Commercial production achieved on time and on
budget
TORONTO, Jan. 6, 2017 /PRNewswire/ - Golden Star Resources
Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") is pleased to announce that commercial production has
been achieved at its Wassa Underground Gold Mine ("Wassa
Underground") in Ghana, effective
January 1, 2017.
The project construction of Wassa Underground, including the
installation of all ancillary infrastructure, is essentially
complete and operational, in accordance with the Company's planned
schedule and budget.
Gold production is anticipated to continue to ramp up during
2017 as Golden Star's mining
operations begin to access the B Shoot, which is a higher grade
area of the Wassa Underground ore body. The Company plans to
begin longitudinal stoping of the B Shoot in the first quarter of
2017, with the larger, transverse stopes expected to be accessed in
the third quarter of 2017.
Since Golden Star blasted the
first stope at Wassa Underground in July
2016, the Company has been mining development and stope ore
in the F Shoot. Golden Star
expects to announce its full year 2016 production results,
including the production results for Wassa Underground, and its
full year 2017 guidance in terms of production, operating costs and
capital expenditures later in January
2017.
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"Achieving commercial production at Wassa Underground marks
the successful completion of a 17 month construction period.
It is also another important milestone in our transformation into a
high grade, non-refractory gold producer. Golden Star also anticipates that it will
benefit from Wassa Underground's lower cost production, as a result
of the higher grade ore being fed into the Wassa processing
plant. I want to thank our project construction team for
their outstanding efforts as Wassa Underground was constructed
safely, on schedule and within our capital budget. I look
forward to announcing our full year 2016 production results and our
full year 2017 guidance later this month."
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 Gold Mine commenced commercial production in
January 2017 and the Prestea
Underground Gold Mine is expected to achieve commercial 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
Some statements contained in this news release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other applicable
securities laws. Such statements include: the ability to mine and
access B Shoot; higher grades at B Shoot; the areas that are
expected to be mined with longitudinal stoping; the areas expected
to be mined with transverse stoping; the timing for accessing the
first longitudinal stope at Wassa Underground; the timing for
accessing the first transverse stope at Wassa Underground; the
anticipated level of production in 2017; the cost of production at
Wassa Underground; lower cost production at Wassa Underground and
the benefits thereof; and the timing for releasing the full year
2016 production results and full year 2017 guidance. Investors are
cautioned that forward-looking statements are inherently uncertain
and involve risks and uncertainties. Factors that could cause
actual results to differ materially include timing of and
unexpected events during exploration; variations in ore grade;
variations in relative amounts of refractory, non-refractory and
transition ores; technical or permitting issues; fluctuations in
gold price and costs; availability of capital and/or external
financing on acceptable terms; changes in U.S. and Canadian
securities markets; 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 risks and other factors in the Company's Annual Information
Form for the year ended December 31, 2015 and other
filings of the Company with the United States Securities and
Exchange Commission and the applicable Canadian securities
regulatory authorities. 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. 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.
SOURCE Golden Star Resources Ltd.