TORONTO, Sept. 8, 2016 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star"
or the "Company") is pleased to announce that it has appointed
Manroc Developments Inc. ("Manroc") as the underground mining
contractor for its Prestea Underground Gold Mine in Ghana ("Prestea Underground").
Manroc was selected following a competitive bid process,
involving a number of large mining contractors. Manroc
specializes in Alimak stoping, a mechanized 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.
Prestea Underground 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 mobilize 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."
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 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.
Cautionary note regarding forward-looking information
This press release contains "forward looking information" within
the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995, concerning
the business, operations and financial performance and condition of
Golden Star. 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. Forward-looking information
and statements in this press release include, but are not limited
to, information or statements with respect to: the timeline for
bringing Prestea Underground into production; the timing for Manroc
to mobilize its fleet to Prestea Underground; the expected cost and
time savings incurred as a result of using raise mining; the
potential upside of Mineral Reserves at Prestea Underground; the
safety and efficiency of Alimak stoping; the impact of Prestea
Underground mining on production and costs; and the Company's
ability to transform, into a high grade, low cost producer.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which
Golden Star will operate in the
future, including the price of gold, anticipated costs and ability
to achieve goals. Forward-looking information and statements are
subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, performance or
achievements of Golden Star to be
materially different from those expressed or implied by such
forward-looking information and statements, including but not
limited to: risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Golden Star operates; risks
related to current global financial conditions; actual results of
current exploration activities; environmental risks; future prices
of gold; possible variations in mineral reserves, grade or recovery
rates; mine development and operating risks; accidents, labor
disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities and risks related to
indebtedness and the service of such indebtedness. Although
Golden Star has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information and statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.
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, Project Development and Technical
Services for Golden Star. Additional scientific and
technical information relating to the Prestea Underground mine is
contained in the current technical report, available at
www.sedar.com, entitled "NI 43-101 Technical Report on a
Feasibility Study of the Prestea Underground Gold Project in
Ghana" effective date November 3, 2015.
SOURCE Golden Star Resources Ltd.