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Business News of Tuesday, 9 March 2021

Source: thebusiness24.com.gh

Golden Star's Wassa mine resource up by 1 million ounces

Golden Star Resources (GSR), the gold mining company, has said a recent assessment of the Wassa underground mine has shown an 86 percent increase in measured mineral resource, demonstrating the improving geological confidence that has been delivered by recent infill drilling programmes.

The company, in a release to investors, announced that the measured and indicated mineral resource at Wassa Underground has increased by 1m ounces after the addition of materials formerly reported as open pit and the cut-off grade reduction from 1.89 grams per tonne to 1.4 grams per tonne.

GSR said its mineral reserve plan outlines a six-year mine life with annual production averaging 177,000 ounces of gold at an all-in sustaining cost of US$881 per ounce.

The mineral reserve is expected to deliver increased value with cut-off grades optimised for the higher mining rates achieved in 2020 and the resulting unit cost reductions. The open pit resource has been remodelled as an underground resource which enables accelerated access, reduced upfront capital demand and removal of low-margin ounces from the plan.

Andrew Wray, Chief Executive Officer of Golden Star, commenting on the update to investors, said in 2020, the company focused on improving their geological confidence in the orebody through an extensive infill drilling program which has resulted in a significant increase in their measured resource and proven reserve.

“Converting the open pit reserve at Wassa to an underground reserve allows us to bring production from those areas forward with a lower upfront capital cost. Development of the Upper Mine will start to deliver production from 2023 and will provide a second decline access to the mine which can be incorporated into the long-term mine design,” he said.

The CEO further stated that the Preliminary Economic Assessment (PEA) demonstrates the significant value and growth potential of Wassa, clearly laying out the path to underground mining rates in excess of 7,000 tonnes per day and production of approximately 300 kilo ounces (koz) per annum when in steady state production.

“Following this study and with a stronger balance sheet, we are in a position to further accelerate the investment in drilling, development and exploration programmes to deliver on the growth potential and value of Wassa,” he said.

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