Canadian firm announces major gold find at Aurora

Mar 25, 2011 News

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– says will invest US$150M over 20 years

By Leonard Gildarie

Guyana Goldfields Inc., a Canadian company which has been conducting explorations here since 1996, yesterday announced that it will be plugging almost US$150M into Guyana over the next 20 years, while revealing that it has come across significant gold deposits at Aurora.
The ambitious project will reportedly see almost 500 jobs being created, an introduction to underground mining locally, and the development of a small hydro project to meet electricity needs.
The company boldly asserted that this will represent the largest single investment in the gold mining industry in Guyana, and that the output will eclipse that of Omai Gold Mines, a large scale gold mining company which ceased operations here several years ago.
The grandiose plans were unveiled last evening at the Pegasus Hotel.
According to President and Chief Operations Officer, Claude Lemasson, the latest studies, have estimated more than six million ounces of high grade gold at Aurora, an area in Cuyuni in northwestern Guyana, known for mining activities.
Since starting exploration here 15 years ago, the company said it has already invested US$86M.
The announcement was made in the presence of several high profile invitees including Prime Minister Samuel Hinds, who is performing the duties of President, diplomats, mining officials and bankers.
According to Lemasson, the investments, when taken in the context of the Economic Value to the Nation (EVN) of US dollar per hectare, will easily eclipse the Norway deal which gives US$250 over a five-year period for Guyana to leave its forest standing.
He stressed that the company is mindful of its corporate responsibility already doling out $50M to various projects, including water wells and Bartica Commemoration Monument.
Currently, the company employs 250 persons and contractors as it moves from exploration at the Aurora site to developmental mode.
In total, Guyana Goldfields has over four sites covering 500,000 acres which were all being explored. In addition to Aurora, there are operations at Aranka, Peters Mine and Arakaka.
Already, the company has developed a full office in Thomas Street, and a gateway community at Buckhall, located on the west bank of the Essequibo River, is being constructed.
Roads have been developed to the mining site over the Cuyuni River with pontoon crossing facilities and camp sites already under construction.
At Sulphur Rose, not far from the Cuyuni River, another discovery has been made, with estimates standing at around 460,000 ounces of gold.
Lemasson boasted that his company has a recovery rate of extracting gold at 96% and is geared to stay in line with the country’s Low Carbon Development Strategy (LCDS).
Speaking of the hydro project, the executive said that a feasibility study, with support from the World Bank’s IFC, is being conducted and is expected by mid-2011. An Environmental and Social Impact Assessment, also with IFC support, is being prepared.
The objective is to provide 100% of power needs for the Aurora Gold Mine, in keepeing with Guyana’s LCDS, the official noted emphatically.
The idea is to replace the consumption of expensive Heavy Fuel Oil (HFO) from on-site power generators with cleaner and cheaper green hydropower technology.
The 15MW hydro electric facility, named the Julian Ross/Itabu Hydro Project, has been proposed to be built along the Cuyuni River.
Since starting operations, the company has invested over $3B in purchasing heavy equipment.
For this year, Guyana Goldfields will be spending around US$40M for exploration and pre-development. During 2012-2013, the focus will be on surface development and more construction, with some US$325M being spent.
Between 2014 and 2015, attention will be paid to constructing the underground mines for which an estimated US$175M is earmarked. Over US$40M will be spent for operational costs and ongoing explorations in the following years.
“We believe this will be the largest foreign investment in Guyana in the mining sector…” Lemasson said.
The company has already built several miles of road in the area leading to the Aurora site and is currently constructing an airstrip.
In brief remarks, Prime Minister Hinds noted that Guyana Goldfields has come a long way since the 90s and from all indications will be creating significant job opportunities for locals.
Canadian High Commissioner to Guyana, Francois Montour, who was also among the special invitees, reminded the gathering that companies from his country have played a significant role in the mining industry of Guyana.

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