TORONTO, April 3, 2017 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star"
or the "Company") is pleased to announce a project update for its
Prestea Underground Gold Mine ("Prestea Underground"), Mampon
deposit and Wassa Underground Gold Mine ("Wassa Underground") in
Ghana. The Company also announces that it is hosting a site
visit for analysts, investors and journalists at its two mines.
HIGHLIGHTS
- Development has commenced of the first stope in the high grade
West Reef at Prestea Underground
- Mining has commenced from the Mampon deposit and ore mined from
Mampon will be processed in conjunction with ore from the Prestea
Open Pits
- Mining has commenced from the high grade B Shoot zone at Wassa
Underground
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"Golden Star continues to
reach its key milestones, on time and on budget. Exciting
progress is being made at Prestea Underground and I look forward to
blasting the first stoping ore later this quarter. At Mampon,
commencing mining within the expected timeframe is testament to the
hard work of our team in Ghana and
their strong relationship with local communities. Finally,
operations at Wassa Underground are progressing as planned and it
is pleasing that we have now begun accessing the B Shoot, which is
the main target of the Wassa Underground development. Our
transformation into a low cost, high grade, mid-tier producer
remains well on track."
PROJECT UPDATE
Prestea Underground
Development of the first stope of the West Reef has commenced at
Prestea Underground. Prestea Underground is a high grade mine
with Mineral Reserves averaging 13.93 grams per tonne ("g/t") of
gold ("Au") (1.1 million tonnes for 490,000 ounces of gold).
Golden Star is planning to use a
mechanized shrinkage method to mine Prestea Underground called
Alimak raise mining and all five Alimak raise climbers expected to
deliver the targeted 650 tonnes per day ("tpd") mining rate are now
on site.
Golden Star moved the first
Alimak underground in January 2017,
with development of the first stope commencing in March 2017 as planned. The first Alimak
nest, which is the area where the Alimak is stored during blasting,
is complete and approximately 35 metres of the first raise have
been blasted. The development of the second nest has also
commenced. Golden Star expects to
blast the first stoping ore at Prestea Underground during the
second quarter of 2017 and commercial production is anticipated to
be achieved in mid-2017.
Mampon
Mining has commenced from the Mampon deposit, as planned.
Mampon is a high grade, open pit, oxide deposit, with Mineral
Reserves of 301,000 tonnes at 4.64 g/t Au for 45,000 ounces of
gold. Mampon is 65 kilometres to the north of the
carbon-in-leach processing plant and ore from Mampon is being
blended with ore from the Prestea Open Pits.
Mampon is located within a forestry reserve and Golden Star obtained the mining lease,
environmental permit and forestry permit, within the planned
timeframe. In connection with obtaining the forestry permit,
as well as part of the Company's commitment to environmental
sustainability, Golden Star has
pledged to reforest an area three times the size of the area being
deforested for mining and to backfilling the pits in the forestry
reserve. Golden Star has
fostered a strong relationship with the local community and the
various regulatory authorities and this was reflected in the timely
way in which the Company received the necessary permits.
Mining is expected to continue from Mampon for three months,
with processing continuing for six months, based on the current
Mineral Reserves. Due to its high grade nature, Mampon is
expected to have a positive impact on Golden Star's cash flow during 2017.
Photographs of the progress being made at Prestea Underground
and Mampon are available at:
http://www.gsr.com/operations/prestea/default.aspx
Wassa Underground
Mining of the high grade B Shoot zone of Wassa Underground has
commenced. Golden Star blasted
the first stoping ore from the B Shoot in late March 2017, on budget and within the planned
timeframe.
Golden Star is using a
conventional longhole open stoping method to mine Wassa
Underground. The first stopes of the B Shoot will be mined
via longitudinal stoping and these stopes are anticipated to be
between 15 and 20 metres wide. As mining progresses further
into the B Shoot, Golden Star plans
to use transverse stoping to mine the wider, higher grade portion
of the deposit, with expected widths of between 20 and 40
metres.
Transverse stoping is expected to commence during the third
quarter of 2017 and this is anticipated to result in stronger
production from Wassa Underground in the second half of 2017.
In addition, underground mining rates during the first quarter
of 2017 exceeded Golden Star's
expectations. The Company is targeting a mining rate of 1,400
tpd from Wassa Underground in 2017, with the objective of ramping
up to 2,200 tpd in 2018, which is the mining rate outlined in the
Company's Feasibility Study for Wassa Underground. However
the mining team regularly achieved stronger daily mining rates
during the first quarter of 2017, which had a positive impact on
productivity. Golden Star will
provide further details of the progress being made by the mining
team at Wassa Underground when it releases the results for the
first quarter of 2017.
