Golden Star Resources (NYSE American: GSS; TSX: GSC; GSE: GSR) has announced that stoping has commenced at its high-grade Prestea Underground Gold Mine in Ghana.
The successful blasting of the initial ore from the first stope in the West Reef ore body took place on September 27, 2017. The first stope is being mined using mechanized shrinkage, utilizing Alimak raise climbers, and it will be hauled to surface for processing via the Central Shaft.
Since mid-April 2017 Golden Star has been processing development ore from Prestea Underground and in the second quarter of 2017 the mine delivered its maiden gold production for Golden Star of 325 ounces.
Prestea Underground is expected to achieve commercial production in the fourth quarter of 2017. The mine has Mineral Reserves of 1.09 million tonnes at 13.93 grams per tonne of gold. It is expected to produce 90,000 ounces of gold per annum at a cash operating cost1 of $468 per ounce and an All-In Sustaining Cost1 of $615 per ounce over an initial mine life of 5.5 years. Exploration drilling is underway at the mine with the objective of increasing the annual production rate and extending the mine life.
Sam Coetzer, President and Chief Executive Officer of Golden Star, commented: “I am delighted to announce that stoping has commenced at Prestea Underground. We believe that this is the first time that a production stope has been blasted since 2001 and it is a historical achievement for both Golden Star and the Prestea community in Ghana. I would like to thank Martin Raffield, our SVP of Project Development & Technical Services, Jerry Agala, the General Manager of the Prestea mine, and the development team for all of their hard work and dedication in transforming a century old mine to a completely modern mine. I would also like to thank our Chief Operating Officer, Daniel Owiredu, and the operations team for their commitment to achieving this important milestone. The development of the next four stopes is progressing well and we are on track to achieve commercial production in the fourth quarter of 2017. Prestea Underground is one of Golden Star’s two cornerstone mines and we will continue to build upon the momentum within the Company to deliver a sustainable, mid-tier gold producer.”
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 American, 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 the fourth quarter of 2017. Gold production in 2017 is expected to be 255,000-280,000 ounces with cash operating costs of US$780-860 per ounce.
Source: Ghana/Goldoilgas.com
