Jul 11 2007
Golden Star Resources Ltd. today announced that its new Bogoso Sulfide Processing Plant commenced commercial production as at the end of the second quarter.
Peter Bradford, President and CEO, commented, "While we continue to optimize certain aspects of the Bogoso Sulfide Processing Plant to achieve design throughput and recovery on a consistent basis, we are satisfied that the processing plant has successfully completed the commissioning phase and that the BIOX(R) process works well. We have achieved a steady improvement in overall throughput and recovery and expect to achieve design throughput and design recovery by the end of the third and fourth quarters of this year, respectively. Gold production projections for the second half of 2007 will be updated in our second quarter results news release."
"During the commissioning phase, we encountered a number of mechanical and design issues that have been or are being corrected. Of note, we suffered systemic failures of certain equipment associated with our BIOX(R) tanks which has impacted our BIOX(R) circuit throughput capacity and operation in the second quarter. However, we are pleased with the response from the manufacturers who agreed to fabricate new items and expeditiously mobilize these to Ghana. We expect that the remaining new items will have been delivered and installed by the end of August 2007."
Second Quarter
We expect to report our second quarter results on August 7, 2007.
Gold sales at Wassa for the second quarter are estimated at 28,372 ounces, a marginal improvement on the first quarter and in line with guidance. At the Bogoso oxide processing plant, gold sales for the second quarter of approximately 13,910 ounces were impacted by the supply of ore from the Pampe pit, prior to the grant of the mining lease and permit on June 6, 2007. As a result, cash operating costs for the second quarter are expected to be higher than previous guidance.
Because of the new Bogoso Sulfide Processing Plant did not achieve commercial production until the end of the second quarter, our operating results for the second quarter will not reflect any gold sales from it.
Wassa Mine Environmental Award
We are pleased to report that for the second year in a row, the Wassa Mine has been awarded the "most improved mine" in Ghana by the Ghana Environmental Protection Agency. Having received this award two years running is a testament to the dedication of our staff at Wassa and their continued achievement of best practices in mining.