Golden Star Resources, Ltd. announced it has received the environmental and mining permits for Phase I development of the Prestea Underground mine.
These permits allow the company to commence initial development in the Central Shaft area in order to achieve early production and advance infrastructure, with the long-term goal of transforming Prestea Underground into a modern, mechanized mine and a key contributor to lower cost gold production going forward. Highlights of the West Reef Preliminary Economic Assessment (PEA) completed in 2012: An Indicated Mineral Resource of 874,000 tonnes grading 18.07 grams per tonne (g/t) for 508,000 ounces of gold, and the deposit is open along strike and down dip; An Inferred Mineral Resource of 510,000 tonnes grading 11.58 g/t for 190,000 ounces of gold, and the deposit is open along strike and down dip; Results from ongoing drilling programs on the 17 and 24 levels of the West Reef area will be incorporated into the information being gathered for the West Reef feasibility study; The PEA contemplates a 1,200 tonnes per day mining operation (including mineralized material from development); Currently delineated West Reef material is expected to be processed at the Bogoso non-refractory processing plant and produce up to 97,000 ounces of gold per year at full operation, with estimated life-of-mine gold production of 437,000 ounces; Life-of-mine cash operating costs (before royalty and taxes) are estimated at $600 to $700 per ounce; Capital costs, including a decline and hoisting shaft, are estimated at approximately $115 million; Net present value at $1,500/oz gold price and 5% discount rate is $107 million (post-tax); and, Internal rate of return of 21%.