Guyana’s gold sector on decline since 2017 while foreign companies continue to discover massive finds

Jul 16, 2023 News

---

Kaieteur News – With foreign companies rushing to cash in on the “gold fever” in Guyana, the country has been suffering massive declines in its annual declarations since 2017.

Though an analysis of the situation seems far from conception by leaders, Kaieteur News this past week delved into the available statistics which depict a frightening trend. Even though gold companies have been boasting of the “unlimited resources” unlocked in Guyana, the excitement of these results has been undermined by a failing sector, at least according to the declarations made to the Guyana Gold Board (GGB).

According to the Bank of Guyana (BoG) Annual Report for 2022, the total gold declarations last year declined by 2.5 percent to 486,415 troy ounces (oz). It was explained that this was partly due to the poor weather conditions which made access to mining blocks difficult.

A table used by the financial institution indicated that in 2021 and 2020, declarations were 499,054 oz and 585,433 oz respectively.

In 2019, the gold sector had performed better with declarations amounting to 641,828 oz. The BoG Annual Report for that year explained, “Total gold declaration increased by 4.7 percent and represented 99.1 percent of the revised targeted amount for 2019. The gold subsector experienced greater declarations by small & medium scale miners by 23.9 percent to 448,321 ounces while the combined output of the foreign companies (Guyana Goldfields Inc. and Troy Resources Guyana Inc.) declined by 26.6 percent to 186,584 ounces.”

Meanwhile, for the years 2016, 2017, and 2018, notable decreases were recorded; a total of 712,706 oz, 653,753 oz, and 613,073 oz were recorded respectively. BoG in the 2016 Annual Report noted that gold declarations had increased by 58.1 percent when compared with the resources declared in 2015.

“The expansion in gold declarations was on account of contributions from small and medium scale miners of 67.7 percent of the total output or 482,612 ounces and from two foreign gold mining companies – Guyana Goldfields and Troy Resources – of 32.3 percent or 230,094 ounces,” the Bank reported in 2016. It added that the improved gold prices coupled with low fuel costs, and granting of concessions were catalysts for greater declarations.

Massive discoveries

Over the years, foreign companies have been reporting huge discoveries of gold in Guyana. There are six mining districts in the country: Berbice Mining District 1, Potaro Mining District 2, Mazaruni Mining District 3, Cuyuni Mining District 4, Northwest Mining District 5, and Rupununi Mining District 6, with the bulk of gold mining currently occurring in Districts 2 to 4.

With millions of ounces of gold pocketed below the surface of the earth, international companies from across the globe have been heading to the city historically believed to be ‘El Dorado’ in a desperate hunt for the resources.

In 2020, an Australia-based mining company, Alicanto Minerals announced its first-ever gold find in Guyana, mere days after another Australian firm, Troy Resources, announced that it too discovered gold underground.

In more recent times, Kaieteur News has reported on the massive discoveries made. Just a few days ago, Canadian Company, Omai Gold Mines Corporation announced an exciting find for its shareholders with unlimited deposits likely in Region Seven (Cuyuni-Mazaruni).

On Monday, the company’s Chief Executive Officer (CEO) and President, Elaine Ellingham, said “These impressive new drill results continue to confirm the magnitude of the Wenot deposit, by demonstrating strike and depth continuity of significant gold mineralization. We have not seen any limitations to the Wenot deposit, and as such, are confident that additional drilling can further expand the gold resources.”

She added that the tests conducted suggest that the mineral grades may increase with depth, particularly at the west end of the deposit.

Kaieteur News had reported in January 2022 that the company had struck the jackpot in its Wenot Gold deposit. It had found the 1.6 million ounces gold some 400 metres south of the Fennell open pit- a pit that has produced some 2.4 million ounces of gold for Omai in the past.

In November last year, a Canadian mining company, Alerio Gold Corp boasted to its shareholders that there was a “gold fever” in Guyana as the company entered into a property purchase agreement to acquire a 100 percent interest in five gold prospecting licenses here, known as the Puruni Gold Property.

Just two weeks prior, it was reported that Omai had struck a new gold find that was worth two times the country’s total debt at the time. The company disclosed in a statement to its shareholders that it was “extremely pleased” because it has been able to double a previous gold find of 1.6 million ounces of gold to 3.69 million ounces of gold within nine months. The find by Omai was worth over US$6.2B; while Guyana’s total debt at the time was US$3.2 billion.

Following two years of intense pressure from this newspaper, the government finally published the mining contracts for companies operating in the country.

Since 2019 when Guyana became a member of the Extractive Industries Transparency Initiative (EITI), the country agreed to adhere to several requirements, including the public disclosure of all mineral agreements entered into.

Although the requirements were known to the administration, it continued to make excuses to avoid the release of these contracts.

In May, the administration published five mining contracts on the Ministry of Finance website.  They include Aurora – Mineral Agreement; Guyana, GGMC and Reunion Manganese Inc. – Mineral Agreement; Guyana, GGMC, First Bauxite & Guyana Industrial Minerals Inc. – Mineral Agreement; Karouni – Mineral Agreement and Toroparu – Mineral Agreement.

An additional 13 Licences granted to the mining companies were also made public. They include Atlantic Golds Inc; Bauxite Company of Guyana Inc. 2006; Bauxite Company of Guyana Inc. 2010; Bauxite Company of Guyana Inc. 2012; Bosai Minerals Group Guyana Inc. 03 2004; Bosai Minerals Group Guyana Inc. 04 2004; Bosai Minerals Group Guyana Inc. 05 2004; Guyana Goldfields Inc.; Guyana Industrial Minerals Inc.; Guyana Manganese Inc. ML 022022; Guyana Mining License G-1000 000; Ontario Mining License and Troy Resources Pharsalus.

---

• BoG, companies, declarations, discoveries, foreign, gold

---