JOHANNESBURG (miningweekly.com) - Production from midtier gold-miner Golden Star Resources' Prestea South project in Ghana would start in 2011, but was dependent on the issue of a mining permit.

Speaking to Mining Weekly Online on Wednesday, Golden Star Resources exploration manager for Africa Yan Bourassa explained that, since the change in administration in Ghana, there had been delays in exploration and mine permitting.

In fact, the new Ghanaian government had not issued any permits to date, he said.

However, once the permit had been issued, Bourassa believed that mining could start next year, as all mine designs had been completed.

Open-pit mining would be undertaken to exploit the gold deposit.

While there was underground mining at Prestea South in the past, the surface oxide material had not been previously mined.

It was believed that the Prestea South project would add another 75 000 oz/y to 100 000 oz/y to production levels, which were currently 400 000 oz/y.

Gold mineralisation at Prestea South was associated with the same reef structure that continued through the company's Bogoso/Pretsea concession.

While Golden Star was awaiting the mining permit for Prestea South, Bourassa added that the company would continue its exploration activities at its Prestea project.

He noted that Prestea was a brownfields project acquired in 2004.

The mine was originally in production in the late nineteenth and early twentieth centuries, and approximately eight-million ounces had been mined from the site.

Exploration activities at the property had been ongoing since 2004, however, prospecting was put on hold last year owing to the global financial crisis.

Bourassa said that, as the financial crisis was easing, the company would resume its exploration activities of the project this year.

It was anticipated that a budget of $3,2-million would be allocated to the exploration of Prestea, although this was still to be confirmed.

The Prestea and Prestea South project had a total proven reserve of 3,2-million ounces.

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