May 8 2007
Golden Star Resources Ltd. today confirmed that it continues to expect its Bogoso sulfide (BIOX(R)) expansion project to be commissioned in the second quarter of 2007.
The new 3.5 million tonne per annum sulfide processing plant, which utilizes the BIOX(R) bio-oxidation technology, is intended to supplement the existing 1.5 million tonne per annum oxide processing plant at Golden Star's Bogoso/Prestea gold mine in Ghana.
The new processing plant utilizes two modules of seven BIOX(R) reactors (stirred stainless steel tanks, each with a capacity of about 1,500 cubic meters). The first BIOX(R) module was commissioned in February 2007 and commissioning of the second module had been expected by the end of March.
However, certain construction related issues and the replacement of a series of incorrectly specified valves have delayed the commissioning. The last tank on the second BIOX(R) module is currently being filled and it is expected that the second BIOX(R) module will be operational and start discharging bio-oxidized material to the counter current decantation (CCD) washing circuit in the next few days.
Once both BIOX(R) modules are operational, we expect to commence the process of ramping up the grinding circuit and test it at design capacity.
Our new reagent circuits have been commissioned and are now operational, leaving the regrind mill, cyanide sparging, elution circuit and new gold room as the only areas which are yet to be commissioned and tested, however work in these areas is substantially complete. In the interim, we continue to utilize the existing elution circuit and gold room. The regrinding circuit, which is not essential in the testing stage, along with the new elution circuit and gold room are expected to be commissioned later in May 2007.
We have also expanded the flotation circuit relative to what was conceived in the Bogoso sulfide expansion project feasibility study. This expanded flotation circuit, which is intended to give us the added flexibility to continue to use a flotation step in our current oxide processing plant, is substantially complete and expected to be commissioned later in May 2007.
Commercial production is expected in the second quarter of 2007 and the Bogoso sulfide processing plant is expected to be at or near design throughput rates in the third quarter of 2007 and at or near design recovery rates by year end.
Peter Bradford, President and CEO, said, "While we continue to make good progress, the mechanical commissioning delays and other start-up issues that we have had in the first four months of 2007, and managed successfully, are expected to limit our 2007 gold production from Bogoso/Prestea. However, until we have a certain date for commercial production, we believe it would not be appropriate to update guidance."
"I would like to take this opportunity to pay tribute to the significant contribution made to the project and Golden Star generally by Mark Collopy who passed away in April," continued Mr. Bradford. "Mark, who was our Vice President for Major Capital Projects, was instrumental in the motivation of the Bogoso sulfide expansion project and managed it until December 2006 when he transitioned to other activities for Golden Star. Mark was a valued senior employee of Golden Star. His sudden and unexpected death was a shock and he will be missed by all at Golden Star and by his close friends and family."
Daniel Owiredu, our Vice President Ghana, took over the project management of the Bogoso Sulfide Expansion Project in December 2006.