The sustaining capital cost for the life of mine is $136.5 M.

  • Operating costs: the operating costs used are based on actual 2020 costs and are projected through

the mine plan.

o The average unit activity costs for extraction of the Mineral Reserve are:

▪ UG Mining: $34.57 /t;

▪ Processing: $20.37 /t; and

▪ Site G&A: $9.24 /t (excluding refining).

  • Unit production costs estimated for the Mineral Reserve are:

o Direct operating cost: $682 /oz;

o All-in sustaining cost: $881 /oz; and

o All-in cost: $964 /oz.

25.1.10 Economic Analysis of the Mineral Reserve

An economic analysis to support the declared Mineral Reserve was prepared. Using the assumptions

outlined in this Technical Report, the operations show a positive cash flow at the $1300 /oz reserve selling

price and support the declaration of a Mineral Reserve.

For the Mineral Reserve:

  • Growth Capital:

$47.7 M;

  • Development Duration: nil (in production);
  • Production Phase Life: 6 years (2021-2026);
  • Production Phase Rate: 171 koz/yr;
  • All-in Sustaining Cost: $881 /oz; and
  • After-tax NPV5%:

o Base Case ($1,300 /oz):

$121.2 M (100% basis)

o Consensus Case (av $1,751 /oz):$335.6 M (100% basis)NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 332

25.2 Risks

The risks outlined in this section are project specific and do not include external risks such as gold price

fluctuations or exchange rate risks.

25.2.1 Geology, Mining and Processing

Table 25-1 Geology, Mining and Processing risks contains the key risks for geology, mining and processing.

Table 25-1 Geology, Mining and Processing risks for the Mineral Reserve

Risk

Description

Risk Management / Mitigation

Geological

complexity

Delays to completing requisite tightly

spaced drill programs for de-risking stope

designs cause production delays or

unexpected grade outcomes, impacting

cash flow.

Ensure definition drilling is integrated to the

mining schedule to bring forward geological

knowledge ahead of the production to mitigate

grade risk profile in the mine plan.

Development

advance rate

Development advance rates assumed in

the plan are not met, adversely impacting

schedule adherence and cash flows.

Development advance rates are reflective of rates

being achieved on site. Fleet numbers, ventilation

quantities support the development schedule.

Stope turnover

Stope turnover rate is lower than

scheduled, adversely impacting annual

production rates and cash flow.

Commission and implement paste filling to stope

operations, including methods for working on

paste filled floors when mining secondary stopes.

Geotechnical

conditions

In-situ rock stress and rock mass

response to mining induced stresses

adversely impact the production rate and

cash flows.

Undertake an external review of the site’s Ground

Control Management Plan, including assessment

of activities to prepare for future mining areas.

Underground

mining around

open pits

Underground mining around open pits

changes the geotechnical,

hydrogeological and hydrological

conditions, which adversely impact

production rates and cash flows.

Risk assess the underground designs around the

open pits and prepare a risk management plan,

including a change management plan, prior to

commencing mining.

Mining sill pillars

under fill

Sill pillar recovery mining encounters

difficulty, adversely impacting production

rates and cash flow.

Develop a risk management plan for sill pillar

recovery.

25.2.2 Infrastructure

The site’s infrastructure risks are outlined in Table 25-2. Commissioning the paste plant and achieving its

designed steady state, and executing the ventilation upgrade are the key risk areas for the mine plan.

Table 25-2 Infrastructure risks for the Mineral Reserve

Risk

Description

Risk Management / Mitigation

Paste plant

commissioning and

operation

Delays to commissioning and/or not

achieving design capacity adversely

impacts production rates and cash flow.

Identify alternative production plans reflective of

the paste plant timing and output not achieving

the rates assumed in the mine plan.

Ventilation upgrade

The surface to underground exhaust and

intake shafts are not able to be mined at

the desired un-supported diameter;

project execution is delayed, impacting

production rates and cash flow.

Undertake shaft geotechnical drilling as soon as

practicable.

