Guyana Goldfields generates US$50M in third quarter

Nov 01, 2017 News

Guyana’s biggest gold mine, Guyana Goldfields Inc., announced that it generated over US$50M for the third quarter alone. The period, July 1st to September 30, 2017, saw the production of 41,000 ounces of gold.
The Canadian-owned gold miner is now targeting more than 160,000 ounces for this year, higher than what was projected.
“Gold production totaled 41,000 ounces during the current quarter; with higher grades expected in the fourth quarter, the Company expects full year production for 2017 to come in at the low end of guidance of 160,000 – 180,000 ounces,” the company announced yesterday.
Operating costs (including depreciation and royalty) were US$940 per ounce.
“September was a very strong month with gold production of 18,900 ounces with operating cash costs before royalty of US$544 per ounce…”
Cash generated from operations, before working capital adjustments, of $20.4M, the company said.
The Company’s balance sheet remains strong with a cash balance of $64.2 million versus a debt balance of $63.9 million as at the quarter’s end.
According to the Guyana Goldfields, looking forward, Greenfield exploration drilling has commenced at the Company’s Wynamu and Iroma properties, with drill results expected in the fourth quarter.
“Significant capital investments made through the first three quarters of 2017 in the mining fleet, bulk emulsion delivery system and logistics haulage fleet, is expected to generate significant operating cost savings moving forward as all equipment is in-country and has been commissioned.”
The company said it continues to have an excellent health, safety and environmental track record with over 4,000,000 employee hours worked without a lost-time incident.

Guyana Goldfields Inc. saw the production of 41,000 ounces of gold in the third quarter

Scott Caldwell, President & CEO stated: “The Company reported a strong and significantly improved third quarter of 2017 primarily driven by increased mill feed grades due to mining activity reverting to the central diorite ore body at Rory’s Knoll. September was a very strong month and this strong performance has continued into October. We expect to finish the year with our strongest quarter yet, and at the low end of annual guidance, with ore being sourced primarily from the high grade diorite ore at Rory’s Knoll.”
For the month of October 2017, operational and cost performance trended favourably, as expected, and gold production from mining operations is estimated to be approximately 17,100 ounces.
Gold mining has been boosting the extractive sector as the biggest foreign currency earner for Guyana, despite a recorded sloth in others.
This year, Guyana is again expected to top the 700,000 ounces mark despite some poor weather.
Starting up over two years ago, the company has been employing local service providers and taking up the slack from where Omai Gold Mines Limited left off.