TORONTO, Feb. 1, 2018 /PRNewswire/ - Golden Star Resources
(NYSE American: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") is pleased to announce that commercial production has
been achieved at its Prestea Underground Gold
Mine ("Prestea Underground") in Ghana, effective as
of today.
The project construction of Prestea Underground, including the
installation of all ancillary infrastructure, is complete and
operational and gold production is anticipated to continue to ramp
up during 2018.
The West Reef ore body of Prestea Underground has Proven and
Probable Mineral Reserves of 1.09 million tonnes of gold at 13.93
grams per tonne of gold.1 Exploration drilling is
underway at the mine with the objective of increasing the annual
production rate and extending the mine life.
Full year 2018 production guidance for the Prestea complex
(including Prestea Underground and the Prestea Open Pits) is
93,000-113,000 ounces of gold at a cash operating cost per
ounce2 of $740-880.
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"Achieving commercial production at Prestea Underground is an
important milestone in Golden Star's
transformation into a high grade, margin-focused gold
producer. It is also a significant historical moment for the
Prestea community as it has been over 15 years since the mine was
previously in commercial production. I would like to thank
our host communities for their continued support during the
construction and commissioning periods."
Notes:
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1. Numbers are
derived from the Company's Mineral Reserves and Mineral Resources
estimate as
of December 31, 2016.
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2. For additional
information regarding the non-GAAP financial measures used by the
Company, please refer
to the heading "Non-GAAP Financial Measures" in the Company's
Management Discussion and Analysis of
Financial Condition and Results of Operations for the full year
ended December 31, 2016, which is available
at www.sedar.com
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As previously announced, Golden
Star will release its results for the full year and fourth
quarter of 2017 after market-close on February 20, 2018.
Company Profile:
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines in Ghana, West Africa. Listed on the NYSE American, the
Toronto Stock Exchange and the Ghanaian Stock Exchange,
Golden Star is focused on delivering
strong margins and free cash flow from its two high grade, low cost
underground mines. Gold production guidance for 2018 is
230,000-255,000 ounces at a cash operating cost per ounce of
$650-730. As the winner of the
PDAC 2018 Environmental and Social Responsibility Award,
Golden Star is committed to leaving
a positive and sustainable legacy in its areas of operation.
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 ability of
Prestea Underground to ramp up production in 2018; the Company's
production guidance and cash operating cost per ounce guidance for
the Prestea complex; the timing for announcing full year 2017
production results and full year 2018 production guidance,
including cash operating costs per ounce, All-In Sustaining Costs
and capital expenditures; the Company's ability to transform into a
high grade, margin-focused gold producer; and the Company's
production guidance for 2018.
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; risks related to
joint venture operations; 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 or
forward looking 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 Dr. Martin Raffield, P. Eng., a Qualified
Person pursuant to NI 43-101. Dr. Raffield is Senior Vice
President of Project Development and Technical Services
for Golden Star.
Additional scientific and technical information relating to the
mineral property referenced in this news release is contained in
the following current technical report for this property available
at www.sedar.com: Prestea Underground - "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.