John, I've got another one
Golden Star Breaks Ground on Hwini-Butre and Benso Project
Fri Oct 26, 1:47 PM
ca.news.finance.yahoo.com
DENVER, October 26 /CNW/ - Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC.TO) is pleased to announce the start of construction of the 50 kilometer haul road to connect its Wassa gold mine to the Benso deposit which is the first step in the development of the Hwini-Butre and Benso project. Construction of the road to Benso is expected to be completed by the third quarter of 2008 following which haulage of high grade ore from Benso to the Wassa processing plant is expected to commence. Blending the high grade Hwini-Butre and Benso ore into the Wassa processing plant feed is expected to result in an increase in the average gold production rate from Wassa to approximately 200,000 ounces per annum with an associated reduction in cash operating costs. The environmental permit for the project was granted in early October 2007.
The cost to develop the Hwini-Butre and Benso project, which includes road construction costs, mining equipment purchase and modifications to the Wassa processing plant, is expected to be $50 million. This development cost is expected to be funded from a portion of the proceeds from the recently announced financing, which remains subject to market and other closing conditions, including approval of the Toronto Stock Exchange and the American Stock Exchange.
Thomas Mair, Senior Vice President and CFO, commented: "We are pleased to be advancing the Hwini-Butre/Benso project, and are happy to have potential additional financing for the project. In addition, the retirement of our existing, relatively higher cost, convertible notes will release us from restrictive and burdensome covenants which, among other things, limited our ability to finance our future growth with debt instruments, including equipment financing."
Company Profile
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own 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 expected completion date of the haul road, the expected production rate and reduction in costs at Wassa after addition of Hwini-Butre and Benso ore, expected cost of development of the Hwini-Butre and Benso project, source of funding for development, and benefits of redemption of existing 6.85% convertible notes. Factors that could cause actual results to differ materially include timing of and unexpected events during development; variations in ore grade; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive government approvals; timing and availability of external financing on acceptable terms; technical or permitting issues; and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our annual report on Form 10-K, as amended, for the fiscal year ended December 31, 2006. While we may elect to update the forecasts at any time, we do not undertake to update them at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
Contacts
Golden Star Resources Ltd. Bruce Higson-Smith
800-553-8436 Vice President Corporate Development or Anne Hite
800-553-8436 Investor Relations Manager |