Review ventilation system requirements for

smaller diameter shaft scenarios.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 333

25.2.3 Economic

Wassa is an operating site and has already installed enabling capital to support the mine plan, including site

power upgrades and the paste fill plant. The established operations provide reliable operating cost data.

Table 25-3 Capital and Operating Cost risks for the Mineral Reserve

Risk

Description

Risk Management / Mitigation

Capital costs

Capital costs significantly increase,

adversely impacting cash flow, with

potential inability to fund growth

projects to completion.

Capital development costs are progressively

incurred rather than lump sum.

Baseline production rate already established.

Operating costs

Unit operating costs significantly increase

due to productivity assumptions not

being met or adverse movements of

major cost components (eg: labour,

energy), adversely impacting cash flow.

Unit operating costs reflect current costs and

productivity.

GSR is undertaking organization and operating

system re-design, and mining modernization to

increase labour productivity.

25.2.4 Environmental and Social

GWSL has a demonstrable environmental track record. The key social risks are outlined in Table 25-4.

Table 25-4 Environmental and Social Risks

Risk

Description

Risk Management / Mitigation

Access to personnel

with required skills

Sufficient personnel with skills required

to development and operate Wassa are

not available in the local area. Skilled

personnel are brought to site from across

Ghana (mostly) and some internationally.

Availability of personnel can be

compromised by both regional

(eg: competition, security) and global

(eg: pandemic, transport) factors

Turnover of current workforce is low and whilst

issues such as the Covid-19 pandemic did cause

disruption during 2020, it did not cause a material

disruption to site operations.

Continue with vocational skills programs,

recruitment, training and development of local

people.

Modernization and

community

employment

expectations

Modernization of mining practices and

application of technology decreases

reliance on un/semi-skilled labour.

Future potential of Mineral Resources

increases the local community

expectations for employment.

Continue vocational skills programs and local

procurement strategy.

Develop and implement change management

plans alongside implementation of new

technology and techniques.

Unauthorized

small-scale mining

Artisanal mining around Wassa and the

district increases over the life of mine

impacting GSR’s environmental and social

plans, closure planning costs, and its

corporate reputation.

Continue with vocational skills programs and local

procurement strategy.

Continue to identify and assess new avenues for

local procurement of goods and services.

Continue tenure assessment and relinquishment

of mineral concessions deemed non-prospective.

Maintain dialogue with the Minerals Commission

and legal small-scale mining associations.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 334

25.3 Opportunities

25.3.1 Mineral Resource upside

The significant size of the Inferred Mineral Resource, together with untested in-mine and near-mine targets

create the main Mineral Resource opportunities outlined in Table 25-5.

Table 25-5 Mineral Resource Opportunities

Opportunity

Description

Realization

Definition drilling to

upgrade classification of

Inferred Mineral Resource

The large Inferred Mineral Resource to the

south of the mine creates mine life

extension and possible expansion

opportunities.

Continue with the drilling program to

increase geological knowledge of the

resource in this area.

Various targets to extend

the defined mineralisation

are not yet tested

Drill test targets which can leverage the

mine’s installed capital for incremental

production opportunities. Targets exist

around the main Wassa orebody, plus

anomalies defined in soil sampling within

10 km from the Wassa plant and the regional

package including the Mineral Resource at

Father Brown/Adoikrom UG.

Continue with in-mine and near-mine

exploration target assessment and

drilling programs.

25.3.2 Productivity and Mine Design

Productivity improvements are the main opportunities to be assessed in future work. Table 24-36 contains

the opportunities identified.

Table 25-6 Mine design and productivity opportunities for the Mineral Reserve

Opportunity

Description

Realization

Increase productivity

through technology

Semi/full automation to increase shift

operating time and remove operators from

hazardous areas.

Highest likelihood applications are

production drilling and drawpoint loading.

Assess mechanized options for improving

stope slotting activity rates.

Progress GSR technology roadmap

which is being established.

Current projects are introduction of

tele-remote loading and digitalization

of production data.

