Last Updated on Tuesday, 4 August 2015, 19:52 by GxMediaTORONTO, Aug. 4, 2015 /CNW/ – Guyana Goldfields Inc. (TSX:GUY) (the “Company” or “GGI”) is pleased to announce that first gold production has been achieved on-time and on-budget at its Aurora Gold Mine (the “Project”) in Guyana, South America.
First gold production was attained through the gravity and saprolite production circuits which allowed for earlier gold production (pre-commercial production) through the processing plant. Initial start-up gold was captured by processing the lowest grade ore available and GGI is now progressing towards full saprolite circuit operation and will gradually feed the mill with higher grade material. The commissioning and startup of the hard rock crushing circuit is projected to be completed later in the third calendar quarter of 2015.
The Company expects to produce between 30,000 ounces to 50,000 ounces of gold in 2015, depending on how quickly full ramp-up is achieved, and approximately 120,000 ounces to 140,000 ounces of gold in 2016. GGI expects to issue an updated National Instrument (NI) 43-101 Technical Report Feasibility Study in the first quarter of 2016 for the Project which will reflect an extended open pit mining scenario while deferring the underground production until later in the mine life, as well as, current operating cost parameters, and an updated ore reserve metal price.
GGI is sufficiently funded to complete construction of the Aurora Gold Mine. As of June 30, 2015, the Company had approximately US$20 million of capital expenditures remaining to complete the Aurora Gold Mine. The Company is managing its overall development budget to not exceed US$277 million which includes the initial development costs of US$249 million for the Project and US$28 million in financing costs, pre-operating costs and working capital investment. The Project remains to be tracking on budget with an untouched US$52 million overrun facility available, if needed.
GGI expects to report its interim consolidated financial statement results of the Company for the second quarter ended June 30, 2015on or around Thursday, August 13, 2015.
Scott A. Caldwell, President and CEO, commented: “Our first gold pour is an extraordinary achievement in GGI’s transition from an exploration and development company to a high grade, low cost gold producer. We would like to celebrate this significant accomplishment for all that have contributed from the Project’s inception and thank our shareholders and stakeholders in supporting the development of the Project, including our Board of Directors, management team, employees and contractors as well as the lenders for the debt financing syndicate comprised of International Finance Corporation, Export Development Canada, ING Capital LLC, Caterpillar Financial Services Corporation, and The Bank of Nova Scotia. In addition, we wish to thank the Government ofGuyana and local communities for their continued support through the development of the Project. The focus at the site now is to increase gold production to our target level of 50,000 ounces during the balance of this year.”
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based company, focused on the exploration and development of gold deposits in Guyana, South America. GGI is focused on the construction and development of the Aurora Gold Project scheduled for first production in mid-2015. 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). For further details, please refer to the press release dated December 9, 2013 and the report entitled “NI 43-101 Technical Report, Updated Feasibility Study – Aurora Gold Project” dated January 29, 2013 available on SEDAR at www.sedar.com.