Golden Star Resources Ltd.

Golden Star Resources Ltd.

December 21, 2010 14:57 ET

Golden Star Revises 2010 Production Guidance

DENVER, COLORADO--(Marketwire - Dec. 21, 2010) - Golden Star Resources Ltd. (TSX:GSC)(NYSE Amex:GSS)(GSE:GSR) ("Golden Star" or the "Company") announced today that 2010 production guidance for Bogoso/Prestea has been revised from 185,000 ounces to 170,000 - 172,000 ounces of gold. At Wassa/HBB guidance remains essentially unchanged at 182,000 (previously 185,000) ounces of gold.

Ore deliveries to the Bogoso sulfide processing mill have been impacted by pit dewatering and access issues exacerbated by higher than normal rainfall. This meant that a larger than forecast proportion of mill feed consisted of partially-oxidized transitional stockpile material which resulted in lower flotation recovery. In addition, ore deliveries to the Bogoso oxide mill and metallurgical recoveries from stockpiled non-refractory ores were below forecast.

Ore delivery issues have been resolved and we expect that metallurgical recovery will improve during 2011 as we access deeper, more sulfidic ores at Chujah and Bogoso North pits.

We were recently notified that our power rates were being increased to approximately $0.15 per kilowatt-hour (kWh). We have been accruing power at $0.12 per kWh. We will be adjusting our power rate accruals retroactive to June 1, 2010. This will result in a fourth quarter charge of approximately $3.2 million at Bogoso/Prestea and $1.3 million at Wassa/HBB.

Tom Mair, President and CEO, stated, "We are obviously very disappointed with the 2010 production shortfalls. Up until the third quarter of this year, we had delivered 8 consecutive quarters with good operating results. Wassa is operating well and we are working hard to return our Bogoso operations to acceptable levels." 


Golden Star 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. 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 258 million shares outstanding.

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. Such statements include comments regarding expected production estimates, the release of cash operating cost data, expected operating performance of the Wassa and Bogoso/Prestea processing plants, improvements in metallurgical recoveries, and our expectations regarding performance at Wassa and Bogoso/Prestea in 2011. Factors that could cause actual results to differ materially include the occurence of unexpected events at the Bogoso/Prestea oxide or sulfide processing plant or the Wassa processing plant, variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; weather including excessive rainfall; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power, the timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; recent changes under the Ghanaian Mining Act, 2006 regarding royalty rates; changes in regulatory requirements; changes in U.S. and Canadian securities markets; and fluctuations in gold price and input 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 2009. The forecasts contained in this press release constitute management's current estimate, 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.

Contact Information

    Bruce Higson-Smith
    Vice President Corporate Development
    +1 800 553 8436
    Anne Hite
    Investor Relations Manager
    +1 800 553 8436