Guyana Goldfields Inc. shines for Guyana’s Golden Jubilee
Guyana Goldfields Inc. (GGI) is a Canadian based company, focused on the exploration and development of gold deposits in Guyana, South America. The Company is an emerging gold producer with the onset of its 100% owned Aurora Gold Mine which achieved first production in mid-2015. The Aurora Gold Mine has a total gold resource of 6.54 million ounces in the measured and indicated categories (62.83 million tonnes at 3.24 g/t Au) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at 3.34 g/t Au).
The Company was pleased to announce that mining operations for first quarter 2016 gold production totaled 41,281 ounces at its Aurora Gold Mine (“Aurora”) in Guyana, South America. In the first quarter ended March 31, 2016, the Company produced 41,281 ounces of gold, of which, 40,568 ounces were sold at an average realized price of US$1,196 per ounce generating approximately US$48.5 million in pre-tax revenue.
The mill processes an average of 5,083 tonnes of ore per day, of which 77% of the ore processed was composed of hard rock, at an average head grade of 2.98 grams per tonne gold (“g/t Au”) and gold recoveries averaged 90.4%. Mining continues to go well with total material mined for the year exceeding initial estimates by 38% or 566,066 tonnes. Total overall gold production since September 2015 is 77,182 ounces. The Company has mined a total of 1,113,965 tonnes of ore grading 2.87 g/t Au and a total of 908,002 tonnes of ore has been fed to the mill and the remaining tonnes of ore were stored in the stockpile located near the mill. In addition 2,711,629 tonnes of waste has been mined. At March 31, 2016, the Company made its second principal debt repayment of US$6.8 million towards the Project Loan Facility of US$160 million totaling its combined principal debt repayment to US$11.1 million.
Scott Caldwell, President & CEO states, “We are extremely pleased with the overall performance of Aurora and the Company is well on its way to achieving its production guidance for 2016 of 130,000 to 150,000 ounces of gold. We continue to optimize gold recovery and are actively working on continuous improvement initiatives designed to improve operating efficiency and reduce costs.”
GGI plans to release its first quarter 2016 operating and financial results by Tuesday, May 10, 2016. Gold has been the largest export of Guyana. However, with the soon onset of the production of Oil and Gas this may change.
Royalties paid are as follows:
- 1. 5% Gold price $1,000/oz or less
- 2. 8% Gold price $1,000/oz +
Corporate income tax: 30% with no withholding tax on interest payments. The company has 523 employees of which 96% are Guyanese nationals.