AMN - GHANA: Wassa underground starts production

Pre-commercial production has started at Golden Star Resources’ Wassa underground mine in Ghana, as scheduled. The successful blasting of the first stope in the F Shoot of Wassa Underground took place in July, delivering the first ore from the new underground mine to the Wassa processing plant.

This first stope was mined using longitudinal longhole open stoping, utilising remote control LHDs for ore loading and then hauled to surface via 50 tonne trucks.

The first stope is in the upper part of the F Shoot, which is one of the more moderate grade areas of the deposit. The higher grade areas within the B Shoot are scheduled to be accessed in early 2017.

Wassa Underground is expected to achieve commercial production in early 2017, at which time it is expected to deliver 2000-2500 tonnes/day of ore. The development rate at Wassa Underground is currently 10 to 12 m/d and is expected to continue to increase throughout the second half of 2016. Ore from Wassa Underground will be mined in conjunction with ore from the Wassa Main pit and blended for feeding to the processing plant.

Wassa Underground has Probable Mineral Reserves of 5,397,000 tonnes at a grade of 4.59 grams/tonne gold. Wassa Underground is forecast to produce 20,000-25,000 oz of pre-commercial gold production in 2016 and it remains on track to achieve this. Production from the combined Wassa Main pit and Wassa Underground operations is expected to be 120,000-135,000 oz of gold in 2016 and average life of mine combined production is anticipated to be 163,000 oz/year of gold.

Golden Star's total production in 2016 is expected to be between 180,000 and 205,000 oz of gold with cash operating costs of $815-$925/oz.

Golden Star Resources president and CEO Sam Coetzer says: "I am delighted to announce that pre-commercial production has started at our Wassa Underground mine. It is a credit to the operational team at Wassa that we delivered the first ore from Wassa Underground within the timeframe expected and it remains on track to contribute 20,000-25,000 oz of gold to our 2016 production. The blasting of the first stope at Wassa Underground is the first of two major operational milestones that we are targeting during the course of the next 12 months. The second milestone will be the blasting of the first stope at Prestea Underground, which is anticipated to occur in mid-2017. Once these milestones have been achieved, Golden Star will be well-positioned as a high grade, low cost gold producer."

www.gsr.com

News courtesy of International Mining