Golden Star Resources Limited, Ghana’s largest gold mining group, plans to spend $15 million in exploration at its Wassa underground mine this year as part of a larger expansion strategy.
Speaking about the company’s Preliminary Economic Assessment (PEA) on the Wassa underground mine, Mr Graham Crew, Chief Operations Officer of Golden Star Resources Limited, said the expenditure was three times what the company spent on exploration last year.
“With the construction of the Wassa underground mine, our goal at Golden Star is to become the country’s leading gold producer,” he said.
Via access and haulage through twin declines, the PEA outlines a production roadmap to raise underground mining rates to fully leverage the plant’s processing ability with low upfront capital demand.
The exploration policy entails identifying potential to increase resources in and near the Wassa mill and moving those opportunities closer to output, as well as focusing on standalone objectives along the mineralized trend south of Wassa and targeting mineralization extensions around existing mining areas.
He claimed that the Wassa underground mine has great potential, and that the intention is to turn it into a new, first-class mine.
The Wassa underground mine, which has a seventeen-year life cycle, could yield 300,000 ounces of gold per year, according to the Chief Operating Officer.
The mine currently has a Net Present Value of more than $800 million, with significant assets that can help the Ghanaian economy grow.
Read Also: Our business will be affected by “fish mortality” – fish sellers
Mr Crew has reported that the organization expects to spend more than $1 billion in the Wassa underground mine over the next seventeen years.
Drilling and other preparatory work on the mine are already ongoing, and the firm is partnering with 19 local vendors on the project.
Mr Crew reported that the recent discovery will contribute to the stocks, which currently stand at 3.5 million ounces.
Mr Crew reported that cash flow from the Wassa mining activities will be used to finance the mine expansion.
He claimed that the project would help to boost Wassa’s local economy, create jobs, and increase government tax revenue.
The company’s expenditure should be secured by a healthy fiscal climate, according to the Chief Executive Officer.
Mr Crew clarified, “Golden Star is not calling for any special concessions; however, we want to see how the mining fiscal system would look in the future.”
Mr Crew reported that Golden Star Resources Limited was in talks with the relevant authorities to resolve the problem of unauthorized miners encroaching on the company’s concession.
“We at Golden Star Resources Limited will continue to use consultation to address the problem, and we will avoid any conflict with the citizens who live in the concession’s catchment areas,” Mr Crew said.
SOURCE: ATLFMONLINE
