GEORGETOWN, Guyana, Thursday May 28, 2015 – Guyana Goldfields Inc. (GGI), a Canadian based company focused on the exploration and development of gold deposits in Guyana, says it’s on track to begin production mid-year.
The company expects to produce between 30,000 ounces to 50,000 ounces of gold this year and approximately 120,000 ounces to 140,000 ounces of gold in 2016.
GGI said yesterday that the mill commissioning process has started and the Aurora Gold Project construction is approximately 85 per cent complete, with the company focusing on operational readiness training and commissioning.
President and chief executive officer Scott A. Caldwell said the commissioning of the mill circuit was “a major milestone which we’ve been able to deliver on schedule and brings us one step closer to initial production”, adding that he was proud of what had been accomplished in just over a year.
The company’s senior vice president, country management, Violet Smith said the commissioning phase will continue during the second quarter of this year and the company is in the process of completing the remaining piping, electrical and surface conveyor construction.
“GGI is on track to start-up the gravity gold and saprolite production circuits for mid-2015 which would allow for earlier gold production (pre-commercial production) through the processing plant. The commissioning and startup of the hard rock crushing circuit is projected to be completed in the third calendar quarter of 2015,” Smith said.
She added that the company’s mining fleet was fully operational and all materials required for construction were on site.
“All surface and on-site construction and bulk earthworks are completed except for the river dike and runway expansion. The company is currently operating at peak construction and manpower levels with over 1,000 personnel at site. The operational readiness team has been hired and undergoing initial training. Initial open pit mining at Rory’s Knoll has defined the pit outline with excavation below river level with no in-flow of water, as expected.”
The total initial development costs for all facilities as well as mining equipment, owner’s costs, indirect costs, etc., are forecast to be US$249 million.
GGI said the project is on budget.
“At this stage in the game, we are so close to production that it has eliminated a large portion of capital over-spending risk. Our next focus is producing ounces at, or above our target for 2015 gold production and join the ranks of producers,” Caldwell said.
The Aurora Gold Project has a total gold resource of 6.54 million ounces in the measured and indicated categories (62.83 million tonnes at 3.24 g/t Au) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at 3.34 g/t Au).