Golden Star Resources Ltd.

Golden Star Resources Ltd.

October 06, 2005 18:49 ET

Golden Star Announces Temporary Suspension of Mining Activities at the Prestea Plant-North Pit

DENVER--(CCNMatthews - Oct 6, 2005) -

Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) ("Golden Star") announced that it has temporarily suspended mining operations at its Plant-North pit, the source of ore for its Bogoso gold processing plant at the Company's Bogoso/Prestea Mine in Ghana. Until mining recommences, which is expected within the next week, the processing facility continues at full production rate fed from stockpiled ore. Mining and processing operations at the Wassa Mine, 35 kilometers east of Bogoso/Prestea, continue without interruption as does construction work on the sulfide expansion project at the Bogoso plant.

The Plant-North pit, which is located near the Prestea township, has been the sole source of feed to Golden Star's Bogoso processing facility, located some 15 kilometers north of the Plant-North pit, since 2002. The pit has been developed in stages with the development of the final stage (Phase 3) commencing in August 2005. The commencement of mining for Phase 3 was conditional on a number of mitigation measures identified in the Environmental Impact Statement for the pits which were progressing but not completed before mining commenced in August 2005. On September 13, 2005, the Ghana Environmental Protection Agency (EPA) requested the suspension of mining of Phase 3 of the pit until the following outstanding mitigation measures were completed:

-- Relocation of the Prestea police to a new police station built by Golden Star to replace the existing police station which lies adjacent to the southern end of Phase 3 pit development;

-- Erection of a fence around the Phase 3 pit development;

-- Construction of a bypass road to divert traffic away from the southern end of the pit development and closure of the existing road; and

-- Sensitization of the communities and vendors adjacent to the Phase 3 pit development.

The Company responded immediately to the notice and relocated its mining operations to the Phase 2 area of the pit. Subsequently on September 28, 2005, the Company suspended all mining activity in the Plant-North Pit.

The mitigation measures requested by the EPA are at an advanced stage and the only material outstanding issue is the physical relocation of the police to the new police station/barracks which has been substantially complete for some time. The relocation of the police is expected to be completed within the week and mining at Plant-North is expected to be authorized and recommenced soon thereafter.

About Golden Star

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, the Company has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America. Golden Star's production is expected to increase to over 500,000 ounces in 2007, compared to expected production of approximately 220,000 ounces in 2005. Golden Star has approximately 143 million common shares outstanding.

Forward-Looking Statements

Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding the expectation that production will continue uninterrupted during the suspension, timing of the relocation of the police, timing of recommencement of mining at Plant-North and Golden Star's expected production in 2005 and 2007. Factors that could cause actual results to differ materially include delays in or inability to obtain EPA approval as expected, unexpected events during construction and start-up of the Bogoso expansion; variations in ore grade, tonnes mined and crushed or milled from those anticipated; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive government or regulatory approvals relating to increased production; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; and fluctuations in gold prices and costs. There can be no assurance that future developments affecting Golden Star will be those anticipated by management. Please refer to the discussion of these and other factors in Golden Star's Form 10-K for 2004. 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. Golden Star expects that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While Golden Star may elect to update these estimates at any time, Golden Star does 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.

Contact Information

  • Golden Star Resources Ltd.
    Peter Bradford, 303-894-4613
    Allan Marter, 303-894-4631
    Toll Free: 800-553-8436