TORONTO, Nov. 12, 2018 /CNW/ - Golden Star Resources Ltd.
(NYSE American: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") provides a non-material update on its Prestea
Underground Gold Mine ("Prestea Underground") in Ghana.
As previously announced, Golden
Star had planned to host an analyst and investor visit to
Prestea Underground on November 9,
2018. However the Company made the decision to cancel the
underground tour of the West Reef mining area of Prestea
Underground due to flooding in another area of the mine.
Golden Star is committed to
delivering the highest standards of safety for its employees and
visitors.
The Central Shaft, which provides the primary access to Prestea
Underground, and the West Reef active mining area were
unaffected. However one of the tunnels close to the Bondaye
shaft, which is 4 kilometres away from the Central Shaft and
provides access to the secondary egress (escape route) for Prestea
Underground, had become flooded. This was due to a pumping
system failure on 9 Level, following a period of very heavy
rainfall. As a result, Golden
Star took the decision to suspend production until the
secondary egress became accessible again.
During the day on Friday November 10,
2018 the pumping system was fixed and the water level began
to recede. The secondary egress is now accessible so
production is expected to resume later today. The loss of
approximately five days of production from Prestea Underground is
not material and the Prestea processing plant continued to process
open pit stockpiles at a rate of 4,000 tonnes per day. The
Prestea Complex remains on track to achieve its full year 2018 gold
production and cash operating cost per ounce guidance.
The Wassa Underground Gold Mine ("Wassa Underground") was
unaffected by the heavy rainfall and the investor and analyst visit
went ahead as planned on Thursday November
8, 2018.
Company Profile:
Golden Star is an established,
African focused gold producer that owns and operates the Wassa and
Prestea mines in Ghana. Listed on the NYSE American,
the Toronto Stock Exchange and the Ghanaian Stock
Exchange, the Company's objective is to grow into a best-in-class,
mid-tier gold producer. Golden Star aims to expand its
production profile through the exploration and development of its
existing mines, particularly Wassa, and through the acquisition of
additional mines. Gold production guidance for 2018 is
225,000-235,000 ounces at a cash operating cost per ounce
of $790-830. As the winner of the PDAC 2018
Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive
and sustainable legacy in its areas of operation.
Statements Regarding Forward-Looking Information
Some statements contained in this news release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and "forward looking
information" within the meaning of Canadian securities laws.
Forward looking statements and information include, but are not
limited to, statements and information regarding: the
recommencement of production from Prestea Underground later today;
the ability of Golden Star to
achieve its full year 2018 guidance in terms of gold production and
cash operating cost per ounce. 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. Investors are cautioned that
forward-looking statements and information are inherently uncertain
and involve risks, assumptions and uncertainties that could cause
actual facts to differ materially. There can be no assurance
that future developments affecting the Company will be those
anticipated by management. Please refer to the discussion of
these and other factors in Management's Discussion and Analysis of
financial conditions and results of operations for the year ended
December 31, 2017. Additional
factors are also included in our annual information form for the
year ended December 31, 2017 which is
filed on SEDAR at www.sedar.com. The forecasts contained
in this press release constitute management's current estimates, as
of the date of this press release, with respect to the matters
covered thereby. We expect that these estimates will change as
new information is received. While we may elect to update
these estimates at any time, we do not undertake to update any
estimate at any particular time or in response to any particular
event.
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SOURCE Golden Star Resources Ltd.