Prestea Mine, which is named after its neighbouring town, consists of an established underground mine and adjacent surface deposits. The underground mine was in production throughout the 20th century on an intermittent basis and has historically produced in excess of 9 million ounces. The mine was acquired by Golden Star in 2002 and placed on care and maintenance while evaluation and exploration activities continued.
Prestea Underground is located 16 km south of the existing Bogoso processing plant and is accessible by road from Accra as well as via the port city of Takoradi 150 kilometers away. The surface deposits lie to southwest of the town of Prestea. These have historically been exploited by artisanal miners.
Extensive drilling of the deeper deposit at the underground mine identified and defined a new zone called the West Reef. This is a high-grade, narrow vein deposit that is host to non-refractory free milling gold. In October 2014, a positive PEA of the development of the West Reef was released. The subsequent Feasibility Study for Prestea Underground confirmed the findings in the PEA. At a gold price of US$1,150, the Feasibility Study shows positive economics for the extraction of the West Reef using shrinkage stoping and indicates an after tax IRR of 42% and after tax NPV of $124 million. The initial capital expenditure is estimated at $63 million and a payback period of 2.9 years.
Prestea Underground mine has Probable Mineral Reserves of 490,000 ounces at an average grade of 13.9 g/t Au and Indicated Resources of 792,000 ounces at an average grade of 15.7 g/t Au.
The Prestea surface deposits are also non-refractory and currently have a Proven and Probable Mineral Reserves of 140,000 ounces of gold at an average grade of 2.30 g/t Au and Measured and Indicated Mineral Resources of 175,000 at 2.12 g/t Au inclusive of Mineral Reserves. Mining of the surface pits began in mid 2015.
Dr. Martin Raffield is a "Qualified Person" as defined by Canada's NI 43-101. Mineral Reserves for Bogoso & Prestea were prepared under the supervision of Martin Raffield, Senior Vice President Project Development and Technical Services for Golden Star Resources.
Mr. S. Mitchel Wasel is a "Qualified Person" as defined by Canada's NI 43-101. Mineral Resources were prepared under the supervision of S.
Mitchel Wasel, Vice President of Exploration for Golden Star Resources.
To view Golden Star’s latest Technical Report of Prestea West Reef, please click here.