Golden Star Resources
TICKER: GSS:US GSC:TSX
Golden Star is a mid-tier gold mining company with two operating mines situated along the prolific Ashanti Gold Belt in Ghana, West Africa. Production in 2007 totaled 246,278 ounces of gold and this is expected to increase in 2008 to approximately 295,000 ounces of gold. Our growth strategy is the result of our expansion activities at Bogoso/Prestea and at Wassa as the Hwini-Butre Benso (HBB) Project comes on line during the second half of 2008. Our Bogoso sulfide and oxide processing plants are working in tandem to enable us to achieve our 2008 operating guidance. In addition to operational growth, the Company has consistently grown through exploration and corporate development activities. In addition, Golden Star has a long-term commitment to sustainability with emphasis on health, education and the environment.
Production at Bogoso/Prestea totaled 120,216 ounces for 2007, not including 7,803 ounces of gold that were produced from the sulfide processing plant prior to commercial production which was declared on July 1, 2007. This new plant incorporates a bio-oxidation circuit that enables us to treat the refractory ores found at Bogoso/Prestea, where over 80% of the ore is categorized as refractory.
The Wassa mine is a conventional open pit, Carbon-in-Leach (CIL) plant with production in 2007 of 126,062 ounces of gold. In May 2007, a feasibility study was completed for the HBB project and subsequently, the Board of Directors gave approval for the development of the HBB properties. Capital expenditures were estimated to be approximately $50 million. These deposits will serve as satellite open pits for mine feed for the Wassa processing plant.
Historically, Golden Star has maintained an aggressive exploration program. Year over year, our exploration budget has ranged between $12 and $20 million per year. While the majority of our exploration activities are proximal to our operations in Ghana, we have a property portfolio that includes projects in Sierra Leone, Côte d’Ivoire, Burkina Faso, and Niger in West Africa and Suriname, French Guiana and Brazil in South America.
Golden Star’s goal is to grow its business in Ghana and in West Africa, through organic growth and accretive acquisitions. The Company is well financed and has a strong, experienced and operationally focused management team.