Thursday, November 30, 2023

Golden Star Resources readies for US$10m investment into Prestea mine


Gold mining company, Golden Star Resources (GSR), is planning to invest some US$10 million to revive operations at its Prestea Mine and to position it for profitability.

The new capital will be invested in machinery, operation of a second level underground mining operation, access development, extensional drilling and other operations to get the mine to the next level and to enhance efficiency.

Mr Andrew Wray, Chief Executive Officer of Golden Star Resources, told journalists in Accra that although there were challenges at the Prestea Mine, the potential was there for it to be successful.

“We’ve offered an achievable plan to the team and hopefully, we can hold them to account to execute it,” he said.

He said because the company was making an upfront investment in Prestea this year, it would be hit with some losses, but the expectation was that the Prestea Mine would be in a position to deliver from 2021 and beyond.

Wray said Wassa, which sits on the vast majority of business will also get a proper focus on how to increase its profitability.

Apart from the investment in Prestea, Mr Wray said an additional US$45 million would be invested to expand operations at Wassa and to take it to the next level of growth.

He said the focus was to start investing more in exploration programmes so that the company could deliver on the plans and promises to investors and the markets.

Mr Wray said in 2018 and 2019 the business fell a little bit short of the guidance and the target it had set for the market largely because of performance at the Prestea Mines.

He said while the investors knew the company was doing a great job, it was important to retain their trust and confidence in the business through good performance.

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