Electrifying Wassa

Denver-based Golden Star Resources (GSC-T) expects to trim operating costs at its Wassa gold mine in Ghana by up to US$80 per oz., now that the operation has been hooked up to the national power grid.

At the end of 2004, Golden Star decided to manage power line construction itself after the early termination of the Wassa mine’s contractor, following significant delays in construction. With completion of mine construction under its belt, Golden Star also managed to build the 50-km, 161-kV power line in five months, better than the 6 to 8 months quoted by several specialist contractors.

Commissioning of the Wassa’s processing plant began in late 2004, with power supplied by diesel generators. While the used generators managed to keep parts of the plant running at rates exceeding design capacity, overall processing rates rang in at around 90%. Golden Star attributes the shortfall to the intensive maintenance required by the used generators.

In addition to the expected cost savings, connection to the national power grid will also allow for more consistent plant operation. Plans now call for testing and optimization of the plant’s throughput.

The national power grid is operated by the Volta River Authority, which will own and operate the new power line.

Golden Star plans to retain the existing diesel generators for standby purposes.

The Wassa mine, near the company’s Bogoso-Prestea mine, ramped up to around 9,300 tonnes per day, or around 93% of design capacity, by the end of March 2005; the mine was officially placed in commercial service at the beginning of April.

During the balance of the year, plans call for processing of heap-leach material left on the pads by the previous owner. The depleted ore pad will eventually be used as a tailings dam site. Looking ahead, open-pit mining will utilize a mixture of surplus equipment from Bogoso-Prestea and leased equipment, until new, larger-capacity equipment arrives in the second and third quarters.

During 2005, plant feed will comprise around 30-50% heap-leach material and 50-70% open-pit ore. Recoveries from the blended material are expected to average between 87% and 90%.

Golden Star expects the mine to produce about 100,000 oz. to 120,000 oz. of gold at an average cash operating cost of US$280-US$300 per oz. during 2005. At full steam, in 2006, production is projected at about 140,000 oz. per year at US$200 apiece.

Golden Star holds a 90% equity interest in the Wassa and Bogoso-Prestea open-pit gold mines; it also holds 81% of the currently inactive Prestea underground mine.