Expedite commencement

of stoping in Panel 3

Mineral Reserve schedule commences

development in Panel 3 (242 and B-Shoot) in

2022 but stoping does not commence until

  1.  

Review mine schedule to potentially

bring stope extraction forward to

2023 or 2024 and increase production

in those years.

Geotechnical

Migrate toward numerical modelling of

geotechnical conditions to simulate

increased stope dimension scenarios.

Identify data requirements to support

dynamic modelling of the rock mass

conditions and response to mining

Paste Backfill

Optimize paste filling to increase production

rates and reduce binder cost.

Once steady state operations are

achieved, conduct de-bottle-necking

of plant.

Optimization program including

excavation/sequence design, test

work and assessment of alternative

pozzolan binders. NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 335

25.3.3 Sustainability

The PEA outlines a conventional approach to operating Wassa, consistent with proven methodology in key

aspects such as level spacing, truck haulage and utilization of installed processing capacity.

This approach has excluded assessment of a number of sustainability opportunities which could be included

to the project scope with further work. If implemented, the opportunities outlined in Table 25-7 could

reduce carbon emissions, improve energy efficiency and reduce water demand.

Table 25-7 Sustainability Opportunities

Opportunity

Description

Realization

CARBON EMISSIONS

Mobile equipment

electrification

Assess options for clean energy technology

applications, particularly battery electric

equipment.

Assess available systems and develop

fleet selection criteria.

Haulage electrification

Assess alternatives to diesel truck haulage,

including installation of infrastructure (shaft,

conveyor, Rail-Veyor) and electric trucks.

Haulage options study.

Renewable energy supply

Increase renewable energy component in

site energy supply. Leverages well with

equipment electrification projects.

Assess options, potentially in

partnership similar to recently

installed Genser gas power station.

AIR & WATER

Water efficient operations

Complete water balance model for the site’s

future state and

assess opportunities to

reduce consumption and/or increase

recycling.

Complete water balance and identify

opportunities.

Water quality

preservation

Assess water balance model to identify and

remove contamination of clean streams with

contaminated streams.

Commission 620 mRL pump station

which removes contaminants before

pumping to surface and continue

similar projects over time.

ENERGY SAVINGS & OPERATIONAL EFFICIENCY

Comminution

optimization

Once haulage study complete (outcome may

include crushing), review crushing and

grinding circuit options (eg: consolidate 4-

stage crushing, SAG milling, ore sorting).

Current configuration was optimized

for each investment point (eg: 4-stage

crush is legacy of original heap leach)

and projected life is now longer than

at previous investment point.NI 43-101 Technical Report (March 2021) Wassa Gold Mine

26 RECOMMENDATIONS

Recommendations are provided separately for the current operations at Wassa and for the Southern

Extension zone which was the subject of the PEA.

26.1 Current Operations

Based on the positive results of the technical and economic analysis of the Mineral Reserve of the Wassa

gold mine, the following actions are recommended:

  • Geology and Drilling:

Continue with the definition drilling of the following areas:

o Panels 1 and 2: resource infill and grade control drilling to increase confidence in the

Mineral Resource to support ongoing production.

o Panel 3: resource infill drilling to increase confidence in local geometry of the Mineral

Resource to finalize development designs.

Complete the drilling programs to test targets with potential to increase the defined mineralization,

both around the main Wassa orebody, local anomalies around Wassa defined by soil sampling and

the regional tenement package, including the Mineral Resource at Father Brown/Adoikrom.

  • Mining:

Continue extraction of the Mineral Reserve by underground methods:

o Reduce cut-off grade from 2.4 to 1.9 g/t to deliver the optimal economic return at the

reserve selling price assumption.

o Extraction of Panels 1 and 2 to continue with current stoping methodology.

o Upper mine areas (B-Shoot, F-Shoot and 242), which were previously planned for open pit

mining, to be changed to more selective underground mining to improve margins and bring

forward production.

Continue and proceed capital projects:

o Paste plant commissioning and implementation of steady-state paste filling operations.

o Ventilation upgrade to construct two ventilation shafts (intake and exhaust) and fans to

support production from Panel 2.

o Design finalization and execution planning to commence development of Panel 3 in 2022.