SITE VISIT
Golden Star is hosting an analyst
and investor visit to its two mines in Ghana on April 7
and 8, 2017.
During these two days, the group will visit the Company's two
producing open pit operations (the Wassa Main Pit and the Prestea
Open Pits) and its two high grade underground mines (Wassa
Underground and Prestea Underground).
The group will also be given a series of technical
presentations, which will cover all aspects of the Company's
operations including its 2017 exploration program.
The technical presentations will be available on the Company's
website from 07:00 on April 7, 2017,
at: http://www.gsr.com/investors/events-and-presentations
Company Profile
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines situated on the prolific Ashanti Gold
Belt in Ghana, West Africa. Listed on the NYSE MKT, the TSX,
and the GSE, Golden Star is
strategically focused on increasing operating margins and cash flow
through the development of its two high grade, low cost underground
mines both in conjunction with existing open pit operations. The
Wassa Underground Gold Mine commenced commercial production in
January 2017 and the Prestea
Underground Gold Mine is expected to achieve commercial production
in mid-2017. Gold production in 2017 is expected to be
255,000-280,000 ounces with cash operating costs of $780-860 per ounce.
Cautionary note regarding forward-looking information
This press release contains "forward looking information" within
the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995, concerning
the business, operations and financial performance and condition of
Golden Star. Generally,
forward-looking information and statements can be identified by the
use of forward-looking terminology such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", "believes" or variations of such words
and phrases (including negative or grammatical variations) or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or
the negative connotation thereof. Forward-looking information
and statements in this press release include, but are not limited
to, information or statements with respect to: the timing of the
blasting of the first stope at Prestea Underground; the ability of
the Company to transform into a low cost, high grade, mid-tier
producer; the ability of the Company to achieve a mining rate of
650 tpd at Prestea Underground; the ability of the Company, through
Alimak stoping, to achieve commercial production at Prestea
Underground in mid-2017; the duration of mining and processing of
ore from Mampon; the ability of production from Mampon to have a
positive impact on Golden Star's
cash flow in 2017; the planned sizes of the stopes at Wassa
Underground; the timing of the mining of the first transverse
stopes at Wassa Underground; the ability of the transverse stopes
to generate stronger production in the second half of 2017 from
Wassa Underground; the ability of Wassa Underground to ramp up to a
mining rate of 2,200 tpd; and 2017 gold production and cash
operating costs.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which
Golden Star will operate in the
future, including the price of gold, anticipated costs and ability
to achieve goals. Forward-looking information and statements are
subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, performance or
achievements of Golden Star to be
materially different from those expressed or implied by such
forward-looking information and statements, including but not
limited to: risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Golden Star operates; risks
related to current global financial conditions; risks related to
joint venture operations; actual results of current exploration
activities; environmental risks; future prices of gold; possible
variations in Mineral Reserves, grade or recovery rates; mine
development and operating risks; accidents, labor disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities and risks related to
indebtedness and the service of such indebtedness. Although
Golden Star has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information and statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Forward-looking information and
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company's
operating environment. Golden Star
does not undertake to update any forward-looking information and
statements that are included in this news release except in
accordance with applicable securities laws.
Technical Information
The technical contents of this press release and the 2016
estimates of Mineral Reserves, have been reviewed and approved by
and were prepared under the supervision of Dr. Martin
Raffield, Senior Vice President, Project Development and Technical
Services for the Company. Dr. Raffield is a "Qualified Person"
as defined by NI 43-101.
Additional scientific and technical information relating to the
mineral properties referenced in this news release are contained in
the following current technical reports for those properties
available at www.sedar.com: (i) Wassa - "NI 43-101 Technical Report
on feasibility study of the Wassa open pit mine and underground
project in Ghana" effective date
December 31, 2014; (ii) Prestea
Underground - "NI 43-101 Technical Report on a Feasibility Study of
the Prestea Underground Gold Project in Ghana" effective date November 3, 2015; and (iii) Bogoso - "NI 43-101
Technical Report on Resources and Reserves Golden Star Resources
Ltd., Bogoso Prestea Gold Mine, Ghana" effective date December 31, 2013.
SOURCE Golden Star Resources Ltd.