Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC) (GHANA: GSR) (Golden Star or the Company) today announced preliminary fourth quarter production results for its Bogoso/Prestea and Wassa/HBB operations.
Production for the fourth quarter of 2011 was 70,738 ounces of gold compared with the guidance of 80,000 ounces. As mentioned in the November conference call, Bogoso/Prestea operations were impacted by the necessity of having to temporarily shut down the sulfide plant and clean out the BIOX(R) section's blower manifolds in October. Our efforts to catch up to guidance later in the quarter were affected at both mines by intermittent grid power outages and at Bogoso/Prestea by the low mechanical availability of the BIOX(R) section due to failures of agitators and gearboxes. Wassa was impacted throughout the fourth quarter by wet oxide ores from the high grade Hwini-Butre pits, which caused continuous blockages in the crusher section of the processing plant.
Tom Mair, President and CEO, commented, Despite the disappointing shortfall as compared with guidance, we are encouraged by the progress being made at Bogoso/Prestea and Wassa/HBB. Ore stockpiles at both operations are at healthy levels, thereby enabling optimal blending of ores. At Bogoso/Prestea, we now have 12 of 14 BIOX(R) tanks operational and expect to bring the oxide plant on line in January. At Wassa/HBB we have improved plant throughput, and in 2012 we expect to modify the Wassa plant to accommodate the harder, more siliceous ores being encountered at depth.
2011 quarterly and full year production results* are as follows:
Bogoso/Prestea Wassa/HBB Combined
First quarter Oz produced 30,576 53,332 83,908
Second quarter Oz produced 34,077 38,463 72,540
Third quarter Oz produced 40,376 33,485 73,861
Fourth quarter Oz produced 35,402 35,336 70,738
2011 full year Oz produced 140,431 160,616 301,047
*Preliminary, subject to change until 2011 annual audited financial statements are filed with regulatory authorities.
Golden Star Resources holds the largest land package in one of the world's largest and most prolific gold producing regions. The Company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. 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 Brazil in South America. Golden Star has approximately 259 million shares outstanding. Additional information is available at www.gsr.com.
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 and other applicable securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Specifically, statements in this news release regarding the timing for bringing the oxide plant at Bogoso/Prestea online and the impact of modifications at the Wassa plant on ore processing, 2011 gold production, the strong finish to 2011, higher production in November and December of 2011, healthy ore stockpiles, improved ore blending, the number of operational BIOX(R) tanks, plans to recommission the oxide plant in January, and improved throughput at Wassa/HBB are forward looking statements. Factors that could cause actual results to differ materially include timing of and unexpected events at the Wassa plant and Bogoso/Prestea oxide and sulfide processing plant; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; changes in U.S. and Canadian securities markets; and fluctuations in gold price and costs and general economic conditions. 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 Form 10-K for 2010 and subsequent Forms 10-Q for 2011 and other filings of the Company with the United States Securities and Exchange Commission and the applicable Canadian securities regulatory authorities. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate 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.
For further information, please contact:
GOLDEN STAR RESOURCES LTD.
Vice President Corporate Development
Pfeiffer High Investor Relations, Inc.
SOURCE: Golden Star Resources