Investigate potential to expedite stoping from the Panel 3 (242 and B-Shoot) areas, to potentially

increase production in 2023-2025.

  • Processing:

Continue processing of the Mineral Reserve using CIL treatment in the Wassa processing plant.

  • Sustainability:

Continue current governance practices to ensure ongoing statutory compliance and license to

operate is maintained, including:

o Heath, Safety, Environmental and Social management systems for monitoring and

reporting;

o Social investment programs for community development, capacity building and livelihood

enhancement; and

o Corporate responsibility programs.

Page 336NI 43-101 Technical Report (March 2021) Wassa Gold Mine

26.2 Southern Extension Zone

For the Inferred Mineral Resource in the Southern Extension Zone, based on the positive results of the

preliminary economic assessment, the risks and opportunities identified, and conclusions made, the

following actions are recommended to progress the project.

  • Geology and Drilling:

Continue with the resource development drilling of Panels 4 and 5 to increase geological

confidence.

Continue to update Mineral Resource models with new drilling results to support future technical

studies.

  • Technical Studies:

Metallurgical:

o Collect appropriate samples from definition drilling conduct test work on composites to

test comminution, grindability and ore density variability.

o Complete gravity concentrate and leach recovery testing to determine optimal grind size.

o Undertake test work to characterize the level of preg-robbing in the Southern Extension

zone and determine variability and plant operational controls to mitigate.

o Complete diagnostic leach test work on gravity tails samples to establish gold deportment

and lock-up mechanisms.

Geotechnical:

o Collect additional rock mass characterization data from geotechnical core logging and

conduct laboratory rock strength testing on core samples.

o Conduct acoustic emission testing of orientated drill core to complement the existing

Hi-cell measurements to confirm the in-situ stress field.

o Complete numerical modelling using the larger data-set to assess the likely rock mass

response and associated risk arising from different mining sequences and stope

dimensions.

Ventilation:

o Evaluate various network design configurations, including shaft diameters.

o Refine ventilation network design in the production blocks (hybrid exhaust/orepass) and

decline ventilation circuits (secondary ventilation distances).

Mine Design:

o Consolidate mine designs for Panels 1-3 and the Southern Extension so that design

synergies are incorporated into the plan.

o Assess opportunity to increase level intervals and/or stope dimensions based on updated

geological and geotechnical data.

Page 337NI 43-101 Technical Report (March 2021) Wassa Gold Mine

  • Optimization & Operations Readiness:

o Complete option and trade-off studies to optimize the project plan:

▪ Alternative haulage methods to current diesel trucking – shaft hoisting, conveyor,

electric trucks and Rail-Veyor;

▪ Equipment selection, including application of battery electric equipment and

semi/full-automation; and

o Continue implementation of the management operating system and technology roadmap,

which includes assessment of real-time data applications, drilling accuracy for increased

level spacing, personnel and equipment tracking.

o Conduct trials in the current underground operation to validate operability of proposed

stoping methodology in Panels 4-8 (eg: lateral development, mechanical slotting, downhole

blasting, stope loading on paste fill, sill pillar extraction).

  • Sustainability:

o Investigate electrification and renewable energy options to reduce greenhouse gas

emissions.

o Complete site water balance model and assess opportunities to reduce water consumption,

increase recycling and reduce discharged contaminants.

o Review crushing and grinding circuit to optimize comminution efficiency.

26.2.1 Project Execution Plan

The progressive development plan proposed for the Southern Extension zone has the project being

developed in three major phases of definition drilling and capital investment.

  • Panels 4 and 5: Resource development drilling in progress and studies planned to inform an

investment decision at the end of project year 2 (Y2) and full production by Y6.

  • Panels 6 and 7: Resource development drilling in Y6-7, decline development starting Y6 and stope

production in Y8.

  • Panel 8: Resource development drilling in Y10, decline development starting Y10 and stope

production in Y12.

