VANCOUVER (miningweekly.com) – The TSX-listed equity of Africa-focused miner Golden Star Resources shed as much as 10% on Tuesday, following a company announcement that two miners have died on December 29 at its Prestea Underground mine, in Ghana.
The Toronto-headquartered company, which also has listings on the Ghana Stock Exchange and the NYSE American advised that initial investigations suggest the two employees perished owing to smoke inhalation following exposure to blasting gasses.
Golden Star has suspended operations at Prestea Underground, to conduct the initial investigation of the incident, and the mine resumed full operation on New Year’s Day.
Mine management and the inspector of mines continue to conduct further investigations.
Golden Star is expected to imminently declare commercial production at the new development, which has compliant mineral reserves of 1.09-million tonnes at 13.93 g/t of gold. It is expected to produce 90 000 oz/y of gold at all-in sustaining cost (AISC) of $615/oz over an initial mine life of 5.5 years.
Golden Star has guided for full-year 2017 output of 255 000 oz to 280 000 oz of gold, at all-in sustaining costs ranging between $970/oz and $1 070/oz.
Following the initial shock to the market, Golden Star’s equity regained some ground to tend the day down 1.8% at C$1.09 apiece.