Golden Star Resources, Ltd. Announces Receipt of Environmental and Mining Permits for Phase I 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%.