The project execution plan for progressing to production from the Southern Extension zone outlines the

activities for only the first phase (Panels 4 and 5) to reach an investment decision and the potential

timeframe to production.

The timing of project activities and production milestones are the best estimate at this point in time.

Whilst the project activities have funding committed in the 2021 budget, there is no guarantee that funds

will be available to deliver the scheduled dates. Progressing the project to execution will be subject to a

positive feasibility study and investment approval.

The schedule of activities to progress the later phases are not detailed due the current level of geological

confidence (Inferred Mineral Resource), level of study (PEA) and timeframe (+5 years).

The activities outlined in the plan are based on the risks and opportunities identified in Section 25 and will

provide the required geological, technical and economic evaluations to inform and investment decision

with a feasibility level study. Figure 26-1 shows the activity timing and the expected regulatory reporting,

decision making and approval.

Page 338NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Page 339

26.2.2 Activity Cost Estimate

The cost estimates in Table 26-1 are the external costs required to progress Panels 4 and 5 to an

investment decision. Outside this cost estimate, a share of the GSR corporate overhead is directed to this

work.

The external costs are included in the economic analysis in Section 24.10.

  • Definition drilling costs are as detailed in Section 24.9.1.1.3.
  • Geotechnical and metallurgical costs are based on consultant estimates.
  • The haulage study and other consultant costs are calculated from indicative consulting rates and

time estimates by GSR.

The 2021 share of these costs are allowed for in the 2021 company budget.

Figure 26-1 shows the required activity to progress the project toward execution and preliminary estimates

of milestone dates.

Table 26-1 Cost estimate for 2021 – 2022 Resource definition drilling and technical studies

Activity

2021-22 Cost

Definition Drilling, Total

$13.2 M

Technical Studies, Total

$0.8 M

Geotechnical

$0.2 M

Metallurgical Testing

$0.2 M

Haulage Study

$0.3 M

Mine Design and Ventilation

$0.1 M

Total

$14.0 MNI 43-101 Technical Report (March 2021) Wassa Gold Mine

Figure 26-1 Project Execution Plan, Southern Extension Panels 4 and 5

Page 340NI 43-101 Technical Report (March 2021) Wassa Gold Mine

27 REFERENCES

Adadey, K., Clarke, B., Theveniaut, H., Urien, P., Delor, C., Roig, J.Y., Feybesse, J.L., 2009: Geological Map

Explanation – Map Sheet 0503B (1:100 000): CGS/BRGM/Geoman, Geological Survey Department of Ghana

(GSD).

Allibone, A., McCuaig T.C., Harris D., Etheridge M., Munroe S., Byrne D.; 2002a; Structural Controls on Gold

Mineralization at the Ashanti Gold Deposit, Obuasi, Ghana: Society of Economic Geologists, Special

Publication, Vol. 9, pp. 65–93.

Allibone A., Teasdale J., Cameron G., Etheridge M., Uttley P., Soboh A., Appiah-Kubi J., Adanu A., Arthur R.,

Mamphey J., Odoom B., Zuta J., Tsikata A., Pataye F., Famiyeh S., Lamb E., 2002b: Timing and Structural

Controls on Gold Mineralization at the Bogoso Gold Mine, Ghana, West Africa: Economic Geology, Vol. 97,

  1. 949-969.

Barton, N., Lien, R., and Lunde, J., 1974: Engineering classification of rock masses for the design of tunnel

support: Rock Mechanics and Rock Engineering 6(4): 189-236. Also published in: Norges Geotekniske

Institutt, Publikasjon 106.

Barton, N. and Grimstad, E., 1993: Updating of the Q-System for NMT: Proceedings of the International

Symposium on Sprayed Concrete, Fagernes, 22-26 October 1993, 46-66.

Bourassa Y., 2003: Geology of the Wassa Mine Report: Golden Star Resources Ltd, 32p (Unpublished).

Dansgaard, W., 1964: Stable Isotopes in Precipitation: Tellus Vol. 16, No. 4, pp 436-469

Davis D.W., Hirdes W., Schaltegger U., Nunoo E.A., 1994: U-Pb age constraints on deposition and

provenance of Birimian and gold-bearing Tarkwaian sediments in Ghana, West Africa: Precambrian

Research, Vol. 67, pp. 89-107.

