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Aurora Mines target 200,000 ounces for 2018
The last quarter of 2016 was the best for large-scale producer, Guyana Goldfields Inc. with over 156,000 ounces sold.
Reporting on its performance for last year, the Canadian-owned company which
Guyana Goldfields is reported to be aiming at producing above 200,000 ounces next year.
started commercial productions more than year ago, explained this week that in its inaugural year of production, its Aurora Gold Mine performed solidly delivering 151,600 ounces of gold, in line with the company’s upwardly revised guidance of 140,000 to 160,000 ounces.
“Revenues totalled US$194.2 million, earnings from mine operations came in at US$71.1 million and cash flow from operations totalled $76.5 million or $0.47 per diluted share. Cost of sales (including royalty and depreciation) for the year averaged $789 per ounce of gold sold. Cash costs (before royalty) trended down through 2016 and averaged $496 per ounce of gold sold for the year. All-in sustaining costs (“AISC”) for the year were $738 per ounce of gold sold, slightly below the company’s revised guidance range of $740 to $760 per ounce.”
The Aurora Gold Mine, in Region Seven, had a particularly strong fourth quarter producing 43,800 ounces of gold, an increase of 27% from 34,400 ounces in the prior quarter driven by higher grades and mill throughput.
“The company generated $23.5 million of operating cash flow during the fourth quarter, an increase of 33% from the previous quarter and also the strongest quarter for cash flow generation to date.”
The company said it successfully refinanced its US$160 million debt facility to a new US$80 million debt facility at a lower interest rate, no cash sweeps and the release of US$23 million of restricted cash.”
Scott Caldwell, President and CEO, noted that 2016 was a transformational year for Guyana Goldfields with the company successfully transitioning to the gold producer ranks.
“We achieved our upwardly revised guidance and ended the year with our best quarter across all key operating and cost metrics. Importantly, the solid results were achieved without one lost time injury. Looking ahead to 2017, and with the backing of a strong balance sheet, we will be focused on driving further cost efficiencies, executing on Phase 1 of our mill expansion to take our annual production above 200,000 ounces in 2018 and ramping up our exploration efforts after a lengthy hiatus.”
The first phase will increase the throughput rate from 5,600 tpd to 8,000 tpd incorporating a saprolite portion of the mill feed between 25% and 50%. The first phase of the expansion is expected to commence later this quarter and be completed by the end of the first quarter of 2018 at a capital cost of $21.4 million. The second phase of the expansion will allow the processing of 8,000 tpd hard rock and is expected to commence in mid-2018 and be completed by mid-2019 when the majority of saprolitic ore has been exhausted. The expected capital cost of the second phase is $26.9 million. Both expansions are fully permitted and are expected to be funded from internal cash flow.
The company said that the delivery of the bulk emulsion explosives truck is expected by the end of the first quarter of 2017 and should deliver meaningful cost savings from the second quarter of 2017 onwards.
“The company is also expanding its mining fleet in the first half of the year with the addition of new trucks, drills and excavators to accommodate higher mining rates related to an increase in the strip ratio in 2017. The expanded fleet will also eliminate the current reliance on rental equipment which should translate to lower mining costs on a per tonne basis.”
Guyana Goldfields and Troy Resources, an Australian owned operations are two large-scale mining companies that has been providing much-needed jobs and helping to raised gold production.
Last year, the country for the first time broke the 700,000-ounces barrier, making gold the biggest foreign currency earner for the country yet again.
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