Modern Mining August 2018

MINING News

GSR on track to achieve full-year guidance

Golden Star Resources (GSR), listed on the NYSE American and TSX, produced 61 209 ounces during the quarter (Q2) ended June 30, 2018 and says it is on track to achieve its consolidated full-year guidance in terms of gold production, cash operat- ing cost per ounce and AISC per ounce. The company owns theWassa and Prestea gold mines in Ghana. According to the company, strong production from the Wassa Complex con- tinued to exceed expectations with a 20 % increase in gold production to 38 532 ounces during Q2 2018 compared to the second quarter of 2017, including a 167 % increase in production from the Wassa underground mine (Wassa Underground). The quarter also saw a 65 % increase in grade processed at Wassa Underground to 4,99 g/t Au in Q2 compared to the second quarter of 2017. Significant improvements were deliv- ered at the Prestea underground mine (Prestea Underground) in the second quar- ter of 2018 compared to the first quarter of 2018, when the mine achieved commer- cial production. There was a 67 % increase in gold production to 12 463 ounces in Q2 compared to the first quarter of 2018 while the grade processed was 65 % up to 13,56 g/t Au compared to Q1 2018. The targeted production rate of 650 tonnes per day (t/d) is expected to be achieved at Prestea Underground during the fourth quarter of 2018. Post the period end, the creation of a long term, strategic relationship was agreed with La Mancha Holding, including a US$125,7 million investment, which will support Golden Star’s growth as a leading African gold producer. “During the second quarter of 2018,

Underground at Wassa. Golden Star is now primarily an underground producer following the cessa- tion of production from the Wassa Main Pit in January 2018 and the ramp-up of Prestea Underground (photo: GSR).

“After two quarters, we are on track to achieve our consolidated full year 2018 production and cost guidance and, with our strategic relationship with La Mancha agreed, we are well-positioned to deliver significant value for our shareholders.” Q2 2018 represents GSR’s second quar- ter as a primarily underground-focused gold producer, following the cessation of production from the Wassa Main Pit in January 2018. Production from the Prestea Open Pits is ongoing and ore supply from this operation is expected to continue into the middle of the third quarter of 2018. However once production from the Prestea Open Pits concludes, Golden Star intends to focus on high margin, underground ore with the objective of strengthening its financial position and creating a robust platform to deliver shareholder value. 

Prestea Underground delivered more ounces than the Prestea Open Pits, which is testament to the hard work and disciplined approach of our underground team,” com- ments Sam Coetzer, President and CEO of GSR. “We expect to see further improve- ments during the coming months and we anticipate that Prestea Underground will achieve its nameplate production rate dur- ing the fourth quarter of 2018. We will also continue to right size this operation with the aim of reducing operating costs and generating a stronger cash margin. “Wassa Underground delivered another impressive quarter, with both grades and tonnages exceeding our expectations. I am looking forward to releasing the Preliminary Economic Assessment for Wassa’s inferred mineral resources to gain a more thorough understanding of the full potential of this substantial deposit.

August 2018  MODERN MINING  7