Eisenlohr B.N., 1992b: Conflicting evidence on the timing of mesothermal and paleoplacer gold

mineralization in early Proterozoic rocks from southwest Ghana, West Africa: Mineralium Deposita, Vol. 27,

  1. 23-29.

Eisenlohr B.N., Hirdes W., 1992a: The structural development of the early Proterozoic Birimian and

Tarkwaian rocks of southwest Ghana, West Africa: Journal of African Earth Sciences, Vol. 14, No. 3, pp.

313-325.

Feybesse J.L., Billa M., Guerrot C., Duguey E., Lescuyer J.L., Milési J.P., Bouchot V., 2006: The

paleoproterozoic Ghanaian province: Geodynamic model and ore controls, including regional stress

modelling: Precambrian Research, Vol. 149, pp. 149-196.

Fortescue, J.A.C., 1992: Landscape geochemistry—Retrospect and prospect—1990: Applied Geochemistry,

  1. 7, pp. 1–53.

Geosystems Consulting, 2013: Golden Star (Wassa) Limited; Tailings Storage Facility (TSF) 2 Project

Environmental Impact Statement: February 2013.

Geosystems Consulting, 2015: Golden Star (Wassa) Limited; Updated Tailings Storage Facility (TSF) 2 Project

Environmental Impact Statement: September 2015.

Golden Star Resources, 2015: Wassa Expansion Project Environmental Scoping Report.

Golder Associates, 2016: Wassa Expansion Project Environmental Impact Statement. November 2016.

Hirdes W., Davis D.W., 1998: First U-Pb zircon age of extrusive volcanism in the Birimian Supergroup of

Ghana/West Africa: Journal of African Earth Sciences, Vol. 27, No. 2, pp. 291-294.

Hirdes W., Davis D.W., Eisenlohr B.N., 1992: Reassessment of Proterozoic granitoid ages in Ghana on the

basis of U/Pb zircon and monazite dating: Precambrian Research, Vol. 56, pp. 89-96.

Page 341NI 43-101 Technical Report (March 2021) Wassa Gold Mine

ICI Australia, 1990: ‘Environmental Effects of Blasting’ in Handbook of Blasting Tables: pp 33-35.

INAP, 2010: Global Acid Rock Drainage Guide (the GARD Guide), Version 0.8: The International Network for

Acid Prevention, http://www.gardguide.com.

International Union for Conservation of Nature and Natural Resources, 2016: www.iucnredlist.org (IUCN,

2016).

Isaaks E., 2013: Grade Estimation for the Wassa Resource Model: Independent Mineral Consultant, 21p

(Unpublished).

John T., Klemb R., Hirdes W., Loh G., 1999: The metamorphic evolution of the Paleoproterozoic (Birimian)

volcanic Ashanti belt (Ghana, West Africa): Precambrian Research, Vol. 98, pp. 11-30.

Junner N.R., 1940: Geology of the Gold Coast and Western Togoland: Gold Coast Geological Survey, Memoir

No. 11, 40 p.

Kitson, A.E., 1928: Provisional geological map of the Gold Coast and Western Togoland, with brief

descriptive notes thereon: Gold Coast Geological Survey, Bulletin No. 2.

Knight Piésold, 2011: Wassa Tailings Storage Facility 2, Site Investigation Factual Report: December 2011.

Knight Piésold, 2012: Golden Star Wassa Limited, Wassa Gold Mine, TSF Detailed Design Report.

Knight Piésold, 2015: Golden Star Wassa Limited, Wassa Gold Mine, TSF Detailed Design Report.

Knight Piésold, 2017: Conceptual Level Alternative Staging Design of TSF 2, for Annualized Construction with

Compacted Soil Liner (CSL): Memorandum; October 2017.

