Aurora declares 36,600 ounces for first quarter

Apr 16, 2019 News

Guyana Goldfields Inc. which operates the Aurora mine in Region Seven, has announced production of 36,600 ounces of gold for the first quarter.

Guyana Goldfields Inc., which operates the Aurora mine in Region Seven, has announced production of 36,600 ounces of gold for the first quarter.
On January 14, 2019, the company, Guyana’s biggest gold mining operation, stated that first quarter gold production would be similar to its fourth quarter 2018 production of 42,750 ounces, based on the now obsolete 2012 resource model.
“The Company’s balance sheet remains strong with an unaudited cash balance of approximately US$73 million at March 31 and total debt reduced to US$35 million. Under the current terms of the loan agreement, the Company is scheduled to make seven additional quarterly payments of US$5 million to retire the debt at the end of 2020. The Company is reviewing options to restructure debt in order to boost its financial flexibility.”
The disclosures would come as the Canadian-owned company, facing a bid by a number of shareholders to sack the current board, citing poor performance, will be holding an annual and special general meeting on May 22nd.
Scott Caldwell, President & CEO stated: “Management is developing an optimized production schedule that will, among other things, reduce the stockpile build up that is currently part of the new LOM plan. Moreover, management has identified several additional cost savings opportunities not captured within the new LOM plan that will improve operating and financial flexibility.”
“Looking ahead, we expect to set a new and higher standard in our operating performance and provide consistent results based on our new resource model. We have continued to strengthen our Board and senior management and have brought on proven expertise to assist with our operating plan.”
In the first quarter of 2019, the company said it significantly improved mining and milling volumes compared with the prior year.
Gold recovery averaged 90.5% for the quarter, compared with 91.7% a year earlier. The company completed the mill expansion, which is anticipated to enhance capacity and redundancy of the primary crushing circuit and expected to further lower per unit costs.
Work on the underground decline will resume in the second quarter.
“The contractor will complete and reinforce the collar at Mad Kiss and extend the exploration 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.”
On April 4, 2019, a group consisting of senior Guyana Government officials and media visited the Aurora Gold Mine.
“The tour successfully met its key objectives, highlighting the safety and well-managed operations while familiarizing key stakeholders with the opportunities that lie ahead if and when the Company obtains a permit for underground mining.”
The Company has submitted an application for an underground mining permit to the Guyana Geology and Mines Commission.
If approved, the Company proposes to commence commercial underground mining in 2022. Underground operations would be expected to add 300 people to the current work force of approximately 720.

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