Pre-Commercial production of gold has begun at the Wassa Underground mine in Ghana. In a press release, Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) says that the blasting of the first stope in the F shoot mine took place on July 10 2016 from and the first ore delivered to the processing plant.
Mining works began on the upper part of the F shoot mine where the company remains confident of getting moderate grade areas of gold deposits. Mining in the higher grade areas is scheduled to begin early next year.
Golden Star is using remote control scoops for ore loading in the mine. On site are also trucks able to carry up to 50 ton of the ore to the processing plant. Blasting of the second stope at the Prested underground is slated for the second half of 2017.
Commercial production at the mine is expected to begin in 2017 once the company accesses the high-grade deposit areas. Golden Star says the development rate at the mine now is about 10- 12 meters a day. The development rate should increase heading into 2017 where production should clock highs of between 2,000 and 2,500 tons a day in 2016.
Probable mineral reserves according to initial estimates is about 5, 397,000 at a grade of 4.59 grams of gold per ton. Golden Star is confident of producing between 180,000 and 205,000 ounces of gold before the end of the year. Cash operating costs in return should be about $815 and $925 per ounce.
Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) stands to be one of the biggest beneficiaries of gold prices, which have risen in the recent past amidst growing concern over the health of the global economy. Surging gold prices to highs of $1370 an ounce depicts a similar run during the financial crisis in 2008 where people rushed to the yellow metal as a safe Harbour.