Kumapley N.K., 1996: Seismicity of southern Ghana: causes, engineering implications and mitigation

strategies: Ghana Min J 2(1):33–41

Marinos P., Marinos V., Hoek E., 2007: Geological Strength Index (GSI). A characterization tool for assessing

engineering properties for rock masses: Underground works under special conditions, eds. Romana,

Perucho & Olalla, 13-21. Lisbon: Taylor and Francis.

Mathews, K.E., Hoek, E., Wyllie, D.C., Stewart, S.B.V., 1981: Prediction of stable excavation spans at depths

below 1000m in hard rock mines: (Tech Report DSS Serial No. OSQ80-00081), Ottawa: Canada Centre for

Mineral and Energy Technology.

MEL, 1996 a: Satellite Goldfields Limited, Wassa Hydrogeological Assessment, Progress Report for Work

During First Quarter 1996: MEL Report 1031R087.

MEL, 1996 b: Reinterpretation of VLF Data to Locate Zones of Preferential Groundwater Flow: MEL Report

1031R138.

MEL, 1996 c: Satellite Goldfields Limited, Wassa Hydrogeological Assessment, Progress Report for Work

During Third Quarter 1996: Minerex Environmental Limited, December 1996. MEL Report 1031R156.

MEND, 2009: Prediction Manual for Drainage Chemistry from Sulphidic Geologic Materials: Report prepared

by W.A. Price, CANMET, British Columbia, for the MEND Program.

Milési JP., Ledru P., Feybesse JL., Dommanget A., Marcoux E., 1992: Early Proterozoic ore deposits and

tectonics of the Birimian orogenic belt, West Africa: Precambrian Research, Vol. 58, pp. 305-344.

Morin, K., Hutt, N., 2007: Morrison Project – Prediction of Metal Leaching and Acid Rock Drainage, Phase 1:

Minesite Drainage Assessment Group, 588p.

NDPC & UNDP, 2010: 2008 Ghana Millenium Development Goals Report. April 2010: National Development

Planning Commission (NDPC) / Government of Ghana and the United Nations Development Program

(UNDP) Ghana.

Page 342NI 43-101 Technical Report (March 2021) Wassa Gold Mine

Oberthür T., Vetter U., Davis D.W., Amanor J.A., 1998: Age constraints on gold mineralization and

Paleoproterozoic crustal evolution in the Ashanti belt of southern Ghana: Precambrian Research, Vol. 89,

  1. 129-143.

Oberthür T., Vetter U., Schmidt Mumm A., Weiser T., Amanor J.A., Gyapong W.A., Kumi R., Blenkinsop T.G.,

1994: The Ashanti Gold Mine at Obuasi, Ghana: Mineralogical, Geochemical, Stable Isotope and Fluid

Inclusion Studies on the Metallogenesis of the Deposit: Geologisches Jahrbuch, D 100, pp. 31-129.

Oberthür T., Weiser T., Amanor J.A., Chryssoulis S.L., 1997: Mineralogical siting and distribution of gold in

quartz veins and sulfide ores of the Ashanti mine and other deposits in the Ashanti belt of Ghana: genetic

implications: Mineralium Deposita, Vol. 32, pp. 2-15.

Perrouty S., Aillères L., Jessell M.W., Baratoux L., Bourassa Y., Crawford B., 2012: Revised Eburnean

geodynamic evolution of the gold-rich southern Ashanti Belt, Ghana, with new field and geophysical

evidence of pre-Tarkwaian deformations Precambrian Research, Vol. 204-205, pp. 12-39.

Perrouty S., Jessell M.W., Aillères L., Apau D., Velasquez G., Siebenaller L., Miller J., Bourassa Y., Beziat d.,

Baratoux L., 2012: Tectonic Context of Eoeburnean Gold Mineralization in Wassa mine, Southwest Ghana:

(unpublished).

Pigois JP., Groves D.I., Fletcher I.R., McNaughton N.J., Snee L.W.; 2003; Age constraints on Tarkwaian

palaeoplacer and lode-gold formation in the Tarkwa-Damang district, SW Ghana; Mineralium Deposita, Vol.

