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Golden Star Resources Ltd. (TSX:GSC,NYSEMKT:GSS) announced the results of a preliminary economic assessment (PEA) for its Ghana-based Prestea mine.
Golden Star Resources Ltd. (TSX:GSC,NYSEMKT:GSS) announced the results of a preliminary economic assessment (PEA) for its Ghana-based Prestea mine. Highlights include a net present value of $121 million at a 5-percent discount and gold price of $1,200 per ounce.
Other highlights include:
- Post-tax IRR of 72% at $1,200/oz gold price
- Initial capital $40 million required to first production
- Total project life of five years, after one year of development
- LOM cash operating costs of $370/oz
- LOM all-in sustaining costs of $518/oz
- Payback period of 2.5 years from the start of development
Sam Coetzer, president and CEO of Golden Star, commented:
The high grade nature of the deposit at Prestea’s West Reef is truly remarkable and offers us the opportunity to mine at exceptionally low cash costs per ounce. With the infrastructure of haul roads and a processing plant already in place, the capital requirements to bring Prestea into production are also relatively low. This makes the project ideally suited to our strategy to transform Golden Star into a low cost producer. Once production from the West Reef is attained, I am confident that we will be able to extend the life of mine materially. As such, I believe that this project offers us the opportunity to reduce the Company’s cash operating costs over the long term to the benefit of enhanced returns to our shareholders.
Click here to read the full Golden Star Resources Ltd. (TSX:GSC,NYSEMKT:GSS) press release.