Business

Golden Star Resources to invest $10 million to revive Prestea Mine

2 Mins read

Golden Star Resources (GSR), a mining company, says it is investing US$10 million to revive operations at its Prestea Mine and to ensure it is streamlined to become profitable.

The new capital will be invested in machinery, operation of a second level underground, 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, said in a press briefing that although there were challenges at the Prestea Mine, the potential was there for it to be successful.

“Prestea has the potential to be successful. What we believe the site needs is a plan for success and then the methodical execution of that plan,” he said.

To properly prop up Prestea Mine to deliver, Mr Wray said enough time was spent in the second half of last year re-working the plan for the Mines and to support the team to deliver on the plan.

“We are now given the team a plan that is achievable and we can then hold them to account,” 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.

“So Prestea is a very key focus for us and what that enables us to do, is to ensure that Wassa, which sits on the vast majority of business also gets the proper focus,” Mr Wray said.

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“Prestea is going to stand on its own two feet so that the profit that we generate from Wassa is reinvested in mining, and looking more regionally. “It is almost certain that there are other mines.”

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.

On COVID-19, Mr. Wray said the Company had triggered all contingency measures to make sure production was not affected by coronavirus.

He added, “As a business that has lived through Ebola, we have clear protocols and programmes in place and are ensuring that we monitor the risk levels and trigger-points.

“This means protecting the people and the business. We are already screening people on site to ensure they do not pose a risk, and we have an isolation facility on site.”

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