Golden Star Resources has more than doubled its inferred mineral resource estimate for its Wassa underground gold mine in Ghana.
"By more than doubling the inferred mineral resources at Wassa underground, we have begun to demonstrate the compelling potential of this asset in the longer term," comments President and CEO of Golden Star, Sam Coetzer.
"We had believed for some time that Wassa was a larger deposit than previous estimates suggested and as the deposit remains open to the south, we believe that further upside exists still.
Wassa underground has ramped up well and this operational success forms a solid foundation for the next stage of the mine's growth.
We have under-utilised capacity within Wassa's processing plant and the southern portion of the deposit represents the potential to 'fill the mill' and increase production.
"I am looking forward to commencing the PEA and to exploring further the viability of this strategy," he continues.
Inferred mineral resource estimate
Wassa underground's inferred mineral resources have increased by 147% to 5.2 million ounces, in the B Shoot South and F Shoot South areas.
The grade of the inferred mineral resources has increased by 9% to 3.6 g/t Au.
The updated inferred mineral resource estimate includes nine holes that have been released previously, one deepened historical hole and two new mother holes, the results of which are reported today.
Golden Star is drilling the Wassa South extensions currently and the company expects that Wassa underground's inferred mineral resources will continue to grow with further step out drilling.
Preliminary Economic Assessment
Golden Star is planning to undertake a PEA on the Inferred Mineral Resources of the Wassa Underground deposit.
The objective of the PEA is to demonstrate the viability of the Inferred Mineral Resources, potentially including a new access shaft and new ventilation infrastructure.
As Golden Star has significant under-utilized capacity in the Wassa processing plant, this additional material could be processed without the need to build any additional processing capacity.
If the results of the PEA are positive, it will demonstrate the potential to increase production from the Wassa complex and to fast track cash flow.
Golden Star expects to commence work on the PEA late in the second quarter of 2018 and the Company anticipates it will be completed in the third quarter of 2018.