Goldfields’ production falls to 150,450 ounces in 2018

Jan 15, 2019 News

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Canadian-owned Guyana Goldfields Inc. which operates the country’s biggest gold mining operations in Cuyuni, Region Seven, has recorded a production of 150,450 ounces for

last year, lower than in 2017. The production in 2017 was 160,500 ounces.8
According to the company in a fourth quarter and full year report, gold production was 42,750 ounces in the fourth quarter, representing the third best quarterly production to date.
That 150,450 ounces of gold, though the largest for any single producer in Guyana, would have been a revised annual production guidance.
The Canadian company started commercial production in early 2016, in the Aurora operations with several hundred staffers. However, it is facing problems now.
A number of shareholders have asked for a special meeting, which could be held in another few weeks, to move a no-confidence vote against the current board members.
One of the shareholders is Patrick Sheridan, a founder and former chief.
The shareholders are claiming mismanagement, misrepresentation of information, and the loss of share value to the tune of $1B C’dn over the past year.
The company itself has been coming under fire for honouring its obligations to Guyana, including local content issues.
The troubles would come when Guyana Goldfields is preparing to build an underground mining operation, the first for Guyana.
Authorities had halted the environmental permit, but the company has since been approved.
With regards to the performance, the company said yesterday that its mining rate averaged 69,200 tonnes per day in the fourth quarter, a new record and close to double the tonnes moved in comparison to the first quarter of 2018.
“Record quarterly mill performance of 7,100 tonnes per day mill throughput has now increased 16% on an annual basis over the last two years while also achieving increased recovery rates over this period.”
The full year gold recovery averaged 92.0% in 2018, some 2.3% higher than in 2017 mainly due to increased retention time within the leaching circuit following completion of the Phase 1 mill expansion early in 2018.
“We had a strong finish to 2018 despite the challenges we faced,” said Scott A. Caldwell, President & CEO.
“Not only did we achieve a record mining rate in the fourth quarter, but our mill enhancements delivered throughput levels well ahead of design with gold recovery averaging over 2.0% higher than in 2017. Our mining contractor, Stratcon, reached its stride putting us in a much stronger position in terms of waste stripping.”
The company recently announced that it has hired former US ambassador to Guyana, Perry Holloway, as Senior Vice President, Strategy and Corporate Affairs.
There were also other appointments including Rene Marion as Non-Executive Chairman; Lisa Zangari as Chief Talent Officer and Ron Stewart as Senior Vice President, Technical Services and Corporate Development.
“These appointments, in combination with the departure of certain former executives, have increased the board independence, improved corporate governance, enhanced relations with the government of Guyana, reduced conflicts-of-interest and provided a more streamlined, efficient and accountable management structure. The strengthened team has better positioned the company to address challenges in a timely manner and advance the company to the next stage of its growth.”
This year, the company says it wants the first quarter of 2019 gold production to be approximately in-line with the fourth quarter 2018, assuming a similar grade.
The company also said it has submitted all materials to the Environmental Protection Agency in Guyana and provided further clarification to their information requests prior to recommencing construction on the underground exploration decline.

The EPA completed a site visit to inspect the initial Mad Kiss portal blast for the exploration decline and the company expects to resume its construction early in the first quarter of 2019.
“The Company does not anticipate any delays to the previously disclosed development timeline given there was assumed downtime during the holiday season in the original underground schedule.
“All open pit operations, including surface mining and milling, remain in full operation and unaffected by this review.”
The underground exploration ramp will allow the company access to perform infill drilling at depth to delineate exploration targets and potentially add mineral resources, as well as convert mineral resources to mineral reserves and further unlock value by potentially prolonging the mine life at the Aurora Gold Mine.
“The blast of the Mad Kiss portal marks the first-ever underground exploration programme in Guyana under the current administration. The company continues to work closely with all regulating governmental agencies in Guyana and is helping facilitate the transition from open pit to underground mining. The company remains optimistic of the long-term economic value that underground mining is expected to deliver.”
The company announced that it recently promoted 40 locals.

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