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Govt. hails US$1.5B gold project by Canadian firm
– Min. Benn says exploitation of Guyana’s resources is a win-win situation
The Oko West Gold Production Profile
By Renay Sambach
Kaieteur News- Minister of Home Affairs, Robeson Benn, expressed the PPP/C government’s strong support for the development of a US$1.5 billion gold project, during a forum hosted by Canadian mining company G Mining Ventures (GMIN) on Wednesday.
GMIN is the new owner of the large-scale Oko West project, located in Region Seven (Cuyuni-Mazaruni). Kaieteur News had reported that according to the project’s Preliminary Economic Assessment (PEA), Oko West is expected to produce 353,000 ounces of gold annually over its 12.7-year mine life, with a total output of 4.5 million ounces.
A geologist by training, Minister Benn highlighted that the Oko West project continues the work initiated years ago by Omai Gold Mines, a Canadian company that has reentered Guyana’s mining sector. “…exploiting the natural resources of Guyana in a win-win situation for investors for Guyana…” Minister Benn said, adding, “Guyana is at the most momentous situation in terms of its development in this country, we have the oil and gas development which is much talked about, we have the opportunities and the synergies spinning out of that and with this new development at Oko West this will broaden the opportunities for people…”
Minister of Home Affairs, Robeson Benn (Govt. hails US$1.5B gold project by Canadian firm)
The minister stressed that the Oko West development aligns with the government’s policy of not relying solely on one resource base, like oil and gas. “We will not rely and subsists and perhaps make the mistakes of other countries on relying on one resource base,” he noted.
Minister Benn reaffirmed that the government has kept its commitment to revitalizing the natural resources sector, particularly mining. “We want a holistic, broad base development of our country that there will be several poles of development for our country and we will not constraint or retard any opportunity to develop what is still a poor country, what is still a undeveloped country…” he explained, adding that the PPP/C government fully supports the Oko West development.
The minister passionately called for the development of additional projects like Oko West. “That is what we want…this time will not come again easily we are at the cusp of important development and we have to keep it going at a certain level going forward,” he said, stressing the need for four more large-scale gold mining projects in Guyana over the next 15 years.
Additionally, Minister Benn pointed out that the investment in Oko West also holds significant geopolitical value. While the Guyana-Venezuela border controversy case is pending before the International Court of Justice (ICJ), the minister assured, “Essequibo belongs to Guyana…”
While Guyana’s gold declaration has been on the decline since 2016. Currently, there is only one large-scale mining company, China’s Aurora Gold Mine (AGM). GMIN is one of several Canadian mining companies that are expected to start gold production in the coming years.
Notably, the Oko West PEA highlights an average gold grade of 2.00 grams per tonne (g/t) and a high metallurgical recovery rate of 92.8%. The company had said that the PEA confirms strong economics for a low-cost, large-scale mining operation using both conventional open pit (OP) and underground (UG) methods. According to GMIN, with operating costs well below industry averages and a high rate of return, the project is ideally positioned to benefit from favourable macro-economic conditions, including strong gold prices, low inflation, and Guyana’s rapidly developing economy.
The open pit mine is projected to have a life of 15 years, which includes 2 years of pre-stripping and involves four pit phases. In contrast, the underground mine is expected to operate for 13 years, including 2 years of development, across three zones.
The milling operation is planned to run for 13 years. It was explained that during the first three years of commercial production, the processing feed will be provided entirely by the open pit. From the fourth year onward, underground mining will begin supplying a significant portion of the mineralized material.
Notably, the Oko West project payback period is estimated at 3.8 years, based on a gold price of US$1,950 per ounce.
(Govt. hails US$1.5B gold project by Canadian firm)
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