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GSR releases financial results Q1 2011

Kofi AHOVI Golden Star Resources Limited has released its unaudited first quarter 2011 results.
During the first quarter of 2011, gold sales of 83,908 ounces from Bogoso/Prestea and Wassa/HBB mines were up 9% over the fourth quarter of 2010, while gold revenues of US$116.5 million for the first quarter of 2011, were up10% over gold revenues for the fourth quarter of 2010.

First quarter 2011 net income attributable to Golden Star shareholders of $5.9 million or $0.023 per share (IFRS net loss attributable to Golden Star shareholders of $13.8 million or $0.053 per share) compared to a net loss of $18.0 million or $0.070 per share for the fourth quarter of 2010.

Cash operating costs of $980 per ounce for the first three months of 2011, were a 7% improvement over cash operating costs during the fourth quarter of 2010;
Cash and cash equivalents balance of $151.7 million at March 31, 2011 versus $178.0 million at December 31, 2010. Average realized gold price of $1,389 per ounce during the first quarter of 2011, up 1% over the fourth quarter of 2010; and net cash provided by operating activities before working capital changes of $14.8 million for the first quarter of 2011 or $0.057 per share (IFRS $13.0 million or $0.050 per share) compared to $7.2 million or $0.028 per share for the fourth quarter of 2010.

Capital expenditures for 2011 are estimated to total approximately $100 million. This is scheduled to include $38 million for mine property development, $20 million for mine site drilling, and $42 million for equipment and facilities.

Along with cash position, it holds a $40.5 million revolving credit facility and has an additional $21.4 million of borrowing capacity under its equipment financing credit facility.”

The exploration budget for 2011 has been reduced from $30 million due to the late arrival of three additional drill rigs, now anticipated to arrive in the second half of 2011. The company now expects to spend $20 to $25 million this year on exploration activities.

During the first quarter of this year, a total of seven drill rigs were active in areas in and surrounding its mine sites. Bogoso/Prestea drilling focused on the Buesichem South and Bogoso North open pits. Drilling at Wassa/HBB concentrated on targets near the Wassa haul road and will shift to the main Wassa pits and the Father Brown pit area during the second quarter of 2011.


Golden Star Resources’ objectives for 2011 include reassessment and review of the Bogoso mine operations, including review of capital expenditures permitting, development and operation of the Bogoso Tailings Retreatment Project; among others.
Tom Mair, President and CEO, in a press release said, "We saw an increase in gold production from the fourth quarter of 2010 to the first quarter of this year at Bogoso which indicates that our efforts to recover from the unusually high rainfall, during the second half of 2010, which adversely affected our pit sequencing are moving in the right direction.”
According to the president, the company believes that these initiatives, combined with its projects which will provide oxide ore to the oxide processing plant at Bogoso will enable us to deliver on our goals at Bogoso.
“Wassa continues to perform well with higher than expected gold production but we still have work to do in lowering costs," he added.

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