January 23, 2018

Guyana Goldfields announces record-breaking performance for 2017

Canadian-owned Guyana Goldfields Inc has announced a record-breaking performance for 2017, with a production of 160,500 ounces at its Aurora Gold mine, which means the company has achieved the lower end of its production target for the year.

Guyana Goldfields Inc President and CEO Scott A Caldwell

The company also had a record fourth quarter with respect to ore tonnes mined, tonnes milled and gold produced. Gold recovery also continued to trend favourably, with gold recovery for the month of December of 92.6 per cent representing the highest monthly recovery in the company’s history.
According to a report, the Goldfields Inc plans to release the 2017 operational and financial results before market on Friday, February 23, 2018. During that same day, the results and details of its performance will be discussed among partners and interested groups.
President and Chief Executive Officer (CEO) of the company, Scott A Caldwell has said that the fourth quarter was the strongest quarter for gold production in the company’s history, despite undergoing four scheduled down days in November 2017 for a mill liner change.
“The operational improvements and capital investments made throughout the year in the mining fleet, bulk emulsion delivery system, and logistics haulage fleet are yielding operational efficiencies which are expected to translate to lower unit costs in the fourth quarter,” he added.
To date, Aurora has proven to be strong, with high grade asset and exceptional cash flow generation, Caldwell said. “We look forward to continuing this strong performance into 2018 by delivering an improved mine plan that reduces overall capital and operating costs and further improves cash flows.”
The Aurora mines are the biggest in Guyana, with the company’s presence helping to push gold declarations to a record 700,000 ounces for the last two years.
The CEO said the company was well-positioned financially to grow near-term production and significantly increase exploration efforts, with an unaudited cash balance of approximately US$75 million at the end of the year versus a total debt balance of US$60 million.
The company plans to issue an updated mine plan, along with 2018 production and cost guidance and an updated reserves and resources statement later in the first quarter of this year.
The Aurora mines achieved commercial production in January 1, 2016 which saw output of 151,600 ounces of gold, in line with the company’s upwardly revised guidance of 140,000 to 160,000 ounces.
Since the start of production in August 2015, the company said it has paid US$26.5 million in royalties to the State and purchased US$84.1 million in goods and services from local businesses. It says it has also spent US$197,000 on community projects and donations to Guyanese organisations.
During October 2017, the Natural Resources Ministry said it was moving ahead to achieve its projected target of 700,000 ounces of gold declared for the year 2017, reporting a 475,202 gold declaration thus far. The National Budget had set a target of 694,000 ounces, but the Ministry was aiming for 700,000 ounces.
In 2016, gold declarations surpassed 700,000 ounces, with a production of 705,820 ounces of gold. All miners were lauded for the record-breaking declaration for 2016 and were asked to recommit to breaking records again in 2017.