HomeNewsGolden Star Resources receives mining lease for high-grade gold deposit in Ghana

Golden Star Resources receives mining lease for high-grade gold deposit in Ghana

Following the receipt of the mining lease, the next step for Golden Star Resources is to obtain an environmental permit, after which Golden Star expects to start mining at Mampon in the first half of 2017.

Mampon is a high grade, oxide deposit containing 45 000 oz of gold (304 000 t grading at 4.60 g/t), approximately 80 km to the north of the company’s carbon-in-leach processing plant at the Bogoso site.

There is an existing, good quality road connecting the deposit and the processing plant for the majority of the distance, so limited capital expenditures will be required in order to bring Mampon into production. [quote]

Higher grade ore from Mampon will be blended with ore from the Prestea open pits, which is expected to enhance Golden Star’s cash flow in 2017.

Golden Star Resources began mining the Prestea open pits in the third quarter of 2015 to bridge the gap between the Bogoso refractory operations ceasing production and the commencement of production from the high grade Prestea underground gold mine, which is expected to occur in the second quarter of 2017.

The company had anticipated that production from the Prestea open pits would be completed by the end of the third quarter of 2016 but production is now forecast to continue until the second half of 2017.

Golden Star will also endeavour to delineate additional mineral reserves in the area in order to further extend production from the Prestea open pits and maintain a second ore source from the mine.

Although Golden Star Resources has not yet published formal guidance for 2017, production from the Prestea open pits, including the Mampon deposit, was not included in Golden Star Resources’ production profile. Therefore any production generated from these surface deposits in 2017 represents upside on the company’s current production profile.

“[By]mining this high grade [Mampon] surface deposit we will generate strong short-term cash flow and it will assist us in maintaining production from Prestea until Prestea underground commences production in the second quarter of 2017,” says Golden Star Resources Sam Coetzer.

“With exceptionally high grade mineral reserves at 14.02 g/t, the real prize at Prestea is the underground mine, but the Prestea open pits have provided, and will continue to provide, useful cash flow to us during this transition period and I am very glad that, along with Mampon, they will now continue to produce until at least the second half of 2017.”

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.

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