TORONTO, Dec. 18, 2014 /CNW/ - Golden Star today announces that it has filed a
technical report, prepared in accordance with National Instrument
43-101, ("NI 43-101") regarding a Preliminary Economic Assessment
("PEA") on the development of non-mechanized operation at its
Prestea mine in Ghana.
This technical report can be accessed under the Company's
profile at www.sedar.com and on the Company's website at
www.gsr.com.
Golden Star announced the
findings of this PEA on November 13,
2014, the highlights of which are as follows:
- Post-tax IRR of 72% at $1,200/oz
gold price
- NPV5% of $121 million
at $1,200/oz gold price
- Initial capital $40 million
required to first production
- Total project life of five years, after one year of
development
- LOM cash operating costs of $370/oz
- LOM all-in sustaining costs of $518/oz
- Payback period of 2.5 years from the start of development
The report, entitled "NI 43-101 Technical Report on a
Preliminary Economic Assessment of Shrinkage Mining of West Reef
Resource, Prestea Underground Mine", was prepared by Golden Star
Resources, under the supervision of by Dr. Martin Raffield, P. Eng., a Qualified Person
pursuant to National Instrument 43-101.
COMPANY PROFILE
Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR)
("Golden Star" or the "Company") is an established gold mining
company that holds a 90% interest in both the Bogoso and Wassa gold
mines in Ghana. The Company also has a 90% interest in the
Prestea Underground mine in Ghana. Golden Star has Mineral Reserves of 3.9 million
ounces and 6.0 million ounces in Measured and Indicated Mineral
Resources. In 2013, Golden
Star sold 331,000 ounces of gold and in 2014 the Company
expects to produce 260,000 – 280,000 ounces. The Company
offers investors leveraged exposure to the gold price in a stable
African mining jurisdiction with exploration and development upside
potential.
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 applicable Canadian
securities laws. Investors are cautioned that forward-looking
statements are inherently uncertain and involve risks and
uncertainties that could cause actual results to differ
materially. Such statements include comments regarding:
estimated post-tax internal rate of return and net present value of
Prestea mine (including assumed discount rates); the timing for
first production from Prestea mine; the life of mine at Prestea
mine; pre-production capital costs for Prestea mine; and future
work to be completed at Prestea mine. Factors that could
cause actual results to differ materially include timing of and
unexpected events at the Bogoso non-refractory processing plant;
variations in ore grade, tonnes mined, crushed or milled;
variations in relative amounts of refractory, non-refractory and
transition ores; delay or failure to receive board or government
approvals and permits; the availability and cost of electrical
power; timing and availability of external financing on acceptable
terms; technical, permitting, mining or processing issues,
including difficulties in establishing the infrastructure for
Prestea mine; changes in U.S. and Canadian securities markets; and
fluctuations in gold price and input costs and general economic
conditions. 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 our Annual Information Form for 2013. 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 and that
actual results will vary from these estimates, possibly by material
amounts. 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. Investors and
others should not assume that any forecasts in this press release
represent management's estimate as of any date other than the date
of this press release.
TECHNICAL INFORMATION
The technical contents of this press release have been reviewed
and approved by Dr. Martin Raffield,
P. Eng., a Qualified Person pursuant to National Instrument
43-101. Dr. Raffield is Senior Vice President Technical
Services for Golden Star.
SOURCE Golden Star Resources Ltd.