Golden Star Resources has achieved commercial production at its Wassa Underground Gold Mine in Ghana.

The company has completed the project construction of Wassa Underground, including installation of all necessary infrastructure on schedule and within budget.

Golden Star Resources president and chief executive officer Sam Coetzer said: “Achieving commercial production at Wassa Underground marks the successful completion of a 17-month construction period. It is also another important milestone in our transformation into a high-grade, non-refractory gold producer.

“Golden Star also anticipates that it will benefit from Wassa Underground's lower cost production, as a result of the higher grade ore being fed into the Wassa processing plant.

“I look forward to announcing our full year 2016 production results and our full year 2017 guidance later this month."

"Golden Star anticipates it will benefit from Wassa Underground's lower cost production, as a result of the higher grade ore being fed into the Wassa processing plant."

Gold production from the project is expected to improve this year as Golden Star has started accessing the B Shoot, a higher grade area of the Wassa Underground ore body.

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The company intends to begin longitudinal stoping of the B Shoot in the first quarter of this year. The larger and transverse stopes are planned to be accessed in the third quarter.

Golden Star intends to announce 2016 production results with the production results for Wassa Underground and 2017 guidance for production, operating costs and capital expenditures later this month.

A gold mining company, Golden Star owns and operates the Wassa and Prestea mines located in the Ashanti Gold Belt in western Ghana.

The Prestea Underground Gold Mine is expected to achieve commercial production by the middle of this year.