Golden Star Wassa eyes US$1bn investment to become a modern mine

by Business Zone

Golden Star Resources (GSR), owners of Golden Star Wassa Limited, are positive of leveraging results of a recent preliminary economic assessment (PEA) report to leapfrog the Wassa Underground Mine as the company looks to position itself as a leading African gold producer.

Instructively, a significant investment of around US$1billion is expected to be made under both the reserve pit and the PEA plan to, amongst others, leverage exploration opportunities targeting extensions to mineralization around current mining area; open pit mineralization within 2-10 kilometres  of the Wassa mill and standalone deposits to generate development opportunities.

The Wassa Underground Mine, with a mine life of seventeen years is expected to deliver a lifeline production of 3.5mt and annual production of 300,000 ounces of gold on the back of an annual investment of US$15 million in exploration, an increase of more than two hundred percent over last year’s, according to the report.

Wassa mine currently operates a reserve pit with a mine life of six years whereas the PEA forecasts an extra eleven years of mine life taking the total mine life to seventeen years.

Chief Operating Officer of Golden Star Resources, Graham Crew, in a media engagement expressed the hope that the mine has the capacity to deliver the estimates contained in the PEA against the backdrop of results already chalked from the reserve pit.

“We see Wassa as a foundation on which we are looking to grow GSR. We want to use this long term plan to leapfrog Wassa Mine to the envy of Ghana and the rest of the world”, Crew assured.

He disclosed that the vision of the company is to be a sustainable world gold producer hence the investment into renewable energy in collaboration with Genser Energy which has led to the setting up of a gas plant as a source of power.

In 2020, the Wassa mine made a corporate tax and royalty contributions of US$262 million and US$90 million respectively. Estimates, however, puts corporate tax and royalty contributions for the mine life at US$500 million, a feat the COO described as “real positive” contribution to a key stakeholder.

By Godfred Tawiah Gogo

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