Golden Star Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) has announced that it has appointed Manroc Developments Inc. as the underground mining contractor for its Prestea Underground Gold Mine in Ghana.
Manroc was selected following a competitive bid process, involving a number of large mining contractors. Manroc specialises in Alimak stoping, a mechanised shrinkage mining method, and has a reputation for safety and efficiency.
The contractor has worked on major projects on a variety of continents and its clients have included Barrick Gold Corporation, Goldcorp Inc. and Nyrstar. Manroc has previously operated in Ghana and Tanzania.
Alimak stoping was selected as the mining method for Prestea Underground due to its safety and efficiency benefits over conventional shrinkage mining.
The Prestea Underground mine is a narrow, high grade deposit, with Mineral Reserves of 1.0Mt at 14.02g/t for 469,000 ounces and substantial exploration upside potential. Members of Golden Star’s technical team at Prestea Underground have experience of using Alimak mining techniques at the Myra Falls mine in British Columbia, Canada and the Musselwhite mine in Ontario, Canada.
Golden Star is expected to commence development of the Prestea Underground ore body during Q4 2016 and Manroc is expected to mobilise its fleet to site during the same quarter. The Company’s development timeline for Prestea Underground remains intact and Golden Star expects to achieve commercial production at the mine in mid-2017, as planned.
Sam Coetzer, President and Chief Executive Officer of Golden Star, commented: “The development of Prestea Underground is progressing well and the appointment of a mining contractor is the next important step. We remain on track to bring Prestea Underground into production in mid-2017, which will be a significant milestone for Golden Star as it is expected to increase our production rate and further reduce our cash operating costs. The mine is one of the highest grade development projects in West Africa and it has a strong history, with approximately 9 million ounces of gold production during the past century. The work to upgrade Prestea’s infrastructure is continuing well and we are excited about the potential upside of the deposit’s Mineral Reserves. I look forward to updating the market further on Prestea Underground’s progress over the coming months as Golden Star continues on its path to become a high grade, low cost, non-refractory producer.”
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 western Ghana, 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 two high grade, low cost underground mines both in conjunction with existing open pit operations. The Wassa Underground commenced pre-commercial production in mid-2016 and the Prestea Underground is expected to commence production in mid-2017. Both projects are fully funded and on track to begin production as expected. Production in 2016 is expected to be between 180,000–205,000 ounces of gold with costs of US$815-US$925 per ounce.
Source: Ghana/AccraFM.com
