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Govt. signs US$1M mining contract with Canadian gold company
Rick Howes, President and Chief Executive Officer (CEO) of Reunion Gold
Kaieteur News – The Government of Guyana (GOG) has signed a US$1 million mining contract with Canada-based Reunion Gold Corporation.
The agreement, signed in collaboration with the government and the Guyana Geology and Mines Commission (GGMC), paves the way for the exploration and development of the Oko West gold project, located in Guyana’s Region Seven (Cuyuni-Mazaruni).
Under the terms of the Mineral Agreement, Reunion Gold Corporation and its wholly-owned Guyanese subsidiary are granted stable fiscal and operational conditions throughout the project’s lifespan. These conditions align with the prevailing standard terms established by the country, ensuring a mutually beneficial arrangement for all parties involved.
Rick Howes, President and Chief Executive Officer (CEO) of Reunion Gold, expressed his satisfaction with the milestone, stating, “I am pleased to have executed our Mineral Agreement with the Government of Guyana.
This significant milestone marks an important de-risking step towards the development of the Oko West Project and underscores the robust support extended by the Government of Guyana towards the project’s development.”
As part of the agreement, the company has committed to prioritising the employment of qualified and suitable Guyanese individuals and to supplement this by implementing a comprehensive training program to develop the additional skills required to facilitate the employment of Guyanese personnel at all levels of operations. This initiative is expected to contribute to the long-term growth and prosperity of the nation.
Moreover, as part of its corporate social responsibility efforts, Reunion Gold will establish a financial support program dedicated to environmental and social projects. With an annual funding of US$1 million, the program will focus on initiatives promoting environmental sustainability and addressing social needs within the surrounding communities.
This commitment will start upon commencement of commercial production or within 24 months from the issuance of a mining license, whichever would come first. Reunion stated that all of these initiatives highlight its dedication to sustainable mining development, which minimizes environmental impacts, positively impacts the communities we work in and creates lasting benefits for Guyana.
The Company said it is moving forward with development studies to advance Oko West towards a construction decision. As part of this work, it expects to complete a preliminary economic assessment (PEA) by mid-2024, which will provide an estimate of the key economic parameters of the project.
Moreover, Reunion Gold is actively considering both open-pit and underground mining. The company aims to reach a construction decision by 2025, marking another crucial milestone in its journey toward operational readiness in Guyana’s gold industry.
The Canadian mining company has firmly set its eyes on reaching gold production at its Oko West Gold Project by 2027. The company has an estimated 4.2 million ounces of gold. In February 2024, Reunion announced an updated Mineral Resource Estimate (MRE) containing a total of 4.3 M oz. of gold in Indicated Resources grading 2.05 g/t and 1.6 M oz. of gold in Inferred Resources grading 2.59 g/t. The February 2024 MRE includes an underground Resource containing 1.1 M oz. of gold at a grade of 3.12 g/t Au in the Inferred category.
This publication had reported that the company’s CEO, during an interview disclosed that they are on a fast tracked timeline with its Oko West project. In 2020, the Company announced a new greenfield gold discovery at its Oko West project and announced its maiden mineral resource in June 2023 after just 22 months of resource definition drilling.
Since discovery, Howes noted that the resource estimate continues to grow, and that the deposit offers ample scale to underpin a meaningful mining operation. Last June, the company announced its maiden resource estimate of 2.5 million ounces of gold.
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