Canadian firm eyes US$205M investment

Jan 12, 2013 News

…3.29M ounces of gold over 17 years

Guyana Goldfields has signaled its intentions to start commercial operations in early 2015 and will be looking to plunge up to US$205M in the initial startup, a reduction from over the US$500M it originally wanted to invest.
According to a statement from the company yesterday of its plans for the Aurora operations, in the Cuyuni, Region Seven area, the Canadian company said that it has received its latest feasibility study

Guyana Goldfields has scaled back plans to invest over US$500M.

which reflects numerous positive changes, in particular, “the phased mining and milling approach, reduced footprint of the mine site and facilities, and utilization of an optimized mobile equipment fleet.”
Guyana Goldfields will be among the few large scale gold operations in Guyana interested in cashing in on the high gold prices. A statement on Friday said that its Aurora Gold project will cost US$205 million to build, less than half an earlier estimate as the company scaled back its plans.
An earlier estimate for the project in northern Guyana had proposed a $525 million cost for a mine with a life of 22 years and total production of nearly 4.4 million ounces of gold.
The new mine plan calls for production of 3.29 million ounces of gold over an initial 17-year mine life at an operating cash cost of US$527 an ounce.
Average annual gold production over the life of mine is expected to 194,000 ounces and 231,000 ounces a year over the first 10 years.
“The updated feasibility study provides very attractive returns based on a sound execution plan,” Guyana Goldfields chief executive Patrick Sheridan said in a statement.
“The project is fully permitted and has the support of the Guyanese Government. Our recent senior management hired on the operations side gives us the foundation to expand our team as we continue with development and mine construction.”
The Aurora property, which consists of a number of gold deposits, is located on the eastern side of the Aurora zoned intrusion, in the Cuyuni greenstone belt of the Guiana Shield in the Amazon Craton.
Since, the departure of Omai Gold Mines a few years ago, Guyana has been without a large scale mining operation. Last year, in the face of high gold prices, productions from the small and medium scale mining operations broke new records, reaching 438,000 ounces.