Golden Star Resources Ltd.

Golden Star Resources Ltd.

October 17, 2005 12:29 ET

Golden Star Completes Mitigation Measures at the Prestea Plant-North Pit

DENVER--(CCNMatthews - Oct 17, 2005) -

Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) today announced that it has in the last few days completed all the mitigation work required by the Ghana Environmental Protection Agency at the Plant-North pit of its Bogoso/Prestea Mine in Ghana. The EPA will review the completed mitigation measures on or about October 18 and it is expected that mining will commence shortly thereafter.

Mining at the Plant-North pit, which is the source of ore for the Bogoso gold processing plant, was suspended on September 28 pending the completion of certain mitigation measures. During the suspension, the Bogoso processing facility has continued at its full production rate fed from stockpiled ore. Mining and processing operations at the Wassa Mine, 35 kilometers east of Bogoso/Prestea, and construction work on the sulfide expansion project at the Bogoso plant have continued without interruption.

The mitigation work comprised:

-- 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 has also implemented a number of additional measures to mitigate the impact or the perception of its operations on the Prestea community.

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 timing of the EPA review and approval, expectations for the recommencement of mining at the Plant-North pit and Golden Star's expected production in 2005 and 2007. Factors that could cause actual results to differ materially include delays in or the 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