Golden Star Resources (AMEX: GSS) is an international gold mining and exploration company that produces gold in the western African nation of Ghana. Through its subsidiaries, the company owns a controlling interest in four significant gold properties in southern Ghana: the Wassa property, the Prestea Underground property, the Bogoso/Prestea property, and the Hwini-Butre and Benso concessions (HBB properties).
The company’s mines are ideally situated along the prolific Ashanti Gold Belt in Ghana, so it is no surprise that its gold reserves continue to increase. Golden Star’s mineral reserves, net of mining depletion, increased by 450,000 ounces, or 14 percent, in 2009 to 48.4 million tons, grading 2.4 per ton, for contained gold of 3.73 million ounces at year end. The increase was the result of successful exploration efforts, cost reduction and other engineering changes, and gold price rises.
Golden Star sold nearly 410,000 ounces of gold in 2009, an increase of 38.5 percent over the gold sales of 2008. In the fourth quarter of 2009, the company reached the 2 million ounce mark of total gold sold since its founding in 1999. For 2010, Golden Star forecasts production of about 400,000 ounces of gold at a cash operating cost of $585 per ounce. This is very profitable for the company with the price of gold near $1200 per ounce.
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