Golden Star Resources Ltd. has announced preliminary third quarter production results for its Bogoso/Prestea and Wassa/HBB operations.
Tom Mair, President and CEO, commented in a press statement copied to BusinessWeek Online, “Bogoso/Prestea is experiencing strong positive progress in both mining and processing operations. Due to the operational improvements we have achieved over the last nine months at the Bogoso/Prestea mine, we have seen metallurgical recovery improve significantly from 56% in the fourth quarter of 2010 to nearly 76% in the third quarter of 2011, a quarterly record.
As a result, third quarter gold production at Bogoso/Prestea was slightly higher than we had forecast. Wassa/HBB’s gold production was slightly below expectation in the third quarter due to lower than expected mill availability and ore handling issues. On a consolidated basis, we achieved third quarter gold production guidance.
“We continue to focus intensely on cost efficiencies throughout our operations. Our operating costs at Bogoso/Prestea declined by $167 per ounce in the third quarter compared with the second quarter, representing solid progress but leaving room for continued improvement as we move aggressively to streamline operations and ramp up production. Operating costs at Wassa/HBB increased in the third quarter due to lower than expected throughput but we expect to achieve lower costs as production increases in the fourth quarter.”
During the third quarter, the company continued to focus on delivering an optimal blend of sulphide and transition ore to the Bogoso/Prestea mill, an effort that has resulted in metallurgical recoveries steadily increasing from 56% in the fourth quarter of 2010 to 61%, 66% and 76%, respectively, over the first three quarters of 2011. The Company will continue to focus on optimizing the ore blend as well as increasing tonnage processed with the objective of increasing both metallurgical recovery and gold production.
Cash operating costs declined by 12%, or $167 per ounce, to $1,216 in the third quarter from $1,383 in the second quarter, reflecting the Company’s successful efforts to improve operating efficiencies. Costs would have declined further had it not been for temporarily high stripping ratios. The Company expects to report continued reductions in operating costs over the long term as ore production increases and the full effects of cost control initiatives are realized.
Mining at the Buesichem North pit continued in the third quarter and the Company commenced pre-stripping at the Pampe oxide pit. The Bogoso oxide plant is undergoing refurbishment and enhancements in anticipation of oxide ore delivery to the mill in the first quarter of 2012.
Golden Star Resources holds the largest land package in one of the world’s largest and most prolific gold producing regions. The company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in Brazil in South America. Golden Star has approximately 259 million shares outstanding.
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