Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) has announced that it has received a mining lease, for the Mampon mines in Ghana. The company revealed that Mampon is a high grade oxide deposit, containing approximately 45,000 ounces of gold. Moreover, the site is approximately 80 Km away from Golden Star’s carbon-in-leach processing plant. GSS further pointed out that there was already a good quality road, between the deposit and the plant, which would mean lower infrastructure costs.
GSS further stated that it plans to blend the ore obtained from Mampon, with that from the Prestea Open Pits, which would result in improved cash flow, for the FY2017. The next step for the company would be to obtain a permit from the environmental authority in the country. As such, the management believes that it would not be able to capitalize on the mine, until the 1H2017. During the FY2017, Golden Star also expects to start production from the Prestea Underground gold mine.
The Prestea open pits project was initiated in the FY2015, to bridge the gap between the start of production in the underground mine and the closing of the Bogoso refractory operations. The production from the project is expected to close, by the end of the 2H2017. The CEO of GSS, Sam Coetzer, expressed his pleasure at being awarded the lease, claiming that the project would generate significant short-term cash flow and further assist the company in meeting demands, until the Prestea underground project commences.
Mr. Coetzer also stated that the open pits and Mampon are expected to continue production, until the 2H2016. However, he claimed that their main goal was the high-grade ore from Prestea Underground project. The company is due to release its 3Q2016 financial results, on November 2, 2016, after markets close. A conference call to discuss the results would follow the next day, at 10 am, ET.
Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) recorded a trade volume of 2.51 million and gained 4.02% in terms of its share value, to close at $0.942 per share.
