Wassa Ready For Bright Future After NI 43-101 Technical Report Filed

Golden Star Resources Wassa underground mine operations in Ghana

With total gold production of 3.5 Moz and an average CSL of US $ 778 / oz over an 11-year mine life, upcoming news from the Wassa underground gold mine in Ghana holds definitely my attention this week.

Operated by Golden Star Resources, listed on the Toronto Stock Exchange, the company last week filed a National Instrument 43-101 (NI 43-101) technical report that includes an update of mineral reserves and resources and a Preliminary Economic Assessment (PEA) of the potential expansion of the South Extension Zone at Wassa.

There was an 86% increase in measured mineral resources and a 98% increase in proven mineral reserves. This demonstrates an improvement in geological confidence that has been provided by recent infill drilling programs.

Meanwhile, the PEA describes a life of the 11 year old mine from the inferred mineral resource in the southern extension area, with a total gold production of 3.5Moz. It describes an average annual gold production of 294 koz, which represents an increase of about 75% from the current production rate.

The PEA describes a development path to increase the rate of underground mining to fully utilize the processing capacity of the plant with low initial capital demand through access and transportation via two declines.

Opportunities to add value to PEA results include design optimization (level spacing, size of stope); transport systems (infrastructure, electrification); extension of resources (from drilling); and reduction of emissions (renewable energies, energy efficiency and water).

In addition, given the strength of the prevailing gold price, investments in drilling, development and trade-off studies will increase in 2021.

Read: The solid gold deposit of Wassa

The investment pays good dividends

Company CEO Andrew Wray said: “In 2020, we have focused on improving our geological confidence in the deposit through an extensive infill drilling program which has resulted in a significant increase in our measured resources. and our proven reserves.

“The conversion of the Wassa open pit reserve to an underground reserve allows us to advance production in these areas with a lower initial capital cost. The development of the upper mine will begin producing production from 2023 and will provide a declining second access to the mine that can be incorporated into the long-term mine design.

“The PEA demonstrates the significant value and growth potential of Wassa, clearly showing the path to underground mining rates in excess of 7,000 t / d and production of around 300 koz per year under steady-state conditions. As a result of this study and with a stronger balance sheet, we are able to further accelerate investments in drilling, development and exploration programs to take advantage of Wassa’s growth potential and value.

Wassa already has an impressive mineral resource. Now that the company is committed to further exploration, this could relate to further growth opportunities at Wassa. Definitely something to watch out for in the future.

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