Golden Star Resources Ltd.

Golden Star Resources Ltd.

November 01, 2005 12:55 ET

Golden Star to Recommence Mining at the Prestea Plant-North Pit

DENVER--(CCNMatthews - Nov 1, 2005) -

Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) announced today that it has received approval from the Ghana Environmental Protection Agency to recommence mining operations at its Plant-North pit, the primary source of ore for its Bogoso gold processing plant at the Company's Bogoso/Prestea Mine in Ghana. Mining operations commenced at the Ablifa pit ten days ago and we expect mining to recommence at the Plant-North pit in the next few days following a series of informational meetings with the Prestea community.

During the approximately four-week suspension of mining at the Plant-North pit, the Bogoso processing facility continued full production, fed from stockpiled ore and from ore mined at the newly re-opened Ablifa pit. As previously advised, mining and processing operations at the Wassa Mine, 35 kilometers east of Bogoso/Prestea, were uninterrupted as was construction work on the Bogoso sulfide expansion project.

As previously advised, during the suspension a number of mitigation measures identified in the Environmental Impact Statement relating to mining Phase 3 at the Plant-North pit were completed. These included the relocation of the Prestea police to the new police station built by Golden Star to replace the existing one, which lies adjacent to the southern end of the final Phase 3 pit. The other mitigating measures identified in the EIS had previously been completed, including a screening fence around the Phase 3 pit, the construction of the bypass road diverting traffic away from the southern end of the pit development, and closure of the existing road.

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 Golden Star's expected production in 2005 and 2007. Factors that could cause actual results to differ materially include any further delays in mining, 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