A recent infill drilling activity by Golden Star Resources, a mining company in the Western Region, has seen a 98% increase in proven mineral reserves at its Wassa mine with 86% increase in measured mineral resource.
This was contained in a technical report released by Golden Star Resources, owners of Golden Star Wassa Limited.
The report also contained a mineral reserve and resource update as well as the findings of preliminary economic assessment of the potential of the Wassa underground mine.
The mineral reserve plan outlines a six-year mine life with annual production expected to average 177,000 ounces of gold at an all-in sustaining cost of $881 per ounce with a Post-Tax Net Present value of approximately $336 million.
Although total proven and probable mineral reserve has decreased by 329,000 ounces after depletion and conversion of the previous open pit mineral reserve, the company indicated that optimised underground mineral reserve has increased by 21% to 1.1 million ounces of gold.
The preliminary economic assessment highlights the life of the mine of 11years from the inferred mineral resource, with total gold production of 3.5 million ounces.
In an interview, the Chief Executive Officer of Golden Star Resources, Andrew Wray, noted that “the preliminary economic assessment demonstrates the significant value and growth potential of the Wassa mine.”
“It clearly lays out the path to underground mining rates in excess of 7,000 tons per day and production of approximately 300,000 ounces per annum when in steady state production,” he said.
In the year 2015, Golden Star Resources remodelled its open pit operations at the Wassa mine into an underground mine.
According to the CEO, the move has allowed the company to bring production from those areas forward with a lower upfront capital cost.
From Emmanuel Opoku, Takoradi