Golden Star Reports First Gold Production From Bogoso Sulfide (BIOX(R)) Processing Plant
Wed Mar 28, 9:16 AM
ca.news.finance.yahoo.com
DENVER, March 28 /CNW/ - Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC.TO) today announced that earlier this week it poured the first gold production from the Bogoso Sulfide Processing Plant, using the BIOX(R) process at its Bogoso/Prestea in Ghana. Results from this first gold pour included 228 ounces of gold attributable to the BIOX(R) process.
Peter Bradford, President and CEO, commented, "We are very pleased to see the first results of all our efforts at the BIOX(R) plant come to fruition. While we have previously had gold production from the new processing plant, that production was derived from the processing of oxide ore during the testing of the crushing, grinding and carbon in leach (CIL) sections. The gold production announced today reflects the first gold poured from the BIOX(R) process of the new refractory sulfide ore processing plant and, although small in quantity, demonstrates that the process is working as it should. This is a significant milestone in our continuing evolution into a mid-tier gold producing company."
The buildup of BIOX(R) material in the stainless steel tanks commenced in 2006 and, as at the end of February 2007, overflow material from the Module 1 BIOX(R) tanks was sent to the washing thickeners. In March 2007 we started filling the CIL tanks with bio-oxidized material from Module 1 BIOX(R). The Module 2 BIOX(R) section will be operational in April.
All neutralization tanks were made ready in March as was the new reagents section. As previously indicated, the new elution section and gold room, to recover the gold after CIL, is expected to be operational in April but until then we continue to use the existing elution section and gold room. We expect the sulfide processing plant to be in commercial production in the second quarter and to be at or near design throughput rates by the third quarter of 2007 and at or near design recovery rates by the fourth quarter.
Ghana Power
With the Akosombo reservoir at near record low levels and, despite the Government best efforts at power conservation country-wide, the power situation in Ghana remains a concern. The situation is not likely to improve markedly until the rainy season returns in the next few months and water starts to inflow to the Akosombo reservoir. As a result, the Ghana Government power authority this week reconfirmed power rationing throughout Ghana, with all users being limited to 75% of their normal consumption. Golden Star's operations continue to save power where practicable and we run our on-site diesel generators as needed to comply with the power rationing requirements.
With regard to the joint power station project that Golden Star is participating in with Newmont Mining Corporation, AngloGold Ashanti Limited and Gold Fields Limited, civil construction work on the foundations of the plant began in March 2007. The plant is expected to be delivered to Ghana in April 2007 with commissioning anticipated for July 2007. We continue to work closely with the other mining companies and the power authorities in Ghana to minimize the impact of the power shortage for the benefit of all concerned.
Separately, Golden Star is investigating additional power generation options to make it less dependent on the national grid in Ghana.
Company Profile
Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding the timing of the completion, commissioning, commencement of commercial production, and timing and rates of production and recovery at the Bogoso Sulfide Expansion Project and various components of the Project, future gold production from the Bogoso Sulfide Expansion Project, progress toward becoming a mid-tier producer, access to power from the hydropower grid, and delivery and commissioning of the joint power station. Factors that may affect such commencement of operations include delays in receiving needed equipment and parts, design modifications during commissioning, power shortages and interruptions, weather including excessive rainfall or drought and variations in ore grade or type, technical or operating problems and fluctuations in the price of gold. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of risk factors in our Form 10-K for 2006.
Contacts
GOLDEN STAR RESOURCES LTD. Bruce Higson-Smith
+1-800-553-8436 Vice President Corporate Development or Anne Hite
+1-800-553-8436 Investor Relations Manager |