38, pp. 695-714.

Potvin, Y., 1988: Empirical open stope design in Canada: Ph.D. thesis, University of British Columbia,

Vancouver, B.C.

Price W.A., Morin K., Hutt N., 1997: Guidelines for prediction of acid rock drainage and metal leaching for

mines in British Columbia: Part II. Recommended procedures for static and kinetic tests: Proceedings of the

Fourth International Conference on Acid Rock Drainage. Vancouver, B.C. Canada, 1, pp. 15–30.

Wexford Goldfields Limited, 2004: Reclamation Security Agreement between Wexford Goldfields Limited

and Environmental Protection Agency: 14 November 2004.

Scott Wilson, 2004: Wexford Goldfields Limited, The Wassa Project Environmental Impact Statement

SGS, 1996: Satellite Goldfields Limited, Wassa Gold Project, Environmental Baseline Study: SGS Laboratory

Services (Ghana) Limited, November 1996.

SGS Laboratory Services Ghana Limited, 1998: Wassa Project Environmental Impact Statement for Satellite

Goldfields Limited.

SGS, 2002 : Wassa Environmental due diligence audit : SGS Laboratory Services (Ghana) Limited.

Soregaroli, B.A., Lawrence, R.W., 1997: Waste Rock Characterization at Dublin Gulch: A Case Study:

Proceedings of the Fourth International Conference on Acid Rock Drainage, Vancouver, B.C. Canada, p631-

  1.  

SRK Consulting (Canada) Limited, 2020 a: Wassa Truck Haulage Simulation, Preliminary Results:

(unpublished)

SRK Consulting (Canada) Limited, 2020 b: Wassa Truck Haulage Simulation, Revised Production Schedule –

60 T Trucks Dual Ramp: (unpublished)

SRK Consulting (UK) Limited, 2013: NI 43-101 Technical Report on Mineral Resources and Mineral Reserves

Golden Star Resources Ltd, Wassa Gold Mine, Ghana Effective Date 31st December 2012.

SRK Consulting (UK) Limited, 2015: NI 43-101 Technical Report on a Feasibility Study of the Wassa Open Pit

Mine and Underground Project in Ghana, Effective Date 31st December 2014.

Page 343NI 43-101 Technical Report (March 2021) Wassa Gold Mine

SRK Consulting (U.S.), Inc., 2021: PEA Ventilation Design for Golden Star’s Wassa Mine, Ghana:

(unpublished)

Tunks A.J., Selley D., Rogers J.R., Brabham G., 2004: Vein mineralization at the Damang Gold Mine, Ghana:

controls on mineralization: Journal of Structural Geology, Vol. 26, pp. 1257-1273.

United States Bureau of Mining, 1980: RI 8507 Structure Response and Damage Produced by Ground

Vibration from Surface Mine Blasting: DE Siskind, M.S. Stagg, J. W. Kopp and C. H. Dowding.

University of Mines and Technology (UMT), Tarkwa, Minerals Engineering Department, 2018: Final Report

on Profiling of Mining Zones at Golden Star Resources, Wassa Mine: (unpublished)

Wexford Goldfields Limited (WGL), 2004: Environmental Impact Statement for the Wassa Project.

Whitelaw O.A.L., 1929: The Geological and Mining Features of the Tarkwa-Abosso Goldfield; Gold Coast

Geological Survey: Memoir No. 1, 46 p.

Page 344NI 43-101 Technical Report (March 2021)

Wassa Gold Mine

Page 345

28 DATE AND SIGNATURES

The effective date of this Technical Report titled “NI 43-101 Technical Report on the Wassa Gold Mine” is

31 December 2020.

______________

______________________________

Matthew Varvari, FAusIMM

Date

_______________________________

______________

  1. Mitchel Wasel, MAusIMM CP(Geo)

Date

_______________________________

______________

Philipa Varris, MAusIMM CP(Env)

Date

1 March 2021

1 March 2021

1 March 2021

Matthew Varvari

“S. Mitch Wasel”

“Philipa Varris”