TORONTO, May 8, 2015 /CNW/ - Golden Star today
announces that it has filed a technical report, prepared in
accordance with National Instrument 43-101 regarding a Feasibility
Study on the development of an underground mining operation at its
currently operating Wassa open pit 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 Feasibility Study on March
26, 2015, the highlights of which are as follows:
- Internal rate of return of 83% estimated for the Wassa Mine at
$1,200 per ounce gold price
- Net present value, assuming a 5% discount rate , of
$176 million estimated for Wassa
Mine, at $1,200 per ounce gold
price
- Pre-production incremental capital expenditure for Wassa
Underground estimated at $39
million
- First production from Wassa Underground expected early 2016 and
estimated to continue into 2024
- LOM cash operating cost of $780
per ounce and all-in sustaining costs of $938 per ounce estimated for combined Wassa
operation
- Payback at $1,200 per ounce gold
price of 3.25 years
The report, entitled "NI 43-101 Technical Report on a
Feasibility Study of the Wassa Open Pit Mine and Underground
Project in Ghana", was prepared by
SRK Consulting (UK) Ltd., under the supervision of Mike Beare CEng, BEng, ACSM, MIoM3 of SRK
Consulting (UK) Ltd., 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 the Wassa, Prestea and Bogoso
gold mines in Ghana. In 2014, Golden
Star produced 261,000 ounces of gold and is expected to
produce 250,000 – 275,000 ounces in 2015. The Company is
financed to pursue brownfield development projects at its Wassa and
Prestea mines which are expected to transform these mines into
lower cost producers from 2016 onwards. As such, Golden Star offers investors leveraged exposure
to the gold price in a stable African mining jurisdiction with
significant 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
Wassa mine (including assumed discount rates); the timing for first
production from Wassa mine; the life of mine at Wassa mine;
pre-production capital costs for Wassa mine; and future work to be
completed at Wassa 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 Wassa 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 2014. 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.