EPA approves Aurora’s resumption of underground mining development

Feb 22, 2019 News

Guyana Goldfields Inc. on Wednesday announced that it has received environmental authorization from the Environmental Protection Agency (EPA) to resume construction and development work on an underground exploration decline at its Aurora Gold Mine, located in the Cuyuni, Region Seven.
The mine, which has been in commercial operation as an open pit since 2016, is anticipated to transition into an eventual combined open pit and underground operation and would become the first modern underground mine developed in Guyana, according to a statement from the company’s Senior Vice President, Strategy and Corporate Affairs, Perry Holloway.

Senior Vice President, Strategy and Corporate Affairs, Perry Holloway

Holloway is a recently retired US ambassador whose last posting was to Guyana.
“The Company is committed to meeting the highest standards in its planning and execution of this important project and we look forward to continued co-operation with the EPA and the Government as we unlock the value of Aurora for Guyana and the company’s shareholders.”
The underground decline is intended for exploration and definition drilling in support of planned underground production.

The company temporarily suspended work on the underground decline in November 2018 at the request of the EPA.
“Today’s authorization to resume operations follows the provision by the Company to the EPA of additional information concerning the application of internationally accepted codes concerning the environment, health and safety practices being proposed.”
The EPA also conducted a routine compliance inspection of the Aurora mine and camp facilities in December 2018.
“The EPA requested the Company modify some aspects of its current waste management plan, camp waste water treatment circuit and upgrade the waste oil containment facility. The Company has addressed all the matters raised by the EPA during its inspection which will be further assessed during the next site inspection.
“At the time of the December inspection the Company was compliant on all other environmental conditions of the operating permit.”

The open-pit area at the Aurora Mines, Region Seven.

With regards to the underground exploration development plan, the Canadian-owned company disclosed that the recommencement of work on the underground decline will begin immediately.
“Going forward, the contractor will complete and reinforce the collar and extend the decline 200 metres to fulfill the scope of the early works phase.
“The Company expects this work will take approximately three months to complete once the contractor is fully mobilized. A budget of US$2.0 million has been approved for the early works phase.”
The company also said it is finalizing the review of bids received for the underground development contract with the target of final award in the second quarter of 2019.”
The plan is to advance the exploration decline approximately 2,500 metres and provide a platform for further underground exploration and definition drilling.
“The decline is intended to provide access to all principal underground mining areas, including some higher-grade zones in Mad Kiss and East Walcott, which will allow us to further delineate exploration targets and potentially add mineral resources and help convert mineral resources to mineral reserves.
In addition, the permit allows for test mining of up to 350,000 tonnes that could potentially provide supplemental mill feed during the development period and further unlock value at the Aurora Gold Mine,” it was explained.
The company is the single largest gold producer in Guyana, but is facing internal problems with a move underway by a number of shareholders to sack the current board.

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