TORONTO, Feb. 1, 2018 /CNW/ - 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."
1. Numbers are derived from the Company's Mineral Reserves and Mineral Resources estimate as of December 31, 2016.
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
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.
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.