TORONTO, Aug. 4, 2015 /CNW/ - Guyana Goldfields Inc.
(TSX:GUY) (the "Company" or "GGI") is pleased to announce that
first gold production has been achieved on-time and on-budget at
its Aurora Gold Mine (the "Project") in Guyana, South
America.
First gold production was attained through the gravity and
saprolite production circuits which allowed for earlier gold
production (pre-commercial production) through the processing
plant. Initial start-up gold was captured by processing the lowest
grade ore available and GGI is now progressing towards full
saprolite circuit operation and will gradually feed the mill with
higher grade material. The commissioning and startup of the hard
rock crushing circuit is projected to be completed later in the
third calendar quarter of 2015.
The Company expects to produce between 30,000 ounces to 50,000
ounces of gold in 2015, depending on how quickly full ramp-up is
achieved, and approximately 120,000 ounces to 140,000 ounces of
gold in 2016. GGI expects to issue an updated National Instrument
(NI) 43-101 Technical Report Feasibility Study in the first quarter
of 2016 for the Project which will reflect an extended open pit
mining scenario while deferring the underground production until
later in the mine life, as well as, current operating cost
parameters, and an updated ore reserve metal price.
GGI is sufficiently funded to complete construction of the
Aurora Gold Mine. As of June 30,
2015, the Company had approximately US$20
million of capital expenditures remaining to complete the
Aurora Gold Mine. The Company is managing its overall development
budget to not exceed US$277 million
which includes the initial development costs of US$249 million for the Project and US$28 million in financing costs, pre-operating
costs and working capital investment. The Project remains to be
tracking on budget with an untouched US$52 million overrun facility available, if
needed.
GGI expects to report its interim consolidated financial
statement results of the Company for the second quarter ended
June 30, 2015 on or around
Thursday, August 13, 2015.
Scott A. Caldwell, President and
CEO, commented: "Our first gold pour is an extraordinary
achievement in GGI's transition from an exploration and development
company to a high grade, low cost gold producer. We would like to
celebrate this significant accomplishment for all that have
contributed from the Project's inception and thank our shareholders
and stakeholders in supporting the development of the Project,
including our Board of Directors, management team, employees and
contractors as well as the lenders for the debt financing syndicate
comprised of International Finance Corporation, Export Development
Canada, ING Capital LLC, Caterpillar Financial Services
Corporation, and The Bank of Nova Scotia. In addition, we wish
to thank the Government of Guyana
and local communities for their continued support through the
development of the Project. The focus at the site now is to
increase gold production to our target level of 50,000 ounces
during the balance of this year."
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based company, focused on
the exploration and development of gold deposits in Guyana, South
America. GGI is focused on the construction and development
of the Aurora Gold Project scheduled for first production in
mid-2015. The Aurora Gold Project 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). For further details, please refer to the press
release dated December 9, 2013 and
the report entitled "NI 43-101 Technical Report, Updated
Feasibility Study – Aurora Gold Project" dated January 29, 2013 available on SEDAR at
www.sedar.com.
Forwarding-Looking Information
This news release contains "forward-looking information"
which may include, but is not limited to, statements with respect
to the estimation of mineral resources. Often, but not always,
forward-looking statements can be identified by the use of words
and phrases such as "plans," "expects," "is expected," "budget,"
"scheduled," "estimates," "forecasts," "intends," "anticipates," or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may," "could," "would," "might" or "will" be taken, occur or be
achieved. Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
are based on various assumptions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, the receipt of applicable regulatory
approvals, the timing of the advance of the funds pursuant to the
project loan facility to fund the development and construction of
the Aurora Gold Project (the "Facility"), fulfilling all conditions
precedent to the advance of funds pursuant to the Facility, general
business, economic, competitive, political and social
uncertainties; the actual results of exploration activities;
changes in project parameters as plans continue to be refined;
accidents, labour disputes and other risks of the mining industry;
political instability; delays in obtaining governmental approvals
or financing or in the completion of development or construction
activities, as well as those factors discussed in the section
entitled "Risk Factors" in GGI's annual information form. Although
the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this news release and
the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results, except as may be required by applicable securities
laws. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such
statements.
SOURCE Guyana Goldfields Inc.