TORONTO, Oct. 27, 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 received a
mining lease for the Mampon deposit in Ghana ("Mampon").
Mampon is a high grade, oxide deposit containing 45,000 ounces
of gold (304 kilotonnes (Kt) at 4.60 grams per tonne (g/t)),
approximately 80 kilometres to the north of the Company's
carbon-in-leach processing plant at the Bogoso site. There is
an existing, good quality road connecting the deposit and the
processing plant for the majority of the distance, so limited
capital expenditures will be required in order to bring Mampon into
production.
Higher grade ore from Mampon will be blended with ore from the
Prestea Open Pits, which is expected to enhance Golden Star's cash flow in 2017. Following
the receipt of the mining lease, the next step for the Company is
to obtain an environmental permit. Golden Star expects to start mining Mampon in
the first half of 2017.
Golden Star began mining the
Prestea Open Pits in the third quarter of 2015 to bridge the gap
between the Bogoso refractory operations ceasing production and the
commencement of production from the high grade Prestea Underground
Gold Mine ("Prestea Underground"), which is expected to occur in
the second quarter of 2017. The Company had anticipated that
production from the Prestea Open Pits would be completed by the end
of the third quarter of 2016 but production is now forecast to
continue until the second half of 2017. Golden Star will also endeavour to delineate
additional Mineral Reserves in the area in order to further extend
production from the Prestea Open Pits and maintain a second ore
source from the mine.
Although Golden Star has not yet
published formal guidance for 2017, production from the Prestea
Open Pits, including the Mampon deposit, was not included in
Golden Star's production profile in
the Company's recent presentation, which is available at
http://www.gsr.com/investors/events-and-presentations.
Therefore any production generated from these surface deposits in
2017 represents upside on the Company's current production
profile.
Sam Coetzer, Golden Star's President and Chief Executive
Officer, commented:
"I am very pleased that Golden
Star has been granted the mining lease for Mampon.
Through mining this high grade surface deposit we will generate
strong short-term cash flow and it will assist us in maintaining
production from Prestea until Prestea Underground commences
production in the second quarter of 2017. With exceptionally
high grade Mineral Reserves at 14.02g/t, the real prize at Prestea
is the underground mine, but the Prestea Open Pits have provided
and will continue to provide useful cash flow to us during this
transition period and I am very glad that, along with Mampon, they
will now continue to produce until at least the second half of
2017."
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 limited capital
expenditures to bring Mampon into production; the timing and the
amount of production from the Mampon deposit; the blending of
Mampon ore with ore from the Prestea Open Pits and the impact on
2017 cash flow; the amount of production from the Prestea Open Pits
and the time period during which mining will occur from such pits;
the Company's ability to delineate additional Mineral Reserves in
the area of the Prestea Open Pits; and the ability of Mampon to
generate strong cash flow.
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.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Forward-looking information and
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company's
operating environment. Golden Star
does not undertake to update any forward-looking information and
statements that are included in this news release except in
accordance with applicable securities laws.
Technical Information
The technical contents of this press release have been reviewed
and approved by S. Mitchel Wasel, BSc Geology, a "Qualified Person"
pursuant to National Instrument 43-101 ("NI 43-101"). Mr. Wasel is
Vice President Exploration for Golden
Star and an active member of the Australasian Institute of
Mining and Metallurgy. Additional scientific and technical
information relating to the mineral properties referenced in this
news release are contained in the following current technical
reports for those properties available at www.sedar.com: (i) "NI
43-101 Technical Report on a Feasibility Study of the Prestea
Underground Gold Project in Ghana"
effective date November 3, 2015; and
(ii) "NI 43-101 Technical Report on Resources and Reserves Golden
Star Resources Ltd., Bogoso Prestea Gold Mine, Ghana" effective date December 31, 2013.
SOURCE Golden Star Resources Ltd.